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