Analysis the feasibilty of BPO in Jodhpur

5/21/2018 Analysis the feasibilty of BPO in Jodhpur

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A

TERM PAPER REPORT

ON

(A SURVEY)

SUBMITTED TO: SUBMITTED BY:

DR.PUJA GEHLOT MRINAL BOHRA

(M.B.A., Ph.D.) (M.B.A. 2NDSem.)

Department of Management Studies,

Jai Narain Vyas University, Jodhpur.


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ACKNOWLEDGEMENT

I take this opportunity to express my indebtedness and convey my sincere thanks and

gratitude to all those who have directly or indirectly helped and contributed towards the

completion of this project. First and foremost, I would like to thank my supervisor Dr.Puja

Gehlot (Asst.Professor)Department of Management Studies, J.N.V University, Jodhpur, for

her constant guidance and support throughout this project and thankful, for providing me

this opportunity.

Last but not the least I would like to thank all the respondents who spared their valuable time

in my study and my friends for their valuable suggestions and cooperation in doing the work

on this term paper.

MRINAL BOHRA


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CERTIFICATE

Department of Management Studies,Jai Narain Vyas University,

Jodhpur (Raj.)

2013-2015

This is to certify that term paper entitled FEASIBILITY ANALYSIS OF BPO INDUSTRY IN

JODHPUR is submittedby Mr. MRINAL BOHRA of second semester in partial fulfillment of

M.B.A. degree course. The student has sincerely completed the Term paper in our institute.

This work was prepared under my guidance and supervision.

Place: Jodhpur Dr.Puja Gehlot

Date: (Asst.Professor)

DMS, JNVU, Jodhpur


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CONTENTS

Preface

Introduction

Objectives

BPO industry in Jodhpur: what are BPOs and what do they offer?

Evolution of BPO in jodhpur

Segments in BPO

Competitive landscape of BPO in jodhpur

Drivers of BPO growth in jodhpur

Challenges for HR professional in BPO

Research methodology

Data analysis

Findings

Conclusion

References

Questionnaire


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A

TERM PAPER

ON

FEASIBILITY ANALYSIS OF BPO INDUSTRY IN JODHPUR

MRINAL BOHRA

Department of Management Studies,

Jai Narain Vyas University, Jodhpur

Rajasthan, India

E-mail:[email protected]

PREFACE

This project is based on BPO INDUSTRY IN JODHPUR. Business Process Outsourcingis the

delegation of one or more of the business processes to an external provider, which in turn

owns, manages and controls the selected processes based on some specific standards. It was

started in JODHPUR in early 1990s by the British Airways who set-up their captive unit in

Delhi.

BPO in JODHPUR starts with low-end data entry processes, but now it moves up the value

chain and deals in core business processes also. Both voice and non-voice BPO Industry exists

in JODHPUR. Various types of services are performed, call centers being the attraction today

for the youth.

Cost competitiveness and talented pool of human resources are the key drivers in the

growth of BPO industry, but still some factors such as underdeveloped infrastructure and

competition from other low-cost countries are providing challenge to the Indian industry,

which needs to be addressed carefully by the cooperation of government, NASSCOM and

industry itself.

Still, JODHPUR is shining in the BPO landscape and is the most attractive destination.
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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INTRODUCTION

The origin of BPO does not lie in the modern industrial age, but it has its roots in the remote

past. Thousands of years ago most people were engaged in hunting, farming, or handicraft

related activities. They used to barter products among themselves. Distribution was limited

to how far the vendor could walk and distribute, BPO was limited to how loud they could

shout. Perhaps the earliest form of BPO was simply the trader shouting out the fact that he

existed and naming what he had to sell in the local market place. As an instrument of

marketing, BPO was an effective through multiple sales people reaching many people at one

time. The American marketing association defines BPO as any paid form of non-personal

presentation and promotion of ideas, goods or services by an identified sponsor. BPO

doesnt change the physical properties of the product but then also it is the most

compulsory expense for creating demand for the product.BPO plays an important role in

todays competitive business world. BPO is used to introduce a new product in the market. It

helps to compete with establish brands and, thereby, ensures the survival and success of

new product. BPO creates demand for the product. BPO spread information about the

product or services and makes consumers aware about it through various mass media which

makes positive effect on the mind of the people and creates demand for the product.

OBJECTIVES

This survey report is aimed at identifying the fact that if the feasibility of running a BPO can

be worked in Jodhpur region. Various groups of people working in different organizations are

targeted for a research survey which will help in understanding the current market trends

and will conclude about the possibility for the establishment of the BPO sector in Jodhpur

area.


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BPO INDUSTRY IN JODHPUR: WHAT ARE BPOs AND WHAT DO

THEY OFFER?

Business process outsourcing(BPO) is a form of outsourcing that involves the contracting of

the operations and responsibilities of a specific business functions to a third-party service

provider.

People usually misunderstand both the terms, namely BPO and Call centers. But, however,

there is a difference between BPO and Call Centers. BPO can be simply explained as: An

organization that is responsible for performing a process or a part of a process of another

business organization; outsourcing is done to save on costs or gain in productivity. Whereas,

a call centre performs that part of a client's business which involves handling telephone calls.

A call centre, for example, might handle customer complaints coming in over a telephone.

Top BPOs and Business Process Outsourcing Companies are offering basic BPO Services, BPO

Solutions services, Accounting BPO Services, Tax Processing BPO Services, Bookkeeping BPO

Services, Chartered Accountants BPO Services, Medical Transcription BPO Services, Legal

Transcription BPO Services and all types of BPO and offshore outsourcing BPO Solution from

India.

