...BPO in India – an overview Contents I. Introduction II. What is BPO? • Types of BPO • Key services in various sectors III. Indian BPO Market IV. Market Segments and Trends • Banking sector • Insurance • Healthcare • Media/Publishing • Offshore Software Development • Network Outsourcing Services • HR Outsourcing V. Popular destinations VI. Employment opportunities VII. Key players in the market a. Indian companies b. MNCs VIII. Global competition IX. Future/outlook I. Introduction: Late 90’s has opened a new chapter in Information Technology (IT) sector in India – Business Process Outsourcing (BPO), one of the fastest growing segments of the Information Technology Enabled Services (ITES) industry. Cost conscious companies in the world to gain cost savings has set up their back office operations in India. The BPO segment, which was virtually non-existent till a few years ago, has risen to be a US $2 billion industry and IDC expects it to grow at a CAGR of 54 per cent till 2006 to reach US $12 billion. A major portion of the revenues today come from customer care and back office processing services, according to IDC’s report. II. What is BPO? BPO is the contracting of a specific business task, such as payroll, to a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain their position in the...
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...Strategic Management Paper on: Dell International Services Philippines, Inc. Submitted to: Professor Eliseo Aurellado Submitted by: Ryan S. Villarica MBA - Standard Date: June 28, 2014 Table of Contents Executive Summary4 I. Introduction6 II. Research Methodology7 III. Mission and Vision Analysis8 Current Vision and Mission8 Review of the Current Vision9 Review of the Current Mission10 Proposed Vision and Mission Statements11 Review of the Proposed Vision and Mission Statements12 Communicating the Proposed Vision and Mission Statements14 IV. External Analysis15 Economic Forces15 Political Forces………………………......................................................................................... 18 Social, Cultural, Demographic and Ecological Forces 19 Technological Forces 21 Industry and Competitive Forces 22 Five Forces of Competition Model 24 Competitive Profile Matrix (CPM)28 External Factor Evaluation (EFE) Matrix 33 V. Internal Analysis39 Functional Audit39 Culture39 Management41 Operations43 Information Systems44 Human Resources45 Marketing and Hiring46 Financial Performance47 Internal Factor Evaluation (IFE) Matrix52 VI. Strategy Formulation58 SWOT Analysis58 Strategic Position and Evaluation (SPACE) Matrix 60 Internal-External (IE) Matrix63 Grand Strategy Matrix64 Summary of Matrices and Analysis65 VII. Quality Strategy Planning Matrix 66 VIII. Proposed Strategies69 Strategic...
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...Contents Advantage India Market overview Industry Infrastructure Investments Policy and regulatory framework Opportunities Industry associations 2 ADVANTAGE INDIA IT & ITeS April 2010 Advantage India • Freight costs in India are 20 per cent less, with faster delivery, as compared to China. • Proximity to the EU and the Middle East and Asian (MEA) market • Cost advantage Every year, 675,000 technical graduates qualify in the country, of which 400,000 are engineers. More than 50,000 MBAs graduate every year. It is estimated that India’s IT industry has added 40,000 employees in 2009–10. • More than 85 global SEI-CMM level 5 firms have a presence in India. India’s service offerings have evolved to high-end integrated IT solutions. Quality/ maturity of processes Advantage India Ease of scalability • Enabling business policy and regulatory environment • The cost of an engineer is about 20 to 40 per cent of the comparable cost in the European Union (EU). General, administrative and selling costs amount to around 80 per cent of comparable costs in the EU. India’s average offshore billing rates, at US$ 20 to US$ 35 per hour, are about 50 to 70 per cent lower than the EU’s. Sector deregulated in the 1990s to allow private sector participation. 100 per cent FDI is allowed under automatic route. Source: Department of Information Technology, Annual Report 2008–09 ; industry sources, Ernst & Young research 3 IT &...
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...project is based on “BPO INDUSTRY IN INDIA”. Business Process Outsourcing is the delegation of one or more of the business processes to an external provider, which in turn owns, manages and controls the selected processes based on some specific standards. It was started in India in early 1980’s by the British Airways who set-up their captive unit in Delhi. BPO in India starts with low-end data entry processes, but now it moves up the value chain and deals in core business processes also. Both voice and non-voice BPO Industry exists in India. Various types of services are performed, call centres being the attraction today for the youth. BPO operates through three types of business models viz. - Transactional, Niche and Comprehensive. Finance and Accounting has also set its significant place in BPO pie. In 2008, BPO industry generates USD 12.8 Bn revenue, out of which exports revenue was USD 10.9 Bn. It will achieve USD 14.8 Bn by the end of 2009 (expected) and is expected to achieve USD 60 Bn by 2012 and USD 225 Bn by the end of 2020. Cost competitiveness and talented pool of human resources are the key drivers in the growth of BPO industry, but still some factors such as underdeveloped infrastructure and competition from other low-cost countries are providing challenge to the Indian industry, which needs to be addressed carefully by the cooperation of government, NASSCOM and industry itself. Still, India is shining in the BPO landscape and is the...
