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					     BPO Industry in India- A Report
     Business process outsourcing (BPO) is a broad term referring to outsourcing in all fields. A BPO
     differentiates itself by either putting in new technology or applying existing technology in a new way
     to improve a process.
     Business Process Outsourcing (BPO) is the delegation of one or more IT-intensive business processes to
     an external provider that in turn owns, administers and manages the selected process based on defined and
     measurable performance criteria. Business Process Outsourcing (BPO) is one of the fastest growing
     segments of the Information Technology Enabled Services (ITES) industry.
     Few of the motivation factors as to why BPO is gaining ground are:
             Factor Cost Advantage
             Economy of Scale
             Business Risk Mitigation
             Superior Competency
            Utilization Improvement
     Generally outsourcing can be defined as - An organization entering into a contract with another
     organization to operate and manage one or more of its business processes.
     Different Types of Services Being Offered By BPO's
1.            Customer Support Services
     Our customer service offerings create a virtual customer service center to manage customer concerns and
     queries through multiple channels including voice, e-mail and chat on a 24/7 and 365 days basis.
     Service Example: Customers calling to check on their order status, customers calling to check for
     information on products and services, customers calling to verify their account status, customers calling to
     check their reservation status etc.

2.            Technical Support Services
     Our technical support offerings include round-the-clock technical support and problem resolution for OEM
     customers and computer hardware, software, peripherals and Internet infrastructure manufacturing
     companies. These include installation and product support, up & running support, troubleshooting and
     Usage support.
     Service Example: Customers calling to resolve a problem with their home PC, customers calling to
     understand how to dial up to their ISP, customers calling with a problem with their software or hardware.

3.            Telemarketing Services
     Our telesales and telemarketing outsourcing services target interaction with potential customers for
     'prospecting' like either for generating interest in products and services, or to up-sell / promte and cross sell
     to an existing customer base or to complete the sales process online.
     Service Example: Outbound calling to sell wireless services for a telecom provider, outbound calling to retail
     households to sell leisure holidays, outbound calling to existing customers to sell a new rate card for a
     mobile service provider or outbound calling to sell credit or debit cards etc.

4.            Employee IT Help-desk Services
     Our employee IT help-desk services provide technical problem resolution and support for corporate
     Service Example: of this service include level 1 and 2 multi-channel support across a wide range of shrink
     wrapped and LOB applications, system problem resolutions related to desktop, notebooks, OS, connectivity
     etc., office productivity tools support including browsers and mail, new service requests, IT operational
     issues, product usage queries, routing specific requests to designated contacts and remote diagnostics etc.
5.            Insurance Processing
     Our insurance processing services provide specialized solutions to the insurance sector and support critical
     business processes applicable to the industry right from new business acquisition to policy maintenance to
     claims processing.
     Service Example:
     New Business / Promotion:
     Inbound/outbound sales, Initial Setup, Case Management, Underwriting, Risk assessment, Policy issuance
     Policy Maintenance / Management:
     Record Changes like Name, Beneficiary, Nominee, Address; Collateral verification, Surrender Audits
     Accounts Receivable, Accounting, Claim Overpayment, Customer care service via voice/email etc.

6.            Data Entry Services / Data Processing Services
     Service Example:

o                       Data entry from Paper/Books with highest accuracy and fast turn around time (TAT)
o                       Data entry from Image file in any format
o                       Business Transaction Data entry like sales / purchase / payroll.
o                       Data entry of E-Books / Electronic Books
o                       Data Entry : Yellow Pages / White Pages Keying
o                       Data Entry and compilation from Web site
o                       Data Capture / Collection
o                       Business Card Data Entry into any Format
o                       Data Entry from hardcopy/Printed Material into text or required format
o                       Data Entry into Software Program and application
o                       Receipt and Bill Data Entry
o                       Catalog Data Entry.
o                       Data Entry for Mailing List/Mailing Label.
o                       Manuscripting typing in to word
o                       Taped Transcription in to word.
o                       Copy, Paste, Editing, Sorting, Indexing Data into required format etc.