The Business Process Outsourcing (BPO) industry in India is a relatively young and nascent, a

very much promising sector, less than a decade old in this business segment. Despite its

recent arrival on the Indian map to form a part of the export-oriented IT software and

services environment, the industry has shown amazing growth and future potential. The

boom in this segment has created an unparalleled opportunity in India. What began as an

activity confined to multinational companies, is today a broad based business platform

backed by leading Indian IT software and services organizations and other third party

providers.

There are number ofbenefitsthe BPOs and Call centers provide:

Major cost reduction


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Better Valued Client Services

Focus better on Value Added Services and business operations

Computerized working (No messes with papers/notes).

Despite its recent arrival on the Indian map to form a part of the export-oriented IT software

and services environment, the industry has shown amazing growth and future potential. The

industry has been growing very rapidly. It grew at a rate of 38% over 2005. Important

business hubs of this industry in India are Bangalore, Hyderabad, Kolkata, Mumbai, Pune,

Chennai, Ahmadabad and New Delhi. For the FY06 financial year the projections is of ` 7.2

billion worth of services provided by this industry. The base in terms of headcount being

roughly 400,000 people directly employed in this Industry.

The global BPO Industry is estimated to be worth 120-150 billion rupees; of this the offshore

BPO is estimated to be some ` 11.4 billion. India thus has some 5-6% share of the total

Industry, but a commanding 63% share of the offshore component.

BPO

BASED ON WORK

NON-VOICE

BASED ON LOCATION

VOICE ON-SHORE OFF-SHORE NEAR-SHORE


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EVOLUTION OF BPO IN JODHPUR

Outsourcing as a concept is probably one of the oldest and most commonly practiced. As a

concept and practice it pervades all aspects of our livesdomestic as well as professional.

The idea of outsourcing has its roots in the 'competitive advantage' theory propagated byAdam Smith in his book 'The Wealth of Nations' which was published in the year 1776. Over

the years, the meaning of the term 'outsourcing' has undergone a sea-change.

Evolution of BPO in JODHPUR can further be explained under two heads:

1. HISTORY OF BPO in JODHPUR.

2. VALUE CHAIN OF BPO in JODHPUR.

1. HISTORY OF BPO IN JODHPUR: In JODHPUR BPO started with the British airways setting

their back-office operations in Delhi in early 1980s. Starting from captive units Indian BPO

moves to the third party BPOs. Thereafter the entry of IT-majors brightens the Indian BPO

industry in global BPO landscape.

Following diagram depicts briefly the history of BPO in JODHPUR:

EARLY 1980s MID 1980s 1990S 2000 2010 2014 0NWARDS

European

airlines started

its back-office

operations in

New Delhi.

BRITISH

AIRWAYSset its

captive unit in

Jodhpur.

American

express (AMEX)

consolidated its

JAPAC (Japan

and Asia-Pacific)

back-office

operations in

Jodhpur.

General Electric

starts an

enterprise called

GECIS (GE Capital

International

services) for voice

operations in

India. In 1994

GECIS was spun off

into GENPACT.

The NEW

TELECOM POLICYOF 1999ended the

state monopoly on

international

calling facilities.

This heralded the

growth of

inbound/outboun

d call centers and

data processing

services.

Pioneered by the

GE THIRD-PARTYBPOs sprung up

in India, thereby

overtaking

captives.EXL

EFunds and Daksh

started its third

party BPOs in

Noida, Mumbai

and Gurgaon

respectively.

IT-MAJORS ENTERED

INTO INDIA. All

major Indian

software

organizations wentinto BPO including

Infosys, Inforlinx, and

Patni. By 2003 Daksh

bought out by IBM,

Quattro started in

2009. Convergys,

SITEL, Accenture,

Hewlett Packard and

dell also set up their

shops in Jodhpur.


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DATA-ENTRY

DATA-

CONVERSION

CALL-CENTRE

TRANSCRIPTION-PROCESSES-

NON CORE

TRANSCRIPTION

PROCESSES-

CORE

2. VALUE CHAIN OF BPO IN JODHPUR:

Value chain is a chain describing the value of business processes being outsourced to India.

Value chain can be explained as the importance of business processes to the firm

outsourcing its business operations. India is moving up in the value-chain. At the beginning

only low end data entry processes were outsourced to India. With the passage of time trend

goes on changing. From low value data entry processes chain moves up to core processes

being outsourced now-a-days. It started with:

MID-1990s- DATA ENTRY PROCESSES: Data entry simply includes entry of data from papers,

books or any hard copy format to computer aided soft copy.

DATA CONVERSION PROCESSES: Conversion of data across various databases on different

platforms.

LATE 1990s- CALL CENTRE SERVICES: Call centers are outlets that exist mainly to answer

inbound or place outbound telephone calls and can exist for the purpose of sales, marketing,

telemarketing, customer service, technical/non technical support or any other specific

business activity.

2010- TRANSCRIPTION PROCESSES: Transcription process implies transcribing the audio or

visual information into electronic document form.Up till 2000 only non-core activities were

outsourced. Then the trend changed and today the core activities also occupy a significant

proportion in total Indian BPO pie. The value chain is explained briefly in the following

diagram:

MID

2010s

1990s

TODAY


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SEGMENTS IN BPO

BPOs inJODHPUR are organized in many segments. Previously there was only low end voice

operations were outsourced to India. In the early days voice operations were the major

actors leaving a very small proportion for non-voice activities. But, as India moves up in the

value chain, non-voice operations starting occupy a bigger proportion of the BPO pie. Except

voice and non-voice, BPOs in JODHPUR can also be segmented into horizontal and vertical.

