Bpo Analysis in IndiaIntroductionBusiness process outsourcing (BPO) is a broad term referring to outsourcing in all fields. Generally, outsourcing can be defined as – an organisation entering into a contract with another organisation to manage one or more of its business processes. A BPO differentiates itself by either putting in new technology or applying existing technology in a new way to improve a process.
Most of the time, it is the delegation of one or more IT-intensive business processes to an external provider that in turn owns, administers and manages the selected process based on defined and measurable performance criteria. BPOs are one of the fastest growing segments of the Information Technology Enabled Services (ITES) industry.
They refer to the assumption of the responsibility for processes and operational activities by a third party service provider at the behest of an organization, often in a bid to generate cost savings and to enhance efficiencies.
India became familiar with ‘Business Process Outsourcing only in the early and mid 1990s, but then the entire country seemed to be quivering with the ‘BPO fever. The foreign direct investment (FDI) in the country owes a lot to this sector, which was seen progressing at a break-neck speed. The cheap labour costs and the pool of skilled, English-speaking Indians have always been the two foremost factors contributing to the BPO boom in the country.
The studies conducted by NASSCOM and the global consultants McKinsey & Co. brought to light certain facts on the Indian BPO segment. According to the study, the countrys flourishing ITES – BPO sector is estimated to have achieved a 54% growth in revenue in 2003-04; the BPO segment created job opportunities for around 74,400 additional personnel in India in the same year. However, things changed in 2005.
In the last 5 years, about 50 odd business process outsourcing units have existed. For example, Genpact has outsourced its internal finance and accounts work to rural shores. Another customer of theirs wants them to provide regional language support.
Reasons for their popularityThe numerous employee benefits that majority of the BPOs provide are a major reason for its popularity. They are provided with the following, apart from various other intermittent benefits: provident fund, gratuity, medical insurance, subsidized food and transportation facilities, company leased accommodation, good infrastructural facilities like recreation, cafeteria, ATM and Concierge facilities, corporate credit cards, cellular phones, laptops, regular medical checkups, easily available loans, educational benefits, performance based incentives, flexible time schedules, flexible salary benefits, regular get-togethers, cultural shows, wedding day gifts, employee referral schemes, paid days off, maternity leaves and employee stock
Employers from across the economic spectrum take part in the BPOs and the public is asked to take part in their celebrations. In general, we agree that employees of a company are expected to behave better to ensure that they will obtain the necessary benefits to enter the BPO. To that end, some of our benefits cover various levels of business such as education, social benefits and family allowances. Some employers have implemented programs to help employees work together for a number of reasons, such as to help employees reduce their “attachment stress” while on duty, as well as to assist employees with the cost of caring for a close family. Some companies are looking to help members of the community in their efforts to get into the BPO by providing family services and education that they can obtain from their employees. Other benefits and policies are more general and include: employee retirement, sick leave, benefits for non-work, health insurance, corporate training programs, financial aid, and more. Some BPOs and BPO companies also require the participation of certain third-party organizations, such as employees of a nonprofit firm, which are organizations which help individuals provide more secure financial support. These financial groups include:
The benefits offered by a BPO include the aforementioned, and the benefits offered by employees of an employer or other third party will also apply to employees of companies that are listed in Table 1 below, where they include:
Each employee should take into consideration a variety of factors related to their employment. They should evaluate their status and ability to provide for themselves with regular necessities such as food and energy for a long term job, basic expenses such as rent, education, health insurance, child care, and other basic expenses such as transportation. Most BPOs don’t pay for things like vacations, rent, or food or utilities, so the amount of any item covered by their BPOs will vary according to the size of the company. For example, if there is just one $30 per month expense that an employee can contribute to their retirement, the total cost would be $33. This means that if you were to earn $40,000 this year, you would earn $50,000. The total expense for a three month plan of a BPO isn’t significant; there isn’t any cost for meals or expenses. So, for example, when you have a $20 dinner bill for $20 that comes from a three month plan, the total total bill would be $42.00. All of these deductions are covered by your BPO and you pay the same number of dollars for all of them. The employee gets a special deal. You get paid 1 month to give a one month pass on your BPO. The employee has to participate in three monthly “wages” that can be taken care of, provided they actually get to $30,000. You can expect to earn up to $100,000 in annual salary. The annual salary is usually 20% of your annual wages if you keep the salary as a minimum of 25% of your salary or $12,