7.            Data Conversion Services
     Service Example:

o                       Conversion of data across various databases on different platforms
o                       Data Conversion via Input / Output for various media.
o                       Data Conversion for databases, word processors, spreadsheets, and many other standard
     and custom-made software packages as per requirement.
o                   Conversion from Page maker to PDF format.
o                       Conversion from Ms-Word to HTML format
o                       Conversion from Text to Word Perfect.
o                       Conversion from Text to Word to HTML and Acrobat
o                       Convert Raw Data into required MS Office formats.
o                       Text to PDF and PDF to Word / Text / Doc
o                       Data Compilation in PDF from Several Sources.
o                       E-Book Conversion etc.
8.              Scanning, OCR with Editing & Indexing Services
      Service Example:

o                        High speed Image-Scanning and Data capture services
o                        High speed large volume scanning
o                        OCR Data From Scanned page / image
o                        Scan & OCR paper Book in to CD.
o                        ADOBE PDF Conversion Services.
o                        Conversion from paper or e-file to various formats

9.              Book Keeping and Accounting Services
      Service Example:

o                        General Ledger
o                        Accounts Receivables and Accounts Payable
o                        Financial Statements
o                        Bank Reconciliation
o                        Assets / Equipment Ledgers etc.

10.             Form Processing Services:
      Service Example:

o                        Insurance claim form
o                        Medical Form / Medical billing
o                        Online Form Processing
o                        Payrol Processing etc.

11.             Internet / Online / Web Research
      Service Example:

o                        Internet Search, Product Research, Market Research, Survey, Analysis.
o                        Web and Mailing list research etc.

      Challenges for a HR Professional in BPO
1.              Brand equity: People still consider BPO to be "low brow", thus making it difficult to attract the best

2.              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.

3.              Benchmarks: There are hardly any benchmarks for compensation and benefits, performance or HR
      policies. Everyone is charting their own course.

4.              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?

5.             Lack of focused training and certifications
      Given this background, the recruiting and compensation challenges of HR departments are only

      Key To success
      The key to success in ramping up talent in a BPO environment is a rapid training module. The training
      component has to be seen as an important sub-process, requiring constant re-engineering.
      Business Process Outsourcing: The Top Rankers
      WNS has emerged as the top BPO in India, pushing Wipro Spectramind to the second position, according to
      a survey done by NASSCOM. The basis of ranking is the revenues generated by the BPO companies in
      2003-04, as per US GAAP. A list of top fifteen BPO companies in India is given below.

