Nageshwar SinghRohit Chhawari

Kavish SinghVikas Goel

Sachin Kumar

BPO to India

• Business process outsourcing (BPO) is the contracting of a specific business task, such as human resources and customer service, to a third-party service provider.

• This allows companies to focus on their core business processes.

• BPO is implemented as a cost-saving measure for tasks that a company requires.

What is BPO?

• It is often divided into two categories: - Back Office Outsourcing which includes internal business functions such as billing or purchasing.- Front Office Outsourcing which

includes customer-related services such as marketing or tech support.

BPO Categories

• Key Terms:- Offshore Outsourcing is BPO that is contracted outside a company's own country.- Nearshore Outsourcing is BPO that

is contracted to a company's neighboring country.

- Onshore Outsourcing is BPO that is contracted with the company's own

country.

Key Terms

• Indian revenues from BPO are estimated to have grown 107% to $ 583 million.

• Leading Competitors:- Philippines, Mexico, Canada, China

and Ireland.• 67-72% of costs to call centers operating

in the US/UK is directly linked to man power costs. India only spends 33-40% of costs on man power. This includes training, benefits and other incentives for labor.

BPO to India

India's BPO Market

Service Line Estimate (2010) Estimate (2012)

HR 5.4 3.5-4.0

Customer Care 4.1 8.0-8.5

Payment Services 2.9 3.0-3.5

Content Development 2.6 2.5-3.0

Administration 1.3 1.5-2.0

Finance 0.7 2.5-3.0

Figures in $ billion

Statistics of the FutureThe main revenue areas for Indian BPO companies.

Indian revenues from BPO are estimated to have grown 107 Indian revenues from BPO are estimated to have grown 107 per cent to $ 583 million.per cent to $ 583 million.

US$ Cost per FTE (Full Time Employee) United States India India as % of US costs

Personnel 42,927 6,179 14%

G&A Expense 8,571 1,000 12%

Telecom 1,500 2,328 155%

Property Rentals 2,600 847 33%

Depreciation 3,000 1,500 50%

TOTAL EXPENSES 58,598 11,854 20%

Statistics of the FutureComparison of India Vs US BPO operating costs

• Language – Major attraction for Multinationals– Advantage over competitors

• Educated Employees– Large number of qualified workers– Proven to be the best in the IT and computer

software fields• Strong technical skills • Eagerness to engage clients

– Produce around 100,000 engineers annually

Capabilities: Why go to India?

• Infrastructure– Improvements have led to increasing success

• Telecom facilities• Power sector• India as a whole

• Government– Realize potential for economic development– Favorable policies have turned India into a

BPO/IT hub.• Examples: Investment promotion, telecom

policy, IT Act

Capabilities: Why go to India?

• Processes that do not add value to a product or service.

• Highly repeated tasks with little variation.• Labor intensive tasks that do not require a

companies intellectual property nor core competencies.

• Processes that will tie up large amounts of capital in assets.

Rules to Follow: What to Outsource

• English Language Proficiency• Skilled Workforce• Lower Wages• Flexibility in Working Hours• Suitable Human Resources• Large Number of Graduates

Pros of BPO

• BPO India: Business Process Outsourcing. http://www.bpoindia.org/

• Forbes Magazine: Business Process Outsourcing. http://www.forbes.com/bow/b2b/industry.jhtml?id=38

• Why India?http://www.indobase.com/bpo/why-india/index.html

• InformationWeek: Indian Outsourcers Grow Fast, Gain Prominence. http://www.informationweek.com/story/showArticle.jhtml?articleID=53701018

• CIO Definitions: http://searchcio.techtarget.com/sDefinition/0,,sid19_gci928308,00.html

• BPO service India: Comparing India with other BPO destinations.  http://www.xicom.biz/bpo_swot_analysis.html

Sources