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By-

Saurabh Singh

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Outsourcing is the processof contracting a businessfunction to someone else -

commonly one previouslyperformed in-house - to anexternal provider.

Outsourcing

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Cost Savings

Focus on Core Business

Improve Quality

Operational Expertise

Knowledge

Reasons

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A Business Process Outsourcing(BPO) organization is responsible

for performing a process or a partof a process of another businessorganization; outsourcing is doneto save on costs or gain inproductivity.

BPO

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call centre performs thatart of a client's businesshich involves handling

elephone calls. A call centre,

or example, might handleustomer complaints comingn over a telephone.

Call Center

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Services

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Customer Support Services (voice, e-mail and chat on a24/7 and 365 days basis.)

Technical Support Services

Telemarketing ServicesInsurance Processing

Data Entry Services / Data Processing Services

Data Conversion Services

Book Keeping and Accounting Services

Internet / Online / Web Research (Internet Search,Product Research, Market Research, Survey, Analysis.)

Different Types of ServicesBeing Offered By BPO's

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Offshore Outsourcing is BPO that is contractedoutside a company's own country.

Nearshore Outsourcing is BPO that iscontracted to a company's neighboring country.

Onshore Outsourcing is BPO that is contracted

with the company's own country.

Key Terms:

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World BPO size is worth $170-$185 billion.

India has total revenue of $52 billion

In the year 2011 it is expected to grow at the rate of32% where as the rest of the world is growing at

28% only.India has revenues of $15.7 billion from offshore(which is 7-8% of total BPO industry)

Has a commanding 63% 0f total offshore

Size of the BPO Industry

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Cost effectiveness(Economies)

Better Quality at lower cost

Concentration on CORE BUSINESS

Securing Data is less complicated

Why BPO

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Possibility of security breach

Expensive specialist skill in host countries

High unit personnel cost

Unavailability of skilled manpower due to marketstagnation

Why Not BPO

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Did not get a better job.

Find nothing better to do.

Education level doesn't matter

Good work environment

Good Benefits

Flexibility of time

Attractive life style

Transport facility

Why People Join BPO

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No growth opportunity/lack of promotion

For higher Salary

For Higher education

Misguidance by the company

Policies and procedures are not conducive

No personal life

Physical strainsUneasy relationship with peers or managers

Why People Leave BPO

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1) WNS Group

2) Wipro Spectramind

3) Daksh e-Services

4) Convergys

5) HCL Technologies

6) Zenta

7) ICICI OneSource

8) MphasiS

9) EXL

10) Tracmail

Business ProcessOutsourcing: The TopRankers

*The basis of ranking isthe revenues generatedby the BPO companies in

2003-04, as per US GAAP,according to a surveydone by NASSCOM.

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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 toIndia?

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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 toIndia?

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Designations USA INDIA

CCRs 70-80000 pm 8000-15000pm.

Team leaders 1-1.2 lacs pm. 17000-26000pm.

Training heads 4-5 lacs pm. 8-12 lacs PA.

Training mgrs 3-4 lacs pm. 5-8 lacsPA.

Trainers 1-2 lacs pm. 2-5 lacsPA.

Salaries: India Vs USA

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Processes that do not add value to a productor service.

Highly repeated tasks with little variation.

Labor intensive tasks that do not require acompanies intellectual property nor corecompetencies.

Processes that will tie up large amounts ofcapital in assets.

Rules to Follow: What toOutsource

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Processes that incorporate your corecompetencies.

Processes that require access to intellectual

property of your company.Non-labor intensive tasks.

Processes that are associated with the image

of your company

Rules to Follow: What Notto Outsource

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There are many BPO providers, so research to find the onethat best suits your needs.

Using one provider for multiple tasks will help streamline

your BPO.

Have some measure to check and control the output ofyour BPO.

Communicate with your BPO.

Rules to Follow: BPOGuidelines

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Knowledge process outsourcing (KPO) is aform of outsourcing, in which knowledge-related and information-related work is carriedout by workers in a different company or by a

subsidiary of the same organization, whichmay be in the same country or in an offshorelocation to save cost.