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
11.            GTL Ltd.
12.            vCustomer
13.            HTMT
14.            24/7 Customer
15.            Sutherland Technologies
      The parameters for the survey was: Employee Size (Operation level executives), Percentage of last salary
      hike, Cost to company , Overall Satisfaction Score, Composite Satisfaction, Company Culture, Job Content /
      Growth, Training , Salary and Compensation , Appraisal System, People, Preferred Company: (Percentage
      of respondents of a company who named their own company as the preferred one), Dream Company:
      (Percentage of respondents in the total sample who preferred a particular company).
      Employee Benefits Provided By Majoriy Of the BPO Companies
              Provident Fund: As per the statutory guidelines, the employee is required to contribute a
      percentage of his basic salary and DA to a common fund. The employer for this fund contributes as well.
      The employee can use the amount deposited in this fund for various personal purposes such as purchase of
      a new house, marriage etc.
             Gratuity: Gratuity is one of the retrial benefits given to the employee in which the employer every
      year contributes a particular amount. The fund created can be used by the employee for the purpose of
      long-term investment in various things such as a house etc.
             Group Mediclaim Insurance Scheme: This insurance scheme is to provide adequate insurance
      coverage of employees for expenses related to hospitalization due to illness, disease or injury or pregnancy
      in case of female employees or spouse of male employees. All employees and their dependent family
    members are eligible. Dependent family members include spouse, non-earning parents and children above
    three months
           Personal Accident Insurance Scheme: This scheme is to provide adequate insurance coverage for
    Hospitalization expenses arising out of injuries sustained in an accident. It is applicable to all the employees
    of JFWTC and covers total / partial disablement / death due to accident and due to accidents.
          Subsidized Food and Transportation: The organizations provides transportation facility to all the
    employees from home till office at subsidized rates. The lunch provided is also subsidized.
             Company Leased Accommodation: Some of the companies provides shared accommodation for all
    the out station employees, in fact some of the BPO companies also undertakes to pay electricity/water bills
    as well as the Society charges for the shared accommodation. The purpose is to provide to the employees
    to lead a more comfortable work life balance.
           Recreation, Cafeteria, ATM and Concierge facilities: The recreation facilities include pool tables,
    chess tables and coffee bars. Companies also have well equipped gyms, personal trainers and showers at
                 Corporate Credit Card: The main purpose of the corporate credit card is enable the timely and
    efficient payment of official expenses which the employees undertake for purposes such as travel related
    expenses like Hotel bills, Air tickets etc
            Cellular Phone / Laptop: Cellular phone and / or Laptop is provided to the employees on the basis
    of business need. The employee is responsible for the maintenance and safeguarding of the asset.
            Personal Health Care (Regular medical check-ups): Some of the BPO'S provides the facility for
    extensive health check-up. For employees with above 40 years of age, the medical check-up can be done
    once a year.
           Loans: Many BPO companies provides loan facility on three different occasions: Employees are
    provided with financial assistance in case of a medical emergency. Employees are also provided with
    financial assistance at the time of their wedding. And, The new recruits are provided with interest free loans
    to assist them in their initial settlement at the work location.
             Educational Benefits: Many BPO companies have this policy to develop the personality and
    knowledge level of their employees and hence reimburses the expenses incurred towards tuition fees,
    examination fees, and purchase of books subject, for pursuing MBA, and/or other management qualification
    at India's top most Business Schools.
             Performance based incentives: In many BPO companies they have plans for , performance based
    incentive scheme. The parameters for calculation are process performance i.e. speed, accuracy and
    productivity of each process. The Pay for Performance can be as much as 22% of the salary.
             Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work
    with flexible work schedules and set out conditions for availing this provision. Flexible work schedules are
    initiated by employees and approved by management to meet business commitments while supporting
    employee personal life needs .The factors on which Flexi time is allowed to an employee include: Child or
    Parent care, Health situation, Maternity, Formal education program
           Flexible Salary Benefits: Its main objective is to provide flexibility to the employees to plan a tax-
    effective compensation structure by balancing the monthly net income, yearly benefits and income tax
    payable. It is applicable of all the employees of the organization. The Salary consists of Basic, DA and
    Conveyance Allowance. The Flexible Benefit Plan consists of: House Rent Allowance, Leave Travel
    Assistance, Medical Reimbursement, Special Allowance
          Regular Get together and other cultural programs: The companies organizes cultural program as
    and when possible but most of the times, once in a quarter, in which all the employees are given an
    opportunity to display their talents in dramatics, singing, acting, dancing etc. Apart from that the
    organizations also conduct various sports programs such as Cricket, football, etc and regularly play matches
    with the teams of other organizations and colleges.
             Wedding Day Gift: Employee is given a gift voucher of Rs. 2000/- to Rs. 7000/- based on their level
     in the organization.
              Employee Referral Scheme: In several companies employee referral scheme is implemented to
     encourage employees to refer friends and relatives for employment in the organization.
            Paid Days Off
             Maternity Leave
             Employee Stock Option Plan
     Inspite of all these benefits, the attrition rate in BPO industry is very high, why?. What is the reason for an
     employee to leave? These and many more are the questions that need immediate attention from the
     industrial gurus.
     Why people prefer to join BPO's?
     In general a person with any graduation can join any of the BPO. Some BPO's like to take people with MBA
     but then again the specialization are of an individual hardly makes any difference. Again, this is the industry,
     where there is no reference checks and very often people don't even specify there exact age. Lets me share
     with you some of the reasons as why people prefer to join a BPO:
1.            Did not get a better job.
2.            Find nothing better to do.
3.            Education level doesn't matter
4.            Good work environment
5.            Good Benefits
6.            Flexibility of time
7.            Attractive life style
8.            Transport facility
     Why people leave the BPO's?
     When there are so many benefits associated with BPO industry .when there are so many privileges for the
     BPO employees than what makes them to change the company/industry?? Is it only MONEY that matters or
     anything else as well?? Here are some of the reasons for a BPO professional to change his/her job.
1.            No growth opportunity/lack of promotion
2.            For higher Salary
3.            For Higher education
4.            Misguidance by the company
5.            Policies and procedures are not conducive
6.            No personal life
7.            Physical strains
8.            Uneasy relationship with peers or managers
     What they have to say?
     With so much of uncertainty in the market ..people are trying their best to stop or to at least have a control
     on the attrition rate let me share with you the opinion of the real gurus of the industry.
     "Training is a very important aspect of the ITES-BPO industry"- Mr. Arjun Vaznaik, COO, Tracmail
     " Career growth in the industry is robust and there is a long-term opportunity. The great growth momentum
     that the industry is witnessing is creating both vertical and lateral career opportunities. There also exists
     enough growth opportunities in the middle-management and supervisory level within the industry". - Aadesh
     Goyal, Executive Vice President & GM, Hughes BPO Services
     "It will not be possible for the industry to arrive at a blanket agreement on poaching but bilateral agreements
     between companies are being signed. Basic norms are being put in place and code of ethics is being
     stressed upon by industry players within the sector with respect to HR practices. We are encouraging
companies to adopt responsible behavior in order to ensure that the industry does not become a victim of its
own actions. Industry needs to go aggressive but not cannibalistic." - Mr. Suren Singh Rasaily, Senior Vice
President, NIIT Ltd. and Head Plantworkz,

