Om Term Paper2003

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TERM PAPER

OF

OPERATION MANAGEMENT

ON

TO STUDY THE OPERATION AND LOCATION STRATEGY

BEING FOLLOWED BY BPOS

SUBMITTED TO: SUBMITTED BY:

SANJAY JINDAL Amandeep Kaur

ROLL NO. : - B-54


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ACKNOWLEDGEMENT

A term paper takes a lot of efforts and labor for its completion. It can never get completed

without the toil. But in addition to, a lot of help is requiring from sources also. This project could

never had completed without the endeavors of my teacher guide, Sanjay Jindal His insight

and valuable suggestions helped me in every phase of making of the term paper, be it data

collection, data analysis or representation of the information. I express deep gratitude to Mr.

Sanjay Jindal.During this project numerous other people helped me. To all those unnamed

helpers, I extend my heartiest thanks, as without their help this project would not have

materialized.


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INDEX:

Sr.No. Description Page No.1. Introduction 4

2. BPOs in INDIA 4

3. Major Sectors of BPOs 5

4. Operation and Location Strategies 5 to 6

5. Operation Strategy of BPOs 6 to 7

6. BPO Consulting Services 7 to 8

7. Trends in Indian ITES-BPO market 9 to 10

8. Location strategy of BPOs 10 to 15

9. Location Selection Techniques 16 to 1710. Future Locations 17 to 19

11. Conclusion 19

12. References 20

TO STUDY THE OPERATION AND LOCATION STRATEGY BEING

FOLLOWED BY BPOS


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1. INTRODUCTION:

Business Process Outsourcing (BPO) is a type of soft process industrial activity pursued by specialist

external provider firm using IT-enabled services (ITES). Business process outsourcing (BPO) is a subset

of outsourcing that involves the contracting of the operations and responsibilities of specific businessfunctions (or processes) to a third-party service provider. Originally, this was associated with

manufacturing firms, such as Coca Cola that outsourced large segments of its supply chain. In the

contemporary context, it is primarily used to refer to the outsourcing of services.

Business Process Outsourcing (BPO) is a buzzword among the corporates in the world today. Gone are

the days when service functions were developed by the corporate's in-house for captive use. Today,

corporate benefit significantly from outsourcing of business processes almost everywhere on the planet.

Looking to the growth and government's support to it, BPO is being recognized as a specialized sector in

India.

2. BPO In India

Over the last few years, outsourcing of business processes has been gaining popularity driven by the fact

that US firms have been enjoying much success from adopting this business strategy. European

organizations have increasingly been focusing on what they identify as their core competencies and have

been looking to reduce costs while maintaining high levels of quality for non-core activities andprocesses. To this end, two broad approaches had developed. One, to centralise the non-core processes

into an in-house shared service functions to derive benefits of centralisation through an in-house process

or through a wholly owned subsidiary. Two, to identify an acceptable third party service provider who

will handle the processing work. The current economic climate has encouraged the latter trend as the

organizations continue to look for more innovative ways to improve efficiency and cut costs in order to

survive the turbulent marketplace. Hence, the business process outsourcing.

In India, as far outsourcing of business processes is concerned, the outsourcing of legal services comes on

the first count. In other areas also (discussed later in this article), BPO is quite in vouge in India.

Nowadays, more and more companies are announcing BPO and call centre projects in India. As per

estimates, India is set to become the most popular destination for BPO operations. A large number of

multinational companies are outsourcing their business processes offshore to Indian BPO companies.

BPO has got impetus with the technological breakthrough with Internet for communication across the

globe which has been the largest advantage for the success of the BPO business.


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More importantly, India has a pool of talent and has the second-largest English-speaking population with

computer knowledge in the world after US. Also, costs are lower in India compared to other countries for

outsourcing. The technology in India is state-of-the-art and the country is rightly located in terms of the

geographical position, and the policies of Govt. of India are also favourable for software and BPO sector.

