Indian Bpo Industry Case

Outsourcing: The Case of Indian BPO Segment,[object Object],Presented By:-,[object Object],Aakrati Gupta,[object Object],Ashish Kumar,[object Object],AvinashVarma,[object Object],Parikshit Soni,[object Object]

Business process outsourcing (BPO),[object Object],An organization entering into a contract with another organization to operate and manage one or more of its business processes.,[object Object]

Types of BPO,[object Object],On-shore BPO: When an enterprise outsources its activities to another company located in the same country,[object Object],Near-shore BPO: When activities are outsourced to a neighbouring country,[object Object],Off-shore BPO: When business processes are outsourced to a remote or far off country,[object Object]

Types of Services offered by the BPO industry,[object Object],[object Object]

Customers calling to check on their order status

Round-the-clock technical support

Customers calling to resolve a problem with their home PC

specialized solutions to the insurance sectorInsurance Processing,[object Object],[object Object]

Outbound calling to sell wireless services for a telecom provider,

Policy Maintenance Management

provide technical problem solution

system problem resolutions related to desktop, notebooks, OS,[object Object]

Web and Mailing list research,[object Object]

Updated: August 2009,[object Object]

CHALLENGES FACED BY INDIAN BPO INDUSTRY ,[object Object]

WHAT IS “FINANCE AND ACCOUNTS OUTSOURCING”???,[object Object],Finance and Accounting Outsourcing (FAO) is one of the fastest growing outsourcing segments in the world. India, which is the frontrunner and most desired BPO destination, has not yet capitalized on the same.,[object Object]

ADVANTAGES OF ‘FINANCE AND ACCOUNTS OUTSOURCING’,[object Object]

The ITES Market,[object Object],Growing market,[object Object],Largest ITES player in world in terms of man power,[object Object],Potential to generate direct employment for one million by 2008 ,[object Object],Transition from strategy of renting staff to establishing full service software factories,[object Object],Win over global competition,[object Object]

Offshore software development,[object Object],$ 12 bn a year industry worldwide,[object Object],70% market share,[object Object],India surpass other countries :,[object Object],Employment,[object Object],No. of companies sourcing,[object Object],Spectrum of vertical & service lines,[object Object],2005-07: more than 70% growth in ITES,[object Object]

Comparison With Other Countries On IT Services,[object Object]

Vendor Landscape,[object Object],Four types of players providing ITES:,[object Object],1. In-house/captive centers:,[object Object],Eg. GE, British Airways, & HSBC,[object Object],Out-locating business processes to low cost, high skill off shore locations like India, Ireland, Philippines,[object Object],Focusing on their core businesses and outsourcing “non core or non critical activities to third parties,[object Object]

2. Spin offs: ,[object Object],leveraging their domain knowledge and parent brand to offer industry specific services ,[object Object],e.g. Sabre (Airline Reservation) and First Data (Card processing),[object Object],3. Focused BPO providers: ,[object Object],specializing in narrow “non core, non critical” processes and offering standard services to multiple verticals ,[object Object],e.g. ADP (HR), Teletech (Customer Care),[object Object]

4. Broad based service providers: ,[object Object], offering bundled BPO and ITO services in an effort to develop into a one stop shop,[object Object], e.g.Pricewaterhouse Cooper,[object Object]

Opportunities for Indian BPO Industry,[object Object],Offshoring opportunities across wide range of processes as well as across verticals,[object Object],70% of ITES potential – customer care, HR, & administration,[object Object],Banking & insurance,[object Object],High cost base,[object Object],High extent of offshorable processes,[object Object],Medical BPO,[object Object]

Other verticals,[object Object],Telecom,[object Object],Manufacturing,[object Object],Transportation,[object Object],Retailing,[object Object],Utilities,[object Object],Automotive,[object Object],Pharmaceuticals,[object Object]

Revenues expected to grow at CAGR of 38% over the next 5 years,[object Object]

Key Drivers of Indian ITES-BPO Industry,[object Object],Improved efficiency and higher service levels due to streamlined processes ,[object Object],Quality improvements due to a better educated workforce,[object Object],Cost savings between 40-50 per cent,[object Object],Increase in offshoring by existing customers,[object Object],Superior project management skills,[object Object],Availability of a highly skilled, educated and English-speaking labour pool,[object Object]

Industry Performance,[object Object]

Indian IT-BPO Industry - Sector-wise Revenue Break-up,[object Object]

The Plethora..,[object Object],From non-engineering colleges every year:,[object Object],2.7 mn Graduates in India ,[object Object],0.4 mn Post-graduates ,[object Object],[object Object]

At this rate: 20 mn people by 2010,[object Object]

Pool of Manpower,[object Object]

Knowledge Professionals Employed ,[object Object]

Indian Education System,[object Object],Starting from Pre-Nursery, English is the main subject.,[object Object],One of the largest pool of English speaking professionals,[object Object],More emphasis on Science and Engineering ,[object Object],Specialized Engineering talent in India,[object Object],Eagerness to accommodate clients,[object Object]

Government Policies,[object Object],Reform process makes licensing process easier,[object Object],Government promotes FDI from NRIs,[object Object],Government supports the IT enabled start ups,[object Object],Ministry of Information & Communication Technologyplays an active role,[object Object],Developing infrastructure,[object Object],IT Bill 2000,[object Object],National Venture Capital Fund of Rs 1000 crore with SIDBI & IDBI,[object Object]

Some Statistics,[object Object],IT/ITES Industry’s contribution to GDP is 5.2% in 2006-2007,[object Object],Size of BPO was $11 bn in FY08,[object Object],By 2012 it will increase to $50 bn,[object Object],BPO will add 2.5% directly to GDP ,[object Object],Industry will provide employment to 2 mn,[object Object],Source : NASSCOM,[object Object]

Budget and BPO/IT Industry,[object Object],[object Object]

Removal of Multiple Taxation on ‘Packaged Software’

Abolition of Fringe Benefit Tax

Increased Outlay for Institutions

Safe-harbor Mechanism for Captive Centers,[object Object]

Indian Bpo Industry Case

Indian Bpo Industry Case

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Indian Bpo Industry Case