(BPO) Case study HSBC(BPO) Case study HSBC

ITES / BPO Industry in IndiaITES / BPO Industry in India

The industry has grown and is maturing

Global sourcing…..not just a passing fad….but a business imperative

Global demand for ITES /BPO grew by 10.5 %, to reach USD 447.7 billion in 2004

ITES / BPO Industry in IndiaITES / BPO Industry in IndiaGrowth of Indian ITES - BPO

0123456

1999 -2000

2000 -2001

2001 -2002

2002 -2003

2003 -2004

2004 - 05E

Year

USD

Bill

ion

2004…Turning point 2004…Turning point Indian ITES / BPO – fastest growing segment

Forecasted to reach USD 5.7 billion in FY 2005

Domestic revenues are expected to double in FY 2005

Industry employee strength of over 250,000 and expected to grow by 40 percent in ’05

Employment in sector to exceed one Million by FY ’07-’08

India remains the most widely used off-shore location and is expected to see

maximum increase in spending in 2005…….Morgan Stanley

source: NASSCOM

Drivers of Growth Drivers of Growth

Competitive pressure

Impact on profitability

Focus on more cost efficient

business model

Ability of Indian vendors to

ramp up operations rapidly

Expanding service offerings

Shift towards high value

services

Sustained cost advantage

Delivery process enhancement

and improvement

Resource flexibility

Large pool of technically

qualified, English speaking

resource

Potential High Growth AreasPotential High Growth AreasCustomer Analytics and CRM

HR Outsourcing

Legal transcript support

Knowledge process outsourcing

Market research

Equity research

Engineering design

Animation and simulation

R & D ( non IT areas)

Potential High Growth AreasPotential High Growth AreasFinancial Services outsourcing …..already witnessing explosive growth

Insurance underwriting

Fund management

Risk assessment and actuarial analytics

Commodities processing services

Debt collection and recovery

Equity research

Financial data mining and modelling

Corporate & Market research

Banking & Financial Services Industry continues to be the largest vertical market for Indian ITES / BPO

Impact of this growth on EmploymentImpact of this growth on Employment

Impact of this growth will be on the general population.

Sector can employ ordinary graduates or even non-graduates

Most importantly, this growth will open avenues to a wide range of

specialist skill sets

From basic customer service to analytics, underwriting and even Engineering R

& D.

Employment in sector to exceed one Million by FY ’07-’08

Basic Skill RequirementsBasic Skill Requirements

Basic Computer knowledge (For general processes)

Excellent Communication Skills (Neutral Accent, clear speech,

good grammar & language etc.)

Customer Interaction Skills (Customer handling skills,

telephone etiquette, empathy and listening skills etc.)

Understand the target groups and their cultures

Basic Skill RequirementsBasic Skill Requirements

Positive attitudes like:

commitment to understanding customers

solving their problems

motivation to work hard.

The process training is given in-house by the ITES companies but

the base skills like communication; interactive skills and attitudes

etc are expected prior to hiring and form the criteria of screening

for ITES jobs.

Skills Requirement by VerticalSkills Requirement by VerticalSEGMENTS SKILLS REQUIRED

Call center Good communication and language skills, accent understanding team leadership, basic computing skills

Remote customer interaction Language and accent understanding

Date search, Integration Computing, language and analytical skills

Human Resource Services Country specific HR policies, rules and regulations

Remote education Subject knowledge, computing and language skills

Engineering and design Technical and engineering design and computing skills

Translation, medical transcription and Localisation

Language understanding, basic computing (word processing knowledge) and understanding of various medical terminologies

Animation Drawing and creative skills, computer graphic skills

Finance and accounting International/ country specific accounting rules

Market Research Understanding statistical sales and marketing concepts

Network Consultancy and management

Understanding different network configurations and support equipment, technical/ computing skills

India …….global playersIndia …….global players

Career vs. Job OpportunityCareer vs. Job Opportunity

HSBC Global ResourcingHSBC Global Resourcing…………a career opportunity…….a career opportunity…….

The HSBC GroupThe HSBC Group

One of the largest banking & financial services organisations in the world

Top 5 brands worldwide

Over 9,800 offices worldwide

253,000 employees in 77 countries and territories

Over 110 million customers worldwide with a total e-customer base of almost 20 million

Global Resourcing Global function of HSBC, with direct reporting relationship with GHQ

Is an essential element of HSBC Group and contributes to the Group Strategy of Managing for

Growth which is based on a strong coherent management of costs and investments

Consists of 11 Group Service Centres located across 5 countries in Asia

Partners with other HSBC business areas to provide world-class customer service, contributing

to HSBC’s business success

Customers Branch Group Service Centre

Global ResourcingGlobal Resourcing

Customer Service

Hyderabad

Bangalore

Guangzhou Guangzhou

Colombo

Hyderabad

Kolkata Malaysia

VizagThe PhilippinesShanghai

Group Service CentresGroup Service Centres

Group Service Centre, VizagEstablished June 2004

Group Service Centres - Centres of ExcellenceGroup Service Centres - Centres of Excellence

ConsumerFinance

CustomerCare

Mortgage Finance

HRIT

Operations

Payments

Trade Credit

InsuranceSecurities/

InvestmentsCIBM Analytics

Brings together a set of functions, expertise or skills, performed to a world class

standard

Working with HSBC Global Working with HSBC Global ResourcingResourcing

Opportunity to be a part of one the world’s fastest growing

industries

Work in a secure world class environment

Rewarding growth opportunities

Training and development to handle global challenges

Competitive compensation and benefits

Growth in HSBC Global ResourcingGrowth in HSBC Global Resourcing

RADHIKA DHARANIKOTAProcessing Executive in Oct 2000

Manager – Project & Planning in Nov 2003

SRIDHAR REDDY System Admn Executive in Jan 2001

Manager – Data Centre in Jan 2004

Growth in HSBC Global ResourcingGrowth in HSBC Global ResourcingMONA SAXENA

Processing Executive in May 2001

Asst Vice President – Compliance in Jan 2005

VIJI VARGHESEAsst Manager – Training in May

2000

Asst Vice President – Planning in Feb 2004

MANISH MANDHYANAsst Manager – Training in May

2000

Vice President – Operations in Dec 2004

SUNIL BINGIProcessing Executive in April 2002

Manager – Compliance in Jan 2005

In SummaryIn Summary

ITES / BPO

One of the fastest growing industries in India

Dynamic, challenging environment

Competitive compensation and benefits package

Vast range of verticals to choose from

caters to almost every industry – opportunity to develop specialist skills

Unmatched learning, development and growth opportunities

Global exposure

Caring and empathetic employers

Compelling Career Proposition

QuestionsQuestions