business process outsourcing industry in india

8/14/2019 Business Process Outsourcing Industry in India

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Business process outsourcing industryin India



Business Process Outsourcing(BPO) is the actof giving a third party the responsibility of running what would otherwise be an internalservice. For instance, an insurance company

might outsource their claims processingprogram or a bank might outsource their loanprocessing system. Other common examples of BPO are call centers & payroll outsourcing.



…the Services Outsourcing

Industry, catering mainly toWestern operations of

MNCs (Multinational

Corporations).



…considerable activity during 2004–05, including a rampingup of operations by major multinational corporations playersand Indian organizations stepped up hiring.

The domestic BPO market, catalyzed by demand from thetelecommunications and BFSI segments, matched the growthof BPO exports.

There were over 400 companies operating within the IndianBPO space, including captive units (of both MNCs and Indiancompanies)

The key enabler for this has been cheaper bandwidth leadingto low telecom costs for leased lines and availability of educated English speaking workforce in India.



…'competitive advantage' theorypropagated by Adam Smith in his book

'The Wealth of Nations' which waspublished in the year 1776.

Over the years, the meaning of the term'outsourcing' has undergone a sea-

change. What started off as the shiftingof manufacturing goods to countriesproviding cheap labor during theIndustrial Revolution, has taken on a

new connotation in today's scenario.



Reason Savings

Cost reduction 43%

Focus 35%

Access to special enterprise 32%

Resource related reasons

{relieve resource constraints, reduce IT

staff and augment IT staff} 51%



There is a disagreement as to what exactlyconstitutes BPO. With the rapid expansion of theBPO industry and the extent of its reach, it isbecoming increasingly difficult to define what a

BPO exactly means. It encompasses a widevariety of activities such as human resource,accounting, financial research, marketing, sales,legal work, logistics and so on. Softwareservices are also regarded as a part of the BPO

market by many firms.



India has made a strong niche for itself in this space, with its undeniableadvantages in the size of its talent pool and the cost & time differential. Indiaranks high in areas such as qualifications, capabilities, quality of work, linguisticcapabilities and work ethics, and thus is ahead of competitors such as China,Philippines, Ireland, Australia, Canada etc. In specific BPO categories, Indiancenters have achieved higher productivity levels-for example, the number of transactions per hour for back office processing, than their Westerncounterparts. Also, India is able to offer a 24x7 service and reduction inturnaround times by leveraging time zone differences. About 100,000 engineersgraduate from India every year . Many of these engineers are employed with callcenters for troubleshooting and providing technical support at salaries that aredramatically lower compared to the pay scales in the US. The average monthlysalary in India is $400-700 compared to $2,700-2,800 in the US.



Call Centers in India are prospering upon the upscale riseamongst the entrepreneurs who are trying to allure theircustomers through inbound and outbound calling facility.

This concept raving in US have enabled many offshore CallCenters establishments, majorly is India.

Opening Call Centers in India provides a strong base forthe companies in US and Europe. The quality of English is upto the par of international standards. Indians are technicallyliterate and are comfortable with new technologies arising inthe industry

http://www.telegenisys.com/






Call Centers in India have begun their phase in uprooting sector of the economy, which oncebecame a rage in US. The Call Center in India is on the balanced well enough to become largerin the coming decade atleast. Until any other country produces a literate, good English speakingcommunity with technical vibrancy with cost-effective workforce, India will continue to depot moreand more clients interested for offshore outsourcing of their business.

Employees in the Call Centers can expect a bright future if they keep an established track recordwhile working for Call Centers in India. There are numerous openings for the job seekers in aCall Center industry. Employees attributing in the fields of client services, businessdevelopment, operations, quality, project management, training, human resources, accounts,facilities, technology and relative grounds should feel secured about their future.

Stability in Call Centers or any business can only be predicted under present circumstances viz.,economy, growth rate, employment switchover etc. In terms of Call Centers in India it can besaid that there is an upsurging need for the corporate firms to outsource their back-office

operations to find more time for the prospective growth of the companies. As long as India isproducing quality professional with good English communication skills and abundance of talent tomeet the requirements of the global corporate needs, Call Centers in India will be thriving incoming years.