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...Knowledge Process Outsourcing (KPO). It involves outsourcing for high-end knowledge work. This includes research and work on intellectual property, equity and finance, analytics, market research and data management, et cetera. This article is prepared for better understanding of the concept and state of India in the sector. © 2012 Elixir All rights reserved. Introduction The Outsourcing Industry has been extensively researched in the past decade. Business Process Outsourcing (BPO) in particular has been the topic of many analyses. Outsourcing first appeared in the IT industry in the 1980s. This was the time when companies recognized the benefits of having IT service partners in order to develop complex systems, and enhance the way that a business process or service is managed (Schumacher, 2005). Since then, the outsourcing industry has gone through its introduction and growth stages, with growth rates of around 50%, and has reached its transformation stage. Increasing globalization and high pressure to innovate have substantially shortened the product and service life cycles. Industry life cycles have therefore become shorter and shorter - outsourcing is no...
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...in which you answer marketing strategy questions about a product or service at your company. This Course Journal is for your personal use; you will not be asked to share it or submit it for review, although you will include excerpts from your Journal in the required final project that you submit at the end of the course. This Course Journal document consists of four parts that you will complete in sections as you progress through the course. Save this document to a convenient location on your computer so you can easily access it later in the course. Part One – Look at Your 3 Cs Consider a product or service at your firm and answer each of the questions below. 1. Describe the customers for this product or service. BPO – Looking at all companies which are aiming at cost savings by outsourcing their current operations 2. What is the value proposition this product or service offers to these customers? Cost, Quality of delivery, Speed and Efficiency for deployment 3. Describe the competitors. Big brands, consulting based companies Consider the three dimensions that are important to customers: price, product, and service. 1. Are you winning on one of those dimensions with the customers you identified? Which one(s)? Price & product 2. Are you losing on either or both of the other two? Which one(s)? Service – consulting capability Part Two – Segment Your Market and Choose...
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...EMPOWERING THE NEW HEALTHCARE ECOSYSTEM 2 EMPOWERING THE NEW HEALTHCARE ECOSYSTEM Today, the healthcare industry finds itself on the threshold of a new era in which key stakeholders, empowered by technology, are breaking down barriers and redefining what’s possible in medical care. Find out how IT is shaping this new healthcare ecosystem. A NEW ERA Never before has the healthcare industry offered so much hope amid so much uncertainty. In the last decade, we have seen the unlocking of the human genome, which has put personalized and predictive medicine within reach for the first time in history. Advances in biomedicine and pharmaceuticals are achieving unprecedented success against formerly intractable diseases. And the next generation of information technology is sparking innovation across the healthcare value chain. Yet we are also living in a time of great economic and social upheaval, with healthcare businesses and organizations contending with extraordinary new financial, demographic, and regulatory pressures. A challenging global economy continues to strain the bottom lines of providers, payers, and pharmaceutical companies - not to mention the businesses and taxpayers who ultimately foot the bill. What’s more, the economics of healthcare are set to become even tougher in the years ahead as aging populations in industrial countries place new demands on both private and public healthcare systems. Tighter finances and thinning margins have made cost cutting and operational...
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...the Outsourcing Industry 2013: Presentation to Genpact, March 5th 2013 Phil Fersht, Founder and CEO, HfS Research phil.fersht@hfsresearch.com Copyright © 2013 HfS Research Ltd. State of the industry 2013 - Agenda • Market Size and Forecast • Key Industry Dynamics • Competitive Landscape • Market Wrap Copyright © 2013 HfS Research Ltd. Outsourcing Smart Governance Disruptive Technologies 2 State of the industry 2013 - Intro • • • • • • Conducted December 2012 / January 2013 The largest-ever quantitative industry study covering both IT and business process outsourcing Respondents included 1355 stakeholders across enterprise buyers, service providers and consultant/influencer organizations The aim of the survey was to understand their views, observations and intentions for 2013 and beyond, when it comes to outsourcing IT and business processes Survey was conducted with the support of KPMG This presentation contains a set of slides with the top level results of the survey Copyright © 2013 HfS Research Ltd. Outsourcing Smart Governance Disruptive Technologies 3 Key Highlights: BPO Adoption and Outlook: • • • • • • • Deal activity rebounds Market forecasted to grow Attitudes towards BPO have gone “back to basics” Attitude of buyers has shifted from the “we can’t” to the “why can’t we?” Key growth industries increasing BPO uptake: Telecom, Software / High Tech, Media and Publishing and Retail/Hospitality. Major industries show slowing growth...