3. Major Areas Of Bpo Sector

The non-core business process areas are the core areas of BPO business. Simply speaking, outsourcing of

non-core business processes is popular among the corporates today. These non-core business processes

areas may inter alia include IT enabled services (ITES), e-logistics, management of facility & operations

and legal services. Of these, outsourcing in ITES e.g. software & call centres is amazingly popular across

the globe.

4. Operation and Location strategies

Operations strategy is the collective concrete actions chosen, mandated, or stimulated by corporate

strategy. It is, of course, implemented within the operations function. This operations strategy binds the

various operations decisions and actions into a cohesive consistent response to competitive forces by

linking firm policies, programs, systems, and actions into a systematic response to the competitivepriorities chosen and communicated by the corporate or business strategy. In simpler terms, the

operations strategy specifies how the firm will employ its operations capabilities to support the business

strategy.

Operations strategy has a long-term concern for how to best determine and develop the firm's major

operations resources so that there is a high degree of compatibility between these resources and the

business strategy. Very broad questions are addressed regarding how major resources should be

configured in order to achieve the firm's corporate objectives. Some of the issues of relevance include

long-term decisions regarding capacity, location, processes, technology, and timing.

A location strategy is a plan for obtaining the optimal location for a company by identifying company

needs and objectives, and searching for locations with offerings that are compatible with these needs and

objectives. Generally, this means the firm will attempt to maximize opportunity while minimizing costs

and risks


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A company's location strategy should conform with, and be part of, its overall corporate strategy. Hence,

if a company strives to become a global leader in telecommunications equipment, for example, it must

consider establishing plants and warehouses in regions that are consistent with its strategy and that are

optimally located to serve its global customers. A company's executives and managers often develop

location strategies, but they may select consultants (or economic development groups) to undertake the

task of developing a location strategy, or at least to assist in the process, especially if they have little

experience in selecting locations.

5. Operation Strategy of BPOs

With more than a decade of domain knowledge and functional expertise in travel operations outsourcing

(BPO for travel), TRX helps clients increase efficiency, customer satisfaction, and drive results to the

bottom-line. World's leading travel management companies, airlines and two of the top three online travel

agencies gain competitive advantage from our value added services, spanning every aspect of travel

operations.

BPO Programmes:

BPO Programmes are at three levels:

Skill Builder/Starter programmes

Continuous development programmes

Consultancy services

Indian ITES-BPO continues to grow from strength to strength, witnessing high levels of activity both

onshore as well as offshore. Continuing pressure on cost bases at a time of growing competitiveness is

driving companies to look at offshore outsourcing as a strategic alternative. Access to global talent,

economies of scale, process engineering and enhancements, wage arbitrage, increased profit margins and

improvements in quality are some of the gains that companies have realized. Complementing the growth

in ITES-BPO exports was the spurt in domestic demand for especially in the BFSI and telecom verticals.


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The industry also witnessed a high degree of M&A activity involving some of the key players in the

sector. In spite of the consolidation, the share of the top 20 players remained relatively unchanged at

approximately 49 percent of the industry as the rest of the industry also witnessed impressive growth.

Some of the key drivers of the Indian ITES-BPO industry include:

Competitive pressures on client organizations

Ability of Indian vendors to ramp-up operations rapidly

Widening breadth of services

Shift towards high-value services

Sustained cost advantage - In spite of the rising elements of cost, Indian offshore operations

provide cost savings of 40-50 percent

Delivery process enhancement and improvement

Access to an abundant skill pool - India has the largest English speaking IT talent pool in the

world - over 120,000 trained IT professionals and approximately 3 million other graduates are

added each year

6. BPO Consulting Services:

Wipro Consulting's value proposition is to deliver business process efficiencies through a combination of

process transformation, outsourcing, and usage of technology platforms. Our services can be classified

into two main categories.

