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G VENKATESH
 India’s service growth engine 
 Back office services – biggest chunk of the 
Indian BPO market
 Players GLOBAL BPO MAJORS 
Convergys, Teletech 
Captive BPO 
General Electric 
American Express 
British Airways 
Indian BPO start 
ups 
Taslima 
Corporation 
EXL 
Daksh 
Spectramind 
Indian IT Service 
Companies 
Progeon (Infosys) 
Intelenet (TCS) 
Msource (Mphasis) 
Broad-based 
global service 
companies 
PWC 
Accenture 
EDS
 Attrition. 
 Many employees leave the BPO jobs and go 
for further studies. 
 Others get bored of monotonous routine. 
 BPO firms have to work around this. 
 A BPO near Gurgaon sponsored housing for its 
employees. 
 Other facilities – a good compensation 
package, pick and drop facility, training, 
opportunity to pursue Executive MBA.
 Government looking at BPO industry as 
national priority for generating employment 
in tier 2 cities and towns in India. 
 Aditya Birla group – Trans works Information 
 ICICI One Source 
Wipro- Spectramind 
 These are examples of acquisitions (in 
organic growth) 
 Indian workforce talented, cheap but need 
training to handle foreign clients.
 BPO – Business Process Outsourcing 
 ITES – Information Technology enabled 
services 
 Intense customer focus 
 Performance management : 
 Customer Satisfaction 
 Employee Satisfaction 
 Employee Productivity 
 Cost Control 
 Strong Operations involvement 
 Adapatability of process
BPO
 IT companies have used cross-selling strategy 
to sell BPO services to their clients. 
 Quality of service 
 Turnaround time 
 Innovation 
 Road shows organised to counter US 
opposition
 NOT MUCH RELEVANT IN BPO 
 TELECOM INFRASTRUCTURE IMPORTANT 
 REMOTE SERVICES TO CLIENTS THROUGH 
TELECOM LINKS
 SKILLED MANPOWER & WORLD CLASS 
QUALITY AT LOW PRICES. 
But do manpower need training to handle 
cross cultural issues ? 
 TAX BENEFITS BY GOVERNMENT – COSTS 
LOWERED.
 Cross selling by IT companies, offer discounts 
to valuable customer accounts 
 Even captive BPOs are attracting customers 
of their parent organisation.
 Align HR Strategy with the firm’s business 
strategy 
 Clients want to look at HR strategy plans 
 Managing attrition – measure employee 
satisfaction, compensation benchmarking, focus 
on internal communication and quality of work 
environment. 
 Adoption of CAPABILITY MATURITY MODEL of 
software services to BPO industry. 
 Home Work : Yaseen/Nabeel : what is capability 
maturity model in software industry ?
 PROCESSES ROBUST TO HANDLE REGULATORY 
REQUIREMENTS OF DIFFERENT COUNTRIES 
 KNOW REGULATIONS WITHIN INDIA TO 
MANAGE PROCESSES FOR DIFFERENT 
VERTICALS 
 SEAMLESS INTEGRATION OF TECHNOLOGY & 
PROCESSES 
 TRANSACTION PROCESSING SYSTEM 
 DATA WAREHOUSING 
 RESOLVE CUSTOMER COMPLAINTS 
 USE LEARNINGS FROM COMPLAINTS TO TWEAK 
THE PROCESS
 REQUIRED ONLY DURING MARKETING 
 FOR THE CLIENT IT IS LARGELY IRRELEVANT 
(WHY ?) ( HOW IS PRODUCTION & 
CONSUMPTION HAPPENING ?) (PHONE ?) 
• BUT IF THERE ARE VIDEO CONFERENCES, 
THEN A GOOD CONFERENCE HALL. 
• AUDIO AND TELECOM INFRASTRUCTURE 
IMPORTANT IN BPO SECTOR
 DEFINED AS OUTPUT / INPUT. 