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...most important factors for determining the integration approach on the strategic level are • Need for strategic interdependence • Need for organizational autonomy Studying the different approaches of the integration plan- They suggested four approaches for integration: absorption, preservation, symbiosis, and holding (Figure). The acquisition should use one of these four approaches. Figure 4: Key actions in the Integration Plan- It is imperative to have a focused integration plan in order manage the negative reactions and meet strategic objectives. Although the plan depends on the approach and the context of an M&A, the 4C model (D Prasanth Nair,2007) as a part of the Integration Plan facilitates conducive environment of value accrual (Exhibit 1). Change...
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...Knowledge@Wharton Earlier this month, newspaper headlines in India about US$5 billion worth of IT outsourcing orders expected from large U.S. banks brought cheer to the Indian IT services industry. In recent months, industry players have been expecting the return of good times, and this news reinforced their optimism. But experts say the US$60 billion industry needs to retool and reposition itself or it risks losing out on growth. According to Sudin Apte, principal analyst and CEO at research firm Offshore Insights: "Businesses in the U.S. and Europe have undergone dramatic changes. The paradigm at their end has changed and so have the needs and requirements from their technology vendors. If Indian IT firms want to stay in the game, they need to change, too." Meanwhile, the country's top IT firms are close to shuffling positions. While Tata Consultancy Services (TCS) and Infosys Technologies continue to hold sway, Cognizant Technologies, currently the fourth-largest player, is threateningly close to unseating Wipro Technologies for the third slot. In the last quarter, Cognizant's revenues grew 45% to reach US$1.31 billion; Wipro was marginally ahead with US$1.34 billion in revenues from IT services. Also getting ready to join the club is iGate, which last month entered the billion-dollar revenue club after buying Patni Computers in a US$1.2 billion deal -- one of the largest acquisitions within the Indian outsourcing industry. Mahindra Satyam, the rechristened former No.3 Satyam Technologies...
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...Business Process Outsourcing Introduction Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business functions (or processes) to a third-party service provider. Originally, this was associated with manufacturing firms, such as Coca Cola that outsourced large segments of its supply chain. BPO is typically categorized into back office outsourcing - which includes internal business functions such as human resources or finance and accounting, and front office outsourcing - which includes customer-related services such as contact center services. BPO that is contracted outside a company's country is called offshore outsourcing. BPO that is contracted to a company's neighboring (or nearby) country is called near shore outsourcing. Often the business processes are information technology-based, and are referred to as ITES-BPO, where ITES stands for Information Technology Enabled Service. Knowledge process outsourcing (KPO) and legal process outsourcing (LPO) are some of the sub-segments of business process outsourcing industry. In 2010, the Philippines surpassed India as the largest business process outsourcing industry in the world. After growing 20 per cent in 2012, the BPO industry of the Philippines is estimated to gross revenue of upwards to $25 billion by 2016. By these estimates, the Philippines' BPO industry will account for approximately 10 per cent of the nation's GDP. History...
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...and validation; enterprise application solutions; business intelligence and data warehousing; packaged software implementation; infrastructure management services; cloud computing services; embedded systems development; engineering design services; IT consulting; IT governance; and customized learning solutions. The company's IT-enabled services include business process outsourcing (BPO) transaction processing services and customer interaction services (CIS). IGATE offers its services to customers across insurance; healthcare and life sciences; manufacturing; retail and logistics; banking and financial services; communications; energy and utilities; product and engineering solutions; government solutions; and media and entertainment industries. The company offers its services globally with operational bases in India, Canada, the US, Europe, Mexico, Singapore, Malaysia, Japan, Australia, the UAE, South Africa, China, Switzerland, Mauritius and the UK. iGATE is headquartered in Fremont, California, the US. The company’s focus is to provide joint solutions to clients through partnerships and strategic alliances. Recently, iGATE partnered with Rio Tinto, to create next generation technologies and contribute to global growth and development of Rio Tinto's 'Mine of the Future program. Organizational Structure of iGATE: • Since the appointment of the new CEO Ashok Vemuri, there has been a significant change in the organizational structure of the company. The leadership has become...