Advisory Shared Services Center Set Up, Outsourcing Solutions, Business Case Development

& Benchmarking

Transformation - Process Optimization, Technology Optimization, Organization Optimization,

Regulatory Compliance, SLA / Contractual Adherence & Risk Advisory


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Key drivers of global offshoring, along with Indias strengths are continuing to stoke the Indian

ITES-BPO growth engine. Some of these drivers include:

a. Focus on margins and cost pressures: Outsourcing to India has helped companies achieve

40-50% cost savings. Companies are also able to generate higher free cash flows due to reduced

investments in physical infrastructures, telecom and equipment. Wage arbitrage has also led to

increased cost savings.

b. Growing demand for high quality, skilled workforce:India has a large pool of educated,

highly skilled, English speaking manpower. This has placed India favorably over other offshore

locations, since other than wage arbitrage, companies benefit from improved quality and higher

productivity rates

c. Global quality accreditations: In an increasingly competitive economy, customers demand

and expect highest levels of quality. Indian vendors are quality centric and have adopted several

industry standards such as SEICMM, ISO, TQM, 6 Sigma Quality and COPC. The various

quality certification processes practiced by the players are: COPC; ISO for process mapping; Six-

Sigma initiative for defect and cycle time reduction and eSCM for continuous quality process

enhancement especially for the ITES-BPO players. COPC quality certification emerged as the

most widely accepted certification process 6 from the top 25 third party players, already having

COPC certification and an encouraging 12 having applied for.

d. Secured environment for businesses to operate in: Indian companies as well as the

Government have been proactive in taking appropriate steps to tackle security concerns. Many

Indian companies are aware of and are opting for international security standards such as ISO

17799, BS7799, COBIT and ITSM. NASSCOM, with the Indian government, has laid the

foundation for the required legal framework. The IT Act, 2000 includes laws and policies

concerning data security and cyber crimes. Other than IT Act, the Indian Copyright Act of 1972

deals with copyright issues in computer programs.

e. Increasing focus on core competencies: The need to focus on core competencies to remain

competitive is driving more companies to offshore outsourcing. Offshoring helps free up


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resources and help higher management focus on core business requirements. Offshoring also

allows for access to new technologies and talent to help strengthen business offerings.

7.Trends in Indian ITES-BPO market

Continued market consolidation: The last eighteen months have been a period of significant

market activity for the ITES-BPO sector in India. Coupled with the growing stock of firms

expanding their offshore initiatives in India, the wave of consolidation as several large M&A

deals were scripted in the industry

High levels of absorption: The rapid growth of Indian ITES-BPO in the last eighteen months

has contributed to a continued mismatch between the demand and supply of experienced

resources in the industry. Consequently employment generation and attrition levels remain high.

Indian ITES-BPO added approx. 74,000 jobs in FY 2003-04 with the number expected to

double in the current fiscal. Even so, demand for experienced professionals outpaced their supply

and attrition levels in the industry remain between 25-40%.

Vendor maturity managing people risk: In spite of the relatively high people risk

attributed to the high turnover and attrition Indian companies displayed increasing

maturity as companies deployed innovative employee retention strategies. These

included employee recognition schemes, career planning services, educational

guidance and assistance and a greater emphasis on improving the quality of work-life.

Maturity pricing and engagement models: The maturity of the third-party model has

brought with it a variety of pricing and engagement models. The most commonly

adopted pricing models include: 1) Per-unit time / variable costing (per seat, per hour,

etc.); 2) Per seat or full time employee (FTE) per month; 3) Activity based billing; 4)

Gain-share models; 5) Hybrid-pricing models.


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Onshore expansion to strengthen global delivery capabilities: According to Gartner,

Indian ITES-BPO companies are acquiring companies in the U.S. and other locations

with several objectives. These include access to a new market beyond just a toe-hold,with ready resources, clients and revenues, access to a new set of skills or domain and

process expertise in the target market, access to a new technology or intellectual property

and also greater credibility with target clients, by having a strong local presence beyond

just a sales office. This growing trend further highlights the transformation of offshore

outsourcing to global sourcing.

