BPO知识
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出自Guoshuang Wiki
We attempt here to share some knowledge which could be useful to the BPO community. We will list questions even if we don't have answers for them. Hopefully, one of you will respond to those queries. Please do feel free to correct/improve the knowledgeBase.
1. What are the pros & cons of outsourcing?
Third Party Service Providers (TPSPs)
* Usually TPSP already has expertise and experience with other clients in similar business lines.
* Very competitive pricing / flexibility to assess various TPSPs
* No infrastructural / capital investment.
* Payback period very less (usually between 6 months to a year).
* Flexibility to source multiple TPSPs.
* Flexibility to scale up and down business relationship.
* Can exit from one relationship and move to another .
* Retains decision-making, therefore relationship with TPSP is clear (fee-based, quality-based); no staff backlash.
* As TPSP works towards a profit there is more business commitment.
* Customised solutions ensure data security and safety.
Captive centres
* Build expertise from scratch by redeploying resources. Latter option more expensive.
* Unit costs higher.
* High capital investment.
* Payback usually between 3 and 5 years.
* Committed to bringing in economies of scale, hence the need to establish a sufficiently large centre.
* Committed resources reduces such flexibility, else training costs could shoot through the roof.
* No exit possible without incurring high costs.
* May or may not retain decision-making. Possibility of backlash from senior management personnel.
* Captive units are usually cost centres.
* Long-term strategy looks for establishing centres to first move work as-is, and save costs first.
Source: neoIT
2. What are the pros & cons of outsourcing to third party vendors?
Advantages
* Focus on core business issues.
* Benefit from best-of-breed solutions.
* Better quality at lower costs.
* Better process maturity, resource flexibility and economies of scale.
* Flexibility in deploying new technology.
* Quick wins with outsourcing.
Disadvantages
* Burden of excess capacity or challenge of insufficient capacity is done away with.
* High unit personnel cost.
* Tight business margins.
* Not enough financial muscle to sustain very tight payback periods.
Source: neoIT
3. What are the pros & cons of outsourcing to a captive centre?
Advantages
* Securing data is less complicated.
* Capture margins that would otherwise go a TPSP.
* Decision making authority contained within the organisation.
* Tighter management control.
Disadvantages
* Expensive specialist skill in host countries.
* Compliance and legal restrictions.
* Unavailability of skilled manpower due to market stagnation.
* Requires considerable effort in terms of management's time and attention to establish
Source: neoIT
4. Which are the important IT/ITeS cities in India?
IT Landscape of key Indian cities
City Focus Prominent firms Employees
Delhi
(includes Gurgaon and Noida) Call centres, transaction processing, chip design, software GE, American Express, STMicroelectronics, Wipro Spectramind, Convergys, Daksh, ExL 73,000
Mumbai Financial research, back office, software TCS, MphasiS, i-flex, Morgan Stanley, Citigroup 62,050
Bangalore Chip design, software, boi-informatics, call centres, IT consulting, tax processing Infosys, Wipro, Intel, IBM, SAP, SAS, Dell, Tisco, TI, Motorola, HP, Oracle, Yaho, AOL, E & Y, Accenture 109,500
Hyderabad Software, back office, product design HSBC, Satyam, Microsoft 36,500
Chennai Software, transaction processing, animation Cognizant, World Bank, Standard Chartered, Polaris, EDS, Pentamedia 51,100
Kolkata Consulting, software PwC, IBM, ITC Infotech, TCS 7,300
Pune Call centres, chip design, embedded software MsourcE, C-DAC, Persistent Systems, Zensar 7,300
5. How many jobs from US are moving offshore?
Sl.No Number of U.S. Jobs Moving Offshore
Job Category 2000 2005 2010 2015
1 Management 0 37,477 117,835 88,281
2 Business 10,787 61,252 161,722 48,028
3 Computer 27,171 108,991 276,954 72,632
4 Architecture 3,498 32,302 83,237 84,347
5 Life Sciences 0 3,677 14,478 36,770
6 Legal 1,793 14,220 34,673 74,642
7 Art, Design 818 5,576 13,846 29,639
8 Sales 4,619 29,064 97,321 26,564
9 Office 53,987 295,034 791,034 1,659,310
Total 102,674 587,592 1,591,101 3,320,213
Source: U.S Department of Labour and Forrester Research, Inc.