This is a descriptive report on BPO industry. I have tried to cover almost everything related to the industry. I
like to have your opinion about the same. Even at the end of this comprehensive report, my concerns are
related to development of employees in BPO, controlling attrition rate in BPO, can we have some standard
industrial compensation package/ break-ups??
Sanjeev Sharma

Indian BPO Industry: The Inside Story

              chillibreeze writer — Nayanathara

Purchase India industry reports

India on the fast track

At the turn of the millennium, India has numerous reasons to smile about. The economy is no
longer passive and redundant; on the contrary it is one that is being steered by the winds of
social and economic changes. During the past few years, the country has seen phenomenal
developments in its political, social and economic infrastructure, accelerated by the strong
forces of globalization and Information Technology. A country with a resurgent, progressive
economy; India can be rightly called the foster-child of globalization.
The booming Information Technology (IT) segment comprising ITES (IT-enabled services) /
BPO (Business Process Outsourcing) are the core sectors that have driven the country into the
epicenter of change. The liberalization of the Indian Telecom sector in 1994 gave an
unexpected boost to the ITES/BPO industry. In no time, India has turned into a hot destination
for global offshore outsourcing companies. The expansion in this sector can be attributed to
the leading IT giants, captive players and third party service providers, who dominate the
Indian ITES/BPO market. While the countries around the world are vying for a fair share of the
cake, India has grabbed the pie as the preferred destination for offshore outsourcing. Indeed,
India is shining!

BPO Industry: India clicks!

India became familiar with „Business Process Outsourcing‟ only in the early and mid 1990‟s,
but now the entire country seems to be quivering with the „BPO fever'. The foreign direct
investment (FDI) in the country owes a lot to this sector, which is progressing at a break-neck
speed. The different kinds of services offered by BPO's include Customer Support, Technical
Support, Telemarketing, Insurance Processing, Data Processing, Internet / Online / Web
Research and so on. The cheap labour costs and the pool of skilled, English-speaking Indians
have always been the two foremost factors contributing to the BPO boom in the country. As
the National Association of Software Services and Companies (NASSCOM) points out, the
other equally motivating factors include strong quality orientation among players, ability to
offer round-the-clock services based on the country's unique geographic location, positive
policy environment which encourages investments and a friendly tax structure, which places
the ITES/BPO industry on almost equal footing with IT services companies.

