Business Process Outsourcing
An Industry Overview
Consulting Club, IIMC
Introduction
What is outsourcing?
Why do companies
outsource?
Moving from
outsourcing non-core
activities to
outsourcing core
activities as well…
Outsourcing to India
ITES : Information Technology Enabled Services
Software development, Data entry, Programming,
Web development services
BPO : Business Process Outsourcing
CRM, Medical Transcription, Call Centers
KPO : Knowledge Process Outsourcing
Financial Analysis, Legal Services
Moving up the value chain
Current Top 10 Indian players
Genpact NASSCOM report:
WNS Value of total BPO
Wipro BPO market in 2005
estimated at $5.1 bn
HCL Technologies BPO
Top 5 IT vendors have
Services
only 6.5% of the
ICICI OneSource market
IBM Daksh 1/3 of the market to big
Progeon (Infosys) BPO companies
Aegis BPO Services 1/3 to captives
EXL Service Holdings 1/3 to smaller set ups
24/7 Customer Predicted consolidation
Outsourcing to India
What it takes to succeed
Success Defined by:
Process and Industry Knowledge
Technical and Operational Capabilities
Service Models
Alliances
Financial Strength
Change Management
Ability to innovate
Challenges Ahead…
Client Acquisition and Retention
Retaining employees
Productivity
Quality and compliance issues
Resource and Skill Gaps
Funding
Emerging Foreign Destinations
Physical Infrastructure
Smaller Firms Plight