The presentation of 'Management Information System' subject of TEIT under 'University of Pune' INDIA. Author and Teacher: Tushar B Kute http://www.tusharkute.com tbkute@gmail.com

1. Management information system Third Year Information Technology Part 19 Business Process Outsourcing Tushar B Kute, Sandip Institute of Technology and Research Centre, Nashik http://www.tusharkute.com

2. What is BPO? 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.

3. aims Cost reduction Productivity Growth Innovation

4. Motivating factors Cost advantage Superior competency Utilization improvement Economy of scale Business risk mitigation

5. Top 5 outsourcing objectives

6. BPO Categories It is often divided into two categories: Back Office Outsourcingwhich includes internal business functions such as billing or purchasing. Front Office Outsourcing which includes customer-related services such as marketing or tech support.

7. Key Terms Offshore Outsourcing is BPO that is contracted outside a company's own country. NearshoreOutsourcing is BPO that is contracted to a company's neighboring country. Onshore Outsourcing is BPO that is contracted with the company's own country.

8. examples Coca-Cola – SCM Bank of America – Exult British Airways – WNS Infosys – Progeon Satyam – Nipuna IBM – Daksh EDS – MphasiS HCL, Patni, Accenture, Dell etc.

9. Top 5 Indian BPO exporters Genpact, TCS BPO, WNS Global Services, Wipro BPO, Aegis Ltd..

10. Impact of bpo According to management consultancy McKinsey & Co., the global "addressable" BPO market is worth $122 – $154 billion, of which: 35-40 retail banking, 25-35 insurance, 10-12 travel/hospitality, 10-12 auto, 8-10 telecoms, 8 pharma, 10-15 others and 2-5 is finance, accounting and HR

11. Difference between voice /non voice BPO Voice deals with speaking directly with the customers either in US / UK /in other countries. Communication level should be higher when applying for a voice process. Non voice includes more on data entry, data management , E-mail writing.

12. Call centers A call centre is a centralized office used for the purpose of receiving and transmitting a large volume of requests by telephone. A call centre is operated by a company to administer incoming product support or information inquiries from consumers. Outgoing calls for telemarketing, clientele, product services, and debt collection are also made.

13. Nature of work Call centers are voice or web based. Either in bound or out bound where in calls are received from and made to the customer respectively. Specialized in business processing, here calls are made from company to company. Areas addressed by call centers are sales support, reservations ,bank accounts and telemarketing.

14. Inbound call centers In bound call centers provide support function that include inquiries or help desks for various segments. Most of the call centers are offering customer relationship management services that include support for Voice call center, E-mail response, Web-based text services and Backroom processing.

15. Out bound call centers Out bound call centers provide services for customer contact, to interact with international clients either on the help- desk make collection calls which include market surveys information and telemarketing.

16. Non voiced call centers Data entry This requires updating, organizing data base on various details of customers and clients. Transaction processing: Answering customers Queries, enquiries and responding to the complaints over the E-Mail

17. Call centers

18. Working conditions with BPO To work in a BPO you must be prepared for the challenging job, which would also require you to work during non morning hours (night shifts) Because the clients are mainly from U.K, U.S and European countries

19. Call center expects Call center interview depends on Computer knowledge Communication skills in English Keyboard skill Mathematical skill etc.

20. Important areas of training Accent training Listening skills Telephone etiquette Tele sales Customer Relationship and Call center terminology.

21. BPO solution World-class offshore outsourcing and consulting services specializing in IT- enabled services Back office outsourcing services BPO solutions from India guaranteed to cut costs and improve quality

22. BPO /ITES BPO industry in India has been estimated to grow very fast As the attrition rate is significantly high in the BPO /ITES industry BPOs are realizing that their HR policies need to be transparent and clear

23. 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 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.

24. India’s Compelling Advantage Survey respondents shows the following outsourcing destination: India has transformed into the global outsourcing center of choice. It employs world class technology and efficient delivery mechanisms to ensure that clients get cost effective solutions for all their BPO needs. And more ……… Source: Computer world and InterUnity Group Inc., Concord

25. Call centers in India

26. Top drivers of outsourcing India Two million graduates each year (Existing Pool: over 25 million) 120,000 Engineers every year vs. 63000 in US English speaking and IT savvy workforce Cost reduction up to 50% Government support for IT and BPO industry Improving telecom infrastructure Lower infrastructure costs Favourable time lag: 12 hours with US & 5 hours with Europe Overnight turnarounds possible Resources with experience of financial and legal systems similar to the west Strong domestic IT services industry to support IT led BPO

27. advantages of BPO Enhances flexibility of organization Cost reduction and speeds up the process Create competitive edge Reduces capital investment Reduces requirement of manpower Helps in business organization Increased capability of organization

28. demerits of BPO Data security and privacy issues due to malpractices followed in the BPO company. Fear of job loss by the locals.

29. Challenges to the BPO Failure to meet service levels Vague contracts Changing requirements in the current market Unpredictable changes Improper planning which leads to vendor dependency.

30. references ArpitaGopal, Chandrani Singh, “e-World Emerging Trends in Information Technology” , 1st Edition, Excel Books. Tushar B Kute, Sandip Institute of Technology and Research Centre, Nashik http://www.tusharkute.com