The studies conducted by NASSCOM and the global consultants McKinsey & Co. brought to
light certain amazing facts on the Indian BPO segment. According to a NASSCOM study, the
country‟s flourishing ITES - BPO sector is estimated to have achieved a 54 per cent growth in
revenue in 2003-04. A key employment - generating sector in the country; the BPO segment
created job opportunities for around 74,400 additional personnel in India in the same year. By
the year 2008, the ITES- BPO sector is expected to employ over 1.1 million Indians, with its
sales expected to touch an amazing 21$ to 24 $ dollars.

Where call centres are a part of life

For today‟s youngsters, the call centers are a welcome addiction. The industry has woven such
magic around the entire nation that these days a city without a call centre would be hard to
find. Call centers contribute a fair share to the revenue of the Indian BPO industry. About 70%
of the BPO industry‟s revenue comes from call-centers, 20% from high-volume, low-value
data work and the remaining 10% from higher-value information work.

The average Indian‟s attitude towards life has undergone a drastic change in the last few
years. The motto of today‟s young Indian generation is “Live life king size”. The changing
lifestyles, demand for luxury and emergence of high-income spending groups coupled with a
thoroughly cosmopolitan outlook of life are changing the modern Indian. Call centers are a
major turn on for young graduates. In addition to providing employment, the call centres offer
excellent benefits, good working environment and attractive remuneration packages. So who
wouldn‟t choose to be a call centre employee?

When things go wrong…

It is true that the Indian BPO sector is witnessing an unprecedented boom but the flip side of
the industry cannot be ignored. For sometime, the Indian BPO industry has been battling
certain complex problems such as labour attrition, poor infrastructure and lack of data
protection laws.

The high attrition rate in the industry is primarily due to the restricted career options or
growth opportunities for the youngsters. Fear of stagnation is a major factor that forces the
employees to quit the industry. While some leave their career mid-way in pursuit of higher
education, others are drawn in by the higher pay packages offered elsewhere. The new
entrants into the BPO sector, who are consistently on the look out for trained youngsters, offer
higher remuneration. With the employees moving to other jobs in less than a year, the
industry has to confront the gnawing problem of attrition.
Another key problem is the stressful work schedule, particularly night shifts, which may create
both physical and mental disorders in the long run. Other reasons for the attrition problem
include misguidance by the company, non-conducive policies and procedures, mental strain
brought about by reclusive lifestyle and difficult relationships with peers or managers.
According to analysts, labour attrition rates in the outsourcing industry vary between 20 and
40 per cent in certain companies while at top firms it‟s around an average of 15 per cent. If
the current attrition rate continues, the outsourcing industry is likely to face a shortage of
262,000 professionals by 2012.

Where lays the solution?

The multi-billion dollar BPO industry is racking its brains to solve the crisis, a complicated one
that could prove to be disastrous in the long run. Brand building has come up as a good
panacea for the attrition problem. The Indian BPO industry is focusing on the process of brand
building with a view to create respect and awareness of the job among the people. The
problem of talent attrition could be kept at bay by offering perquisites like the right
opportunities for education such as degree courses for youngsters. While some BPO companies
retain their employees by providing free food and accommodation, there are yet others who
offer interest free home and car loans while some others even offer activities such as bungee
jumping and salsa classes. Besides creating a challenging, competitive work environment, the
stress is now on hiring the right employees. Today, most of the BPOs are on the look out for
freshers and agents with more than one-and-a-half to two years of work experience, rather
than graduates with no prior experience in the industry.

Lack of top-class infrastructure is also another key problem to be dealt with. As part of
country‟s infrastructure development, measures need to be taken to improve the quality of
roads, power, transport and communication and connectivity. Further, the industry and the
Government need to join hands so as to create an efficient legal machinery to enforce
stringent laws. This will ensure a smooth, protected environment for the operation of
businesses, particularly in connection with laws/policies governing data/cyber security and
intellectual property rights.