So business process outsourcing can be segmented as:

1. VOICE AND NON-VOICE BPO.

2. HORIZONTAL AND VERTICAL BPO.

1. VOICE AND NON-VOICE BPO:

INBOUND SALES ACCOUNTING

OUTBOUND SALES DATA ENTRY

TELEMARKETING DATABASE MANAGEMENT

CUSTOMER SERVIC CLAIMS PROCUREMENT

ORDER PROCESSING TRANSCRIPTION

TECHNICAL SUPPORT HUMAN RESOURCES

FIGURE 10- CLASSIFICATION OF VOICE AND NON-VOICE BPO

BPO

VOICE-

BPO

NON-VOICE

BPO


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(A) VOICE BPO (FRONT OFFICE OPERATIONS)

Voice outsourcing is also termed as front office outsourcing. Front office outsourcing services

have to do with interactions directly with customers, usually over the telephone but can also

include email, internet, fax, and other forms of interactive communications with customers.

Organization can concentrate on high valued core business activities by outsourcing its non-

core front-office operations. It also allows them to reduce the significant expense associated

with voice element of business. And by outsourcing the non-core activities to the service

provider who can handle them more efficiently and effectively, customer satisfaction can

also be increased and create a sustainable, long term, productive relationship.

Voice activities being outsourced include:

INBOUND SALES:

Inbound sales refers to the process where the customer calls your business as a result of

stimulus such as a marketing promotion, a referral from someone, a direct mail campaign, a

media advertisement, a contact number on your companys web page, or any type of

marketing and sales activity where the logical next step in the sales process for the customer

is to place a call to the business. For an inbound sales process, the call center agent works

through the sales process to conclude with a sale for your company. Results include making

a commitment to purchase or placing an actual order for a product or service. This could

represent anything from a vacation package to a floral arrangement to a subscription to

almost any type of purchase that can be done over the phone.

OUTBOUND SALES:

Outbound sales refer to the proactive selling of products and services using the telephone. In

inbound selling your customer calls you but in the outbound sales you call your customer for

affecting a sales activity. This includes contacting the customers who have already

demonstrated interest by signing up or by contacting your company by mail, email, web,phone, or in-store activity.


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TELEMARKETING:

Conducting business has changed; its no longer possible to personally visit all your clients

And customers, in fact with the popularity of the Internet, many clients may not even reside

in the same city or even country. Establishing and creating a telemarketing service has

Enabled businesses to connect with all their customers via the phone. A telemarketing

Service allows you to keep track of customers as they close, merge and relocate. Keeping in

Regular contact with your clients means being able to record their movements while

maintaining a marketing and ongoing customer relationship.

CUSTOMER SERVICE:

Customer service covers a wide range of services providing assistance, support, information,

and answers to your customers to a variety of questions and enquiries. Although generally

customer service is done using inbound calls, it can also be used with outbound calls.

Examples of outbound customer service include follow-up on orders, confirmation of receipt

of a product or service, quality surveys with your customers, and more.

ORDER PROCESSING:

Order processing includes the process of taking information from your customers so that a

specific transaction or order can be processed. This applies to either Business to Business or

Business to Consumer relationships with customers.

TECHNICAL SUPPORT:

If your businesss product or service has some element of technology involved, telephone

oriented technical support can help you cost effectively work with your customers to address

and solve their questions in this area. The reality of business is that some of your customers

may miss paying a bill. By using the telephone as a reminder service, a large amount of bills

can be collected easily and effectively. Doing this sooner than later helps your businessmanages cash flow and improves results.


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APPOINTMENT SETTING:

For some businesses, a direct contact between people is required to complete the sale or

provide the service. The challenge is getting the appointment with a potential client. This

service allows businesses to leverage experts in the area of appointment setting to be able

take a potential client from expressing interest in your businesss offer to setting up a

specific time and day for a meeting between that potential client and an account

representative from your company.

HELP DESK:

The help desk function is typically considered to be an internal company function for

supporting your companys employees and businesses in your supply chain. It can also refer

to a place for your customers to call to receive help with questions they have.

MAREKT RESEARCH AND QUALITY SURVEYS:

Market research or quality surveys help to learn more about your market or your business

potential, and also helps in determining the quality of your service and products to

customers. Experienced agents are able to contact and discuss with your existing or potential

customers to gather valuable information to help you make business decisions.


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COMPETITIVE LANDSCAPE OF BPO IN JODHPUR

BPO Industry in JODHPUR is growing very fast. It is gaining ground everywhere. There is a lot

of competition today in BPO landscape. Lets check out which are the major players in

JODHPUR. We will study this under two heads:

1. GENGREEN 1. DAKSH-E-SERVICES

2. WNS GLOBAL 2. ISEVA

3. IBM DAKSH 3. ICICI ONESOURCE

4. ADITYA MINACS WORLDWIDE 4. EFUNDS INTERNATIONAL

5. EXL SERVICE HOLDINGS 5. HCL TECH BPO

FIGURE 16- TOP BPO COMPANIES IN JODHPUR.

Now detailed description of all the major players in BPO ground:

1. GENGREEN:

Gengreen was born in 1997 as the India-based business process operations for GE Capital. In

2005, with equity investments from General Atlantic and Oak Hill Capital Partners, it became

an independent company and was rebranded Gengreen. It is India's No. 1 BPO firm.

Gengreen manages business for companies around the world with a network of more than

30 operations centers in nine countries. Gengreen offers services in finance and accounting,

collections and customer service, insurance, supply chain and procurement, analytics,

enterprise application and IT infrastructure.

