Business process outsourcing is making its presence felt in the global economic forum. It is fast becoming a necessary tool for all businesses, either big or small. The rise of a BPO is hugely influenced by the technological progress in the field of communication and digital storage facilities. The advent of IT also played a pivotal role in its success.
In today's world, the BPO industry has grown multifold facilitating cost-effectiveness while improving on services offered. Business process outsourcing has been serving numerous industries from retail to telecommunications, from hospitality to insurance and many more. The practice of off-shoring is spreading like wildfire as companies look for expansion and cost-saving at the same time. These firms are attempting to attain the fine balance between consolidation and standardization by outsourcing their non-core areas to third-party vendors.
One major factor affecting the cost-effectiveness of a BPO is the lower wage rate prevailing in the developing countries like India, Philippines and other South Asian and Latin American countries. A recently concluded research by the Nelson-Hall suggests that more than 4/5th of the surveyed firms claimed increased profitability after outsourcing. The same percentage of firms also accepted the fall in cost and improvement in the business processes since they opted for a BPO.
Industry news suggests that the BPO industry is expected to grow at a phenomenal rate with the total revenue touching $14 billion by 2010. Fears of recession curtailing this growth rate have been decimated by the heightened rate during that period. In case of India, the business process outsourcing industry is expecting to witness consistent growth in the coming years in spite of the slowdown. Both the revenue and the employment are estimated to grow in the recent future.
The success of the BPO should be attributed to the surge in technological growth during this period. The innovation of optical fibers and the easy availability of the internet have paved the way for this outsourcing revolution. We can only infer from the prevalent growth rate that this trend will continue as more business houses, irrespective of their market size, will find outsourcing to be the road for success. Hence, we can proudly say that the world has not only shrunk in size but it has also entailed a more efficient way of life.
Saturday, 3 December 2011
Thursday, 11 August 2011
Warning about fraud person about outsourcing using our company name
This article is to warn all small & medium scale entrepreneurs and individuals who have ventured into BPO business about certain fraud person involved and the way they are cheating the public using the name of MK Infotech, Bangalore company.
This fraud person are using our company name, and taking some amount telling its for registration fees and guarantee the income to the individual that they outsource the project.
This is to inform that we don't outsource any project, so if any person come to u and say that we are outsourcing the project and taking amount on behalf of our company then he is fraud who is using our name to make some money.
So our company is not RESPONSIBLE for such activities.
This fraud person are using our company name, and taking some amount telling its for registration fees and guarantee the income to the individual that they outsource the project.
This is to inform that we don't outsource any project, so if any person come to u and say that we are outsourcing the project and taking amount on behalf of our company then he is fraud who is using our name to make some money.
So our company is not RESPONSIBLE for such activities.
Friday, 15 July 2011
Why do most MNCs choose BPO services in India?
In the last couple of years, business process outsourcing has emerged to be one of the gifted sectors in the Indian market. In harmony with the latest surveys, the BPO services have progressively taken the Indian economy on a new height while another statistics depicting that by the year 2020, more than 80% of the world of business process outsourcing services will be served by the Indian companies.
In India, the trend of business process outsourcing services started off only a decade ago. However, it is India, which is currently considered to be the best place to meet up with the outsourcing service requirements and to attain the best service globally.
Today, the BPO outsourcing industry in India has been ranked as one of the most profitable industrial sectors in the nation. The industry stands responsible for accounting more than one third of the total productivity that has led the country to experience an increased rate of growth every year.
There are several factors that have contributed to the success of the BPO services in India. Some of these factors are given in the following lines:
Advanced infrastructure:
India is considered to be one of the fastest growing nations in the world. All the four metropolitan cities- Delhi, Chennai, Kolkata and Mumbai have turned out to be the major hub for almost each MNC from all over the world. These companies not only outsource the service requirements to different local companies but they also hire employees in order to handle its business operations residing in any other nations and also helping the partners as well. This is another reason behind the growth of the BPO services in India.
Lower wage:
India being one developing nation includes abundance of well-educated and well-trained people who can be easily employed for a relatively lower wage. As the labor cost is considered to be high in the developed nations, most companies belonging to the developed countries are found to be widely outsourcing their needs to the Indian BPO companies. Moreover, most BPO/call center firms are found to include youths, making them the primary workforce to reap the maximum benefits.