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...Strategic Management Strategy Analysis of Indian IT company- Tata Consultancy Services (TCS) Strategic Management Strategy Analysis of Indian IT company- Tata Consultancy Services (TCS) Aditi Puri, Harsha Jonnala, Huzaifa Dadarkar, Karan Jaiswal, Piyush Jain Aditi Puri, Harsha Jonnala, Huzaifa Dadarkar, Karan Jaiswal, Piyush Jain Table of Contents INDIAN IT INDUSTRY OVERVIEW 3 INTRODUCTION 3 EXTERNAL ANALYSIS 3 PORTER’S FIVE FORCES MODEL (INDIAN IT INDUSTRY) 4 SWOT ANALYSIS - IT & ITES INDUSTRY 5 TATA CONSULTANCY SERVICES 6 INTRODUCTION 6 SWOT ANALYSIS ..7 TCS’ RESOURCES & CAPABILITIES ..8 TCS’ STRATEGY ANALYSIS ...9 Generic Business Strategies Global Strategies Corporate Level Strategies RECOMMENDATIONS 14 REFERENCES .15 INDIAN IT INDUSTRY OVERVIEW The IT-ITeS industry in India has today become a growth engine for the economy, contributing substantially to increases in the GDP, urban employment and exports, to achieve the vision of a “young and resilient” India. During the year, the sector maintained its double digit growth rate and was a net hirer. This growth has been fuelled by increasing diversification in the geographic base and industry verticals, and adaptation in the service offerings portfolio. Consequently, India has attained leadership position in the global sourcing market. India is now the leading country in providing IT Enabled Services in the world. According to a recent study, Indian IT & ITES is...
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...current issue and full text archive of this journal is available at www.emeraldinsight.com/0142-5455.htm ER 29,6 Talent management strategy of employee engagement in Indian ITES employees: key to retention Jyotsna Bhatnagar Human Resource Management Area, Management Development Institute, Sukhrali, Gurgaon, India Abstract Purpose – With talent management becoming an area of growing concern in the literature, the purpose of this paper is to investigate talent management and its relationship to levels of employee engagement using a mixed method research design. Design/methodology/approach – The first phase was a survey on a sample of 272 BPO/ITES employees, using Gallup q12 or Gallup Workplace Audit. Focus group interview discussion was based on reasons for attrition and the unique problems of employee engagement. In the second phase, one of the BPO organizations from the phase I sample was chosen at random and exit interview data was analyzed using factor analysis and content analysis. Findings – The results were in the expected direction and fulfilled the research aims of the current study. In the first phase low factor loadings indicated low engagement scores at the beginning of the career and at completion of 16 months with the organization. High factor loadings at intermediate stages of employment were indicative of high engagement levels, but the interview data reflected that this may mean high loyalty, but only for a limited time. In the second phase factor loadings indicated...
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...Chapter 1. Introduction ENTREPRENEURSHIP DEVELOPMENT Unit -1: Entrepreneurship concept- Entrepreneurship as a Career- Entrepreneur-Personality Characteristics of Successful. Entrepreneur- Knowledge and Skills required for an Entrepreneur. What Is Entrepreneurship? Entrepreneurship can be defined by describing what entrepreneurs do. For example: "Entrepreneurs use personal initiative, and engage in calculated risk-taking, to create new business ventures by raising resources to apply innovative new ideas that solve problems, meet challenges, or satisfy the needs of a clearly defined market." But as the following definitions state, entrepreneurship is not restricted to business and profit: "Entrepreneurship involves bringing about change to achieve some benefit. This benefit may be financial but it also involves the satisfaction of knowing you have changed something for the better. "Entrepreneurship is essentially the act of creation requiring the ability to recognize an opportunity, shape a goal, and take advantage of a situation. Entrepreneurs plan, persuade, raise resources, and give birth to new ventures." Who Are Entrepreneurs? The word Entrepreneur has been taken from the French word. It means Between Takers. Entrepreneur is another name of Risk Taker. An entrepreneur is an individual who takes moderate risks and brings innovation. Entrepreneur is a person who organises/ manages the risks in his/her enterprise. “Entrepreneur is a individual who takes...
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