6. Hot Cities / States that are likely to create new Jobs in 2005
Bangalore, Chennai, Hyderabad, Pondicherry, Madurai in the South Delhi NCR and smaller towns like Indore, Jaipur in the North Pune, Mumbai. 7. Segment wise break-up of the new Jobs in 2005
* IT & IT Services - An estimated 70,000 new Jobs expected in 2005. Plus there will be additional hiring to replace industry attrition that is around 25%
* BPO and Outsourcing services - Around 1,25,000 new Jobs expected in 2005.
* Retailing and Lifestyle - It will create close to 25,000 Jobs directly and more than twice the number indirectly.
* Biotechnology - It is expected to create around 5,000 - 7,000 highly skilled jobs.
8. Can you recommend any good books related to BPO?
See our comprehensive book list.
9. Do you know of any events that are being held related to BPO?
See our events page.
10. In a accounting/book keeping type of BPO work, what is the best way of receiving data for processing?
Majority of clients use QuickBooks. Few clients prefer to host the database server within their premises. In such cases both the client and the BPO provider need to have good amount bandwidth [Client: 512K, vendor: dedicated 64k]
11. What is the average age of debtors outstanding?
90 days
12. What would the cost savings for US companies typically be, if they operated in India?
Datamonitor, a leading UK-based business information company, research indicates that 67-72% of costs to call centers operating in the US/UK is directly linked to man power costs. India, on the other hand spends only 33-40% of costs on man power. This includes training, benefits and other incentives for labor.
13. What are the current salaries in the BPO world in India?
* Customer Care Representatives [CSRs]: Rs 8,000 - Rs 15,000 per month
* Team Leaders: Rs 17,000 - Rs 26,000 per month
* Managers: Rs 3 lacs - Rs 5.5 lacs per annum
* Training Heads: Rs 8 lacs - Rs 12 lacs per annum
* Training Managers: Rs 5 lacs - Rs 8 lacs per annum
* Trainers: Rs 2 lacs - Rs 5 lacs per annum
Specialized ITeS professionals who posses MBA, BE, B.Tech, C.A. [CPA] and other expert qualifications or experience may be paid higher salaries depending upon the expertise required for the desired work profile and their level of experience. Frankly, this doesn't apply to just BPO field but to all fields.
Besides the salary employees are paid incentives depending upon attendance regualrity, achievement of targets. Don't be surprised if the incentive exceeds the salary!
Note: Rs 1 lac = Rs 100,000
This was last modified on June 21, 2004. We observed that only the CSR and Team Leader salaries are changing.
14. What is the cost of accent training?
The training costs for an employee in a call centre are quite prohibitive, ranging from Rs 25,000 to Rs 50,000 for 2-5 months session. For large size call centres that have high attrition it makes sense to have an inhouse trainer [but what if the trainer itself leaves ;-) ?]. We strongly feel neutral accent will become more popular than American/British accent. However, the need for American/British culture training will always be there.
15. How many BPO firms in India have reported a security breach?
83 per cent of Indian businesses had reported a security breach (against the global 64 per cent) and 42 per cent of these had three or more breaches. (as of Sept 2004)
16. What is the job growth in the BPO sector when compared to other sectors?
Industry New Employees Period
Telecom 10,000 January-December 2002
IT Enabled Services 50,000 April 2002 - March 2003
Software Services 30,000 April 2002 - March 2003
Retailing/Franchising 35,000 April 2002 - March 2003
17. What skills are required to work in each of the verticals?
SEGMENTS SKILLS
Call center Good communication and language skills, accent understanding team leadership, basic computing skills
Remote customer interaction Language and accent understanding
Date search, Integration Computing, language and analytical skills
Human Resource Services Country specific HR policies, rules and regulations
Remote education Subject knowledge, computing and language skills
Engineering and design Technical and engineering design and computing skills
Translation, medical transcription and Localisation Language understanding, basic computing (word processing knowledge) and understanding of various medical terminologies
Animation Drawing and creative skills, computer graphic skills
Finance and accounting International/ country specific accounting rules
Market Research Understanding statistical sales and marketing concepts
Network Consultancy and management Understanding different network configurations and support equipment, technical/ computing skills
18. Please list all those fancy numbers, including projections!
McKinsey & Co. predicts global market for IT-enabled services to be over $140 billion by 2008.
These $142 Billion can be broken up and shown as below:
Customer Interaction Services 33.0
Finance & Accounting Services 15.0
Translation, Transcription & Localization 2.0
Engineering & Design 1.2
HR Services 5.0
Data Search, Integration & Management 44.0
Remote Education 18.0
Networking Consulting & Management 15.0
Website Services 5.0
Market Research 3.0
Total 141.2
Source: NASSCOM McKinsey Study - India IT Strategies
In that the opportunity for India will be $ 17 Billion.