 HOW CAN WE GET MORE OUTPUT FROM SAME 
INPUT 
 LOW COST SOLUTIONS 
 TO ENSURE PRODUCTIVITY OF PHYSICAL 
ASSETS, BPOs RUN IN SHIFTS. 
 FOCUS ON MAXIMISATION OF REVENUE 
THROUGH GREATEST TURNOVER & USAGE.
 IT IS THE OPTIMAL UTILISATION OF HUMAN 
CAPITAL WHICH DETERMINES PRODUCTIVITY. 
 FOREIGN COUNTRIES NEED TO INVEST MORE 
IN TECHNOLOGY BECAUSE LABOUR IS 
EXPENSIVE. INDIA, IT IS RELATIVELY CHEAP. 
 LINKING CUSTOMER SATISFACTION AND 
PRODUCTIVITY AND SERVICE LEVELS IS STILL 
COMPLEX. 
 REGULAR CUSTOMER SATISFACTION SURVEYS 
 REGULAR EMPLOYEE SATISFACTION SURVEYS
 TRAINING IMPORTANT 
 HOW TO COMMUNICATE EFFECTIVELY 
 TELEPHONE ETIQUETTE 
 IMPROVE LISTENING SKILLS 
 BUT, IS THIS SUFFICIENT ? 
 BUT, IS THIS SUFFICIENT ? 
 WHAT IS NEEDED IS – 
 EXPOSE PEOPLE TO DIFFERENT CULTURES THROUGH TRAINING 
 EMPOWER PEOPLE TO TAKE DECISIONS 
 USE SLAs to ENSURE THAT RESPONSE TIME IS REASONABLE. 
 IF THE RESPONSE IS GOING TO BE DELAYED, INFORM THE 
CUSTOMER THROUGH MAIL OR PHONE. 
 EMPLOYEES NEED TO BE TAUGHT ABOUT NEED FOR GREATER 
FOCUS.
 DO ALL OF YOU AGREE THAT FRONTLINE 
EMPLOYEES IN BPO SECTOR PLAY A CRUCIAL 
ROLE IN CUSTOMER SATISFACTION ? 
 WHY ARE PSYCHOLOGICAL FACTORS SO 
IMPORTANT WHILE RECRUITING FRONT LINE 
EMPLOYEES ?

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Bpo industry (2)

  • 2.  India’s service growth engine  Back office services – biggest chunk of the Indian BPO market
  • 3.  Players GLOBAL BPO MAJORS Convergys, Teletech Captive BPO General Electric American Express British Airways Indian BPO start ups Taslima Corporation EXL Daksh Spectramind Indian IT Service Companies Progeon (Infosys) Intelenet (TCS) Msource (Mphasis) Broad-based global service companies PWC Accenture EDS
  • 4.  Attrition.  Many employees leave the BPO jobs and go for further studies.  Others get bored of monotonous routine.  BPO firms have to work around this.  A BPO near Gurgaon sponsored housing for its employees.  Other facilities – a good compensation package, pick and drop facility, training, opportunity to pursue Executive MBA.
  • 5.  Government looking at BPO industry as national priority for generating employment in tier 2 cities and towns in India.  Aditya Birla group – Trans works Information  ICICI One Source Wipro- Spectramind  These are examples of acquisitions (in organic growth)  Indian workforce talented, cheap but need training to handle foreign clients.
  • 6.  BPO – Business Process Outsourcing  ITES – Information Technology enabled services  Intense customer focus  Performance management :  Customer Satisfaction  Employee Satisfaction  Employee Productivity  Cost Control  Strong Operations involvement  Adapatability of process
  • 7.
  • 8. BPO
  • 9.  IT companies have used cross-selling strategy to sell BPO services to their clients.  Quality of service  Turnaround time  Innovation  Road shows organised to counter US opposition
  • 10.  NOT MUCH RELEVANT IN BPO  TELECOM INFRASTRUCTURE IMPORTANT  REMOTE SERVICES TO CLIENTS THROUGH TELECOM LINKS
  • 11.  SKILLED MANPOWER & WORLD CLASS QUALITY AT LOW PRICES. But do manpower need training to handle cross cultural issues ?  TAX BENEFITS BY GOVERNMENT – COSTS LOWERED.