Adaptability to attain working style and foreign culture:
The Indian people are found to be pretty self-effacing when it is about getting adapted to the working style and foreign culture. Therefore, the foreign consumers usually find familiarity in India that makes them comfortable to carry out their outsourcing needs at ease. This serves to be an important reason that has made the BPO services in India a great pleasure for the service seekers from all over the world.
Massive youth power:
It may be surprising but true that almost 50 percent of the Indian population is young and almost all of them are educated individuals. As almost all of them are found to be professional graduates holding quality English speaking ability, they are mostly employed by the multinational companies and the other business outsourcing vendors situated in India. This proves to be the reason which is offering an exceptional hike to the BPO services.
In India, the trend of business process outsourcing services started off only a decade ago. However, it is India, which is currently considered to be the best place to meet up with the outsourcing service requirements and to attain the best service globally.
Today, the BPO outsourcing industry in India has been ranked as one of the most profitable industrial sectors in the nation. The industry stands responsible for accounting more than one third of the total productivity that has led the country to experience an increased rate of growth every year.
There are several factors that have contributed to the success of the BPO services in India. Some of these factors are given in the following lines:
Advanced infrastructure:
India is considered to be one of the fastest growing nations in the world. All the four metropolitan cities- Delhi, Chennai, Kolkata and Mumbai have turned out to be the major hub for almost each MNC from all over the world. These companies not only outsource the service requirements to different local companies but they also hire employees in order to handle its business operations residing in any other nations and also helping the partners as well. This is another reason behind the growth of the BPO services in India.
Lower wage:
India being one developing nation includes abundance of well-educated and well-trained people who can be easily employed for a relatively lower wage. As the labor cost is considered to be high in the developed nations, most companies belonging to the developed countries are found to be widely outsourcing their needs to the Indian BPO companies. Moreover, most BPO/call center firms are found to include youths, making them the primary workforce to reap the maximum benefits.
Adaptability to attain working style and foreign culture:
The Indian people are found to be pretty self-effacing when it is about getting adapted to the working style and foreign culture. Therefore, the foreign consumers usually find familiarity in India that makes them comfortable to carry out their outsourcing needs at ease. This serves to be an important reason that has made the BPO services in India a great pleasure for the service seekers from all over the world.
Massive youth power:
It may be surprising but true that almost 50 percent of the Indian population is young and almost all of them are educated individuals. As almost all of them are found to be professional graduates holding quality English speaking ability, they are mostly employed by the multinational companies and the other business outsourcing vendors situated in India. This proves to be the reason which is offering an exceptional hike to the BPO services.
Tuesday, 14 June 2011
India’s domestic BPO market to grow 23 percent in 2011
New Delhi: The country's domestic market for business process outsourcing is projected to grow over 23 percent to touch USD 1.4 billion this year, says Gartner.
In 2010, the domestic Business Process Outsourcing (BPO) market was worth USD 1.1 billion.
"It is relatively good growth rate (of over 23 per cent). The domestic BPO market is expected to see increased volumes, especially in the telecom space," Gartner's Research Director T J Singh told a news agency.
He noted that more areas are likely to adopt BPO models.
According to global research group Gartner, the domestic BPO market would reach USD 1.69 billion next year and increase to USD 2.47 billion by 2014.
The market's growth in 2010 was mainly on the back of rising volumes in existing BPO engagements and a number of new BPO deals from pent-up demand in the previous year.
In 2009, the market was worth around USD 885.6 million.
Apart from many India-based BPO service providers, those from the US and Europe are also focusing on the Indian domestic market.
As per Gartner, some of the local providers include Omnia, Kenkei, Androemeda, Genpact, Magus, MphasiS, Intelenet Global Services, Tech Mahindra, Aegis, Spanco and HTMT.
"... service providers who were focusing solely on the international market realised that there is merit in the Indian BPO market, given the fact that it grew rapidly even during the global economic crisis.
"The large and midsize players have now stepped up their activities," Singh noted.
Meanwhile, the BPO services market in the Asia Pacific region, excluding Japan, is expected to rise to USD 9.86 billion in 2011 from USD 8.6 billion in 2010.
Singh said there is growing demand for multi-country shared services and BPO services within Asia/Pacific.
"Buyers continue to invest in services that deliver scalable, high quality and consistent services across their geographical presence," he added.
In 2010, the domestic Business Process Outsourcing (BPO) market was worth USD 1.1 billion.
"It is relatively good growth rate (of over 23 per cent). The domestic BPO market is expected to see increased volumes, especially in the telecom space," Gartner's Research Director T J Singh told a news agency.