Indian ITeS industry employed more than 100,000 people in 2001-2002. This industry clocked approximately 70% growth last year is expected to grow similarly in 2002-2003.
Global Market size estimates of BPO
* $712 billion in 2001
* Gartner/Dataquest: $ 544 billion in 2004
* Gartner: $173 billion in 2007, of which $24.23 billion would be outsourced to offshore contractors
* IDC: $300 billion in 2004
* IDC: $1.2 trillion in 2006
19. Does outsourcing really help a company?
A Bloomberg report noted how Atlanta-based Delta Airlines created 1,000 call-center jobs in India in 2003. he Indian operations saved Delta $25m in 2003, enabling the U.S. air carrier to add 1,200 positions for reservations and sales agents at home. But no Delta employees lost their job as a result of outsourcing.
In August 2003, McKinsey & Company estimated that every dollar of U.S. labor costs assigned overseas will generate $1.12-$1.14 in additional value for the American economy by making goods and services cheaper and companies more competitive.
20. Well, just give me the Indian Market size estimates
Indian Market size estimates of BPO
* Nasscom has estimated that the Indian ITES industry will gross over $5.7 billion by 2005 (based on a conservative year-on-year growth of 65 percent by Nasscom).
* Nasscom-McKinsey: In 1999 they estimated by 2008 it will be $17 billion but it has been revised to $21-24 billion by 2008. Indian can capture 25% of global BPO offshore market and 12% of the market for other services such as animation, content development and design services.
* Gartner: $1 billion (2002), $1.2 billion (2003). $13.8 billion by 2007. Gartner does not incorporate animation, medical or other (legal) transcription services, GIS, market research, data search, research and development, network consultancy and other non-business processes in its estimates on the ITES market size and potential.
Revenue \ Year 2002 2003 2004 2005 2006 2007 CAGR
Offshore BPO Revenue 1,322 1,825 3,017 6,439 12,563 24,230 78.91
Indian BPO Revenue 912 1,205 1,961 3,928 7,412 13,811 69.35
Total BPO Market 110,167 121,687 131,171 143,090 157,033 173,070 9.45
CAGR in % 2002-07 Figures in $ million Source: Gartner Dataquest (May 2003)
21. With the growing demand in the ITes-BPO sector, what is the future of the market going to be?
The U.S is expected to be the largest source market for the ITes accounting for nearly 60% of the market. The share of the offshore component is expected to increase to 23% of the total spending by 2007. Europe is expected to be the second largest market for the ITes sector, accounting for 22% of total spending which is expected to reach Euro 129 billion by 2008. U.K and Ireland being the main markets for BPO in Europe are likely to account for about 45% of the European market followed by countries like Germany, Switzerland and Austria with a 20% share. The fastest growth expected within the European market is in the U.K and Ireland with a CAGR of 14%. However the maximum growth is expected n the Asia-Pacific region, with ITes-BPO spending to grow at 14.7% for the next two years.
22. Which are the main revenue areas for Indian BPO companies?
India's BPO Market in 2008
Service Line First Estimate (1999) Second Estimate (2001)
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
23. Do you have the HR BPO projections for 2004?
HR BPO Projection 2004
HR outsourcing forecasts by process in Asia Pacific (In $ million)
Payroll services 761.20
Benefits administration 535.65
Education and training 555.99
Recruiting and staffing 347.98
Personnel administration 167.16
Other HR functions 191.97
Total 2,560.00
Source: Gartner
24. Fantastic, does it mean I should dump all IT stocks and buy ITES stocks?
Hmm...not exactly. IT Services will still be the largest contributor to the exports pie.
Year ITES IT Services
1999-2000 14% 86%
2000-2001 14.5% 85.5%
2001-2002 19% 81%
2002-2003 24% 76%
Source: Nasscom
25. Few companies are into both IT and BPO. What percentage of the revenue is contributed by BPO?
Company June 2002 Sept 2002 Dec 2002 March 2003 June 2003
Mphasis 16.48% 21.71% 22.61% 25.24% 28.9%
Wipro 4.85% 5.78% 6.81% 7.785% 8.61%
Infosy 0.027% 0.23% 0.85% 1.01% 1.175%
Digital Globalsoft N.A. N.A. 1.454% 3.53% 5.9%
HCL Tech 5% 5% 6% 9% N.A.