BASED ON REVENUE GENERATED BASED ON EMPLOYEE

SATISFACTION

TOP BPO COMPANIES IN JODHPUR (2013)


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Accolades won by Gengreen

'No.1 Best Performing BPO' and 'No.3 Leader in Human Capital Development' by Global Servicesmagazine,

in 2008

Top 10 in IAOP's 'Global Outsourcing 100' list, 2007-08

'Top 10 Employer' distinction, Dalian, China, 2006-08

'No.1 ITeS-BPO Company' in JODHPUR by NASSCOM, 2008-12

2. WNS GLOBAL:

WNS Global serves several industries, including travel, insurance, financial services,

healthcare, professional services, manufacturing, distribution and retail. Warburg Pincus is

the majority shareholder in WNS Global Services.

The NASDAQ-listed company with more than 9,000 professionals was set up in 1996. Neeraj

Bhargava is a co-founder of WNS (Holdings) Ltd and group chief executive officer. It posted

quarterly revenue of $116.1 million for the fourth quarter ended March 31, 2008, up 4.9 per

cent from the corresponding quarter last year. Its revenues stand at `459.9 million, up 30.5

per cent from fiscal 2007.

Accolades won by WNS Global

Nasscom ranking: No. 1 BPO Company for the year 2013

NeoIT Global Survey: No. 1 'Best Performing' BPOCompany / No. 1 in Human Capital

3. DAKSH:

The five-year old IBM Daksh was created by four professionals -- Sanjiv Agarwal, Pawan

Vaish, MJ Aravind and Venkat Tedanki -- who saw a great opportunity in the business process

outsourcing space. With no business model to follow, it was a big challenge to set up the

company. IBM Daksh is known for a good leadership, a focussed vision and an undying

passion. In April 2004, IBM Corporation acquired Daksh e-Services to serve as a global hub to

manage business processes for clients from across the world. With 14 service delivery

centres IN JODHPUR, IBM Daksh has more than 36 centers around the world. Today IBM

Daksh employs more than 20,000 people. Pavan Vaish is the chief executive officer.


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Accolades for IBM Daksh

Frost & Sullivan Contact Center Outsourcing Vendor of the Year 2013

Most Respected BPO Company in JODHPUR(Business World)

IBM Daksh tops the 2007 Global Outsourcing 100

4. ADITYA BIRLA MINACS WORLDWIDE:

Aditya Birla Minacs is part of the `24 billion global conglomerate, the Aditya Birla Group.

Aditya Birla Minacs was formed when Minacs, Canada's leading BPO Company, and

Transworks, the BPO arm of Aditya Birla Group, joined hands to become a leading global

business process outsourcing player.

Aditya Birla Minacs clocked revenues to the tune of `392 million (or about Rs 1,575 crore) till

March 2009, a 17 per cent rise over the previous year's `335 million. With over 26 years of

experience, Aditya Birla Minacs offers BPO solutions for Fortune 500 clients. Minacs has

more than 12,000 employees at locations in North America, Europe and Asia.

It serves clients in automotive, banking, financial services, insurance, telecommunications

and technology verticals. Dev Bhattacharya is the managing director for Aditya Birla Minacs

Worldwide Ltd, a subsidiary of Aditya Birla Nuvo

.

Awards for Aditya Birla Minacs Worldwide

Dataquest (annual Top 20 BPO listing) - Ranked as India's No 2 BPO company

NASSCOM 2009-13 - Ranked as India's third largest BPO, based on export revenues

NASSCOM - Among Top 100 IT innovators in JODHPUR IT People Group.

5. TRC BPO

TRC BPO is one of the leader players in the outsourcing industry. It offers services in areas

such as finance and accounting, banking, HR outsourcing, KPO, insurance, payroll,

healthcare, telecom, media, travel and entertainment. TCS operates from more than 41

countries and has more than 155 offices across the globe. Its head office is located in

Bangalore. It has branches in Jodhpur .While Tata Consultancy Services is India's top

software company, TRC BPO established a stronghold in the BPO space. The TRC group


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posted a consolidated net profit of Rs 1,290.61 crore (Rs 12.90 billion) for the first quarter

ended June 30, 2008, an increase of 7.3 per cent compared to the year-ago period.

Accolades for TCS BPO

In 2006, TCS BPO was named as one of the world's top BPO providers by the International Association of

Outsourcing Professionals.

6. EXL Service Holdings

EXL Service Holdings came into existence in April 1999 in Delaware, US. It was founded by a

group of professionals including Vikram Talwar (now executive chairman) and Rohit Kapoor,

who is now the CEO. Vikram was then the CEO and managing director of Ernst & Young, and

Rohit managed international investments for clients at Deutsche Bank.

In August 2001, Conseco acquired EXL and operated as its wholly owned subsidiary. Later, in

November 2002, Oak Hill Capital Partners L.P. and FT Ventures along with members of the

senior management team bought EXL from Conseco making it a third party pure-play

business process outsourcing service provider. The company has seen a fast-paced growth

with 50 clients and staff strength of 8,200 employees. Revenues for the quarter ended

March 31, 2008 were $50.9 million compared to $39.9 million in the quarter ended March

31, 2007, an increase of 27.8 per cent.

Accolades for EXL Service Holdings

Recognized as one of the Top 100 hot growth companies for 2007 Among the top 10 best performing BPOs

in CMP Media's list No.1 rising star in the Global Outsourcing list by International Association of Outsourcing

Professionals.

7. ISEVA:

ISeva is a leading BPO and is a part of e4eGroup. It is an ISO: 9001 2000 Certified company

and provides services in customer care, transaction processing and data processing. ISeva

has two facilities in INDIA, which are in JODHPUR and JAIPUR. It has employee strength of

1,000.