He noted that more areas are likely to adopt BPO models.
According to global research group Gartner, the domestic BPO market would reach USD 1.69 billion next year and increase to USD 2.47 billion by 2014.
The market's growth in 2010 was mainly on the back of rising volumes in existing BPO engagements and a number of new BPO deals from pent-up demand in the previous year.
In 2009, the market was worth around USD 885.6 million.
Apart from many India-based BPO service providers, those from the US and Europe are also focusing on the Indian domestic market.
As per Gartner, some of the local providers include Omnia, Kenkei, Androemeda, Genpact, Magus, MphasiS, Intelenet Global Services, Tech Mahindra, Aegis, Spanco and HTMT.
"... service providers who were focusing solely on the international market realised that there is merit in the Indian BPO market, given the fact that it grew rapidly even during the global economic crisis.
"The large and midsize players have now stepped up their activities," Singh noted.
Meanwhile, the BPO services market in the Asia Pacific region, excluding Japan, is expected to rise to USD 9.86 billion in 2011 from USD 8.6 billion in 2010.
Singh said there is growing demand for multi-country shared services and BPO services within Asia/Pacific.
"Buyers continue to invest in services that deliver scalable, high quality and consistent services across their geographical presence," he added.
Attrition rate in India's BPO sector increases
New Delhi: Erratic working hours and perceived lack of long-term career growth has led to 55 percent increase in attrition rate of Indian BPOs in the last four months, an industry chamber study has said.
During December 2010-April 2011, the attrition rate in the business process outsourcing (BPOs) has increased to 55 percent from about 40 percent in the same period during the previous year, Assocham study said.
“Although the BPO sector has been popular since the beginning as it has opened up plenty of job opportunities, the high attrition rate has plagued the sector now,” said Assocham Secretary General, D S Rawat.
Besides, the industry is facing serious challenges like shortage of skilled and educated workers, the study said.
Services offered by the IT/ITES and BPOs in the domains of pharmaceuticals and financial services have registered an attrition rate of 60 percent; in retail and IT sectors 50 percent; and in automobiles, FMCG and infrastructure sectors 50 percent.
“The growing trend of job-switching in the industry might prove fatal for the survival and growth of India’s BPO sector,” Rawat said.
India’s BPO industry is facing a stiff competition from countries like Mexico, Philippines, Malaysia, China, Canada and Ireland.
“Rapid job switches amongst professionals have certainly raised the wages, but there is hardly any development of expertise amongst the employees which is significant to justify their fat pay cheques globally,” Rawat said.
During December 2010-April 2011, the attrition rate in the business process outsourcing (BPOs) has increased to 55 percent from about 40 percent in the same period during the previous year, Assocham study said.
“Although the BPO sector has been popular since the beginning as it has opened up plenty of job opportunities, the high attrition rate has plagued the sector now,” said Assocham Secretary General, D S Rawat.
Besides, the industry is facing serious challenges like shortage of skilled and educated workers, the study said.
Services offered by the IT/ITES and BPOs in the domains of pharmaceuticals and financial services have registered an attrition rate of 60 percent; in retail and IT sectors 50 percent; and in automobiles, FMCG and infrastructure sectors 50 percent.
“The growing trend of job-switching in the industry might prove fatal for the survival and growth of India’s BPO sector,” Rawat said.
India’s BPO industry is facing a stiff competition from countries like Mexico, Philippines, Malaysia, China, Canada and Ireland.
“Rapid job switches amongst professionals have certainly raised the wages, but there is hardly any development of expertise amongst the employees which is significant to justify their fat pay cheques globally,” Rawat said.
Tuesday, 7 June 2011
New deals rev up BPO sector
Source: BPO Watch India
Americans and Europeans love the concept of outsourcing, but Indians too are realizing the benefits of outsourcing their back-end and IT management. Apart from the natural recovery of the economy, there are other reasons too to this uptake and interest by Indian customers.
The first quarter of 2011 has witnessed 20 outsourcing contracts by Indian clients, against 12 in the same quarter last year. The last year's first quarter had only one BPO deal, which was signed between Genpact and Max New York Life Insurance. But this year, the number has reached to six, basically supported by the banking vertical, says a report by Everest Group in a report published in the Financial Express.
Amneet Singh, vice-president - global sourcing, Everest Group said that earlier the domestic outsourcing market was only skewed to IT. The year 2010 had only 18% BPO domestic deals out of the total outsourcing deals. This year they expect it to be 25%.
