A study on the growth of BPO industry in India.This paper contains the different aspects of BPO industry in India and The main reasons behind th egrowth of BPO industry in India,
1. THE GROWTH OF
BUSINESS PROCESS
OUTSOURCING INDUSTRY
IN INDIA
SUDIPTA SAHA ROY
ASSISTANT PROFESSOR IN COMMERCE
SERAMPORE COLLEGE (CLCUTTA UNIVERSITY)
2. DEFINITION OF THE PROBLEM
The expansion of BPO industry in last 15 years has a great
impact on the economic growth of the service sector. The
Indian BPO market reach US$1.4 billion in 2011.It will
grow in to a US$1.69 billion market by 2012, and further
to US$ 2.47 billion by 2014 (according to Gartner survey
estimates). This study is undertaken to provide a
systematic analysis of
(i) some of the general aspects of the BPO industry,
(ii) the specific conditions that have led to the
phenomenal growth of this industry in the Indian
economy
3. SURVEY OF LITERATURE
SOURCE FOCUS
Ronan McIvor-The Outsourcing
Process Strategies for evaluation and
management-Cambridge University
Press,2006
Case studies of BPO
Companies ,based on empirical
research.
Marc J. Schniederjans, Ashlyn M.
Schniederjans, Dara G.
Schniederjans-Outsourcing and
Insourcing In An International
Context,2005
Methodological technique for
implementing outsourcing
decisions
The IT BPO Sector in India
:Strategic Review 2011 by
NASSCOM,2011
Indian IT-BPO sector
performance in the current
fiscal year 2011
Impact of IT-BPO Industry in India :A
Decade In Review by NASSCOM,2009
contribution of BPO industry to the
development of Indian’s overall
economy
4. OBJECTIVES OF THE STUDY
1. To explain the conditions necessary for the growth of the
BPO Industries as a major constituent of a service
based economy.
2. To identify major drivers of growth of the Indian BPO
industry.
3. To study the patterns of growth in the Indian BPO industry
over the recent past.
5. METHODOLOGY
1. Data Source:
Mainly secondary data sources are used (i.e. press
releases, news paper reports, data from the internet )
2. Method of Analysis:
Time series analysis.
3. Time Period of Study
Financial year 2007 to 2011
6. REASON FOR OUTSOURCING
Cost Saving
Gain Outside Expertise
Improve Out Side Service
Focus on Core Companies
Gain Outside Technology
Alternative Career Path
7. MAJOR DRIVERS OF BPO INDUSTRY IN
INDIA
Cost – effective manpower.
Large number of graduate engineers.
High-end telecom which is at par with global
standards.
Strong quality orientation and monitoring quality
targets.
Advantage of fast “turned-out” times for offering
24x7 services
8. MAJOR DRIVERS OF BPO INDUSTRY IN INDIA
(CONTD.)
Proactive and positive policy environment
A friendly tax structure
18-point action plan of The National I.T. Task
Force
A separate Ministry of I.T. was set up.
I.T. Act 2000.
9. ANALYSIS OF INDIAN BPO SECTOR ADVANTAGES WITH
PORTER’S DIAMOND FRAMEWORK
FIRM STRATEGY, STRUCTURE AND
RIVALRY
High profit,retaing customers,provides
customer satisfaction,cheap
labour,skilled work force
FACTOR CONDITIONS
Increasing no of graduates in
Engineering ,good salary.
DEMAND CONDITIONS Research &
analysis , outsourcing of- legal work,
engineering
,infrastructure,management,
accounts,HR .
RELATED AND SUPPORTING
INDUSTRIES : Software
development,health care,business
service,financial service,monitoring
service
CHANCE
Historical past,poliical
stability,economic growth.
GOVERNMENT
Liberalization
policy,tax structure,FDI
12. EMPLOYMENT OPPORTUNITY IN INDIAN BPO INDUSTRY
SOURCE:NASSCOM (COMPILED)
Employment
Opportunities
FY 2007 FY 2008 FY 2009 FY2010 FY 2011 5 YEAR
CAGR
298953 371965 570000 768000 835000 29.28%
13. FINDINGS:
(1) BPO industry generates substantial amount of revenue from
both domestic and export-oriented operations.
(2) Finance and accounting ,knowledge services emerging as
growth drivers for the BPO industry.
(3) It creates huge employment opportunity through the
expansion of BPO services globally.
(4) BPO is the core sector that has driven the country in the
epicenter change.
14. LIMITATIONS
(1) The study is based on secondary data because of time and cost
constraints.
(2) A larger time horizon of analysis would have been more reveal
(3) The study could not delve into India’s future prospects in the BPO
segment in general.
SCOPE FOR FURTHER STUDY
We would like to identify the following aspects of the BPO industry
for further study and research.
1. Contribution of BPO’s in Indian Economy.
2. Comparative analysis of various BPO services in India's IT
industry.
3. Indian BPO industry in the context of the global BPO sector
15. CONCLUSION
According to the NASSCOM’s Strategic Review 2011, the
BPO sector in India remained the fastest developing industry.
Behind the success of BPO industry in India, the contributions
of Indian BPO companies are very much noteworthy.Presntly
the leading BPO companies are TCS, Wipro, Cognizent,
Genpact, IBM Daksh etc.The growth of BPO industry will
happen in a gradual, incremental fashion but it will take place
for a sustained period of time.
16. BIBLIOGRAPHY
Press Releases, Reports, Corporate Brochures, News Paper Reports
etc.
Agarwal, Rahul.Business Process Outsourcing (A project study). Available at
www.Linkdin.com/pub/dir/Rahul/Agarwal.
Amrutrao, Suyog.Business Process Outsourcing. Published Paper at
www.veloxian.com,Osmanabad.
Gartner Report on Indian BPO.2010-2011
Himachali, Sanjeev.BPO Industry in India –A Report.23,July,2005.available at
www.ezinearticles.com.
Nakkiran S. & Jhonfranklin D., Business Process Outsourcing: Concept, Current
Patel, Naresh Variya B.Pathik(2006).Trends in Compensation Management in Indian
BPO Sector.available at www.indiamba.comth ,4 th,August
Websites
www.BPO India.org.
www.dnb.co.in/itesbpo/ITesBPO.asp.
www.Go4bpo.com.
www.outsource 2india.com