There are around 360 Call Centers in India with more than 60,000 employees. In its initialphase, Call Centers in India is expected to employ about 1 million by 5 years time and emergeas a $150 billion industry. The huge influx of Information Technology Enabled Services (ITES) inIndia is keeping the employment growth in India under check.

Offshore Call Center facility is a rapidly growing industry in India. Headed by the industry big-shots like GE Capital and Amex (through in-house, captive call centers); the industry haswitnessed explosive growth in the last 2-3 years. As the IT services/ software industry growth hasslowed, Call Centers have emerged as strong employers, absorbing large number of fresher aswell as experienced people in the country.

Call Centers and BPO are already huge industries round the world. By flexing its norms in thetelecom and technology field India has joined the bandwagon of US, Australia, Britain and thelikes of nation as the emerging Call Center industry bigwig.

The beginning of Call Center industry in India is going to be huge in the coming years. Peoplewho are joining Call Centers now are going to have faster track career growth and bettercompensation growth than any other industry has to offer.



Call centers Call centers consists of inbound calls or outbound calls

or both.

All this operation mixed with backend operations like

emails, fax etc constitute a call center.



Outbound calls

Outbound calls are the calls made by the company to thecustomers either to sale or advertise their products or toinform the customers about upcoming offers or a newplan. Most of these calls are barrge.

E.g.: ICICI Lombard calls in the ICICI bank customers tomake a telesales by explaining them their variouspolicies like critical care or personal accident on calls andmaking the transaction on the call by taking the

customers credit card number and making a verificationcall.



Inbound calls

Inbound calls are calls made to the companyby the customer for getting the customerservice or technical support on the purchasedproducts or services

E.g.: A Person purchased a dell laptop and has

a blue screen error, he thereby calls in thedells helpline number to get technicalassistance



Payroll outsourcing

Reason for payroll outsourcing are

1. Avoid IRS Penalties

2. Reduce Costs

3. Alleviate Pain 4. Offer Direct Deposit

5. Free Up Free Time

6. Avoid Technology Headaches

7. Leverage Outside Payroll Expertise

8. Avoid Payroll Knowledge Walking Outthe Door



Avoid IRSPenalties

According to the IRS, 40 percent of smallbusinesses pay an average penalty of $845

per year for late or incorrect filings. Mostnational payroll services provide a taxguarantee, ensuring that there will be nopenalties and taking responsibility for

penalties when they do occur. In manyinstances, this immediately cost justifiesoutsourcing payroll.



Reduce Costs

The direct costs of processing payroll can begreatly reduced by working with a payroll

provider. Our research indicates that a smallbusiness of 10 employees will typically spend$2,600 per year in direct labor costsassociated with payroll.



Alleviate Pain

Payroll is a headache in the best case and anightmare in the worst case. Business ownersthat outsource payroll eliminate a tiresomesource of personal pain.



Offer DirectDeposit

Providing direct deposit is difficult if a companydoesn't use an outside payroll service. Increasingly,

small businesses recognize that employees wantdirect deposit. Not having to make a trip to the bank isan important convenience for them. More importantlyfor business owners, direct deposit eliminates time-consuming and error-prone paper handling and the

need to reconcile individual payroll checks everymonth.



Free Up FreeTime

Payroll processing is a time-consumingprocess. Outsourcing payroll can free up staff time to pursue more important value-addedand revenue-generating activities.



Avoid TechnologyHeadaches

A constant question for the small businessowner is whether they have the latest version

of their payroll software and the most recentof the tax tables installed on their computer.Using the wrong tax tables can result in stiff penalties. Outsourcing payroll removes those

headaches and keeps payroll runningsmoothly.



Avoid Payroll Knowledge

Walking Out the Door

If your bookkeeper or controller gets a new job, they will walk out the door with theirknowledge of the payroll process and how youdo it. Using an outside service eliminates that

business risk.

business process outsourcing industry in india

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