Documente Academic
Documente Profesional
Documente Cultură
INTRODUCTION TO BPO
DEFINITION OF BPO
OUTSOURCING: -
BUSINESS PROCESS OUTSOURCING: It is the delegation of one or more of IT intensive business processes
to an external provider, which in turn owns, manages, and
administers the selected processes based on defined and
measurable performance criteria.
BPO as per the work performed can be classified as VOICE
BASED, which includes customer related services such as technical
support, marketing etc. and NON-VOICE, which includes
internal business operations. And as per the location involved it can
be classified as:
ON-SHORE: BPO that is contracted inside a companys
country.
NEAR-SHORE: BPO that is contracted to a companys
neighboring country.
OFF-SHORE: BPO that is contracted outside a companys
country.
OBJECTIVES OF BPO:
Traditionally, the main objective of companies outsourcing their
business processes to India was the want of low cost. But now-adays, companies that offshore their business processes to India are
no longer looking at cost reduction alone. They typically want to
achieve:
1) Process improvement and efficiency - faster turnaround and
greater productivity
2 ) C o s t s a v i n g s .
3) Improved quality - less errors/rework
4) Building/strengthening presence in a new market/foreign
country
5) Increased focus on core competencies - e.g. developing new
products or services
6) Building business value and strategic differentiation
MID 1990S
CONVERSIO
N
LATE 1990S
today
Fig 3: VALUE CHAIN OF BPO IN INDIA
2000
The above figure clearly shows that exports in the BPO market are
increasing at the fluctuating rate. In 2003 it was USD 2.6 billion.
Then it increased to USD 3.1 billion in 2004.And in the financial
year 2008 it was USD 10.9 billion. It is expected to reach at USD
12.8 billion by the end of 2009. Figure indicates that it grows
almost at the rate of 50% from 2003 to 2006. After that it grows
almost at the rate of 20%-30%.
was USD 0.2 Billion. It increased to USD 0.3 Billion in 2004. Then in
2008 it was USD1.6Billion and is expected to reach USD 1.9 Billion at
the end of 2009. It is growing at a slow pace than export component of
BPO market.
Out of this total global market Indias share is estimated to be 56%, currently as shown by the following diagram. US have the
largest share of 52% followed by UK which commands 20% of the
BPO pie. GARTNER predicts that Indias share in the Global BPO
market will get double by 2010i.e. it will reach to 10% of total BPO
market.
B
V
P
O
O
I
C
E
B
P
O
INBOUND SALES
ACCOUNTING
OUTBOUND SALES
DATABASE MANAGEMENT
TELEMARKETING
CLAIMS PROCUREMENT
CUSTOMER SERVICES
TRANSCRIPTION
ORDER PROCESSING
HUMAN RESOURCES
TECHNICAL SUPPORT
APPOINTMENT SETTINGS
DEBT COLLECTION
HELP DESK
MARKET RESEARCH AND
QUALITY SURVEYS