Operational Analytics of BPOs

Companies globally cater to customers (consumers and small businesses) round the clock, spread across

the world. The challenge is to find cost-effective analysts to efficiently apply data mining and analytics

techniques that can have meaningful impact on customer service operations, call center analytics, IVR

optimization, resource planning and optimization, productivity and performance, improvement E-services

optimization, account management, customer satisfaction analysis, collections efficiency and placement.

Contact Center Analytics

Store and inventory Analysis

Product Assessment and Pricing

Revenue Enhancement Strategies

Business Process Analytics

8. LOCATION STRATEGIES OF BPOs


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With telecom connectivity becoming a non-issue and with the need to tap the skilled manpower

spread across the country, BPO companies have started venturing out of their nerve centersthe A-

class cities.BPO companies have started looking beyond the traditionally hot destinations likeGurgaon, Delhi, and Mumbai. Cities like Pune, Chandigarh, and Kolkata, are slowly emerging as the

darling destinations for both new companies and also for those who are looking at expansions. For

instance, GE, the BPO pioneer heavyweight, instead of augmenting its existing capacity in Gurgaon

and Hyderabad, preferred to move to Jaipur recently. Msource, the BPO arm of Mphasis-BFL, dared

to choose Pune as a base. Spectramind also has started its center at Pune. According to Milind

Chalisgaonkar, CEO, Msource, said, "We are very happy. We are able to get good infrastructure, and

talented people to adhere to our aggressive ramp-up plans. The telecom connectivity is excellent."

According to Rohan Sikri, head (corporate advisory services), CB Richard Ellissouth Asia, "Kochi,

Chandigarh, and Kolkata are likely to emerge as hot destinations for BPO operations.

Companies like Daksh are exceptions, though. Daksh is going ahead and setting up its fourth center in

Gurgaon, besides one in Mumbai

With several state governments coming up with ITeS policies to promote their respective states as best

location, there is going to be lot of interest. Chandigarh was the latest to announce its ITeS policy in

January 2003. Its another matter that Nasscoms report on Super Nine Destination didnt include the city.


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According to Nasscom, the ITeS industry in India is experiencing the third wave of growth, both in terms

of geographical areas of operation and services offered. In the first phase, according to Nasscom, the

industry was dominated by captive centers of large multinationals such as GE, American Express, and

Swiss Air, which set up operations in leading metros like Delhi and Mumbai.

In the second phase, the growth of the industry attracted numerous entrepreneurs (in many cases,

employees of multinationals who quit their jobs to set up their own ITeS ventures) again in and around

Delhi (the NCR region) and Mumbai (including Navi Mumbai).

The third phase of growth has been more geographically dispersedwith new locations like Hyderabad,Pune, Bangalore, Chennai, and more recently, Kochi coming up. The CII submitted a ten-point agenda to

DoT last year to promote hot sites in India. These sites, according to CII, should be ready to serve sites

or seats where processes can continue in the event of a disaster at the original location

Site Selection Parameters

No of BPOs States

69 Maharashtra

67 Karnataka

43 Andhara Pradesh

43 Haryana

36 Uttar Pradesh

34 Tamil Nadu

29 Delhi

13 Punjab*

9 West Bengal

5 Kerala

29 Other States

*ChandigarhUT included


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Selecting the site for a BPO operation has become a highly complicated affair. Earlier, companies used to

decide about the destination just by riding over the hype surrounding a particular destination. Thats no

more the case. Existing and potential companies have graduated to hiring international real-estate

consultants for advise on location strategy. It is a booming business for real-estate consulting companies.

Recently, GE hired CB Richard Ellis when it decided to expand beyond Gurgaon, while the Chandigarh

administration roped in the UK-based consultant Jones Lang LasSalle. Richard Ellis did a comparative

analysis of 18 prominent cities across India. Some of the key parameters included state government

policies, manpower availability, and catchment zone analysis.

The goal of these exercises, according to consultants, was

"quantification of the impact of identified parameters to

support an objective location decision."