26. How did the BPO sector perform in 2002-2003?
As on March 31, 2003, the sector employed 171,000 professionals. It has $1 billion invetsed in it, creating about 100,000 smart cubicles in 7.5 million saq ft of space. It generated revenues of $2.3 billion in 2002-03.
27. new How big is publishing outsourcing market in India?
As of Jan 2006, the outsourced publishing business in India is estimated at Rs 1,500 crore.
28. new How big is the IT infrastructure outsourcing market?
IT infrastructure is critical for firms globally. Organisations invest huge amount of money to build IT infrastructure that support their business goals and objectives, but many fail to set up even the most basic tools to effectively manage their IT resources.
Help desk management, configuration management, and application packaging and migration services are some of the infrastructure-based activities that are currently being delivered from an offshore location and they may serve as platforms into broader outsourcing deals.
According to a Nasscom report, an estimated that 40-60 per cent of the overall Infrastructure Management Service pie may be efficiently delivered through a global delivery model. This translates to a market potential (for offshore infrastructure management) of approximately $ 55 billion.
Forrester Research, the global business intelligence major, which has estimated the infrastructure outsourcing opportunity at $ 111 billion, has indicated that it can bring almost $1 billion earnings for India, provided Indian outsourcers strengthen their cost, quality and security strengths.
According to Gartner, by 2006, Infrastructure services delivered in a Global Delivery Model from India to US companies will surpass $1 billion (with 80% probability).
29. Any latest rankings of Indian BPO vendors?
Top 15 BPOs in India
Sl.No 2004-05 2005-06
1 WNS Genpact
2 Wipro BPO WNS
3 HCL Technology BPO Services Wipo BPO
4 IBM Daksh HCL BPO Services
5 Exl Services ICICI OneSource
6 MphasiS BPO (formerly MSource) IBM Daksh
7 Intelenet Global Progeon
8 ICICI OneSource Aegis BPO Services
9 GTL EXL Service Holdings
10 Progeon 24/7 Customer
11 24/7 Customer.com MphasiS BPO
12 Datamatics Technologies Intelenet Global Services
13 Hinduja TMT GTL
14 Transworks TCS BPO
15 Tracmail Transworks
Source: Nasscom 2005 Survey
30. new Please list the top 10 companies for 2006-07
BPO Exports during 2006-07
Sl No Company
1 Genpact Rs. 2,220 crore
2 Transworks Rs. 1,510 crore
3 IBM Daksh Rs. 1,260 crore
4 TCS BPO Rs. 1,107 crore
5 Cambridge Solutions Rs. 1,000 crore
6 WNS Global Services Rs. 990 crore
7 Wipro BPO Rs. 935 crore
8 Convergys India Rs. 890 crore
9 Firstsource Rs. 809 crore
10 HCL BPO Rs. 746 crore
Last Modified: August 21, 2007
31. Do Indian BPO Vendors figure amongst world's BPO best vendors?
World's 50 best managed BPO vendors
1 IBM Global / Daksh 26 Getronics
2 Accenture 27 Covansys
3 Hewlett Packard 28 Syntel
4 MphasiS 29 Ceridian
5 Ernst & Young/Capgemini 30 Spherion
6 Wipro Spectramind 31 ADP
7 ICICI OneSource 32 i-flex
8 eFunds Global Outsourcing 33 Tata Consultancy Services
9 Convergys 34 General Electric
10 Affiliated Computer Systems 35 Siemens Business Services
11 Sutherland Technologies 36 Atos Origin Intl B.V.
12 Oracle 37 InfoCrossing
13 Hewitt/Exult 38 Datamatics
14 HCL Technologies 39 Outsourced Partners Intl
15 Xansa 40 TechBooks
16 CSC 41 iGate
17 Unisys 42 Office Tiger
18 Keane 43 Perot
19 Satyam 44 EDS
20 CGI 45 Patni Computer
21 Cognizant 46 Gevity HR
22 24/7 Customer 47 VCustomer
23 Intelligroup 48 SourceNet Solutions
24 Northrop Grumman IT 49 WNS Global
25 Infosys 50 Deloitte
Source: The Black Book of Outsourcing (Brown & Wilson, Wiley Publishers)