The road ahead…

Although countries like Australia, China, Philippines and Ireland have emerged as the close
competitors in the ITES/BPO sector, India is still the favored market for BPO companies. As for
2005, NASSCOM predicts that there would be a considerable expansion in the captive
operations of global organizations and MNCs in the BPO sector. Another key development
would be the rapid growth in offshore outsourcing, especially in the sectors of Automatic data
management, Human Resources (HR), Finance and Accounting and Healthcare.

The rating agency ICRA reports that by 2006, India is expected to capture 56 per cent share
of offshore business process outsourcing business, with the demand for BPO services
increasing at an annual growth rate of 50 per cent during 2004-06. The size of the Indian BPO
market is likely to be around $9-12 billion by 2006 and it will employ around 400,000 people.

While figures are a source of comfort for the BPO segment, there is much to be done to
smooth the edges. We might have a multitude of issues to take care of, but at the end of it all
India will be shining even brighter.

Chillibreeze's disclaimer: The views and opinions expressed in this article are those of the author(s) and do not
reflect the views of Chillibreeze as a company. Chillibreeze has a strict anti-plagiarism policy. Please contact us to
report any copyright issues related to this article.
    Business process outsourcing in India
    From Wikipedia, the free encyclopedia

    An Indian call center

    The business process outsourcing industry in India refers to the services outsourcing industry inIndia,
    catering mainly to Western operations of multinational corporations (MNCs).

    As of 2008, around 0.7 million people work in outsourcing sector [1] (less than 0.1% of Indians). Annual
    revenues are around $11 billion,[1] around 1% of GDP. Around 2.5 million people graduate in India every
    year. Wages are rising by 10-15 percent as a result of skill shortage.[1]


             1 History

     o                      1.1 Airlines

     o                      1.2 Amex

     o                      1.3 General Electric

     o                      1.4 Third party BPO's

     o                      1.5 Entry of IT majors

     o                      1.6 Emergence of Rural BPOs

     o                      1.7 Effect of global meltdown on Indian BPOs

     o                      1.8 Challenges to outsourcing services in India
            2 Size of industry

            3 From a PricewaterhouseCoopers survey

            4 Leading BPO-ITes cities in India

            5 See also

            6 References

            7 Further reading

            8 External links



    In the early 1980s several European airlines started using Delhi as a base for back office operations, British
    Airways being one among them. The BA captive was finally spun off as a separate organisation
    called WNS Global Services in 2002.


    In the second half of the 1980s, American Express consolidated its JAPAC (Japan and Asia Pacific) back
    office operations into New Delhi and NCR region[2]. This center was headed by Raman Roy, and has been a
    source of several leading names in the Indian BPO Industry.

    [edit]General     Electric
    In the 1990s Jack Welch was influenced by K.P. Singh, (A Delhi based realtor) to look at Gurgaon in the
    NCR region as a base for back office operations. Pramod Bhasin, the India head of G.E. hired Raman Roy
    and several of his management from American Express to start this enterprise called GECIS (GE Capital
    International Services). Raman for the first time tried out voice operations out of India, the India operations
    also was the Beta site for GE Six sigma enterprise. The results made GE ramp up their Indian presence and
    look at other locations. In 2004 GECIS was spun off as a separate legal entity by GE, called Genpact. GE
    has retained a 40% stake and sold a 60% stake for $500 million to two equity companies, Oak Hill Capital
    Partners and General Atlantic Partners.

    [edit]Third    party BPO's
    Until G.E most of the work was being done by "captives"- a term used for in house work being done for the
    parent organisation. In 2000 Raman Roy and some team members from GECIS quit , and with VC funding
    from Chrysalis Capital started Spectramind. At the same time an organisation called EXL started
    in Noida and Efunds started in Mumbai and Gurgaon, and Daksh in Gurgaon. However, recently most of
    the Indian BPO's even smaller and mid-sized ones are actually setting-up their onshore presence. Most of
    the serious players are actually improving the outsourced business processes by leveraging on years of
experience and now some of them are directly competing with their own older clientbase by marking this
transition to KPO 's.