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8. EFUNDS INTERNATIONAL:

Although Efunds was ranked fourth in the overall E-SAT survey, it had outsmarted its rival

companies by a convincing margin to get the top slot as the Most Preferred Employer. It has

been chosen by the most number of employees as a Dream Company to work with. Efunds

provides excellent services in customer care (both voice and email process), transaction

processes and back office operations. Its areas of functioning are Financial Services,

Electronic Funds Network, Retailers, Telecom, Software Development and other businesses.

Efunds has recruited over 4,000 employees in its branches worldwide. In JODHPUR it has one

facility in Pal Road and two in Housing Board. It also has two software development centers

in Chennai. According to sources, Efunds is on the verge of receiving the BS 7799 certificate

as it has already implemented this internationally recognized security standard in the

organization.

9. NIIT SMART SERVE:

NIIT Smart Serve is a global BPO company, which has expanded its outsourcing business over

the years. Its services include Insurance, Financial Services, Real Estate, Transportation and

Technology. The current employee strength of NIIT Smart Serve is more than 800. Its service

center is located in Gurgaon (New Delhi NCR). It offers services both in customer care and

back office processing.


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DRIVERS OF BPO GROWTH IN JODHPUR

A driver is most commonly afactor that contributes to thegrowth of a particular business.

There are mainly six important business drivers that are pushing enterprises to consider the

BPO options in JODHPUR. These are:

1. ABUNDANT TALENT:

Jodhpurs young demographic profile is an inherent advantage complemented by an

academic infrastructure that generates a large pool of English speaking talent. Talent

suitability concerns are being addressed through a combination of government, academia

and industry led initiatives. It includes efforts by NASSCOM and other education agencies like

UGC and AICTE to facilitate industry inputs on curriculum and teaching.

2. SUSTAINED COST COMPETITIVENESS:

Jodhpur has a strong track record of delivering a significant cost advantage, with clients

regularly reporting savings of 25%-50% over the original cost base. The ability to achieve

such high levels of cost advantage by sourcing to India is driven by the ability to access highly

skilled talent at lower wage cost.

3. CONTINUED FOCUS ON QUALITY:

Demonstrated process quality and expertise in service delivery has been a key factor driving

Jodhpurs leadership in global service delivery. Since the inception of industry in JODHPUR,

players within the India has been focusing on quality initiatives, to align themselves with

international standards.
http://www.investorwords.com/1872/factor.htmlhttp://www.investorwords.com/2258/growth.htmlhttp://www.investorwords.com/2258/growth.htmlhttp://www.investorwords.com/1872/factor.html


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4. WORLD CLASS INFORMATION SECURITY ENVIRONMENT:

Indian authorities have built a strong foundation for an info-source environment in the

country. These include strengthening the regulatory framework through proposed

amendments to further strengthen the IT Act-2011.

5. RAPID GROWTH IN KEY BUSINESS INFRASTRUCTURE:

BPO sector has been a key beneficiary with the cost of international connectivity declining

rapidly and service level improving significantly. The growth is taking place not only in

existing urban centres but also in satellite towns and smaller cities.

6. ENABLING BUSINESS POLICY AND REGULATORY ENVIRONMENT:

The enabling policy environment in JODHPUR was instrumental in catalyzing the early phase

of growth in this sector. Policy makers in JODHPUR have laid special emphasis on

encouraging foreign participation, with participating firms enjoying minimum regulatory and

policy restrictions along with a broad range of fiscal and procedural incentives.

B. ISSUES AND CHALLENGES IN BPO GROWTH:

1. INFRASTRUCTURE CHALLENGE:

Indias ITES-BPO industry continues to attract significant business from both the US and

Western Europe. While national issues with infrastructure, e.g. telecommunications system

etc is being addressed, the local infrastructure (roads, bridges, airports, urban

transportation, etc) is becoming a bottleneck to the expansion of capacity. Getting a

connection is still not a hassle-free job. Threat of competition from other emerging countries

like Philippines, Ireland, Mexico and Brazil among others.


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2. MOVING UP THE VALUE CHAIN:

Customers are looking for vendors who can provide end-to-end solutions. Indian vendors are

using several methods like tie-ups with existing players, acquisitions, investing in research

and development and leveraging industry best practices for expansion.

3. SHRINKING PROFIT MARGINS:

To sustain in the highly competitive market, the players are looking for newer revenue

sources and opportunities to keep cash flowing in. Again with service level agreements

becoming stringent and sales cycles stretching far in international deals, the BPO service

providers need deeper pockets and financial muscles. High initial capital investments in the

industry, long gestational periods, competition leading to reduced billing rates, appreciation

of rupee against the US dollar have led to increased margin pressures and increased industry

consolidation.

4. HUMAN RESOURCE ISSUES:

Another major problem is the high attrition and growth aspirations of the workforce. Odd

hours at job and stress are supposed to be major causes of high attrition rate which

increases recruitment and training costs. The service providers need to spell out a

comprehensive human resource policy that outlines a clear career progression path for the

employees.

5. OTHERS:

There are several other important issues facing the Indian ITeS-BPO companies which are

given below

US subprime crisis and possible slowdown in the US economy may hit Indian ITeS-BPO

industry as the US contributes a lions share to the Indian ITeS-BPO export revenue

Declining profit margin due to rise in operating cost coupled with rise in real estateprices in Tier I and II cities, wage inflation etc.


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CHALLENGES FOR HR PROFESSIONAL IN BPO

HR professional has to face various challenges other than the above stated. These are:

BRAND EQUITY:

People still consider BPO to be "low brow", thus making it difficult to attract the best talent.

So HR managers have to work for its promotion.

STANDARD PRE JOB TRAINING:

Again, due to the wide variety of the jobs, lack of general clarity on skill sets, etc, there is no

standard curriculum, which could be designed and followed.