32. Do you have any statistics of the number of employees in Indian call centres?
Company Number of Employees
EXL 4,500
Spectramind 2,600
Daksh 2,000
WNS 1,600
vCustomer 1,500
Tracmail 1,365
HCL e-serve 870
Epicentre 700
ICICI OneSource 650
GTL 650
Source: Nasscom ITES directory September 2002
Captive Centres Number of Employees
GE Capital 12,000
e-serve International 3,149
eFunds 1,646
HSBC 1,128
Healthscribe India 1,126
American Express 979
Sitel India 584
Global e:Business Operations (HP) 475
Axa Global 350
Source: Nasscom ITES directory September 2002
33. Do you have any rankings of call centres based on revenues?
Ranking of Call Center & BPO players
Ranking 2002-03 2003-04
1 Wipro Spectramind WNS Group
2 WNS Group Wipro Spectramind
3 Daksh e-services Daksh e-services Pvt Ltd
4 ExlService (I) Pvt Ltd Convergys India Services Ltd
5 HCL Technologies BPO Services HCL Technologies BPO Services Ltd
6 Convergys Zenta Technologies
7 GTL Ltd ICICI OneSource Ltd
8 MsourcE India Mphasis BPO Services
9 Hinduja TMT EXL Services
10 ICICI OneSource Tracmail Group
11 Sutherland Technologies GTL Ltd
12 Epicenter Technologies vCustomer
13 Zenta Technologies Hinduja TMT Ltd
14 24/7 Customer 24/7 Customer
15 Datamatics Technologies Sutherland Technologies
Source: Nasscom
Revenue (in $m) Headcount
GE 250 12,000
Wipro Spectramind 95 11,500
Convergys 94 9,800
IBM-Daksh 65 6,300
MphasiS 60 4,800
WNS 55 4,500
EXL 44 4,600
ICICI OneSource 42 4,100
HSBC 41 6,000
Amex 40 3,800
Source: Economic Times (August 2004)
34. Do you have any statistics regarding number of employees Vs revenues sector wise in India?
Growth trend of the outsourcing industry
Service Area 2002-03
Employment Revenue (in $m)
Customer care 65,000 810
Finance 24,000 510
HR 2,100 45
Payment service 11,000 210
Administration 25,000 310
Content development 44,000 465
Total 1,71,100 2,350
Source: Nasscom
35. Do you have the number of call center seats in other countries?
Number of Seats In Call Centers
Country 2003 2004
Australia 1,35,000 1,46,000
India 96,000 1,58,000
China 38,000 54,000
Philippiness 20,000 40,000
New Zealand 12,000 13,500
Thailand 11,000 13,000
Singapore 10,000 10,100
Hong Kong 10,000 10,700
Total 3,32,000 4,45,300
36. Do you have any statistics/projections of employment vs revenues?
Click here to see the statistics
37. How have the Southern states performed in 2002-03?
State Revenues Comments
Andhra Pradesh Rs 1,411 crore Andhra Pradesh already gets a hefty 40% of its IT revenues from ITES.
Karnataka Rs 988 crore The number of approved ITES companies increased from 28 to 41 in fiscal 2002-03. Revenues earned by them also grew to Rs 988 crore, which is 8% of the overall exports of Rs 12,350 crore earned by the state.
Tamil Nadu Rs 523 crore ITES earnings have jumped 8.3% to Rs 523 crore last fiscal from Rs 340 crore the year 2001-02.
Kerala Not available The number of ITES companies in Kerala which is pushing very hard to be among the preferred ITES destinations is said to be below 10.
38. Do you have any comparison of India Vs US BPO operating costs?
US$ 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%
Source: Industry Sources, Merill Lynch 2003 (From the Nasscom Strategic Review 2003)
39. Do you have any SWOT analysis on Indian ITES sector?
Strengths
* Highly skilled, English-speaking workforce.
* Abundant manpower
* Cheaper workforce than their Western counterparts. According to Nasscom, The wage difference is as high as 70-80 percent when compared to their Western counterparts.
* Lower attrition rates than in the West.
* Dedicated workforce aiming at making a long-term career in the field.
* Round-the-clock advantage for Western companies due to the huge time difference.
* Lower response time with efficient and effective service.
* Operational excellence
* Conducive business environment
Weaknesses
* Recent months have seen a rise in the level of attrition rates among ITES workers who are quitting their jobs to pursue higher studies. Of late workers have shown a tendency not to pursue ITES as a full-time career.
* The cost of telecom and network infrastructure is much higher in India than in the US.
* Manpower shortage
* Local infrastructure
* Political opposition from developed countries
Opportunities
* To work closely with associations like Nasscom to portray India as the most favoured ITES destination in the world.
