Business Process outsourcing, improvement of quality services, outsourcing the materials and services

1. Professor, Entrepreneur & Lawyer.
Puttu Guru Prasad,
M.Com. M.B.A., L.L.B., M.Phil. PGDFTM.
AP.SET., ICFAI TMF., (PhD) at JNTUK.
Senior Faculty for Management Science,
S&H Department, VVIT, Nambur, NSS P.O
My Blog: puttuguru.blogspot.in
93 94 96 98 98, 807 444 95 39,
Business Process Out sourcing
(BPO)

4. LOGO

5. Contents
What is BPO1
BPO Categories2
Key Terms3
4 Different types of BPO Services
Business Process Outsourcing

6. What is BPO
Business process
outsourcing (BPO) is a subset
of outsourcing that involves the
contracting of the operations and
responsibilities of specific
business functions (or processes)
such as payroll, customer
service, accounting, data
recording and much more to a
third-party service provider.
Business Process Outsourcing

7. Why does a company outsource ?
Outsourcing enables an enterprises to
concentrate its time and efforts on its key
function.
Companies need not invest money in
creating and maintaining system non core
activities.
When the predictability of the
process/service is not important.
When there is limited opportunity for the
firm to distinguish itself competitively through
a particular process/service.

8. 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.

9. Key Terms of BPO
BPO that is contracted outside a
company's own country.
BPO that is contracted with the
company's own country.
BPO that is contracted to a
company's neighboring country.

10. Different types of BPO Services

11. BPO Service Examples
1. Customer Support Services
››› Customers calling t1o 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
››› 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.
››› Customers calling to resolve other problems with their
products.
››› Customers calling to check on their order status.

12. BPO Service Examples
3. Telemarketing
Services
››› Outbound calling to1retail households to sell leisure holidays.
››› outbound calling to existing customers to sell a new rate card for
a mobile service provider.
››› outbound calling to sell credit or debit cards etc.
4. Employee IT Help-desk Services
››› 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 etc.
››› Outbound calling to sell wireless services for a telecom provider.

13. BPO Service Examples
5. Insurance Processing
Inbound/outbound sale1s, Initial Setup, Case Management, Underwriting, Risk
assessment, Policy issuance etc.
››› 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
››› Data entry from Paper/Books with highest accuracy and quick.
››› Data entry from Image file in any format .
››› Business Transaction Data entry like sales / purchase /
payroll.
››› Data entry of E-Books / Electronic Books.
››› Receipt and Bill Data Entry etc.
››› New Business / Promotion:

14. BPO Service Examples
7. Book Keeping and Accounting
Services
››› Accounts Receivab1les and Accounts
Payable
››› Financial Statements
››› Bank Reconciliation
››› Assets / Equipment Ledgers etc.
8. Internet / Online / Web Research
››› Internet Search.
››› Product Research & Market
Research.
››› Survey, Analysis.
››› Web and Mailing list research etc.
››› General Ledger

15. BPO Almost Everywhere
BPO appears to be an all inclusive term that covers everything:
››› Medical transcription
››› Animation
››› Power point presentations
››› Equity research
››› Contract research
››› Call centres
››› Collections
››› IT Help desk
››› Internet chat
››› Customer service
››› Transaction processing
››› Travel bookings
››› Accounting
››› etc. etc. etc.

16. BPO- Industry Segment
Everyone industry is into outsourcing:
››› Banks
››› Insurance
››› Asset management
››› Manufacturing
››› Healthcare and Pharma
››› IT
››› Telecom
››› Travel agencies
››› Airlines
››› Governments

17. Advantages
•Productivity
Improvements
•Cost Savings
•Improved HR
•Focus on Core Business
Competency
•Improve Service Level
•Reengineer Business
Process
•Access to world classcapabilities
•Higher level of service
with lower cost
Disadvantages
•Knowledge Disappears
and is Transferred to the
Outsourcing Partner
•Poor Quality Control
•Restoring Operations is
Complicated
•Lack of Loyal Employees
•Reduction in Strategic
Alignment
•Political and religious
instability

18. Outsourcing in India
Knowledge
Process
Outsourcing
Information technology
Enabled service
Business
Process
Outsourcing
BPO ITES KPO

19. BPO in India
Business process outsourcing is progressing fast in
India.
As of 2008, around 0.7 million people work in
outsourcing sector.
During the years 2003-04, the ITES-BPO segment
achieved a 54 percent growth in revenues as compared
to the previous years.
The number of Indians working for the ITES sector
jumped to 245,500 in the year 2004.

20. ITES, Information Technology Enabled
Service
ITES, Information Technology Enabled Service, is defi
processes that can be enabled with information tech Areas like
finance, HR, administration, health care, te manufacturing etc.
Armed with technology and manp provided from e-enabled
locations. This radically r service standards. In short, this
Internet service prov B2B e-commerce solutions.
The main objectives of ITES are :
» Enabling business strategy
» Achieving an organization's business goals

21. KPO,Knowledge Process Outsourcing
KPOKPO services include the following:
>> Investment research services
(equity, fixed income and credit, and
quantitative research)
>> Business research services
>> Data Analytics
>> Market research services
>> Valuation and fairness opinions
>> Legal process outsourcing
>> Patent research services
>> Business operations support, analytics &
management
>> Editorial process outsourcing

22. Current Top Indian Rankers
Genpact
WNS
Wipro BPO
HCL Technologies BPO
ICICI OneSource
IBM Daksh Progeon
(Infosys) Aegis BPO
Service
EXL Service Holding
Convergys
Zenta
Mphasis
Tracmail
GTL
Ltd.
VCustomer
HTM
T
24/7 Customer
Sutherland Technologies

23. Why People Leave
1. Did not get a better job.
2. Find nothing better to do.
3. Education level doesn't
matter
1. Good work environment
2. Good Benefits
3. Flexibility of time
4. Attractive life style
Why People Prefer
Why people prefer Join and Leave BPO
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 har makes any difference. Again,
this is the industry, where there is no reference check 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 and
leave a BPO:
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

24. Strengths
•Large no. of talented graduates
•Affordable and quality education
as compared to developed
countries
•English language benefit
•Strong customer base of well
known companies
•Powerful venture capital interest in
investing in growth opportunity
Opportunities
S W
TO
SWOT Analysis for BPO in
India
Weakness
•Scarce foreign language skills
other than English.
•Lack of customer service culture
•Expensive and poor quality
telecom infrastructure
•Poor electricity supply
•Cultural differences
•Horizontal and vertical expansion
of existing customer base into new
markets
•Time zone difference between
India and target markets
Threats
•High Billing rates
•Political instability
•India's competitors in Eastern
Europe, Latin America and the Asia