BENCHMARKS:

There are hardly any benchmarks for compensation and benefits, performance or HR

policies. Everyone is charting their own course.

DEMAND OF CUSTOMER COMPANIES:

Customer-companies tend to demand better results from outsourcing partners than what

they could actually expect from their own departments. "When the job is being done 10,000

miles away, demands on parameters such as quality, turn around timeliness, information

security, business continuity and disaster recovery, etc, are far higher than at home. So, how

to be more efficient than the original?

LACK OF FOCUSED TRAINING AND CERTIFICATIONS:

Again there is not any kind of training which can be provided to the employees in BPO and

no bench-marks and certifications to rank them.

Given this background, the recruiting and compensation challenges of HR departments are

only understandable.


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Research Methodology

Primary Data

Primary data will be collected by using survey method; survey conducted will be on visiting

the particular BPO offices and centers basis with the help of open and closed end

questionnaires.

Sample size

5-10 Offices

50 Clients

Sample inspection- People of all segments of different range including all income groups- the

lower income group, the middle income group as well as the higher income group.

Area of research

Jodhpur

Sampling technique

Random

Secondary Data

Secondary data will be collected from Magazines, Newspapers, and Internet and

other sources.

Tools for measurement

Open and closed end questionnaires


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DATA ANALYSIS

After received all of the completed questionnaires from the respondents, there are few steps

taken to analyze the data. By using Descriptive statistics it is to describe the data such asfrequency, percentage, average, and standard deviation. Then, examining factor analysis will

be conducted on all items in the instrument. It is very important to ensure that every of the

step items on the survey are independently measured the theoretical constructs they were

intended to measure.

In this study, we are investigating the factors that will help in finding feasible conditions and

perception towards the establishment of BPO industry. Therefore, a systematic sampling

approach is being used. The population of this study is the students of Universities and

working adults / young executives. A total of 50 questionnaires will be distributed to collect

usable responses throughout the data collection period. I believe that we will be able to

obtain sufficient information with the amount of 50 respondents that required for the data

analysis purpose. To avoid biases during the process of conducting the surveys, the

questionnaires will be randomly distributed to the respondents.

In order to understand the factors and perception towards the BPO industry, the main

primary data collection method will be the questionnaires. Questionnaires are a way to

obtain data needed from a large number of respondents in a specific period of time with it

lesser time consuming with high response rates and an effectively and efficiently. Email is

also a method that enables us to reach the respondents from the nationwide and also cost

saving. The close format questions will be existing in the questionnaires. To be easier to

calculate and analyze the statistical data we will obtain it by restricting the area of answer

set.


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FINDINGS

QUESTION-1

PERIOD OF WORKING IN THE ORGANISATION:

Period < 1 year 1-2 years 2-5 years >5years Total

Respondent 21 13 36 18 40

Percentage 54 32.5 9 4.5 10

Findings:From the above information, we can find that out of total sample of 40 respondents almost 54% of them

are working in the organization for a less than 1 year.

Almost 32.5% of them working between 1 to 2 years in the organization while 9% of them were working

between 2 to 5 years.

The most experienced employees were less; they were about 4.5% who have worked for more than 5

years.

Analysis:

As more than 50%(54%), as a total, of employees working in the various organization are working for less

than one year, It clearly indicates the sign of high attrition rate(the rate at which employees leave the

organizations) in BPOs and Call centers.

If we analyze the whole chart more closely, we find that more than 85% of employees have been in the

organizations for less than 2 years which reveals that employees like to change their jobs very frequently,

may be because of lack of motivation or satisfaction purposes.

The concrete reasons for this would be dug out in the following questions and their results.


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QUESTION-2

MONTHLY INCOME:

Income 3000-6000 6000-9000 9000-12000 >12000 Total


Percentage 49 37 8 6 10

Findings:

Out of total respondents, 49% respondents fall under the category of monthly income of around Rs. 3000

to 6000 while 37% of them are getting around Rs. 6000 to 9000.

Where at the other side the employees who were getting salary of Rs. 9000 to 12000, were only 8% while

there were only 6% employees who were getting salary above Rs. 12000.

Analysis:

Nearly half (50%) of the employees work in the call centre fall under the category of Rs.300-6000. It may

be due to poor financial conditions and also, the education level doesnt matter in other job .

As the attrition rate is high in this industry, it also result in lower initial salary for the employees, because

employees will have to accept the salary which ranges mainly from 3000 to 6000 Rupees in Ahmadabad.

37% of employees fall under the category of salary income of Rs. 6000-9000 which can be said to be a

standard in this industry but the percentage of which is very low, leading to the conclusion, exploitation of

candidates.

Nearly 15% of employees receive their salary in 5 digits which mainly of the employees working for more

than 4-5 years.


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QUESTION-3

REASONS FOR JOINING THE ORGANISATION:

Findings:

As we see that 63% of employees believe that they find better job environment in this industry than

working at anywhere else, and 61% agree that they have the reason for growth opportunities to join this

organization.

This is followed by Good salary (53%), Opportunity of making better friend circle (36%), Flexibility of

working (34%), Job content (29%), Transport facility available (21%), and the remaining..

Analysis:

The question was purposed to reveal the reasons why employees join this industry

Since the responding employees were allowed to name the most important reasons for joining, the

percentage do not add up 100%

The top 3 reasons for joining this industry are:

Good work environment

High growth opportunities

Salary is good

The reasons for joining the organization might be a growing IT and ITES industry as well as growing

number of graduates as well as post graduates focusing on higher growth prospectus. The other reasons

might be salary, good working environments and the others what our survey has revealed.