KPO

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Knowledge Processing Outsourcing (popularly knownas a KPO), calls for the application of specialized domainpertinent knowledge of a high level. The KPO typicallyinvolves a component of Business ProcessingOutsourcing (BPO), Research Process Outsourcing (RPO)

and Analysis Proves Outsourcing (APO). KPO businessentities provide typical domain-based processes,advanced analytical skills and business expertise, ratherthan just process expertise. KPO Industry is handlingmore amount of high skilled work other than the BPO

Industry. While KPO derives its strength from the depthof knowledge, experience and judgment factor; BPO incontrast is more about size, volume and efficiency.

KPO

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Research & Development

Financial Consultancy and Services

Advanced Web Applications

Business and Technical Analysis

Learning Solutions

Animation & Design

Business & Market Research

Pharmaceuticals and Biotechnology

Medical Services

Writing & Content Development

Areas associated with the KPOsector

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Legal Services

Intellectual Property (IP) Research

Data Analytics

Network Management

Training & Consultancy

Areas associated with the KPOsector

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Valuable cost savings that can be utilizedelsewhere.

Trained professionals at work.

Standard operational efficiency.

Increase in profits.

Savings in time and management energy for

maintaining in house services.Option to recruit a larger work force withoutraising costs.

Benefits of KPO

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Good quality work.

Lower costs.

On time delivery of services.

Uninterrupted services.

Adaptability to changes in required quality

What KPO can deliver toyou?

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Evalueserve says India provided $3.5 billion of BPOand KPO (but non-IT) services in 2003 and isexpected to grow at a CAGR of 36 per cent during2004 to 2010. Hence, it is likely to earn $30 billion

in 2010 by providing these servicesAccording to a report of National Association ofSoftware and Services Companies (NASSCOM), theIndian chamber of commerce that serves as an

interface to the Indian Software industry,Knowledge Process Outsourcing industry (KPO) isexpected to reach USD 17 billion by 2010

Scope of KPO

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*( Philippines, Russia, China, Canada, Irelandand Mexico)

Labor Pool

Cost

Government Polices

Infrastructure

Knowledge full / Expertise

Why India To Be preferredto other* countries

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1) Genpact2) Evalueserve

3) Ugam Solutions

4) WNS

5) 24/7 Customer

6) ICICI OneSource

7) EXL Service

8)

Copal Partners9) Pangea3

10) TechBooks

The Top Ten KPO Companiesin India

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BPO & KPO is growing with a fast pace globally inwhich India pace globally in which India leadingahead because of its skilled & cheaper work force.

It has provided the world a shoulder to support

employment.

BPO upholds companies to zero in on core business.

Due to some security reasons it should be e

executed cautiously.

Conclusion

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http://www.chillibreeze.com/articles/top-KPO-companies

http://www.kpoexperts.com/why-india/why-choose-india

http://www.kpoexperts.com/kpo-india/what-is-kpo.htm

http://www.kpoexperts.com/scope-future-of-kpo/scope-f

http://en.wikipedia.org/wiki/

http://www.bpoindia.org/research/bpo-in-india.html

References

http://www.chillibreeze.com/articles/top-KPO-companies.asphttp://www.kpoexperts.com/why-india/why-choose-india.htmhttp://www.kpoexperts.com/kpo-india/what-is-kpo.htmhttp://www.kpoexperts.com/scope-future-of-kpo/scope-future-kpo.htmhttp://en.wikipedia.org/wiki/http://www.bpoindia.org/research/bpo-in-india.htmlhttp://www.bpoindia.org/research/bpo-in-india.htmlhttp://en.wikipedia.org/wiki/http://www.kpoexperts.com/scope-future-of-kpo/scope-future-kpo.htmhttp://www.kpoexperts.com/kpo-india/what-is-kpo.htmhttp://www.kpoexperts.com/why-india/why-choose-india.htmhttp://www.chillibreeze.com/articles/top-KPO-companies.asp

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Thank you