* Indian ITES companies should work closely with Western governments and assuage their concerns and issues.
* India can be branded as a quality ITES destination rather than a low-cost destination.
* $69 billion ITES business by 2010
* $97.5 billion IT (consulting, software solutions) market by 2010
Threats
* The anti-outsourcing legislation in the US state of New Jersey. Three more states in the United States are planning legislation against outsourcing Connecticut, Missouri and Wisconsin.
* Workers in British Telecom have protested against outsourcing of work to Indian BPO companies.
* Other ITES destinations such as China, Philippines and South Africa could have an edge on the cost factor.
* Slowdown of demand
40. What is the sex ratio in the ITeS sector?
As of March 2003, the male:female ratio is 35:65.
41. What is the attrition rate in the ITeS sector?
BPOs in India are expected to employ around one million people by 2008, but the challenger is to find quality human resources given the current attrition rate of around 35-40%. Currently it is about 35% in non-voice and 45% in voice call centers. However what the number don't show is that more than 60% of those who leave a particular BPO do not leave for a competitor, but leave the industry as a whole. Here lies the danger for this sector and the challenge for HR consultants.
Agents want to become team leaders. Team leaders want to become supervisors. Supervisors wants the job of the CEO.
At an attrition rate of 40%, the cost of attrition in the industry is 1.5 times the annual salary.
Some of the reasons could be
* Many see this space to be an Internet sweatshop where all that the employees are required to do is just mechanically input numbers into excel sheets or, worse still, answer phone calls inthe same tone and repeat the same lines at least 100 times a day/night.
* People who join a BPO usually do so to make a 'quick' buck. They are bound to quit because sooner or later they will find something more attractive in terms of the job profile and/or pay.
* The industry has concentrated on hiring young, dynamic and these are looking for more than just a job.
* Talent in this space is generally overlooked, which leaves the deserving few disgruntled with top management and hence fosters attrition.
To fix this problem BPO firms are trying to solve this big problem
* By hiring mature talent [i.e. people over 35 years in age].
* HR must realise that fatter pay cheques can never be a sure-shot way to retain employees. More important aspects like a secure career, benefits, perks and communication cannot be overlooked at any level.
* Employee rentention must be the focus, which means that talent must be recognized and suitably rewarded.
* Hire outstation candidates (from small towns) and provided them with shared accomodation.
* Offer management diplomas and MBA courses.
* Only 5 out of 150 employees become team leaders in a year, hence cash incentives is one way to keep the employees happy. Daksh shells out about Rs 4,000 bonus per onth to almost 85% of its workforce.
* Use psychometric tests to get people who can work at night and handle the monotony.
* BPO must concentrate on becoming an 'employer of choice'. A comprehensive process framework and access to proper infrastructure in the work place goes a long way in retaining employees, as a congenial work environment is critical.
42. Do you have any Voice Vs Non-Voice statistics?
Voice Vs Non-Voice
Company Revenues
($ Million) Employees Voice: Non-Voice
Wipro Spectramind 41 5,000 80:20
Daksh eServices 35 4,000 70:30
OfficeTiger 25 1,000 0:100
HCL Technologies BPO ? 2,346 90:10
ICICI OneSource ? 2,175 70:30
World Network Services 35 2,500 65:35
exl Service.com 28 2,300 75:25
MsourcE 20 3,162 93:7
Hinduja TMT 24 1,400 66:34
Tracmail 11 1,000 50:50
Progeon 4.4 685 30:70
Source: Business World (4 August 2003)
43. How do the salaries of voice vs non-voice employees compare?
Typically an employee in a voice call center costs about 15% more than in a non-voice center.
44. What is the approximate cost of maintaining a dialer?
The dialer costs $0.5-1.0 million and the maintenance costs approx. $100,000 a year. This translates to about $1.5 per person per hour.
45. How is the revenue pie being sliced?
Labor costs account for about 30-35% of the revenues. Customer acquistion accounts for 10-15%. Employee training costs Rs 40-50,000 per employee. The weakening dollar is not helping the cause.
46. Where can I get few sample agreements?
See guide section of our vendors page.
47. How good is the quality of English in India?
According to McKinsey, apart from Mumbai, Delhi and Bangalore, the quality of graduates applying for jobs in the ITeS industry needs to improve. India produces over 100,000 graduates every year but the quality of English is not very good in small towns.
Our view: Needless to say this report is worrysome. We sincerely hope the fanatics in the political circles stop hindering English education in India. This kind of policy will only encourage clients to move to Philippines, Ireland and Singapore.