Nasscom too feels that IT services growth will be 16.8 % in FY 2011 driven by localized strategies of service providers. On similar lines, the domestic BPO segment will grow by 16.9% motivated by demand from new verticals and technology platforms.
Genpact chief operating officer NV (Tiger) Tyagarajan admits that the domestic clients are now looking at transformational deals. They are keen to adopt new technology, shared services and business analytics and want to get global expertise. This is a market which has a lot of scope for innovation and all the Indian clients are growing at a rate of 30-40% a year. The opportunity to be tapped is huge.
With growth in domestic IT market expected to outpace India's GDP growth, the industry had a strong focus in this segment. The domestic market grew by 16% to aggregate revenues of Rs 787 billion. Increased technology adoption across government, corporates and SMBs for providing citizen services, enhanced internal controls and customer service led to an increase in outsourcing within the domestic market also.
Dani from Everest Group mentions that while globally the split between ITO and BPO deals is 2/3rd and 1/3rd -- in India, it is 80-85% ITO deals and the rest is BPO. However, on the positive side, the contribution of Indian buyers to outsourcing deals is now 5%, which was negligible two years back. And industry analysts expect this to reach 10% within the next two to three years, said the Financial Express report.
Americans and Europeans love the concept of outsourcing, but Indians too are realizing the benefits of outsourcing their back-end and IT management. Apart from the natural recovery of the economy, there are other reasons too to this uptake and interest by Indian customers.
The first quarter of 2011 has witnessed 20 outsourcing contracts by Indian clients, against 12 in the same quarter last year. The last year's first quarter had only one BPO deal, which was signed between Genpact and Max New York Life Insurance. But this year, the number has reached to six, basically supported by the banking vertical, says a report by Everest Group in a report published in the Financial Express.
Amneet Singh, vice-president - global sourcing, Everest Group said that earlier the domestic outsourcing market was only skewed to IT. The year 2010 had only 18% BPO domestic deals out of the total outsourcing deals. This year they expect it to be 25%.
Nasscom too feels that IT services growth will be 16.8 % in FY 2011 driven by localized strategies of service providers. On similar lines, the domestic BPO segment will grow by 16.9% motivated by demand from new verticals and technology platforms.
Genpact chief operating officer NV (Tiger) Tyagarajan admits that the domestic clients are now looking at transformational deals. They are keen to adopt new technology, shared services and business analytics and want to get global expertise. This is a market which has a lot of scope for innovation and all the Indian clients are growing at a rate of 30-40% a year. The opportunity to be tapped is huge.
With growth in domestic IT market expected to outpace India's GDP growth, the industry had a strong focus in this segment. The domestic market grew by 16% to aggregate revenues of Rs 787 billion. Increased technology adoption across government, corporates and SMBs for providing citizen services, enhanced internal controls and customer service led to an increase in outsourcing within the domestic market also.
Dani from Everest Group mentions that while globally the split between ITO and BPO deals is 2/3rd and 1/3rd -- in India, it is 80-85% ITO deals and the rest is BPO. However, on the positive side, the contribution of Indian buyers to outsourcing deals is now 5%, which was negligible two years back. And industry analysts expect this to reach 10% within the next two to three years, said the Financial Express report.
Tuesday, 24 May 2011
Why India
India is undoubtedly the most favored IT/BPO destination of the world. This raises the question why most of the big MNCs are interested in outsourcing their operations to BPOs in India. The answer is very simple- India is home to large and skilled human resources. India has inherent strengths, which have made it a major success as an outsourcing destination. India produces the largest number of graduates in the world. The name of India has become synonymous with that of BPOs and IT industry hence the name BPO India.
Besides being technically sound, the work force is proficient in English and work at lower wages in comparison to other developed countries of the world. India also has a distinct advantage of being in a different time zone that gives it flexibility in working hours. All these factors make the Indian BPOs more efficient and cost effective. In order to meet the growing international demand for lucrative, customer-interaction centers, many organizations worldwide are looking to BPO India.
Besides being technically sound, the work force is proficient in English and work at lower wages in comparison to other developed countries of the world. India also has a distinct advantage of being in a different time zone that gives it flexibility in working hours. All these factors make the Indian BPOs more efficient and cost effective. In order to meet the growing international demand for lucrative, customer-interaction centers, many organizations worldwide are looking to BPO India.
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