Globally, the trend is towards setting up smaller centers which

cater to around 200 people as the realization is that smaller

locations would create a sense of togetherness among

employees and promote teamwork. With regards to real-estate

prices, most of companies are looking at sub $1 per sq. feet

kind of rental. In terms of priorities for different

Location Preference of BPO Companies

No of Companies Class Locations

65 Bangalore

59 Mumbai

39 Hyderabad

34 Chennai

42 Gurgaon

29 New Delhi32 Noida

3 Ghaziabad

Upcoming Locations

9 Pune

9 Kolkata

5 Chandigarh

5 Ahmedabad

4 Secunderabad

3 Vishakhapatnam

3 Panchkula

3 Mohali

3 Jaipur

3 Guwahati

3 Gandhinagar

3 Cochin

3 Srinagar

3 Bhubaneshwar

12 Others


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The availability of bandwidth, which was long felt to be the key criteria for site selection has become a

non-issue due to reasonably robust connectivity services being provided by the VSNL, BSNL, MTNL and

now the private operators like Tata and Bharti. With Reliances network going live in 600 cities in March,

it would not be surprising if companies move to totally new locations.

Gurgaon, Mumbai, Bangalore, Hyderabad, Delhi, and Noidatraditionally the haven of BPO companies

play host to a total of 266 companies, thus making the locations overstretched in terms of availability

of manpower and extreme pressure on physical infrastructure. Transportation costs have skyrocketed and

form a major chunk of companies expenses. Besides, competition has increased. An upward hike of Rs

500 is good enough for a BPO professional to move to a company located next door.

Traffic congestion in the A-class cities is high. Gurgaon is the worst with national highway number 8

getting almost choked at peak hours. While work on the long-promised expressway got underway last

month but its completion will take at least three years, given the scale of the project. Earlier companies

used to prefer those staying in and around Gurgaon and South, West Delhi in an effort to cut traveling

time and cost. But due to increased competition, they cant do that any more. Now, professionals come to

work at centers in Gurgaon all the way from East Delhi, and even Noida and Ghaziabad, which means

more cost to the company.

Mumbai is also heading in the same direction. Telecom costs are among the highest, besides pressure on

transport system. Mumbai is one city where domestic companies are thriving. But R Mohan, CEO,

Hinduja TMT, feels otherwise. When asked as to which city he would prefer if Hinduja were to expand,

he said, "We will definitely go for Mumbai. This is because our group has strong roots there. The telecom

infrastructure is very good and it is well connected internationally. Also, the availability of people is

there, which is very important." He feels that Trivandrum and Pune will emerge as future destinations.


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Bangalore, Hyderabad (the top ITeS destination as per the Nasscom report), and Chennai, despite having

a large number of centers, are still considered good though, thanks to the strong state government policies

accompanied by the strong presence of big software houses. But these locations too have witnessed some

problems in relation to pressure in manpower terms.

Formulating a location strategy of BPOs involves the following factors:

1. Facilities. Facilities planning of BPOs involves determining what kind of space a company will

need given its short-term and long-term goals.

2. Feasibility. Feasibility analysis is an assessment of the different operating costs and other factors

associated with different locations.

3. Logistics. Logistics evaluation is the appraisal of the transportation options and costs for the

prospective manufacturing and warehousing facilities.

4. Labor. Labor analysis determines whether prospective locations can meet a company's labor

needs given its short-term and long-term goals.

5. Community and site. Community and site evaluation involves examining whether a company

and a prospective community and site will be compatible in the long-term.


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6. Trade zones. Companies may want to consider the benefits offered by free-trade zones, which

are closed facilities monitored by customs services where goods can be brought without the usual customs

requirements. The United States has about 170 free-trade zones and other countries have them as well.

7. Political risk. Companies considering expanding into other countries must take political risk into

consideration when developing a location strategy. Since some countries have unstable political

environments, companies must be prepared for upheaval and turmoil if they plan long-term operations in

such countries.

8. Governmental regulation. Companies also may face government barriers and heavy restrictions

and regulation if they intend to expand into other countries. Therefore, companies must examine

governmentalas well as culturalobstacles in other countries when developing location strategies.

