| Business process outsourcing (BPO) is a broad | | | | hike, Cost to company , Overall Satisfaction |
| term referring to outsourcing in all fields. | | | | Score, Composite Satisfaction, Company |
| A BPO differentiates itself by either putting | | | | Culture, Job Content / Growth, Training , |
| in new technology or applying existing | | | | Salary and Compensation , Appraisal System, |
| technology in a new way to improve a | | | | People, Preferred Company: (Percentage of |
| process.Business Process Outsourcing (BPO) is | | | | respondents of a company who named their own |
| the delegation of one or more IT-intensive | | | | company as the preferred one), Dream Company: |
| business processes to an external provider | | | | (Percentage of respondents in the total |
| that in turn owns, administers and manages | | | | sample who preferred a particular |
| the selected process based on defined and | | | | company).Employee Benefits Provided By |
| measurable performance criteria. Business | | | | Majoriy Of the BPO Companies |
| Process Outsourcing (BPO) is one of the | | | | |
| fastest growing segments of the Information | | | | Provident Fund: As per the statutory |
| Technology Enabled Services (ITES) | | | | guidelines, the employee is required to |
| industry.Few of the motivation factors as to | | | | contribute a percentage of his basic salary |
| why BPO is gaining ground are:Factor Cost | | | | and DA to a common fund. The employer for |
| Advantage | | | | this fund contributes as well. The employee |
| | | | can use the amount deposited in this fund for |
| Economy of Scale | | | | various personal purposes such as purchase of |
| | | | a new house, marriage etc.Gratuity: Gratuity |
| Business Risk Mitigation | | | | is one of the retrial benefits given to the |
| | | | employee in which the employer every year |
| Superior Competency | | | | contributes a particular amount. The fund |
| | | | created can be used by the employee for the |
| Utilization ImprovementGenerally outsourcing | | | | purpose of long-term investment in various |
| can be defined as - An organization entering | | | | things such as a house etc.Group Mediclaim |
| into a contract with another organization to | | | | Insurance Scheme: This insurance scheme is to |
| operate and manage one or more of its | | | | provide adequate insurance coverage of |
| business processes.Different Types of | | | | employees for expenses related to |
| Services Being Offered By BPO'sCustomer | | | | hospitalization due to illness, disease or |
| Support ServicesOur customer service | | | | injury or pregnancy in case of female |
| offerings create a virtual customer service | | | | employees or spouse of male employees. All |
| center to manage customer concerns and | | | | employees and their dependent family members |
| queries through multiple channels including | | | | are eligible. Dependent family members |
| voice, e-mail and chat on a 24/7 and 365 days | | | | include spouse, non-earning parents and |
| basis.Service Example: Customers calling to | | | | children above three monthsPersonal Accident |
| check on their order status, customers | | | | Insurance Scheme: This scheme is to provide |
| calling to check for information on products | | | | adequate insurance coverage for |
| and services, customers calling to verify | | | | Hospitalization expenses arising out of |
| their account status, customers calling to | | | | injuries sustained in an accident.Subsidized |
| check their reservation status etc.Technical | | | | Food and Transportation: The organizations |
| Support ServicesOur technical support | | | | provides transportation facility to all the |
| offerings include round-the-clock technical | | | | employees from home till office at subsidized |
| support and problem resolution for OEM | | | | rates. The lunch provided is also |
| customers and computer hardware, software, | | | | subsidized.Company Leased Accommodation: Some |
| peripherals and Internet infrastructure | | | | of the companies provides shared |
| manufacturing companies. These include | | | | accommodation for all the out station |
| installation and product support, up & | | | | employees, in fact some of the BPO companies |
| running support, troubleshooting and Usage | | | | also undertakes to pay electricity/water |
| support.Service Example: Customers calling to | | | | bills as well as the Society charges for the |
| resolve a problem with their home PC, | | | | shared accommodation. The purpose is to |
| customers calling to understand how to dial | | | | provide to the employees to lead a more |
| up to their ISP, customers calling with a | | | | comfortable work life balance.Recreation, |
| problem with their software or | | | | Cafeteria, ATM and Concierge facilities: The |
| hardware.Telemarketing ServicesOur telesales | | | | recreation facilities include pool tables, |
