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India BPO Industry Overview


India BPO Industry Overview Table of Contents Executive Overview Emerging Trends of BPO Indian BPO market: Key highlights and trends Phases of ITES-BPO Evolution in ... – PowerPoint PPT presentation

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Title: India BPO Industry Overview

India BPO Industry Overview
Table of Contents
  • Executive Overview
  • Emerging Trends of BPO
  • Indian BPO market Key highlights and trends
  • Phases of ITES-BPO Evolution in India
  • Key enablers for growth of BPO in India
  • Impact of BPO on Indian economy
  • BPO Services Spectrum
  • PATNI -BPO SERVICES Mapping of BPO and KPO
    processes on complexity grid
  • Patni approaches towards Hiring and Retention
  • Patnis Differentiators

Executive Overview
  • BPO A structured arrangement between an
    organization and an outsourcing partner to
    perform services, otherwise conducted in-house.
  • Until few years ago, BPO was a means to achieve
    cost efficiencies in transaction intensive back
    office business processes
  • This resulted in both tangible benefits like
    reduction in cost, and intangible benefits such
    as focusing on more strategic issues.

Emerging face of BPO
  • BPO is emerging as a key management tool, the
    focus of which is expanding beyond the non-core
    areas, giving an organization flexibility to
    achieve a certain set of tactical and strategic
  • Organizations opt to undertake BPO because it
    offers them advantages of cost, speed to market,
    competitive capabilities, stimulus for growth and
    both the time and space to focus on their own
    core competencies.
  • As the scope of BPO increases, so does the level
    of complexity involved in managing partnerships,
    structuring deals, and capturing values.
    Consequently, older paradigms of BPO no longer
    hold true.

Indian BPO market Key highlights and trends
Break-up of Indian BPO Experts
Source NASSCOM Strategic Review 2007
  • BPO in India is growing at 32 and is estimated
    to cross 8.63 billion in 2007
  • Direct employment in BPO was 415,000 in 2006 and
    is expected to cross 545,000 in 2007
  • Indian IT-BPO industry has helped create an
    additional 3 million job opportunities through
    indirect and induced employment, which will go
    upto 6.5 million by 2010
  • The contribution of BPO IT to Indias GDP will
    rise to 5.4 by 2007, against 1.2 in 1998
  • The industry is moving from transaction
    processing voice to complex knowledge based


Phases of ITES-BPO Evolution in India
  • Operational cultures previously seen only in
    western shared services centers were developed
  • Large operations high quality infrastructure
    was built
  • Development of delivery processes legalising
    shift work for men women
  • Low resistance to offsshore outsourcing
  • Improving risk profile of the business
    model-supply-side still perceived to be immature
  • Early movers display advantage of acale
  • Credibility of business model reinforced
    perceived risks dealt with satisfactorily
  • Initiation of work on process regulatory
  • Rise in anti offshore backlash
  • Widespread global acceptance of the economic
    imperative of global sourcing
  • Proliferation of players, service lines
    sourcing destinations
  • Changing cost economies decline in labour
    arbitrage offset by leveraging processes SGA
    efficiencies and scale
  • Shift towards higher order, cost plus benefits
    from global sourcing
  • Maturity of processes regulatory standards in

Phase 1 1996-2000 Pioneers focus on building
scale. Absence of vendors with exhibited
capabilities. Preference for the captive
model Source IBM Consulting Services
Phase 2 (200-2003) Early adopters sharpen
outsourcing strategy. Rise of 3PSP
Phase 3 (2003-2008E) Cautious followers embrace
outsourcing unconditionally. Higher degree of
consolidation shake out
Key enablers for growth of BPO in India
  • Large pool of English speaking talent
  • 3.1 million graduates pass out of Indian Colleges
    annually comprising of 151,000 Engineering
    100,000 IT Graduates

Large English-speaking Talent Pool
  • Highest number of Quality certified Delivery
    centers in the world (including ISO27001, BS7799,
  • Initiatives Investments in ensuring highest
    level of Data/Information Security

Emphasis on Information Security Quality
  • Rapid growth in critical business Infrastructure
    like Telecom, Internet Connectivity, Real Estate,
    Roads, Transportation etc
  • Strong emphasis by government on building
    enhancing support Infrastructure

Focus on Business Infrastructure
  • Indias attractiveness is enhanced by progressive
    tax reforms strong regulatory framework
  • Government support through incentives non-
    financial assistance

Business Policy Regulatory Environment
  • Stable market with a thrust on growth and
  • India has created a BPO business friendly
    environment through progressive policies (STPI