9. Environmental regulation. Companies should consider the various environmental regulations

that might affect their operations in different locations. Environmental regulation also may have an

impact on the relationship between a company and the community around a prospective location.

10. Incentives. Incentive negotiation is the process by which a company and a community negotiate

property and any benefits the company will receive, such as tax breaks. Incentives may place a significant

role in a company's selection of a site.

9. LOCATION SELECTION TECHNIQUES

Several techniques exist that can be used as part of a location strategy to determine the merits ofprospective sites. Location strategists often divide assessment of prospective locations into macro analysisand micro analysis. Macro analysis encompasses the evaluation of different regions and communities,whereas micro analysis includes the evaluation of particular sites. The main macro analysis techniques are

factor-rating systems, linear programming, and center of gravity.

a. Factor-rating systems are among the most commonly used techniques for choosing a location,because they analyze diverse factors in an easily comprehensible manner. Factor-rating systemssimply consist of a weighted list of the factors a company considers the most important and a

range of values for each factor (see Table 1). A company can rate each site with a value from therange based on the costs and benefits offered by the alternative locations, and multiply this valueby the appropriate weight. These numbers are then summed to get an overall "factor rating." Thena company can compare the overall ratings of alternative sites. This technique enables a companyto choose a location systematically based on the best rating.

Factor Rating (1-100) Weight Factor-Rating

Energy availability 60 .3 18


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Factor Rating (1-100) Weight Factor-Rating

Labor availability 80 .2 16

Transportation 40 .2 8

Supplies 90 .1 9

Taxes and regulations 70 .1 7

Infrastructure 70 .1 7

Overall Factor-Rating 65

b. Linear programming provides a method for evaluating the cost of prospective locations within aproduction/distribution network. This technique uses a matrix of production facilities andwarehouses that shows the unit shipping costs from a manufacturing location designated by avariable, such asX, to prospective destinations, such as warehouses designated by other variablesE, F, and Gand the total amount of goods the prospective manufacturer,X, could produce.Other prospective manufacturing locations and the same information for each are also included inthe matrix. After computing the total costs for each prospective location, a company candetermine which one has lower total costs in terms of the entire production/distribution network.

c. The center of gravity method is useful for identifying an individual location by consideringexisting locations, the distances between them, and the volume of products to be shipped.Companies use this method mostly for locating distribution warehouses. To use this technique,companies plot their existing locations on a grid with a coordinate system (the particularcoordinate system used does not matter). The idea behind this technique is to identify the relative

distances between locations. After the existing locations are placed on the grid, the center ofgravity is determined by calculating theXand Ycoordinates that would have the lowesttransportation costs.

10. Future Locations

i. Pune

Pune has attracted nine companies, with Msource being the flag bearer, followed by Spectramind. This is

one location that is fast emerging as a hot new destination for BPO operations. Proximity to Mumbai and

presence of STPI are added advantages.


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Manpower: Total enrollments of higher secondar, degree, and university students in the entire state of

Maharashtra are 3,044,626. Pune is home to some good English medium schools. The volume of transient

population that comes to study in Pune is very high.

Telecom Infrastructure: The city boasts of an Intelsat Standard C-Band earth station to provide

connectivity to any point of the globe. Ku-band earth stations have also been set up at Nashik and

Kolhapur with additional fiber connectivity from Pune for redundancy. STPI Pune has tie-ups with 18

international carriers to provide connectivity anywhere in the world.

ii. Chandigarh

With five companies operating out of Chandigarh, the number is set to go up with a flurry of activities

and initiatives taken up by the Chandigarh Administration. A lot of companies have shown interest in

setting up their facilities here.

Manpower: Total enrolments in Punjab are around 3,456,852. Though Chandigarh has a literacy rate of

82 percent and home to some very good schools and colleges, the availability of sufficient English

speaking manpower with good functional and communication skills is still an issue, which was

highlighted by Gartner in a report recently.

