BPO Industry

1
BPO Industry Global Opportunity
September 2, 2005
2
The trickle that started in the mid-1990s has
already become a torrent

• World class captive centers have come up across
  the country
• Number of third party providers are offering
  services
• Small providers have mushroomed in smaller towns

• Chandigarh

• GECISl
• American Express
• Bechtel

• Delhi

Jaipur

• Ahmedabad

• Calcutta

• WNS
• Efunds

• Bombay

• Concentration of Shared Service Centers
• Concentration of Service providers

• Pune

• WNS

• Hyderabad

• IBM
• Microsoft
• HSBC

Bangalore

• Gartner Group
• Dell

• Ford
• SCOPE

• Madras

• Trivandrum

• Hays
• Texas Instruments
• Motorola

3
Leading global corporations have been offshoring
a wide range of processes to India since 1997 ...
Engineering Design
Analytics

• Ford
• Volvo
• General Motors
• Delphi
• Unilever
• Aston Martin
• ABB
• Daimler Chrysler
• GE Capital
• Citibank
• Bechtel

Technology Help Desk Research

• Novartis
• Wal-Mart
• BP
• British Airways

Finance Accounts

• Unilever
• GE Capital
• HSBC
• Microsoft
• Ford
• Delphi
• McKinsey
• Du Pont

Call Centers

• GE Capital
• British Airways
• World Bank
• Ford
• HSBC
• ABN AMRO
• ABB
• Ford
• American Express
• Hewlett Packard

Data Entry

• Dell
• GE Capital
• Citibank
• Wal Mart
• Delta Airlines

• GE Capital
• Swissair
• Citibank
• HSBC

4
Wide variety of processes, regardless of
complexity and level of customer contact, are
being handled from India
Sales
Order Fulfillment
Supply Chain
Customer Service
Information Technology
Manufac-turing
Accounting
Human Resorces
Collections
Telemarketing
Order Booking
Customer Care
Help Desk
Customer Mail
Order Tracking
Placing Orders
Level of Customer Contact
Accounts Payable
Payroll Processing
Reporting
Reconciliation
Analytics
Payment Processing
Data Entry
Complexity
5
Outsourcing is a reality there is no going back

• Nearly 75 of American and European companies now
  use outsourcing or shared services to support
  their processes
• Indias cost effectiveness is established
• Robust security processes and high levels of
  quality delivered by Indian BPOs will only
  provide greater impetus to growth
• Increasing number of companies are now willing to
  outsource higher end complex processes leading to
  increase in opportunity

6
The industry has grown fast and the growth will
continue

• The industry has grown at a rapid pace over the
  last 10 years and has achieved a CAGR of over 50
• Total revenues are at USD 5.5 billion for year
  2004-05
• The ITES segment is likely to contribute an
  estimated 1 of national GDP in FY 2004-05
• The BPO industry employs approximately 400,000
  people currently
• This number is expected to cross 1,000,000 in the
  next three years

7
The growth to my mind is limited by what India
Inc. can deliver

• Outsourcing organisations are eager to outsource
  more and increase the savings
• Most Indian BPOs are under constant pressure to
  hire more people

8
So what should be the agenda for India Inc.

• QUALITY Constantly meet and exceed customer
  expectations
• HUMAN RESOURCES Ensure availability of larger
  pool of trained manpower through changes in
  education system and curriculum
• INFRASTRUCTURE Create and provide better
  infrastructure to support the industry
• PUSH TO SMALLER TOWNS Expanding the base by
  taking this movement to the smaller towns

9
Thank You

• Contact
• Salil Agrawal
• Head IT, BPO and Telecom Practice
• salil_agrawal_at_ecs-limited.com
• Phone [phone]