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					PPT ON BPO
   BY
   SAI KRISHNA
   CSE-1
   2451-10-733-020
                 Agenda

• What is BPO?
• The Evolution of Outsourcing.
• Capabilities in the Marketplace.
• Rule to Follow.
• Pros and Cons.
             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.
            BPO Categories

• It is often divided into two categories:
     - Back Office Outsourcing which
     includes internal business functions
     such as billing or purchasing.
     - Front Office Outsourcing which
     includes customer-related services such
     as marketing or tech support.
               Key Terms
• Key Terms:
     - Offshore Outsourcing is BPO that is
     contracted outside a company's own
     country.
     - Nearshore Outsourcing is BPO that is
     contracted to a company's neighboring
     country.
     - Onshore Outsourcing is BPO that is
     contracted with the company's own country.
                 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.
             Statistics of the Future
            The main revenue areas for Indian BPO companies.

                         India's BPO Market in 2008
       Service Line       First Estimate (1999) Second Estimate (2001)
  HR                      5.4                  3.5-4.0
  Customer Care           4.1                  8.0-8.5
  Payment Services        2.9                  3.0-3.5
  Content Development 2.6                      2.5-3.0
  Administration          1.3                  1.5-2.0
  Finance                 0.7                  2.5-3.0
  Figures in $ billion

Indian revenues from BPO are estimated to have grown 107 per cent to
$ 583 million.
Rules to Follow: 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 core
  competencies.
• Processes that will tie up large amounts of
  capital in assets.
    Rules to Follow: What Not to
             Outsource

• Processes that incorporate your core
  competencies.
• 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: BPO Guidelines

• There are many BPO providers, so
  research to find the one that best suits
  your needs.
• Using one provider for multiple tasks will
  help streamline your BPO.
• Have some measure to check and control
  the output of your BPO.
• Communicate with your BPO.
             Pros of BPO

• English Language Proficiency
• Skilled Workforce
• Lower Wages
• Flexibility in Working Hours
• Suitable Human Resources
• Large Number of Graduates
              Cons of BPO

• No TCO based costs
• Poor Infrastructure
• Cultural Differences
• Internal competition for resources
• Rising labor costs
• Political and religious instability
               Conclusion

• As a manager!
  – Allows company to focus on core
    competencies.
  – What the future lies.
  – Attractiveness of India.

				
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posted:4/26/2011
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