The out-migration of the potential workforce to Delhi and Gurgaon has been there for a long time. There

is feeling in the government that with the companies coming in to Chandigarh, this out-migration will

somewhat subside. Chandigarh has also the potential to attract talent from Himachal Pradesh, Haryana,

and Delhi. Ironically, the city was not in Nasscoms list of super nine cities.

Telecom Infrastructure: In terms of telecom infrastructure, a fiber optic backbone network covers the

whole of Chandigarh. About 110 km of optical fiber has been laid by private operators, besides BSNL.

Every point in the city is within 1 km of the optical fiber network. Gartner, in a study, has rated

Chandigarh as the city with best telecom infrastructure. The city boasts of an STPI earth station.

Chandigarh Administration announced its ITeS policy, which is aimed at inviting BPO companies to set

up their operations in Chandigarh. It has offered the services of Chandigarh Infotech Park, spread over

111 acres on the north eastern border of Chandigarh, which has the capacity to house 40 companies.

Government Support: The establishment of Chandigarh Infotech Park, being promoted by the

Chandigarh Administration is the single biggest step that the government has taken recently. To add to


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this, the government recently announced the ITeS policy. Centers for accent training, and for basic

computer and Internet training and customer handling skills will be set up.

iii. Kolkata

Manpower: Kolkatas greatest advantage is the number of high-quality English medium schools, which

is probably the largest in the country. Total enrollment of higher secondary, degree, and postgraduate

students in West Bengal is 1,007,227.

Availability of quality manpower at reasonable salaries is a major attraction for Kolkata.

Telecom Infrastructure: BSNL provides dedicated leased line up to 140 Mbps and more. It has also

started offering managed leased line services. It also provides data circuits on a national basis. It has

STM-16 ring based core network supported by STM-4/STM-1 access rings connecting important

buildings, provides instant provisioning of bandwidth for both point-to-point leased circuits as well as

high-speed Internet access. Reliance is all set to launch its services in the city in coming months, thus

making connectivity a non-issue.

Government Support: The governments ITeS policy has tried to send the right signals to investors by

offering fiscal incentives. It is roping in NRIs, leading industrial houses, software companies and venture

capital companies to address the huge opportunity offered by IT-enabled services and back-office

services. The government plans to introduce vocational courses in ITeS. There are also plans to promote

the setting up of at least two world-class software technology parks by 2004.

11. Conclusion: Much of the growth of IT-BPO sector has been focused on a set

of seven to ten locations, owing to various factors like infrastructure, access to a large

talent pool, developed policies, etc. However, with maturing of the industry, it is

important for IT-BPO growth to expand across more locations. A more balanced

development across the country will evenly redistribute and even reduce migration of

population to the top few locations and hence, spur development of a much larger subset

of cities. With continued growth in IT-BPO sector, the opportunity for many locations to


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transform themselves over the next decade is huge. While, Leader locations need to align

the growth to available infrastructure, other locations need to enhance their attractiveness.

Locations that are able to move quickly to address the issues and set in place the required

enablers will be more successful in realising the potential.As per the estimates, India is

poised to become a No. 1 BPO destination in the Asia-Pacific overwhelming all the so

called odds. Particularly, when it comes to ITES-BPO tier, with a current base of 96,000

call centre seats, India is supposed to grow by 85 per cent to reach a capacity of 1,77,000

seats over the next 12 months to become the biggest BPO hub in the region. Newspaper

and magazine articles and analysts' briefings throughout the globe are reporting the

projected strong growth of the BPO market in India

12. REFERENCES:

http://careers.wipro.com/wbpo/our-businesses/horizontal-services.htm

http://ezinearticles.com/?BPOs-Impact-on-Service-Quality&id=744343

http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=54065

http://www.infosys.com/offerings/BPO-services/white-

papers/Documents/outsourcing-strategies

http://www.bnet.com/topics/business+process+outsourcing+(bpo)

+and+it+operations+and+strategy

http://www.referenceforbusiness.com/management/Ob-Or/Operations-

Strategy.html

http://www.avasant.com/uploaded/ff6bf6745d8954b5a3c9a401a5f3c129
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