48. What is the cost of living ranking in India?
Cost of Living Rankings
Rank
City 2004 2003 2002
Mumbai 1 1 1
Delhi 2 2 2
Ahmedabad 3 7 6
Kolkata 4 5 7
Pune 5 4 4
Chennai 6 3 5
Bangalore 7 6 3
Lucknow 8 - -
Kochi 9 - -
Patna 10 - -
Jaipur 11 - -
Hyderabad 12 8 8
49. What are the rates charged by Indian BPOs for Telemarketing (outbound) to US?
Anywhere from $9-12/hour. The login hours is anywhere between 6.5 to 7.5 hrs excluding lunch & tea breaks. In more than 95% of the projects the billing is by login hours and not man month basis.
Billing is based on a base rate plus incentive for achieving the target which will give you anywhere between $9 to $12 per hr. $12 is probably the best case scenario.
50. How big is the Indian KPO market?
According to industry estimates, by 2010, the size of the KPO industry would be worth $17 billion globally, out of which India would hog almost $12bn. Nasscom and Evalueserve estimate that by 2010, 300,000 jobs would be created in the KPO space and 70% of these jobs are expected to come to India. But the picture is not as rosy as it looks. The KPO industry will have to wade through many challenges to keep up the expectations and predictions for its bright future.
One of the major problems faced by the KPO industry is the dearth of skilled manpower with domain expertise. The client's expectations and quality requirements are very high. Also in the KPO space, client conversion and development takes longer compared to other processes. If India wants to get 70% of KPO jobs by 2010, then serious intervention at the educational level and investment in training are imperative.
51. Are Indian BPOs purchasing liability insurance?
IT and BPO companies were exposed to an intensely litigious international environment. This was one of the major factors that was driving their purchase of such policies. The insurance placements were entirely made with insurers that had international ratings above `BBB' assigned by globally recognised ratings agencies.
More mid-size companies were also taking cover, as they were driven by the outsourcing revenue models of foreign companies. Among the major risks Indian companies face from these entities are glitches in software products, including deviations from product specifications and issues relating to breach of contractual deadlines. The cover against such risks all constituted liability cover. 52. What is the cost of education in India?
Cost of Education in Cities
School Fees Private Tution Fees Conveyance Total
Delhi 1,599 1,197 644 3,440
Kolkata 1,017 1,141 345 2,502
Mumbai 1,688 1,682 914 4,284
Chennai 772 371 322 1,465
Lucknow 1,839 622 510 2,972
Patna 1,288 953 531 2,772
Ahmedabad 1,015 489 457 1,961
Hyderabad 355 129 250 734
Jaipur 846 600 293 1,758
Bangalore 819 585 357 1.726
Pune 586 771 229 1,585
Kochi 1,068 402 356 1,827
June 2004 (Rupees per month)
53. Which other country(ies) is a serious competitor of India?
Philippines boasts of strong skills in finance and accounting. The other countries India is competing with are Mexico, Canada and Ireland. In terms of cost, Philippines and Malayasia are competitive with India. However, India's main competitors in the BPO space produce a fraction of the graduates that India does.
Cost of Education in Cities
Country USP Limitation
Philippines Understands the US market; voice work; low attrition More expensive than India; small talent pool
Canada, Ireland, Australia Understands the US market; high-end skils High costs
South Africa Time zone similar to Europe; 25% cost saving, good for niche work Skill shortage
China Low costs Quality of English not good
Russia Technology skills Poor infrastructure; corruption; language
Czech Republic, Hungary European language skills Small talent pool; high costs
Mexico Immediate neighbor of US, 30% cheaper than US; Spanish skills Good only for low-end jobs
54. How does Business Intelligence (BI) help in BPO?
Business Intelligence (BI) is a proven approach for achieving sustainable business process improvement.
You can supply significant business value to your clients by deploying BI in your BPO. Business intelligence is the proven technique for achieving a significant business impact -- from enhancing the top line to discovering new ways to reduce the bottom line; from trend analysis to customer retention; from revenue to expenses; from analytics on recruitment to retention; and constant benefit analysis.
Key benefits of integrating Business Intelligence in BPO:
* Discover profits: The profits from savings in operational costs after implementing BI can generally exceed BI investment itself in a relatively short period.
* Beyond Reporting: BI lets you watch in near real-time the performance across multiple campaigns across multiple regions through a single dashboard. Receive automated alerts as soon as a variance is generated in a process. Get accurate updates and information by integrating mobility kit with BI.