  • 12.  Cross selling by IT companies, offer discounts to valuable customer accounts  Even captive BPOs are attracting customers of their parent organisation.
  • 13.  Align HR Strategy with the firm’s business strategy  Clients want to look at HR strategy plans  Managing attrition – measure employee satisfaction, compensation benchmarking, focus on internal communication and quality of work environment.  Adoption of CAPABILITY MATURITY MODEL of software services to BPO industry.  Home Work : Yaseen/Nabeel : what is capability maturity model in software industry ?
  • 14.  PROCESSES ROBUST TO HANDLE REGULATORY REQUIREMENTS OF DIFFERENT COUNTRIES  KNOW REGULATIONS WITHIN INDIA TO MANAGE PROCESSES FOR DIFFERENT VERTICALS  SEAMLESS INTEGRATION OF TECHNOLOGY & PROCESSES  TRANSACTION PROCESSING SYSTEM  DATA WAREHOUSING  RESOLVE CUSTOMER COMPLAINTS  USE LEARNINGS FROM COMPLAINTS TO TWEAK THE PROCESS
  • 15.  REQUIRED ONLY DURING MARKETING  FOR THE CLIENT IT IS LARGELY IRRELEVANT (WHY ?) ( HOW IS PRODUCTION & CONSUMPTION HAPPENING ?) (PHONE ?) • BUT IF THERE ARE VIDEO CONFERENCES, THEN A GOOD CONFERENCE HALL. • AUDIO AND TELECOM INFRASTRUCTURE IMPORTANT IN BPO SECTOR
  • 16.  DEFINED AS OUTPUT / INPUT.  HOW CAN WE GET MORE OUTPUT FROM SAME INPUT  LOW COST SOLUTIONS  TO ENSURE PRODUCTIVITY OF PHYSICAL ASSETS, BPOs RUN IN SHIFTS.  FOCUS ON MAXIMISATION OF REVENUE THROUGH GREATEST TURNOVER & USAGE.
  • 17.  IT IS THE OPTIMAL UTILISATION OF HUMAN CAPITAL WHICH DETERMINES PRODUCTIVITY.  FOREIGN COUNTRIES NEED TO INVEST MORE IN TECHNOLOGY BECAUSE LABOUR IS EXPENSIVE. INDIA, IT IS RELATIVELY CHEAP.  LINKING CUSTOMER SATISFACTION AND PRODUCTIVITY AND SERVICE LEVELS IS STILL COMPLEX.  REGULAR CUSTOMER SATISFACTION SURVEYS  REGULAR EMPLOYEE SATISFACTION SURVEYS
  • 18.  TRAINING IMPORTANT  HOW TO COMMUNICATE EFFECTIVELY  TELEPHONE ETIQUETTE  IMPROVE LISTENING SKILLS  BUT, IS THIS SUFFICIENT ?  BUT, IS THIS SUFFICIENT ?  WHAT IS NEEDED IS –  EXPOSE PEOPLE TO DIFFERENT CULTURES THROUGH TRAINING  EMPOWER PEOPLE TO TAKE DECISIONS  USE SLAs to ENSURE THAT RESPONSE TIME IS REASONABLE.  IF THE RESPONSE IS GOING TO BE DELAYED, INFORM THE CUSTOMER THROUGH MAIL OR PHONE.  EMPLOYEES NEED TO BE TAUGHT ABOUT NEED FOR GREATER FOCUS.
  • 19.  DO ALL OF YOU AGREE THAT FRONTLINE EMPLOYEES IN BPO SECTOR PLAY A CRUCIAL ROLE IN CUSTOMER SATISFACTION ?  WHY ARE PSYCHOLOGICAL FACTORS SO IMPORTANT WHILE RECRUITING FRONT LINE EMPLOYEES ?