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QUESTION-4(A)

MONETORY BENEFITS EMPLOYEES GET:

Benefits Bonus Commission Overtime

benefit

Travel

allowance

Total

Responses 12 14 17 18 40

Percentage 29.41 8.33 43.13 19.12 10

Finding:From the above information we come to know that 43.13% of the total employees get the benefit of the

over time they have done.

Whereas 29.41% said that they get bonus. 19.12% said that they get travel allowances while only 8.33%

said that they get commission.

Analysis:

As nearly 45% of the total employees gets the benefit of overtime implying that every BPO and Call

Centre provide a sufficient amount of benefits to the employee so that the employee like to overtime in

their job

Almost 30% get bonus which clearly shows that each and every organization provide bonus to the

employee at the end of the year so that employee are motivated and made willing to do the work sincerely

Some company like Motif Info and Emphasis Solution provide travel allowance to the employee to make

the employee feel comfortable and to increase the satisfaction level

We find that most of the companies do not provide any type of commission to their employees (It also

depends upon the type and nature of BPOs for e.g. Inbound and Outbound call centers etc.)


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QUESTION-4(B)

NON-MONETARY BENEFITS:

Benefit Travelling

service

Meals Insurance Sufficient

breaks

Awards &

recognition

Total

Responses 4 4 14 17 17 40

Percentage 2 2 2 2.33 2.33 10

Findings:

Asking about the non-monetary benefits, 29.33% of the total responses replied that the employees get

awards & recognition and sufficient breaks in the organization.

24.33% said that the employees get free insurance in the organization. While the remaining almost 9%

said that the employees get meals and travelling services from the organization.

Analysis:

We find that insurance, sufficient breaks and award and recognition play major role in non monetary

benefits given by the organizations.

Nearly 30% companies provide sufficient (three breaks) to the employees to ensure that their

productivity does not decease and the employees can work freely during their job hours, also to make sure

that they do not get bored and lead to fatigue which in turn leads to dissatisfaction.

30% of companies also provide insurance to their employee to ensure employees security so that they

can work without any fear in their job, but again only 30% of companies, which is very low (Hidden

satisfaction motive may be there).


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QUESTION-5

SATISFIED WITH WORKING IN THE ORGANISATION OR NOT:

Options Yes No Total

Respondent 38 2 40

Percentage 5 5 10

Finding:

Almost 95% of the total employees said that they are more or less satisfied with working in the

organization

The rest 5% of the employee said that they are not at all satisfied with working in the organization.

Analysis:

As many as 95% of employees responded positively saying that they are happy working in the

organization and are more or less satisfied.

Only a very small parentage of employees replied negatively who might be having some or the other

problems relating to monetary aspects or the environment concerns which may be dug out and their

resistance should be identified to make them satisfied.

To dig out the level of satisfaction, we asked further question which reveals the more insight about their

satisfaction level.


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QUESTION-6

LEVEL OF SATISFACTION:

Level of satisfaction Low Average High Total

Respondent 30 2 12 40

Percentage 1 6 3 10

Finding:

Asking about their satisfaction level, 59% said that they are not much satisfied with the organization, it

can be said that their satisfaction level is average

Almost 33% said that they are highly satisfied with the organization

While the remaining 8% were least satisfied

Analysis:

The question was purposed to identify the level of satisfaction of employees who are satisfied(from

among 380 employees)

As far as satisfaction is concerned, as the above question revealed that 95% of employees are satisfied

working within the organizations but when asked actually about the level of satisfaction, it reveals that

majority(nearly 60% of employees) of them are satisfied on average basis

Only 3% of employees say that the satisfaction level of them is very low inferring that they are least

satisfied, not up to the level it should be

Those who are highly satisfied belongs to 33%, which doesnt have any issue regarding their satisfaction

working in the organizations


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QUESTION-7

WHETHER THE COMPANY IS VERY OPEN TO IDEAS AND SUGGESTIONS GIVEN BY EMPLOYEES:

Options Strongly

agree

Agree Disagree Strongly

disagree

Total

Respondent 21 17 16 0 40Percentage 3 1 1 0 10

Finding:

Out of the total, almost 53% of the employees have strongly agreed with the fact that the company is

very open to ideas and suggestions given by the employees

43% are agreeing with this, but not to the level it should be

There were only 4% who were disagreeing, and nobody falls under the category of strongly Disagree

Analysis:

The chart shows that out of 100%, more than half 53% are strongly agree that the company is very open

to ideas and suggestions given by employees meaning caring for employees suggestions and their

recommendations

They believe that company approaches very friendly to the employees suggestions and their ideas and

actually implement it in the organization, if it is concrete in nature

If all and all we see, nearly 95% of employees reported favorably that their company believes in open-

door policies and wants their employees to participate in the organization

The rest only 4% of employees believe that they are somehow agree, but not very concretely


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QUESTION-8

WHETHER THE CULTURE OF THE COMPANY IS SUCH THAT IT CREATES WORK ENVIRONMENT:

Options Positive Negative Stressful Very bad Total


Percentage 6 1.5 1 1.5 10

Finding:

Out of the total employees 79% said that there is a positive environment in the organization 12.5% said

that there is a negative environment.

Almost 7% said that the environment of the company is very stressful in the company and almost 1.5%

said that it is very bad.

Analysis:

As the chart indicates,majority of employees(nearly 80%) are agree that the environment within which

they work is positive and makes them to work and leads to their motivation and satisfaction in the

organizations.

The employee who replied to Negative is nearly 13%, which makes us to infer that the factors that

creates negative environment prevail in the organization.

