Business Process Outsourcing

1. Ishpreet Singh – 12P139 Karan Jaidka – 12P141 Lucky Sharma – 12P145 Prabhat Singh– 12P154 Vignesh Patil – 12P177 Viswanath Kuppa – 12P180 PGPM – Section C – Group 9

2. What is BPO? Video Types of outsourcing Footprints of BPOs Functions of BPO – A brief IT-BPO Contribution to the Indian Economy Why India is a preferred BPO destination Advantages and Limitations of BPO BPO vs KPO BPM Top BPO firms (Indian and Global) Agenda

3. What is Business Process Outsourcing? Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business functions (or processes) to a third-party service provider. Originally associated with manufacturing firms

4. Video time!

5. So much variety!

6. We’re present almost everywhere!

7. Accounting Managing finances , maximizing tax deductions, filing taxes, providing business and investment advice and developing effective budgets and cash flow projects – all through the services of a Certified Public Accountant (CPA) What we like doing! (1/3) Tax Preparation A  tax preparation service can reduce tax liabilities by ensuring compliance to tax rules and timelines. They help businesses save tax wherever possible – sale or purchase of business, e-commerce transactions, disputes, and so on.

8. Website Design A business or e-commerce website design is crucial in keeping customers engaged and encouraging repeated visits. This happens to be one of the most outsourced components of a company’s functioning. What we like doing! (2/3) Customer Service Outsourcing Companies are outsourcing customer service to focus on core business competencies and operations. In addition, cost reduction, declining in-house capabilities, and increased demand for customer support channels are driving outsourcing of customer service.

9. Human Resources Outsourcing C ombines global sourcing and delivery capabilities to offer flexible and cost-efficient solutions for acquiring, administering and developing talent . E nable customers to embark on the HRO journey easily and realize benefits promptly.  What we like doing! (3/3) Sourcing and Procurement Outsourcing Provides transformational benefits across the entire Source-to-Procure and Payment value cycle . Sourcing and Procurement has become a critical area for companies implementing cost-cutting measures. 

10. Aggregate revenues crossed the USD 100 billion mark , exports at USD 69 billion during FY12 Software and services revenues (excluding Hardware), comprising nearly 87 per cent of the total industry N et employment generator - expectedly added 230,000 jobs in FY12 , thus providing direct employment to about 2.8 million, and indirectly employing 8.9 million people As a proportion of national GDP, the sector revenues have grown from 1.2% in FY98 to an estimated 7.5 per cent in FY12 IT-BPO Contribution to the Indian Economy

11. S ize of the Indian IT-BPO industry from 2005 to 2011 and its growth

12. 82% of US–based companies have voted for India as their first and most preferred choice for software outsourcing, over China and the Philippines Indians are enthusiastic and career–focused , who constantly upgrade their skills through training and certificate programs Over 350 million people in India are fluent in the English language , so Indians do not pose a language problem India has a huge talent pool of experienced specialists - 3.1 million students graduate annually from Indian universities in various fields such as software programming, accounting or law Indians work like crazy !! Many Indians work eight hour shifts for six days a week. Indians also willingly work around the clock to compensate for the time difference between India and the US or UK We love you India!

13. Save big! Taking advantage of the cost benefits Getting access to specialized services Reduced time to delivery, companies benefit from time zone advantages Scaling operations up or down without the hassle of hiring and training Improved customer satisfaction due to high quality and fast delivery Key employees are released from performing non-core or administrative processes and can invest more time and energy in building the firm’s core businesses A company may be able to grow at a faster pace as it will be less constrained by large capital expenditures for people or equipment that may otherwise take years to amortize Please go ahead and outsource!

14. The advantages don’t just end there!

15. Risk is the major drawback with Business Process Outsourcing. Outsourcing of an Information System, for example, can cause security risks both from a communication and from a privacy perspective In countries like India and Philippines, the BPO sector is known for rising incidence of lifestyle and work related illnesses The BPO phenomenon has created an illusion of prosperity and higher standard of living for the employees Countries like India have to contend with a large workforce that ape the West without having the infrastructure or the amenities that the West enjoys Hold on! There’s a flip side too…

16. KPO is a subset of BPO. KPO involves outsourcing of core functions which may or may not give cost benefit to the parent company but surely helps in value addition On the other hand, highly specialised and knowledge based services are outsourced to KPOs. These activities are directly related to core offering of parent company The motive behind KPO is not only to reduce cost but to get specialised solutions for which availing in-house resources might be tough KPO job requires one to be competent in a particular field . Also, the training provided by the KPOs is more rigorous and sector specific BPO versus KPO BPO is outsourcing of some of the business functions to a third party in order to save money BPOs usually deal with fringe business activities such as customer care, finance and HR USP of a BPO is their being cost effective Basic education may be enough to get a BPO job

17. According to NASSCOM, the IT industry body of India, the acronym BPO which stands for business process outsourcing, no longer suits the outsourcing industry considering the maturity level it has attained now   Indian outsourcing industry has moved up the value chain from just being a third party service provider to being a business partner who manages the entire business process of their clients Indian BPO companies are shifting from being efficient to effective by taking up the responsibility to manage the processes that could transform the business outcomes for the clients Rebranding BPO to BPM

18. Top Indian BPO Firms We’ll do it for you! Top Global BPO Firms