[edit]Entry    of IT majors
In 2002 Spectramind was bought by software major Wipro, and BPO by then had become mainstream like
the IT Industry in India. The team that had setup Spectramind went on to start Quatrro in 2006, a BPO
specialising in high end BPO/KPO services. By 2002 all major Indian software organizations were into
BPO, including Infosys (Progeon), Inforlinx, HCL, Satyam (Nipuna) and Patni. By 2003 Daksh was bought
out by IBM, and later in 2006 MphasiS was acquired by EDS. Even international 3rd party BPO players
like Convergys and Sitel had set up shop in India, swelling the BPO movement to India. Then service arms
of organizations like Accenture, IBM, Hewlett Packard, Dell also set up shop in India.

[edit]Emergence         of Rural BPOs
Booming India Inc has led to skyrocketing real estate and infrastructure costs in Tier-1 cities. BPO industry
has thrived all these years because of its ability to deliver services at a low cost. Increasing infrastructure
costs, real estate costs, and salaries have raised BPO costs significantly and as a result Indian BPOs in Tier-
1 cities are looking at Tier-2 and Tier-3 cities for operation.

Few entrepreneurs who had a vision of bringing the rural India into the mainstream of knowledge
economy have found an opportunity here - setting Rural BPOs. The transformation of rural India started
with the emergence of these Rural BPOs. The major hurdles that these BPOs faced is quality man power.
As a result these rural BPOs have remained targeting low end jobs like data entry. [citation needed]

[edit]Effect   of global meltdown on Indian BPOs
American financial meltdown has begun to take its toll on India's IT and outsourcing business.[1]

[edit]Challenges        to outsourcing services in India
Many analysts believe that the growth of India outsourcing sector is widely optimistic and it will slow
down in future. Both IT and BPO sector is extremely dependent in USA and if the US dollar depreciates
can adversely impact the entire sector. Additionally countries like China, Mexico and Vietnam are also
expanding outsourcing operations and often providing cheaper services.

[edit]Size   of industry
The industry has been growing rapidly. It grew at a rate of 38% over 2005. For the FY06 financial year the
projections is of US$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 dollars, of this the offshore BPO is estimated to be some US$11.4 billion. India
thus has some 5-6% share of the total Industry, but a commanding 63% share of the offshore component.
The U.S $7.2 billion also represents some 20% of the IT and BPO Industry which is in total expected to
have revenues worth US$36 billion for 2006. The headcount at 400,000 is some 40% of the approximate
one million workers estimated to be directly employes in the IT and BPO Sector.

The related Industry dependent on this are Catering, BPO training and recruitment, transport vendors,
(home pick up and drops for night shifts being the norm in the industry). Security agencies, Facilities
management companies.

[edit]From      a PricewaterhouseCoopers survey

Table 1: Global BPO Market by Industry[3]

          Industry            Percentage (%)

Information Technology        43

Financial Services            17

Communication (Telecom) 16

Consumer Goods/ Services 15

Manufacturing                 9

Table 2: Global BPO Market by Geography[3]

         Country              Percentage (%)

United States            59

Europe                   27

Asia-Pacific             9
Rest of the World         5

Table 3: Size of Global Outsourcing Market[3]

       Year                   Size (USD Bn)

2000                119

2005                234

2008 (est.)         310

Table 4: Size and Growth of BPO in India[3]

Year Size (US$ Bn)        Growth Rate (%)

2003 2.8                  59

2004 3.9                  45.3

2005 5.7                  44.4

Currently the Indian BPO Industry employs in excess of 245,100 people and another 94,500 jobs are
expected to be added during the current financial year (2005–2006)

Table 5: Call Center Employee cost[3]

   Country          Cost (USD/yr)

USA             19,000
Australia         17,000

Philippines       9,050

India             9,500

Nearly 75% of US and European multinational companies now use outsourcing or shared services to
support their financial functions. 72% of European multinational companies have outsourced financial
functions over the past two years.

