1. BPO to India
Nageshwar Singh
Rohit Chhawari
Kavish Singh
Vikas Goel
Sachin Kumar

2. What is BPO?
• Business process outsourcing (BPO) is the
contracting of a specific business task, such as
human resources and customer service, to a third-
party service provider.
• This allows companies to focus on their core
business processes.
• BPO is implemented as a cost-saving measure for
tasks that a company requires.

3. BPO Categories
• It is often divided into two categories:
- Back Office Outsourcing which
includes internal business functions such as
billing or purchasing.
- Front Office Outsourcing which includes
customer-related services such as marketing or
tech support.

4. Key Terms
• Key Terms:
- Offshore Outsourcing is BPO that is contracted
outside a company's own country.
- Nearshore Outsourcing is BPO that is
contracted to a company's neighboring country.
- Onshore Outsourcing is BPO that is contracted
with the company's own country.

5. BPO to India
• Indian revenues from BPO are estimated to have
grown 107% to $ 583 million.
• Leading Competitors:
- Philippines, Mexico, Canada, China and
Ireland.
• 67-72% of costs to call centers operating in the
US/UK is directly linked to man power costs. India
only spends 33-40% of costs on man power. This
includes training, benefits and other incentives for
labor.

6. Statistics of the Future
The main revenue areas for Indian BPO companies .
India's BPO Market
Service Line Estimate (2010) Estimate (2012)
HR 5.4 3.5-4.0
Customer Care 4.1 8.0-8.5
Payment Services 2.9 3.0-3.5
Content Development 2.6 2.5-3.0
Administration 1.3 1.5-2.0
Finance 0.7 2.5-3.0
Figures in $ billion
Indian revenues from BPO are estimated to have grown 107 per cent to
$ 583 million.

7. Statistics of the Future
Comparison of India Vs US BPO operating costs
US$ Cost per FTE
(Full Time Employee) United States India India as % of US costs
Personnel 42,927 6,179 14%
G&A Expense 8,571 1,000 12%
Telecom 1,500 2,328 155%
Property Rentals 2,600 847 33%
Depreciation 3,000 1,500 50%
TOTAL EXPENSES 58,598 11,854 20%

8. Capabilities: Why go to India?
• Language
– Major attraction for Multinationals
– Advantage over competitors
• Educated Employees
– Large number of qualified workers
– Proven to be the best in the IT and computer software
fields
• Strong technical skills
• Eagerness to engage clients
– Produce around 100,000 engineers annually

9. Capabilities: Why go to India?
• Infrastructure
– Improvements have led to increasing success
• Telecom facilities
• Power sector
• India as a whole
• Government
– Realize potential for economic development
– Favorable policies have turned India into a BPO/IT hub.
• Examples: Investment promotion, telecom policy, IT
Act

10. Rules to Follow: What to Outsource
• Processes that do not add value to a product or
service.
• Highly repeated tasks with little variation.
• Labor intensive tasks that do not require a
companies intellectual property nor core
competencies.
• Processes that will tie up large amounts of capital in
assets.

11. Pros of BPO
• English Language Proficiency
• Skilled Workforce
• Lower Wages
• Flexibility in Working Hours
• Suitable Human Resources
• Large Number of Graduates

12. Sources
• BPO India: Business Process Outsourcing.
http://www.bpoindia.org/
• Forbes Magazine: Business Process Outsourcing.
http://www.forbes.com/bow/b2b/industry.jhtml?id=38
• Why India?
http://www.indobase.com/bpo/why-india/index.html
• InformationWeek: Indian Outsourcers Grow Fast, Gain Prominence.
http://www.informationweek.com/story/showArticle.jhtml?articleID=53701018
• CIO Definitions:
http://searchcio.techtarget.com/sDefinition/0,,sid19_gci928308,00.html
• BPO service India: Comparing India with other BPO destinations.
http://www.xicom.biz/bpo_swot_analysis.html