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BPO
MEANING OF OUTSOURCING
Outsourcing is usually the term used when a company takes a part of its business and gives that part to another company.
1997 -GE flags off BPO operations in Gudgeon through subsidiary GE Capital International Services (Gecis)S
1999 - Sanjeeev Agarwal, backed by $3 million venture funding from CDC Capital Partners, sets up Daksh eServices in Gurgaon and begins offering email support service.
2000 - Raman Roy quits Gecis to set up Spectra mind in Gurgaon. Customer Asset and 24/7 Customer setup shop in Bangalore.
2001 Dell, HSBC, standard chartered, HP, Lead the boom. 2002 Private equity investors, IT services and large corporate houses rush in to third party . 2003 Third party firms begin to scale up revenues and diversify services. 2004 WNS becomes first Indian third party BPO firm to hit $100 million revenues .IBM buys daksh for $130 million.
2005 onwards Genpact,1-one source, WNS, Convergys, Hewitt, integrated IT and BPO services. Infosys, Wipro, IBM Accenture etc .
BPO INDIA
BPO- INDIA
India holds a 70% market share in the world wide BPO market. More than half of fortune 500 companies outsourced to India. 2007-08: $52 billion (growth of 28%). 2008-09*: $62-64 billion 2010*: $110 billion Contribute 1% to the GDP growth.
WHY INDIA
Large pool of highly qualified and English speaking force. Low cost of labor. Appropriate time zone difference with the west. Global business leaders are bullish on India's talent.
Why India
Educated employs. Large number of qualified workers Proven to be the best in the IT and computer software fields . Produce around 100,000 engineers annually . Infrastructure Telecom facility. Power sector.
Why India
Government.
Realize potential for economic development. Favorable policies have turned India in to BPO/IT hub. e.g.- Investment promotion, Telecom policy, IT act.
Why India
Jack Welch-A truly global co. is one that uses intellect and resource of every corner of world. India is a developed country as far as intellect capital and human resource is concerned. Bill gates India is a emerging power in IT sector. India is handling most sophisticated projects in the world .I am impressed with the talent we have in our India. John chamber We are expanding our presence in India to take advantage of the ample research and development talent available.
Michael dell India can become a major part of dells operation and a major source of human capital that dells take on as a company and we are taking further opportunities to take advantage of skilled labor. Lawrence j. Ellison I love Indian food and only a few minutes away from my house in redwood shore in Gaylord where I eat naan, dalmakhni and baingan bharta.I am deeply committed to the Indian venture where we have 2000 employs which will scale up to 4000.
Leading competitors
Philippines Mexico Canada China Ireland.
U.S. $27 Canada $22 Mexico$18 Carrabien$16 Philippines - $15 India $12 67-72% of costs to call centers operating in the US/UK is directly linked to man power costs. India only spends 33-40% of costs on man power. This includes training, benefits and other incentives for labor.
Sectors in outsourcing
Logistic o/s
Logistics is a part of supply chain process that involves material management and physical distribution processes. Logistics outsourcing is the process of using the expertise of a third party in order to perform in-house logistics functions. The best example of logistics outsourcing can be seen in terms of EDI outsourcing that involves linking the supplier, logistic provider and the vendors together by an EDI system.
IT o/s
IT outsourcing is the fastest growing sector in the outsourcing arena and has given rise to many success stories. But not all IT outsourcing contracts are successful. Some of them have met will huge losses and many have failed completely. The reason? Lack of knowledge and improper planning.
Technology o/s
Technology outsourcing is the fastest growing sector in the outsourcing market and includes everything from software development outsourcing to technical support and web designing outsourcing. As far as technology outsourcing is concerned India stands out as one of the most favorite destinations for companies in developed nations.
TOP 15 BPO
Genpact WNS Wipro BPO HCL BPO Service ICICI OneSource IBM Daksh Progeon Aegis BPO Services
EXL Service Holdings 24/7 Customer MphasiS BPO Intel net Global Services GTL TCS BPO Transforms
News at glance
Infosys looks to china o/s for market growth. Pharma o/s to cross $2.3bn by 2010. BPOs focus on $200 bn European market TechM bets on Satyam for BPO gains Infosys BPO inks alliance with Mortgage Flex Systems BPO companies free of labour laws for 2 years
Tech Mahindra wins $400mn telecom IT deal. TCS BPO sees 45-50% annual growth through new deals.
Thank you
Subhanshu sharma. Vinay salunke. Ritesh sharma.