7% of employees came up with the opinion that the environment in the organization is such that it

creates stress within them, may be because of the pressure and the load of the work, call handling or the

travelling stress or the way they interact with their subordinates and colleagues.

Those factors that create this negative environment in the organization should be identified and their

resistance should be removed to increase the satisfaction level of employees.


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QUESTION-10

WHETHER EMLOYEES RECEIVE THE PROPER TRAINING WHEN EMPLOYEE NEEDS TO DO THEIR JOB WELL:

Options Strongly

agree

Agree Disagree Strongly

disagree

Total


Percentage 6 2 1 1 10

Finding:

Almost 60% of the total employees are strongly agree that they get the proper training when they need

to do their job well.

While 32% are agreeing to this fact.

The remaining 8% are not agreeing to this fact, out of which 5% is disagree and 3% is strongly disagree.

Analysis:

Training is the base for working in the organization.

We found that most of the employees responded that they are being given the training by their

organization whenever it is needed.

This shows that the employees can work easily and safely because they are provided with the training.


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CONCLUSION

The research was aimed at identifying the factors that influence the satisfaction level ofemployees working in BPOs and Call centers at JODHPUR. I hereby would like to conclude y

research by saying that employee satisfaction is not the result of only one or two factor. But

it is sourced from various factors like working environment within which they work, relations

with their colleagues, supervisors, bosses, and rest of the employees, their expectation when

they join the organization and the realization of the same and many more what we have

highlighted in our project.

Its a result of these factors mentioned above that plays major role in determination of the

satisfaction level of employee. Employee is motivated and get satisfied not because only

what they perceive and what they realize after joining, but it is their belief, values and the

way of working along with their attitude towards organization and work that we think, put

major emphasis in determining the satisfaction level of employees. Though it is agreed that a

very modern, educated, youth oriented and sophisticated industry like BPOs and Call

centers, employees tend to believe what they think is more rewarding and shining for them,

is appropriate and a growth fuelling for them. I think employees are what they think and

believe in, beyond a point. I do believe that satisfaction level of employees is going up in this

industry, but challenges remain at the same level. Organizations and HR team will have to

work hard to convert a dissatisfied or less dissatisfied employee into a more satisfied,

motivated and a result oriented employee. Satisfaction level of employees can be increased

by taking into account various stets and programs along with concrete policies, this major

problems of this kind, we think, can be lowered down. Also recommendation of ours can be

a great help to this industry.


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REFERENCES

Report of Journal of industrial Engineering and Management

A report on Enhancing Global Competition in BPO: What India should do? By Dr. S.

Srinivasan.

A research paper on Indian Call centers by Shanti Nandlal Tiwari, a T.Y.B.M.S. Student

India's publishing BPO industry to cross USD 1.2 billion by 2012-A report.

A DQ-IDC INDIA SURVEY: BPO Employee Satisfaction Survey 2003, 2004,2007,2008.

Ahmedabad, Jaipur and Nagpur amongst 31 emerging cities globally for the IT / BPO

industryKPMG Report.

A report on Linking Employee Satisfaction with Productivity,Performance and Customer

Satisfaction.

The book Research Methodology by Panneerselvem R. /first edition/New Delhi

Publication, Prentice hall of India Pvt. Ltd., 2005/ Page referred to from 1 to 16, 17 to 38, and

218.

Research Methodology by M.C. Burney D.H./ 1st

Edition/Singapore, Thomson India Pvt.

Ltd., 2001/ Page referred to from 1 to 111.

Research Methodology for Management by Sajahan S./ 2nd

Edition/ New Delhi Publication

House, 2005/ Page refereed to from 1 to 144, 247 to 378.

Designing and Managing a Research Project by Michael Jay Polo and David Walter/ 1st

Edition/ A division of scope India Publication/ Page referred to from 1 to 53

Articles Collected from Business line, Magazines and Journals.

A report on Let Your Call Center Customer Service Representatives be a Judge!

commissioned by manpower -September 2013.


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Questionnaire for Studying the Feasibility of BPOs in Jodhpur

Purpose:

The survey is aimed at identifying the factors that how the feasibility of running a BPO

can work in Jodhpur region. The data and information given by you in this questionnaire will

be kept confidential and used for educational purposes only.

Name: _____________________________________________________________

Gender: _________ Age: ______ Designation: _____________________

Organization: _______________________________________________________

Questions:

1.How long have you been working in an organization?

less than 1 year 1-2 years

2-5 years more than 5 years

2.

Your monthly income:

Rs. 3000-6000 Rs.6000-9000

Rs. 9000-12000 above Rs. 12000

3. Specify the reason/s for joining the organization:-

(You may tick more than one option)

Good work environment High growth opportunities

Salary is good Transport facility available

Job content can make a lot of friends

Flexibility of time didnt get a better job

Education level does not matter

Others, please specify: ______________________________


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4.Do you feel these monetary and non-monetary benefits motivate you and affect your

satisfaction?

Yes

No

5.

(I) Please indicate the level of satisfaction from the job.

Low

Average

High

If No, then please specify the reason/s:

_________________________________________

6.

The company is very open to ideas and suggestions given by employees:

Strongly Agree Agree

Disagree Strongly Disagree

7.The culture of the company is such that it creates work environment

Positive Negative

Highly Positive Highly negative

8. I am satisfied with the kind of salary hikes I get:

Satisfied Highly satisfied

Dissatisfied Highly Dissatisfied

9. There is a strong feeling of teamwork and cooperation in the organization


Disagree

Strongly Disagree

10.I receive the training I need to do my job well


Disagree Strongly Disagree

Signature: ______________

THANK YOU FOR GIVING YOUR VALUABLE TIME

Documents

Analysis the feasibilty of BPO in Jodhpur