| and telemarketing outsourcing services target | | | | chess tables and coffee bars. Companies also |
| interaction with potential customers for | | | | have well equipped gyms, personal trainers |
| 'prospecting' like either for generating | | | | and showers at facilities.Corporate Credit |
| interest in products and services, or to | | | | Card: The main purpose of the corporate |
| up-sell / promte and cross sell to an | | | | credit card is enable the timely and |
| existing customer base or to complete the | | | | efficient payment of official expenses which |
| sales process online.Service Example: | | | | the employees undertake for purposes such as |
| Outbound calling to sell wireless services | | | | travel related expenses like Hotel bills, Air |
| for a telecom provider, outbound calling to | | | | tickets etcCellular Phone / Laptop: Cellular |
| retail households to sell leisure holidays, | | | | phone and / or Laptop is provided to the |
| outbound calling to existing customers to | | | | employees on the basis of business need. The |
| sell a new rate card for a mobile service | | | | employee is responsible for the maintenance |
| provider or outbound calling to sell credit | | | | and safeguarding of the asset.Personal Health |
| or debit cards etc.Employee IT Help-desk | | | | Care (Regular medical check-ups): Some of the |
| ServicesOur employee IT help-desk services | | | | BPO'S provides the facility for extensive |
| provide technical problem resolution and | | | | health check-up. For employees with above 40 |
| support for corporate employees.Service | | | | years of age, the medical check-up can be |
| Example: of this service include level 1 and | | | | done once a year.Loans: Many BPO companies |
| 2 multi-channel support across a wide range | | | | provides loan facility on three different |
| of shrink wrapped and LOB applications, | | | | occasions: Employees are provided with |
| system problem resolutions related to | | | | financial assistance in case of a medical |
| desktop, notebooks, OS, connectivity etc., | | | | emergency. Employees are also provided with |
| office productivity tools support including | | | | financial assistance at the time of their |
| browsers and mail, new service requests, IT | | | | wedding. And, The new recruits are provided |
| operational issues, product usage queries, | | | | with interest free loans to assist them in |
| routing specific requests to designated | | | | their initial settlement at the work |
| contacts and remote diagnostics etc.Insurance | | | | location.Educational Benefits: Many BPO |
| ProcessingOur insurance processing services | | | | companies have this policy to develop the |
| provide specialized solutions to the | | | | personality and knowledge level of their |
| insurance sector and support critical | | | | employees and hence reimburses the expenses |
| business processes applicable to the industry | | | | incurred towards tuition fees, examination |
| right from new business acquisition to policy | | | | fees, and purchase of books subject, for |
| maintenance to claims processing.Service | | | | pursuing MBA, and/or other management |
| Example:New Business / Promotion:Inbound | | | | qualification at India's top most Business |
| outbound sales, Initial Setup, Case | | | | Schools.Performance based incentives: In many |
| Management, Underwriting, Risk assessment, | | | | BPO companies they have plans for , |
| Policy issuance etc.Policy Maintenance / | | | | performance based incentive scheme. The |
| Management:Record Changes like Name, | | | | parameters for calculation are process |
| Beneficiary, Nominee, Address; Collateral | | | | performance i.e. speed, accuracy and |
| verification, Surrender Audits Accounts | | | | productivity of each process. The Pay for |
| Receivable, Accounting, Claim Overpayment, | | | | Performance can be as much as 22% of the |
| Customer care service via voice/email | | | | salary.Flexi-time: The main objective of the |
| etc.Data Entry Services / Data Processing | | | | flextime policy is to provide opportunity to |
| Services | | | | employees to work with flexible work |
| | | | schedules and set out conditions for availing |
| Service Example:Data entry from Paper/Books | | | | this provision. Flexible work schedules are |
| with highest accuracy and fast turn around | | | | initiated by employees and approved by |
| time (TAT)Data entry from Image file in any | | | | management to meet business commitments while |
| formatBusiness Transaction Data entry like | | | | supporting employee personal life needs .The |
| sales / purchase / payroll.Data entry of | | | | factors on which Flexi time is allowed to an |
| E-Books / Electronic BooksData Entry : Yellow | | | | employee include: Child or Parent care, |
| Pages / White Pages KeyingData Entry and | | | | Health situation, Maternity, Formal education |
