Information Technology

enabled Services

Introduction
Information Technology that enables the
business by improving the quality of service is
IT enabled services. ITES is the acronym for
the term “IT Enabled services”. Essentially, IT
enabled service has the following structure:

The most important aspect is the Value

addition of IT enabled service. The value
addition could be in the form of - Customer
relationship management ,improverd
database, improved look and feel, etc. The
outcome of an IT enabled service is in the two
forms:
 Direct Improved Service
  Indirect Benefits.
Whereas direct benefits can be realised
immediately, indirect benefits can accrue over
a period of time, and can be harnessed very
effectively, if planned well upfront.

What is IT enabled Services?

IT Enabled services (ITES), also called web
enabled services or remote services or Tele-
working, covers the entire gamut of operations
which exploit Information Technology for
improving efficiency of an organization. These
services provide a wide range of career
options that include opportunities in call
Centres, medical transcription, medical billing
and coding, back office operations, revenue
claims processing, legal databases, content
development, payrolls,
logistics management ,GIS (Geographical
Information System), HR services, web
services etc.

What is the Key IT enabled Services?

The key IT enabled services are:
 Call Centres
 Electronic Publishing
  Medical Transcription
 Data Centres
 GIS Mapping
 Portals
 ERP( Enterprise Resource Planning )
 Knowledge Management & Archiving.

Technologies involved
For each service there are two types of
technologies involved:
 Enabling technology
 Communication.
The enabling technologies are those
technologies which allow the IT enablement.
For e.g. in the call centres they are – CTI
(Computer telephony integration),
CRM( Customer
Relationship Management ),etc. The
communications allows the IT service to be
delivered through a new channel - Telephone,
IP, VoIP (Voice over IP: Voice over Internet
Protocol), Satellite based transmission, etc.

The combination of the correct technology

and the communication channel brings about
very high degrees of improvement in the
service quality.

The Deployment Issues

Whereas the growth is high, and the
prospects are enormous, there are many
deployment issues for establishment of IT
enabled services.
 High Capital Investments
 High Volume Transactions
 Continuous Business Availability
 Time Turnaround
 High Communications cost
 Lack of trained and reliable resources
 Role model/Guide or Help to start-ups.

Possible SME implementation of IT

enabled services
Some of the possible implementation of IT
enabled services in SME’s (Small & Medium
Enterprises) are:
 Joint Marketing Programs
 Common Helpdesk
 Portal for Electronic distribution
 Telemarketing
  Directory Enquiry system.

Favoured Application Areas

The favoured application areas are areas
where there is huge amount of data that
needs to be processed and utilised for
delivering the results, or the data is the
outcome of the service. In all cases, without
use of IT the task would otherwise be
unmanageable. Some of the most important
areas where IT enabled services can be
deployed are:
 Telemarketing
 Helpdesk
 Customer Support Centres
 Data Ware House
 Transcription Centres
 GIS Mapping for Transport tracking
 Electronic Distribution.
Business Process Management
Introduction
A business process is the set of activities
required to accomplish a common goal.
The activities may be performed by
people or systems and are completed
either sequentially or in parallel. BPM is
the acronym for the term “Business
Processes Management”.

We hear about the term Business

Process Management or BPM almost in
every business. Business
Processes Management can be defined
as a discipline of design, modelling,
execution, monitoring, and optimization
business processes to increase
profitability.

Thus BPM is a discipline rather than a

technology or a tool. This is an important
concept. BPM is not merely software you
purchase and install to fix a business
issue; people play a significant role in
business process management .In fact, a
key difference between workflow and
BPM software is that the BPM software
goes beyond merely automating work to
helping people with continuous process
improvement.

What is Business
Process Management ?
Business process management (BPM) is
a management approach focused on
aligning all aspects of an organization with
the wants and needs of clients. It is a
holistic management approach that
promotes business effectiveness and
efficiency while striving for innovation,
flexibility, and integration with technology.
Business process management attempts
to improve processes continuously. It
could therefore be described as a
"process optimization process." It is
argued that BPM enables organizations to
be more efficient, more effective and more
capable of change than a functionally
focused, traditional
hierarchical management approach.

Types of Business Processes

When beginning BPM, it is important to
realize that processes vary greatly. You
can categorize your processes many
different ways, including:
 Complexity
 Duration
 Volume
 Industry
 Department.

The reason why this is important is

because some types of processes are not
well-suited to being managed within BPM
software. For example, while highly
repetitive or regulated processes tend to
be excellent candidates, highly
unpredictable and unstructured processes
are not.
 Advantages of Business
Process Management

The most significant BPM advantages

encompass:
 Efficiency
 Visibility
 Control
 Flexibility
 Speed
 Production Management
 Performance Management
 Resource Management.
Definition: Business Process
Outsourcing (BPO)
Business Process Outsourcing (BPO) is a
kind of outsourcing in which the company
outsources a specific activity/process
related to its business to a third party
service provider. e.g. of the process could
include payroll, HR, technical support to
the customers. BPO allows a company to
save cost and also focus on the core
activities.
Types of Business Process
Outsourcing (BPO)
Business Process Outsourcing can be of 2
types:
1. Back-office outsourcing: it involves
outsourcing of internal business functions
like payroll, HR, etc.
2. Front-office outsourcing: It involves
outsourcing of customer related processes
like technical support, maintenance etc.

It can also be classified as:

1. Offshore outsourcing: When the work is
contracted to a company that does not
reside in the same country. India and
China have emerged as popular
destinations for offshore outsourcing.
2. Near-shore outsourcing: When the work
is contracted to a company that resides in
the neighbouring country.
3. Onshore outsourcing: When the work is
contracted to a company that is in the same
country.

Advantages of Business Process

Outsourcing (BPO)
1. Focus on Core Competency.
2. Reduction in Costs.
3. Increase in efficiency of business
process.
4. More Employment generation.
5. Focused teams solving problems.

Disdvantages of Business Process

Outsourcing (BPO)
1. Overdependence on third party vendors.
2. Lack of complete knowledge of
product/service offering leading to
customer dissatisfaction.
3. Less focus on quality because of lower
cost offerings through outsourcing.

Examples of Business Process

Outsourcing (BPO)
A good example can be technical support
services of a product company can be
outsourced to a third party call centre
service provider. The product company
need not hire staff for tech support. They
also do not require having contact centre
software or actual office for such support.
They can pay for these service to a BPO
provider and outsource the entire technical
support and related services like
warranties, renewals, and repairs. The
training and hiring of staff and eventual
technical support would be handled by a
third party. The main product company
would share the business information and
product manuals and other details with this
BPO Company and concentrate on their
core competency i.e. making and
researching better products.

Second example can be outsourced

delivery services to e-commerce websites.
There are many companies who provide
delivery staff, pick up and drop, reverse
supply chain management services to e-
commerce websites. The e-commerce
company can concentrate on business
creation, development, product handling,
order and returns management, design,
marketing and pricing but outsource the
actual physical delivery to a third party
logistics provider.