Progressive macro-economic environment
Impact of BPO on Indian economy
Job creation (Direct Indirect)
  • BPO offers a big employment avenue for Indias
    vast population base
  • Direct employment of 415,000 people in BPO, with
    3 million indirect employment in 2006
  • 8.5 GDP growth in 2006, a major contributor was
    the growth in services sector including IT BPO
  • BPO and IT industries are a key contributor to
    India current Forex reserves of 194 billion

GDP growth
Rising income levels and purchasing power of
  • BPO offers employment to millions of people with
    competitive remuneration
  • 415,000 people employed in BPO are a key
    constituent of the growing affluent class of
  • Purchasing power of 3 billion of the people
    directly employed in BPO in India

Development Upgradation of Infrastructure
  • Many MNCs and Indian companies have invested
    billions of in creating infrastructure
  • Robust telecom, internet connectivity, roads,
    logistics and ancillary support infrastructure

Positioning in the global marketplace
  • India has emerged as a global IT and BPO hub
    globally positioned as the number 1 destination
    for BPO and IT services

BPO Services Spectrum
  • Financial Accounting
  • Management Reporting
  • Revenue Accounting
  • Order to Cash
  • Record To Report
  • Procure to Pay
  • Fixed Asset Management
  • Commercial prospect evaluation for new
  • New product development support
  • Data mining, programming, data analysis
  • Patent drafting filing support
  • Analytics
  • Business intelligence
  • Target segmentation
  • Pricing analytics
  • Staffing Mgmt
  • Resume filtering
  • JD development
  • Initial CV screening
  • Staffing administration
  • HR Service Administration
  • Employee data mgmt
  • Leave scheduling tracking
  • Attendance management
  • Employee service
  • Employee helpdesk

Finance and Accounting
RD and Product Design
Technology Helpdesk operation
Business operations
Inbound Logistics
Outbound Logistics
Sales Marketing
Customer Service
  • Application Support
  • ERP
  • CRM
  • Portal Support
  • Content Management
  • IT Helpdesk
  • Desktop Support
  • Networking Support
  • Web Support

  • Customer support
  • Billing query resolution
  • Order management
  • Account maintenance
  • Order booking
  • Email/Chat support
  • Collections
  • Strategic Sourcing
  • Spend analysis
  • RFX management
  • eAuction support
  • Category Management
  • Sourcing support
  • Contract compliance management
  • Spend reporting
  • Process Management
  • Invoice management
  • Custom analytics

Moving towards KPO
  • India KPO services market is expected to
  • Grow from 1.2 Bn to 15.5 Bn in 2010
  • CAGR of 43
  • Hold 71 of global KPO market in 2010 from 56
    in 2004

Source NASSCOM McKinsey Study- India IT
Strategies, Evalueserve
processes on complexity grid
IT Helpdesk
Actuarial Services
Defined Benefits
Benefits Coding
Claims Adjudication
Revenue and Benefits Admin
ERP/Apps Support
Fund Administration
Financial Reporting
Revenue Assurance
Credit Cards Application Processing
Claims Processing
Defined Contribution
Code Support
Payment Processing
Expense Processing
Customer Support
Web Content Management
Health Welfare
Health Insurance Application Processing
Knowledge Services (KPO)
Knowledge Intensiveness
Patni approaches towards Hiring and Retention
Patni attracts the best talent in the industry
by simply giving responsibility early on to its
employees - Business Today
Patnis key differentiators
Past track record
  • Over 29 years of experience in servicing global
  • Large strategic global relationships with Fortune
    500 organizations
  • Patnis IT BPO organizations are tightly
  • Joint Project Governance Relationship

Integrated IT-BPO Solutions
  • Flexibility in engagement and program design
  • Flexibility in scaling-up operations
  • Agility in deployment of best-of-breed resources

Flexible and Scalable Delivery Model
  • Robust Transitioning Toolkit Program Migration
  • Offshoring Assessment through SCOPE methodology

Established transitioning methodology
  • Year on year productivity gains to sustain
    significant cost benefits
  • Six Sigma based Process re-engineering and
    automation to enhance cost savings

Year-on- year productivity gains
  • Global Service Delivery Footprint
  • Experience in providing Multi-lingual Support
    from India China covering languages like
    English, Spanish, German, French, Chinese,
    Japanese and Mandarin

Multi-lingual Support Capability
  • Six Sigma based process improvements
  • Robust quality model to achieve defect free
  • Operational best practices implementation

Six Sigma capability
  • Maximization of cost take-outs through
    competitive pricing model
  • Reward and Penalty based structure to drive

Competitive Pricing
Business Transformation capability
  • Business Transformation and Consulting Practice
    to assist clients to draw a clear roadmap for
    redesign and improving business services
  • Best in class people management practices to
    attract and retain talent
  • Low attrition rate compared to industry standard

People practices