ITES

When Does Company Outsource

When the predictability of the process/service is not
important
When there is a limited opportunity for the firm to
distinguish itself competitively through a particular
process or service
When the firms existing capability are limited, ineffective, or technically incapable

BPO
Business Process Outsourcing (BPO)
is the delegation of one or more ITintensive business processes to an
external provider that in turn owns,
administers and manages the
selected process based on defined
and measurable performance
criteria

The factors that motivate companies to

outsource business processes :

Factor Cost Leveraging

Superior Skill Sets and Job Execution
Economies of Scale
Business Risk Mitigation
Efficiency Improvement

Process in BPO.
Medical
Transcription

CRM

BPO

BPO
KPO

LPO

Call center

CRM
Customer relationship management (CRM)
is a widely implemented model for
managing a companys interactions with
customers, clients, and sales prospects. It
involves using technology to organize,
automate, and synchronize business
processesprincipally sales activities, but
also those for marketing, customer service
and technical support.

Call center?
A call centre or call center is a
centralized office used for the
purpose of receiving and
transmitting a large volume of
requests by telephone.

Difference between BPO & Call center

A Business Process Outsourcing (BPO) organization is
responsible for performing a process or a part of a
process of another business organization; outsourcing
is done to save on costs or gain in productivity.
A call center performs that part of a client's business
which involves handling telephone calls. A call center,
for example, might handle customer complaints
coming in over a telephone.

Contact Center

A contact centre is a facility used

by companies to manage all client
contact through a variety of
mediums such as telephone, fax,
letter, e-mail.

Types of BPO
Vertical

Horizontal

BPO

Definition.
Horizontal BPO: Horizontal BPO involves function centric outsourcing.
The vendor specializes in carrying out particular functions across
different industry domains. Examples of horizontal BPO are outsourcing
in procurement, payroll processing, HR, facilities management and
similar functions. Automatic Data Processing (ADP) is an example of a
horizontal BPO vendor. ADP focuses on providing services in horizontal
functions such as payroll, HR, benefit administration, tax solutions, etc.
However, according to Gartner, companies should focus on providing
vertical services as the market matures.

Vertical BPO: A vertical BPO focuses on proving various

functional services in a limited number of industry domains.

Healthcare, financial services, manufacturing and retail are
examples of vertical BPO domains. EXL Service Holdings is a
vertical BPO having focus on industry domains such as
healthcare, business services, utilities and energy and
manufacturing

Inbound Process
Calls coming in from customers regarding inquiries,
complaints or order placement. This includes, but is not
limited to, the following areas of work:
Customer Service:. Customer service is a series of activities
designed to enhance the level of customer satisfaction that is, the feeling that a product or service has met the
customers' expectation. Customers have memories.
Answering Services: For service-oriented businesses like
hotels and flower shops, you can manage your calls
concerning your products or services through phone
Order Taking: Agents process all the formalities required to
place an order for your product.

Outbound Process.
Sales and leads are increased significantly. Demand
market research, loyalty and satisfaction surveys or
appointment setting on your behalf is part of outbound
services..
Verification calls: This includes the checking of
authenticity, or veracity of data provided by the
company from the company's database.
Collections: The proverbial "dirty job but someone's got
to do it." Customers are reminded of their debts or
pending dues by call center agents.
Lead generation: Increase your prospect database and
boost your company's sales up a notch with this BPO
service.

Non voice Services.

These services can be categorized into three components:
Chat Support Services: Customer support, technical or
otherwise, using Instant Messengers or applets provided
on the company website.
Email Management and Support Services: Sending
strategically designed e-mails containing well detailed
product or services information to large number of
prospects. Could also mean answering customers
concerns and inquiries using this method.
SMS Support Services: Utilizes the mobile phone to
reinforce your brand with enhanced text editions of your
services.

Technical Help Desk

support
This type of service can be supported
either thru voice or non-voice. Its 24X 7
services and can be availed through email,
chat or telephone.
Product Support: Troubleshooting,
assistance, inquiries, concerns or
replacement of defective products for
prospects or existing buyers.

Back office Support.

Services relating to the inner workings of a business
or institution. This customer centered and costeffective service is among one of the very popular
offshore services. Human Resources, IT, Data Entry
and Accounts Receivables, Database Management,
Document Management, Data entry, IT and Human
Resources are major operations of back office
support.

Customer Base in BPO

DOMESTIC: Domestic BPO means in which an
individual has to deal with domestic clients only
that is solving the problems of our country's people.

INTERNATIONAL International BPO

means in which an individual has to
deal with overseas clients.

Various Shifts in BPO

Australian
UK

Canadian

USA

Hierarchy..
VP

AVP

Sr. Manager
TL

Process Expert

CSA\TSA

KPO
Knowledge Process Outsourcing
(KPO) describes the outsourcing of
core business activities, which often
are competitively important or form
an integral part of a company's
value chain.

Different services provided by KPO

Analytics
Business
Research

Publishing
Outsourcing

Marketing Services

KPO

Market Research
Outsourcing

Design
Animation

Financial Research
Outsourcing

Legal Process Outsourcing

Finance & Accounting.

Finance & Accounting Outsourcing can be defined as a
process in which a company delegates some of its inhouse accounting/operations to a third party. Thus
outsourcing is a contracting transaction through which
one company hires services in accounting from another
while keeping ownership and ultimate responsibility for
the underlying processes. , many companies are either
outsourcing entire finance and accounting functions or
sourcing single functions that are: AP (Accounts
Payable), Accounts Receivable (AR), Cash
Disbursements, Credit and Collection, Cash application
Billings, Bank & other reconciliation, T&E report
processing, Tax Consulting, Statutory reporting and
Financial Statement analysis.

Sub-categories under F&A

Outsourcing
R2R
(Record 2 Record)

P2P
(Payment to Procedure)

02C
(Order to cash)

F &A

R2R(Record to Report)
Definition
Record to Report OR R2R is the process of
"Recording all Transactions occurring in an
Organization & Collecting, Reporting / delivering
accurate, timely & relevant information to the
internal & external stakeholders of an
organization". The R2R process provides timely,
accurate and strategic feedback of how a business
or business unit is performing. The process is
monthly, quarterly, bi-annually & annual

Sub-categories of R2R
GENERAL ACCOUNTING

MANAGEMENT
REPORTING

Journal Entries

Daily Account
Reconciliation

General Ledgers

P/L & BS Reconciliation

Profit & Loss

Account Consolidation

Balance sheet

Audit Support

Intercompany
Transaction

BRS - Bank Reconciliation

Statement
Information Processing &
Analyzing
Month End Closing

Account Receivables

CASH MANAGEMENT

Cash Reconciliation

Details on Accounts \Books of Accounts

General Accounting
Manual Journal Entries
Automated Journal Entries
Accruals/Reversals
Bank Statement Processing
Bank Account Reconciliations

Payroll Posting & Reconciliation

Inter-company Postings
Accounts for Loans/ Investments

P2P
(Procure to Pay OR Purchase to Pay)

Procure-to-pay solutions are designed to

provide organizations with control and
visibility over the entire life-cycle of a
transaction from the way an item is
ordered to the way that the final invoice
is processed providing full insight into
cash-flow and financial commitments.

Sub categories of P2P Services

Sourcing Strategy
Purchasing

Accounts
Payable

P2P

Vendor
Management

Reporting
Analysis

Sourcing Strategies
Develop spend baseline
Define sourcing strategy
Conduct RFQ / RFP process
Negotiate and sign contracts

Purchasing
Process indent / requisitions
Create and send PO
Track PO status and expedite delivery
Update material delivery / service receipt
Conduct P-card administration

Accounts Payable
Invoice receipt
Invoice processing
Exception handling
Payment Run
Month end accruals

Taxation

Vendor Management Details

Vendor Management Details

Vendor performance management / end-user surveys
Vendor master maintenance
Vendor helpdesk
Query resolution
Account reconciliation

Reporting Analysis Details

Cost savings tracking
Contract compliance tracking
Consumption tracking
Planning/forecasting support
Regulatory compliance reporting

O2C (Order To Cash)

Order to Cash is used to RECEIVE and
PROCESS Customer Sales till the
Collections stage. O2C is required in all
Products or Service Based firms.
The O2C process spans multiple steps order entry, credit analysis, invoice
generation and dispute management
through cash collections and cash
applications - as well as myriad
departments, partners, vendors,
customers and back-end enterprise
applications

O2C offering integrates the

following services:
Order Management
Processing
Billing - Invoice Generation &
Delivery
Collection Process
Cash Application
Credit and Collections
Bad Debts
Documentations
Query Management

Medical Transcription
Medical transcription, also known as
MT, is an allied health profession,
which deals in the process of
transcription, or converting voicerecorded reports as dictated by
physicians or other healthcare
professionals, into text format.

What is LPO?
Legal Process Outsourcing
delivers high-quality legal
services to global clients.

JARGONS USED IN BPO INDUSTRY

3-2-1 (Idea Generation Technique):Used to gather information from several
people in a short space of time. Focused on identifying immediate solutions to a
specific issue.
ACW - After Call Work - (See also "Wrap Up Time"):A period of time immediately
after contact with the customer is completed and any supplementary work is
undertaken by the Agent, in relation to that interaction.
AHT (Average Handling Time):The amount of time it takes an Agent to deal with
all aspects of a call includes talk time plus after call work
Agent: The person who receives and makes customer telephone calls. May also
deal with customer correspondence and customer e-mails. Also known as
Customer Advisor or Customer Representative.
Agent Status:The Agent status at a particular point in time e.g. wait, talk, wrap,
idle, unavailable.
ACD Automatic Call Distributor:The telephone system that takes all the calls
either coming into (or going out) of a centre and directs each call to the right
person or team to answer, queuing the calls where necessary.
ANI - Automatic Number Identification:A feature of the telephony network to
capture a callers identifying telephony number. - Known in the UK as Calling Line
Identity (CLI).

JARGONS
Automated Speech Recognition: A solution to automate some or all parts of a
customer call. It allows the caller to interact with your call centre, using their natural
language, without the involvement of an Agent. Speech recognition can be applied to
some or even all parts of a call, particularly where the information that you collect is in
a standard form.
Automatic Call Distributor (ACD) :The type of telephone system used in most call
centres. Sometimes called a call centre it is used to queue callers and distribute the calls
to agents. It usually includes the ability to generate statistics. Manufacturers include
Aspect, Avaya (used to be called Lucent), Cisco, Nortel and Rockwell. It may be a
dedicated telephone system or part of an office telephone system.
Balanced Scorecard:A scorecard that shows a range of measures - typically based
around graphs or traffic lights - that shows on a single sheet of paper how a call centre
is performing.
B2B (Business to Business):B2B is a short version of Business to Business. In effect it
generally involves one company trying to do business to another company- for example
Dell selling to ICI. It could just as easy be shortened to Business - so "B2B Sales" could
become "Business Sales"
B2C (Business to Consumer) :B2C is a short version of Business to Consumer. In effect it
generally involves one company trying to do business to the general public. It could just as easy be
shortened to just "Consumer - so "B2C Sales" could become "Consumer Sales"

NASSCOM LISTED TOP 15 OUTSOURCING

COMPANIES 2012
Genpact
Tata Consultancy Services BPO
WNS Global Services (P) Ltd
Aegis Ltd
Wipro BPO
First Source Solutions Ltd
Infosys BPO
Aditya Birla Minacs World Wide Ltd
Exl Services.com (India) Pvt ltd
Hinduja Global Solutions Ltd
Intelnet Global Solutions ltd
HCL Technologies Ltd
HOV Services Ltd
Mphasis Ltd

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