| compilation from Web siteData Capture / | | | | programFlexible Salary Benefits: Its main |
| CollectionBusiness Card Data Entry into any | | | | objective is to provide flexibility to the |
| FormatData Entry from hardcopy/Printed | | | | employees to plan a tax-effective |
| Material into text or required formatData | | | | compensation structure by balancing the |
| Entry into Software Program and | | | | monthly net income, yearly benefits and |
| applicationReceipt and Bill Data EntryCatalog | | | | income tax payable. It is applicable of all |
| Data Entry.Data Entry for Mailing List | | | | the employees of the organization. The Salary |
| Mailing Label.Manuscripting typing in to | | | | consists of Basic, DA and Conveyance |
| wordTaped Transcription in to word.Copy, | | | | Allowance. The Flexible Benefit Plan consists |
| Paste, Editing, Sorting, Indexing Data into | | | | of: House Rent Allowance, Leave Travel |
| required format etc.Data Conversion Services | | | | Assistance, Medical Reimbursement, Special |
| | | | AllowanceRegular Get together and other |
| Service Example:Conversion of data across | | | | cultural programs: The companies organizes |
| various databases on different platformsData | | | | cultural program as and when possible but |
| Conversion via Input / Output for various | | | | most of the times, once in a quarter, in |
| media.Data Conversion for databases, word | | | | which all the employees are given an |
| processors, spreadsheets, and many other | | | | opportunity to display their talents in |
| standard and custom-made software packages as | | | | dramatics, singing, acting, dancing etc. |
| per requirement.Conversion from Page maker to | | | | Apart from that the organizations also |
| PDF format.Conversion from Ms-Word to HTML | | | | conduct various sports programs such as |
| formatConversion from Text to Word | | | | Cricket, football, etc and regularly play |
| Perfect.Conversion from Text to Word to HTML | | | | matches with the teams of other organizations |
| and AcrobatConvert Raw Data into required MS | | | | and colleges.Wedding Day Gift: Employee is |
| Office formats.Text to PDF and PDF to Word / | | | | given a gift voucher of Rs. 2000/- to Rs. |
| Text / DocData Compilation in PDF from | | | | 7000/- based on their level in the |
| Several Sources.E-Book Conversion | | | | organization.Employee Referral Scheme: In |
| etc.Scanning, OCR with Editing & Indexing | | | | several companies employee referral scheme is |
| Services | | | | implemented to encourage employees to refer |
| | | | friends and relatives for employment in the |
| Service Example:High speed Image-Scanning | | | | organization.Paid Days Off |
| and Data capture services | | | | |
| | | | Maternity Leave |
| High speed large volume scanning | | | | |
| | | | Employee Stock Option PlanInspite of all |
| OCR Data From Scanned page / image | | | | these benefits, the attrition rate in BPO |
| | | | industry is very high, why?. What is the |
| Scan & OCR paper Book in to CD. | | | | reason for an employee to leave? These and |
| | | | many more are the questions that need |
| ADOBE PDF Conversion Services. | | | | immediate attention from the industrial |
| | | | gurus.Why people prefer to join BPO's?In |
| Conversion from paper or e-file to various | | | | general a person with any graduation can join |
| formatsBook Keeping and Accounting Services | | | | any of the BPO. Some BPO's like to take |
| | | | people with MBA but then again the |
| Service Example:General Ledger | | | | specialization are of an individual hardly |
| | | | makes any difference. Again, this is the |
| Accounts Receivables and Accounts Payable | | | | industry, where there is no reference checks |
| | | | and very often people don't even specify |
| Financial Statements | | | | there exact age. Lets me share with you some |
| | | | of the reasons as why people prefer to join a |
| Bank Reconciliation | | | | BPO:Did not get a better job. |
| | | | |
| Assets / Equipment Ledgers etc.Form | | | | Find nothing better to do. |
| Processing Services: | | | | |
| | | | Education level doesn't matter |
| Service Example:Insurance claim form | | | | |
| | | | Good work environment |
| Medical Form / Medical billing | | | | |
| | | | Good Benefits |
| Online Form Processing | | | | |
| | | | Flexibility of time |
| Payrol Processing etc.Internet / Online / | | | | |
| Web Research | | | | Attractive life style |
| | | | |
| Service Example:Internet Search, Product | | | | Transport facilityWhy people leave the |
| Research, Market Research, Survey, Analysis. | | | | BPO's?When there are so many benefits |
| | | | associated with BPO industry....when there |
| Web and Mailing list research etc.Challenges | | | | are so many privileges for the BPO employees |
| for a HR Professional in BPOBrand equity: | | | | than what makes them to change the company |
