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BPO: Business Process

Outsourcing

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KPO or Knowledge Process

Outsourcing

Typically calls for work that needs higher levels of

involvement from the worker.

The worker has to employ advanced levels of

research, analytical and technical skills and has tomake decisions of a higher order than BPO work.

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Businessprocess outsourcing

(BPO)

A form of outsourcing that involves the contracting of

the operations and responsibilities of a specificbusiness functions (orprocesses) to a third-party

serviceprovider.

Originally, associated with manufacturing firms, such

as Coca Cola that outsourced large segments of itssupply chain.

In the contemporary context, it is primarily used to

refer to the outsourcing of services.

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BPO: categorization

Back office outsourcing

Offshore outsourcing

Nearshore outsourcing

Information technology enabledservice or ITES.

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On The Basis Of Process :-

Inbound Call Centre: The inbound callcenters are those that only receive the calls usually

on toll free numbers from the customers.

Outbound Call Centre: Outbound call centers

deals with telemarketing and product promotion.

It requires technical experience and expertise to

ensure the clients that you are the company that

is best.

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Call routing

0800/0845

Virtual centre

US Purchasers of

(DELL) OptiPlex

desktop and Latitude

notebook

European and

Asian purchasers of

OptiPlex desktop and

Latitude notebook

US sites Bangalore

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Why BPO

Expensive to hire best people in company.

Therefore many companies have chosen tooutsource various aspects of MIS functions.

A specialized firm can always offer betterservices at betterprice.

Worldwide spending on BPO services reached$405 billion in 2003, an increase of about 8%from 2002. Revenues are expected to grow at acompound annual rate of 11% through 2008,when they will total $682.5 billion.

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Business Process Outsourcing includes the following

areas and a lot more:

Back office operations

Customer Relationship Management

Call Centers and telemarketing

Tele-servicing and product support

Payroll maintenance

Finance /Accounting/billing

Human Resources

Logistics ManagementSupply Chain Management

Medical transcription

Back Office Operations

Insurance Claims Processing

Legal database maintenance

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What to Outsource

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 corecompetencies.

Processes that will tie up large amounts of

capital in assets.

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Pros and Cons of BPOpros

English LanguageProficiency

Skilled Workforce

Lower Wages

Flexibility in WorkingHours

Suitable Human Resources

Large Number ofGraduates

cons

Poor Infrastructure

Cultural Differences

Internal competition for

resources

Rising labor costs

Political and religious

instability

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BPO to India

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 theUS/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.

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Capabilities: Why go to India?

Language

Educated EmployeesInfrastructure

Government

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Leaders Challengers Followers Aspirants

Ahmedabad

Bhubaneshwar Chandigarh

Coimbatore

Indore

Jaipur

Kochi

Lucknow

Madurai Mangalore

Nagpur

Thiruvananthapuram

Tiruchirappalli

Vadodara

Visakhapatnam

Aurangabad

Bhopal Goa

Gwalior

Hubli-Dharwad

Kanpur

Mysore

Nashik

Pondicherry Salem

Surat

Vijayawada

Allahabad

Dehradun Durgapur

Gangtok

Guwahati

Ludhiana

Patna

Raipur

Ranchi Shimla

Siliguri

Srinagar

Varanasi

Findings indicate that the 50 locations in India are categorizedalong a typical four stage developmentpath

Location Classification

Increasing Location Attractiveness

Bangalore

Chennai

Hyderabad

Kolkata

Mumbai

NCR

Pune

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WNS

Wipro Spectramind

Daksh e-Services

Convergys India Services

HCL Technologies

BPO Services

Zenta Technologies

ICICI OneSource

Emphasis BPO Services

EXL Services

Tracmail Group

GTL Ltd

Customer

Hinduja TMT

24x7 Customer

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The future for the IT/BP industry holds bright. It is estimated that 56% of

the BPO market could be India's by the year 2011 with the demand for BPO

services increasing at an annual growth rate of 50 per cent. The pace at which the

Indian BPO market is increasing is tremendous. The market of BPO in India is

likely to be around $9-12 billion by the year 2015 and will employ around 0.4

millionpeople.The BPO market is ready to fire up and India Inc is all geared for

this big opportunity.There is a long way in making India the BPO superpower of

the world.

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http://www.bpoindia.org/

http://www.forbes.com/bow/b2b

http://www.indobase.com

http://www.informationweek.com

http://searchcio.techtarget.com

http://www.xicom.biz

REFERENCES: