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The presentation of 'Management Information System' subject of TEIT under 'University of Pune' INDIA.Author and Teacher: Tushar B Kutehttp://www.tusharkute.comtbkute@gmail.com
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MANAGEMENT INFORMATION SYSTEM
Third Year Information Technology
Part 19 Business Process Outsourcing
Tushar B Kute,Sandip Institute of Technology and Research Centre, Nashikhttp://www.tusharkute.com
WHAT IS BPO?
Business process outsourcing (BPO) is the contracting of a specific business task, such as human resources and customer service, to a third-party service provider.
This allows companies to focus on their core business processes.
BPO is implemented as a cost-saving measure for tasks that a company requires.
AIMS
Cost reduction Productivity Growth Innovation
MOTIVATING FACTORS
Cost advantage Superior competency Utilization improvement Economy of scale Business risk mitigation
TOP 5 OUTSOURCING OBJECTIVES
12%
29%
35%
91%
85%
0% 20% 40% 60% 80% 100%
De-risk the business
Achieve high productivity
Improved Operational Quality
Reduced Costs
Focus on Core Activity
% Respondents
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.
KEY TERMS
Offshore Outsourcing is BPO that is contracted outside a company's own country.
Nearshore Outsourcing is BPO that is contracted to a company's neighboring country.
Onshore Outsourcing is BPO that is contracted with the company's own country.
EXAMPLES
Coca-Cola – SCM Bank of America – Exult British Airways – WNS Infosys – Progeon Satyam – Nipuna IBM – Daksh EDS – MphasiS HCL, Patni, Accenture, Dell etc.
TOP 5 INDIAN BPO EXPORTERS
Genpact, TCS BPO, WNS Global Services, Wipro BPO, Aegis Ltd..
IMPACT OF BPO
According to management consultancy McKinsey & Co., the global "addressable" BPO market is worth $122 – $154 billion, of which: 35-40 retail banking, 25-35 insurance, 10-12 travel/hospitality, 10-12 auto, 8-10 telecoms, 8 pharma, 10-15 others and 2-5 is finance, accounting and HR
DIFFERENCE BETWEEN VOICE /NON VOICE BPO
Voice deals with speaking directly with the customers either in US / UK /in other countries.
Communication level should be higher when applying for a voice process.
Non voice includes more on data entry, data management , E-mail writing.
CALL CENTERS
A call centre is a centralized office used for the purpose of receiving and transmitting a large volume of requests by telephone.
A call centre is operated by a company to administer incoming product support or information inquiries from consumers.
Outgoing calls for telemarketing, clientele, product services, and debt collection are also made.
NATURE OF WORK
Call centers are voice or web based. Either in bound or out bound where in
calls are received from and made to the customer respectively.
Specialized in business processing, here calls are made from company to company.
Areas addressed by call centers are sales support, reservations ,bank accounts and telemarketing.
INBOUND CALL CENTERS
In bound call centers provide support function that include inquiries or help desks for various segments.
Most of the call centers are offering customer relationship management services that include support for Voice call center, E-mail response, Web-based text services and Backroom processing.
OUT BOUND CALL CENTERS
Out bound call centers provide services for customer contact, to interact with international clients either on the help- desk make collection calls which include market surveys information and telemarketing.
NON VOICED CALL CENTERS
Data entry This requires updating, organizing data
base on various details of customers and clients.
Transaction processing: Answering customers
Queries, enquiries and responding to the complaints over the E-Mail
CALL CENTERS
WORKING CONDITIONS WITH BPO
To work in a BPO you must be prepared for the challenging job, which would also require you to work during non morning hours (night shifts)
Because the clients are mainly from U.K, U.S and European countries
CALL CENTER EXPECTS
Call center interview depends on Computer knowledge Communication skills in English Keyboard skill Mathematical skill etc.
IMPORTANT AREAS OF TRAINING
Accent training Listening skills Telephone etiquette Tele sales Customer Relationship and Call center terminology.
BPO SOLUTION
World-class offshore outsourcing and consulting services specializing in IT- enabled services
Back office outsourcing services BPO solutions from India guaranteed to
cut costs and improve quality
BPO /ITES
BPO industry in India has been estimated to grow very fast
As the attrition rate is significantly high in the BPO /ITES industry
BPOs are realizing that their HR policies need to be transparent and clear
BPO TO INDIA
Indian revenues from BPO are estimated to have grown 107% to $ 583 million.
Leading Competitors:- Philippines, Mexico, Canada, China
and Ireland. 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.
INDIA’S COMPELLING ADVANTAGE
India 38%China 6%
Mexico 5%Ireland 5%Canada 5%
Malaysia 4%Philippines 4%
Russia 4%Singapore 4%
Survey respondents shows the following outsourcing destination:
India has transformed into the global outsourcing center of choice.
It employs world class technology and efficient delivery mechanisms to ensure that clients get cost effective solutions for all their BPO needs.
And more ………
Source: Computer world and InterUnity Group Inc., Concord
CALL CENTERS IN INDIA
TOP DRIVERS OF OUTSOURCING INDIA Two million graduates each year (Existing Pool: over
25 million) 120,000 Engineers every year vs. 63000 in US English speaking and IT savvy workforce Cost reduction up to 50% Government support for IT and BPO industry Improving telecom infrastructure Lower infrastructure costs Favourable time lag: 12 hours with US & 5 hours with
Europe Overnight turnarounds possible Resources with experience of financial and legal
systems similar to the west Strong domestic IT services industry to support IT
led BPO
ADVANTAGES OF BPO
Enhances flexibility of organization Cost reduction and speeds up the
process Create competitive edge Reduces capital investment Reduces requirement of manpower Helps in business organization Increased capability of organization
DEMERITS OF BPO
Data security and privacy issues due to malpractices followed in the BPO company.
Fear of job loss by the locals.
CHALLENGES TO THE BPO
Failure to meet service levels Vague contracts Changing requirements in the current
market Unpredictable changes Improper planning which leads to
vendor dependency.
REFERENCES
Arpita Gopal, Chandrani Singh, “e-World Emerging
Trends in Information Technology” , 1st Edition, Excel Books.
Tushar B Kute,Sandip Institute of Technology and Research Centre, Nashikhttp://www.tusharkute.com
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