| People still consider BPO to be "low brow", | | | | industry?? Is it only MONEY that matters or |
| thus making it difficult to attract the best | | | | anything else as well?? Here are some of the |
| talent.Standard pre-job training: Again, due | | | | reasons for a BPO professional to change his |
| to the wide variety of the jobs, lack of | | | | her job.No growth opportunity/lack of |
| general clarity on skill sets, etc, there is | | | | promotion |
| no standard curriculum, which could be | | | | |
| designed and followed.Benchmarks: There are | | | | For higher Salary |
| hardly any benchmarks for compensation and | | | | |
| benefits, performance or HR policies. | | | | For Higher education |
| Everyone is charting their own | | | | |
| course.Customer-companies tend to demand | | | | Misguidance by the company |
| better results from outsourcing partners than | | | | |
| what they could actually expect from their | | | | Policies and procedures are not conducive |
| own departments. "When the job is being done | | | | |
| 10,000 miles away, demands on parameters such | | | | No personal life |
| as quality, turn around timeliness, | | | | |
| information security, business continuity and | | | | Physical strains |
| disaster recovery, etc, are far higher than | | | | |
| at home. So, how to be more efficient than | | | | Uneasy relationship with peers or managers |
| the original?Lack of focused training and | | | | |
| certifications | | | | What they have to say?With so much of |
| | | | uncertainty in the market.....people are |
| Given this background, the recruiting and | | | | trying their best to stop or to at least have |
| compensation challenges of HR departments are | | | | a control on the attrition rate...let me |
| only understandable.Key To successThe key to | | | | share with you the opinion of the real gurus |
| success in ramping up talent in a BPO | | | | of the industry."Training is a very important |
| environment is a rapid training module. The | | | | aspect of the ITES-BPO industry"- Mr. Arjun |
| training component has to be seen as an | | | | Vaznaik, COO, Tracmail" Career growth in the |
| important sub-process, requiring constant | | | | industry is robust and there is a long-term |
| re-engineering. | | | | opportunity. The great growth momentum that |
| | | | the industry is witnessing is creating both |
| Business Process Outsourcing: The Top | | | | vertical and lateral career opportunities. |
| Rankers | | | | There also exists enough growth opportunities |
| | | | in the middle-management and supervisory |
| WNS has emerged as the top BPO in India, | | | | level within the industry". - Aadesh Goyal, |
| pushing Wipro Spectramind to the second | | | | Executive Vice President & GM, Hughes BPO |
| position, according to a survey done by | | | | Services"It will not be possible for the |
| NASSCOM. The basis of ranking is the revenues | | | | industry to arrive at a blanket agreement on |
| generated by the BPO companies in 2003-04, as | | | | poaching but bilateral agreements between |
| per US GAAP. A list of top fifteen BPO | | | | companies are being signed. Basic norms are |
| companies in India is given below.WNS Group | | | | being put in place and code of ethics is |
| | | | being stressed upon by industry players |
| Wipro Spectramind | | | | within the sector with respect to HR |
| | | | practices. We are encouraging companies to |
| Daksh e-Services | | | | adopt responsible behavior in order to ensure |
| | | | that the industry does not become a victim of |
| Convergys | | | | its own actions. Industry needs to go |
| | | | aggressive but not cannibalistic." - Mr. |
| HCL Technologies | | | | Suren Singh Rasaily, Senior Vice President, |
| | | | NIIT Ltd. and Head Plantworkz,Conclusion:This |
| Zenta | | | | is a descriptive report on BPO industry. I |
| | | | have tried to cover almost everything related |
| ICICI Onesource | | | | to the industry. I like to have your opinion |
| | | | about the same. Even at the end of this |
| MphasiS | | | | comprehensive report, my concerns are related |
| | | | to development of employees in BPO, |
| EXL | | | | controlling attrition rate in BPO, can we |
| | | | have some standard industrial compensation |
| Tracmail | | | | package/ break-ups?About Author: |
| | | | |
| GTL Ltd. | | | | Sanjeev Himachali |
| | | | |
| vCustomer | | | | E-mail: ; Blog: can read my ITES-BPO |
| | | | related articles at or (Himachali) Sharma, |
| HTMT | | | | is a 29 yrs of age from India, having six |
| | | | years of experience in "Human Resource |
| 24/7 Customer | | | | Development". By qualification, he is |
| | | | Bachelor of Science and Masters in Business |
| Sutherland TechnologiesThe parameters for | | | | Administration. He is also a Motivational and |
| the survey was: Employee Size (Operation | | | | Inspirational writer and speaker. |
| level executives), Percentage of last salary | | | | |