ABC business program 30th June 4th July, 2009 Faculty of engineering, Alexandria, Egypt

Business process outsoursing

Presented by: Asmaa Moussa ITI instructor
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BPO Basics

Objectives

What is OUTSOURCING?
OVERVIEW TYPES OF BPO

WHY do companies outsource?

MISSIONS AND ROLES IN BPO CAREERS IN A BPO

What is OUTSOURCING?

Delegating a Companys Business Processes

To

Third Party
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Overview
BPO = Business Process Outsourcing

Business Process: Activities performed by a business entity to achieve its goals. Outsourcing: Act of handing over a business process to another business entity Examples of Business Processes: HR: Recruitment Finance: Payroll, Invoicing,

Customer Care: Customer Support, Technical Support

Sales: Reviewing proposals, responding to RFIs

Marketing: Create and publishing brochures

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Overview
1. Can you guess what was Indias total BPO exports last year?

2.

Can you guess how many people are employed in the BPO industry?
Year 2002-2003 2003-2004 2004-2005 2005-2006 Exports (US$ Billions) 2.5 3.6 5.1 7.2 No. of people employed 1,70,000 2,50,000 3,50,000 4,15,000

Industry exports were only $500 Million in 1999-2000

Year Exports (US$ Billions) No. of people employed

2006-2007 2007-2008

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5,50,000 10,00,000

In another 3 years, the industry will employ 1 million people. This implies that there is ample growth opportunities in the industry for everyone.

Types of BPO
Homeshoring:
within the country borders.

Offshoring:
out of the country.

Nearshoring:
out of the country but in a near place.
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Why do companies outsource?

1. Freeing resources: 2. Exiting NonCore Activities: 3. Require new service: 4. Require Expertise:
Internal Resources = People, Time, Management, Money, Equipment, Real estate etc. Companies feel the need to exit non-core activities for better business focus.

When companies want a new service they may go to an external vendor.

When companies want help in areas where they dont have the relevant competencies, they may go to an external vendor.
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Why do companies outsource?

5. Reduce cost of operations:
6. Reduce capital investment: 7. Reduce Risks
Companies may outsource simply to reduce the cost of operations.

A company may choose to outsource because it may not want to make large commitments of funds.

Companies may want to reduce risks because of a fast changing market conditions. Therefore, they may want to outsource a process in order to share the risks with the vendor.
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Mission & Roles of a BPO

The Mission of a BPO is to support the businesss goals and objectives of their organization or clients. Example

AIRLINE 1 Goal: To be a low cost airline

BPO Mission: To provide service at least cost
BPO Activities: Have as many self service options as possible on the web site Caller can wait longer in the phone queue Get caller to print tickets from the web site (no sending physical tickets)

AIRLINE 2 Goal: To be airline of choice for business travelers

BPO Mission: To ensure maximum convenience to business travelers
BPO Activities: Least possible wait time for caller Quick service by ensuring tele-checking Quick service by ensuring agent has access to all possible info on flights and the callers through an online database.

1.

2. 3.

1. 2. 3.

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Careers in a BPO

Vice President Vertical Growth in Operations Director

Program Manager Process Manager Manager

Team Lead Agent

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Careers in a BPO
Lateral Growth
Marketing

Human Resources Work force

Sales

BPO Operations

Work your way to the outer circles

Quality

Training

Finance Project Mgmt

Operations
Special Projects Tech Dept

Sales Support

Operations Support Corporate Functions

Account Management Process Transition

Facilities

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Thank you

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