Additionally, 71% of European companies and 78% US companies plan to use these services in the next
12–24 months. Overall, 29% of US and European companies expect to increase their use of outsourcing of
financial functions, with spending expected to be nearly 16% higher than current levels.

Growth in this sector will get a further impetus as Indian BPO companies have robust security practices and
emphasis is laid in developing trust with clients on this score. While earlier there were varying quality
standards on this aspect, today there is focus on standardization of security, such as data and IP security.

[edit]Leading        BPO-ITes cities in India

Bangalore, Chennai, Hyderabad, Kolkata, NCR, Pune, Mumbai and Ahmedabad are Tier I cities that are
leading IT cities in India.

With rising infrastructure costs in these cities, many BPO's are shifting operations to Tier II cities
like Nashik, Sangli, Aurangabad(Maharashtra), Mangalore, Mysore, Hubli-
Dharwad, Belgaum, Coimbatore, Madurai, Hosur, Nagpur, Kochi, Trivandrum, Chandigarh, Mohali,Panch
kula, Ahmedabad, Bhubaneshwar, Jaipur, Vishakapatnam and Lucknow

Tier II cities offer lower business process overhead compared to Tier I cities, but have a less reliable
infrastructure system which may hamper dedicated operations. The Government of India in partnership
with private infrastructure corporations is working on bringing all around development and providing
robust infrastructure all over the nation.

[edit]See     also

        Globalization
        Software Technology Parks of India
        Information Technology Outsourcing
        Nalini by Day, Nancy by Night — 2005 documentary on outsourcing in India
       Call center security
       Tidel Park
       HITEC City
       InfoPark, Kochi
       Technopark Kerala
       Silicon Valley of India
       Azim Premji — Father of the Indian Outsourcing phenomenon
       Jack Welch — Pioneer of Outsourcing to India
       Medical Transcription

Career in BPO
BPO (Business Process Outsourcing) is one of the rapidly growing industries in India. It is the fastest
developing segment of Information Technology Enabled Services industry. The term BPO refers to
outsourcing in all fields. BPO offers different kinds of services including customer support services,
telemarketing services, technical support services, employee IT help-desk services, insurance services,
data entry services, data conversion services, scanning OCR with editing & indexing services, online
research and form processing services.

Scope of BPO career in India

Starting a career in the BPO sector is easy as most of the BPOs provide in house training to the employees.
Generally, a candidate with graduation in any discipline can join the BPO companies. They don't require
any academic specialization. There is no specific age bar. Most of the BPO companies offer good work
environment. The employee can get good wages along with some excellent benefits. Jobs in the BPO
sector attract youngsters as most BPO companies provide transport facilities. Most of the people are
fascinated towards the attractive lifestyle and flexibility of time that they offer. Due to these
advantages, numerous people strongly wish to develop a career in the BPO sector.
Negative points of BPO industry

Along with many benefits associated with this industry, there are some negative points that make people
rethink about the job. One should have a clear idea about the positive and negative points before
selecting a career in the BPO sector. After doing the job for some time many people find many people
find it difficult to continue as they find it tedious and monotonous. Some people leave the job when they
need to spend sleepless nights. Some people also find it difficult to move up the career ladder fast in the
BPO industry. Some people leave the BPO industry for higher education, higher salary better status.

Reputed BPOs in India

With increasing scope of BPO industry, many top-ranking software companies have established their BPO
centers in India making a career in the BPO sector lucrative.Some of the well-known BPO companies in
India are WNS Group, Convergys, Zenta, Wipro Spectramind, EXL, ICICI Onesource, Daksh e-Service,
Tracmail, HCL Technologies, MphasiS, GTL Ltd, Sutherland Technologies, vCustomer, HTMT and 24/7

These companies are the top-rankers on providing career in BPO sector on the basis of criteria like
employee size, overall satisfaction score, job content/growth, salary and compensation, training,
company culture and appraisal system etc.

More on career avenues