* Track where your data is going. Get alerted in near real-time as soon as security is breached.
* You can prove that you are delivering and possibly exceeding the mutually agreed upon business value by continuously monitoring different SLAs (Service Level Agreements)
* Accurately forecast business conditions to take proactive decisions using powerful predictive analysis tools
* A BI solution can even analyze the recorded voice data and automatically generate reports on performance measures.
* Reduce executive workload. Increase overall organizational output and employee efficiency
* Reduce the risks of the BPO function
* Reduce risks for all parties by enabling continuous monitoring of the outsourced business process
* Automatically deliver the right information to the right people at the right time
* Know precisely. The powerful and intuitive analytics and reporting tools of BI can automatically alert you of the discrepancies even in the ability and efficiency of a particular staff member.
* Powerful trend analysis of customer behavior and stock movement. This lets you deliver right products to the right regions and avoid dead stocks.
* Optimize the Why, Where, When and How of every process.
* Achieve sustainable business process improvement.
* Establish confidence in your clients that process effectiveness and control will not be lost.
* Client company can reduce the costs of related retained business processes.
* Give more productivity to the outsourcing company’s retained staff.
* You do not have to customize every proposal as a BPO supplier. At a minimum, you could simply integrate the existing business intelligence packages into a basic data-warehousing environment.
A BPO with business intelligence deployment is looked upon much favorably by key executives of outsourcing companies, as they now prefer outsourcing entire business functions than just the IT part. This is why business intelligence is a critical component for all BPO proposals.
Enterprise Performance Management becomes much simpler to implement with a business intelligence solution. As soon as the BPO function discovers a variance in expected business performance, a well-developed business intelligence environment would be able to send an e-mail to the appropriate leaders within all companies, so they can focus on improving overall service-level performance.
Courtesy: Business Objects 55. What is the reason for offshore business process outsourcing?
* Controlling costs: 35%
* Improving operational efficiency and productivity: 20%
* Accessing top-level skills: 10%
* Freeing up internal resources: 7.5%
Source: FSOutsourcing (June 2007)
56. Where are your BPO Providers today?
India ranked first in our survey on where financial services companies' BPO providers are located with 21% of the votes. Russia came in next with 10% followed by the Philippines (9%) and Eastern Europe (8%). The United States, Mexico, and Israel tied at 7%. (source FSOoutsourcing.com)
57. new Are there any metrics related to communication skills in India?
Following is the performance of graduates in the MeritTrac Spoken English Test
National Index Of Communication Skills
Region Voice Clarity Accent Neutrality Fluency Grammar National Index
East 84.80% 33.60% 29.20% 23.00% 85
North 52.79% 35.28% 32.36% 33.69% 60
South 94.27% 13.29% 22.71% 13.78% 38
West 71.73% 23.86% 23.71% 21.43% 44
All India 90.91% 15.71% 23.43% 15.41% 41
Tier I Cities 86.71% 21.66% 27.74% 20.40% 48
Tier II Cities 94.86% 10.12% 19.39% 10.73% 25
Overall throughput for graudates: 10 per cent Source: MeritTrac
58. new Do you have any statistics that compare Attrition Rates across industries?
Sr. No Sector 0-3 years 4-7 years 8-12 years 13+ years % change from 2006 to 2007 Expected increase in 2008
1 Pharma & Chemicals 25.00% 10.00% 5.00% 2.00% -5.00% 6.00%
2 Manufacturing 8.58% 2.46% 2.46% 3.00% 5.00% -3.50%
3 Financial Services 20.00% 20.00% 20.00% 20.00%
4 Hospitality 35.00% 25.00% 20.00% 7.50% 13.00% 20.00%
5 Ad & Media 40.00% 35.00% 20.00% 15.00% 17.00% 22.00%
6 BPO 40.00% 30.00% 20.00% 10.00%
7 Automobile 7.00% 3.00% 2.00% 2.00% No visible 14.00%
8 Auto Component 12.00% 15.00% 20.00% 12.00% 5.00% 6.00%
9 Banking 10.00% 5.00% 2.50% 2.50% 2.00% 2.00%
10 Infrastructure 16.00% 11.00% 7.00% 11.00% 9.00% 20.00%
11 IT & Telecom 32.00% 25.00% 10.00% 5.00% 5.00% 9.00%
Source: Emmay HR / BusinessWorld, 4 Feb 2008
