Description
The PPT highlighting BPO industry.
BPO INDUSTRY
What is BPO?
• Business process outsourcing (BPO) is the contracting
of a specific business task, such as human resources
and customer service, to a third-party service provider. • This allows companies to focus on their core business processes. • BPO is implemented as a cost-saving measure for tasks
that a company requires.
BPO Business Models and Types
Business model • Transactional BPO • Niche BPO • Comprehensive BPO It is often divided into two categories: - Back Office Outsourcing - Front Office
Key Terms: - Offshore Outsourcing - Nearshore Outsourcing - Onshore Outsourcing
Problems in India
• Poor infrastructure • Cultural differences • Internal competition for resources
• Rising labor costs
• Political and religious instabilities
Market Segmentation
• Industry Structure – Leader – Follower Genpact WNS
– Challenger
– Niche
IBM DAKSH
WIPRO BPO
• It is a fragmented and oligopoly market
SWOT ANALYSIS
? STRENGTHS ? Talented graduates ? Cheaper workforce
? Strong customer base
? WEAKNESSES ? Lack of customer service culture ? Expensive and poor quality telecom infrastructure ? Cultural differences
? OPPORTUNITIES ? Horizontal and vertical expansion of existing customer base into new markets
? Increasing awareness of outsourcing services
? THREATS ? Political instability ? India's competitors in Eastern Europe ? Increasing technology automation.
PESTLE ANALYSIS
? Political Issue • Long inclusive enforced copyrights • Direct its topics to the involved clients
? Economical Issue • High barriers to entry • Understanding the supply, demand, price, inflation etc ? Social Issue • Releasing a new web site to realize your aim
? Technological Issue • Strong digital rights management • Decrease time and error-prone processes
? Legal Issues
• Tax exemptions • Strict rules for the safety of their employees while commuting to and from work ? Environment Issues
• Outsourcing stopped in US
• Growing Chinese market
VALUE CHAIN ANALYSIS
GENPACT
? Primary activities Services: • Leader in managing business processes, • Genpact has developed modular analytics processes Outbound logistics: • Services are seamlessly delivered Operations: • Continuous Process Improvement Quality Process Reengineering and Technology Initial Implementation • Process Performance Benchmarking repeated and reliable ? Support activities: Human resource management: • Best-in-Class Effective Management • Training the sales force so that they are equipped with • Knowledge to convert the clients needs with requisite analytical solutions Technological development: • Genpact has developed Smart Enterprise Processes (SEPSM)
WNS
? Primary Activities Logistics
• Sales and customer care through booking and customer care
Operations • Schedule maintenance, space utilisation Sales , Marketing • Service delivery customer feedback management
Financial and accounting
• Procure and pay, Record to report, Order to cash, Industry specific accounting
IBM DAKSH
? Primary Activities Procurement • Best SCM service Inbound , Outbound logistics and Operations • Integrated into one operating unit Marketing and sales • Broadened to Asian countries Service • providing clients high value added and valuable process Secondary Activities HRM • HRM improves capacity to innovate Technology development • Spends around $5 to $6 billion for R&D focusing in high growth opportunities
Wipro BPO
Primary activities: Service: • Diversified range of services • 1st in India to achieve compliance of data protection act of UK. • Maintain quality in processes Marketing and sales: • They have increased their sales team from 10-12 members to 300 strong Wipro team. • Team is supported by pre-sales teams populated by domain specialists and BPR (business process re-engineering) professionals whose job is to identify pain points within a customer's business. Outbound Logistic: • Robust quality framework. • Customized global offshore / near shore delivery model, which makes it a single point station for clients and faster delivery.
Contd..
Support activities: Firm infrastructure: • BS 7799 framework comprehensively addresses physical security, information security and BCP • Robust telecom infrastructure for managing voice and data communication Human Resource Management • Diverse talent pool • Extensive cultural, language and process skills training to associates • Customer relationship management: Technological developments: • It has partnered with Oracle Corp. for best-of-breed HR platform solutions. • selected The Hackett Group to provide empirical data, best practices and world-class performance insights on the development of its innovative bundled solution platform.
VIRU
Genpact WNS IBM DAKSH WIPRO BPO
Valuable
Blend of six sigma and lean expertise. Client contacts all over the world Smart enterprise processes (SEPSM) Wide global network
Research and Development
Robust framework
Inimitable
HRM
Highest quality work
Rare
Efficiency and margin improvement Business Partner relationship
The solution simplify(tm)
Unique
Partnered with Oracle corp.
BCG and GE Matrix
BCG Matrix
LEADER Follower
WNS (73%)
Industry Growth(38%)
IBM DAKSH (15%) GENPACT (12%) WIPRO (8%)
Relative Market Share
GE Model
BUSINESS STRENGTH INDUSTRY ATTRACTIVENESS
STRONG MEDIUM WEAK
HIGH
GENPACT
WNS DAKSH
IBM
MEDIUM
WIPRO BPO
LOW
Competitive Strategy
Strategies
Typologies Leader Challenger Follower Niche Pioneers
Who Genpact WNS IBM DAKSH WIPRO BPO Genpact
Why
Revenue 2009-10 (Rs crore) 4,592 (12%) 3,142 (73%) 2,106 (15%) 1,610 (8%) Manpower 40,365 (30%) 29,400 (29%) 25,426 (12%) 19,000 (19%)
Market dominance strategies
First to Support Broad Portfolio, Introduce Six Sigma for Process Transitions & Employee Issue etc….. At TCS BPO, they understand the industry-specific BPO services and cross-industry They have created significant value through tools and
Innovation strategies
Late followers
TCS BPO
Close followers
IBM DAKSH
Market penetration Intensive growth strategy Ansoff’s Growth Matrix
1. Genpact concentrates more on domestic ITeS -BPO market. 2. WNS entering into 2-tier cities. Genpact entering China Market Actuarial services provided by Genpact Engineering Process Outsourcing, Legal Process Outsourcing,
New market development New product development Diversification
Corporate Level Strategy
GENPACT Concentration Vertical growth
WNS
IBM DAKSH
WIPRO BPO
Automotive, banking & financial services Banking & financial services, transportation & logistics, manufacturing etc…… Finance & accounting, procurement & supply chain, collections, enterprise application services, human resource services etc…… Axis risk consulting in 2007 Starts ngen-a media process JV with NDTV To enter in to as many industries Aviva global services(captive market), marketics(market research)
Diversification
Conglomerate
External Mechanisms
Acquisitions
N/a
Citi technology services ltd (citos)
Strategic alliances
N/a
N/a
N/a
Stability strategies
Profit strategies
N/a
N/a
N/a
Pause/cautious Proceed
N/a
Healthcare, government and public sector
It believes in organic growth than inorganic
Focusing on technology, delivery innovation, and productivity Adjusting employees
Retrenchment strategies
Turnaround
Adjusting employees
Adjusting employees
Adjusting employees
Business Level Strategy
GENPACT Internal growth strategie s Market development 1. Auto Carnation. 2. Hikari Tsushin 3. Unitech Wireless
WNS 1.Multi service contract with IHG 2.Contract with Sabre Holdings 3.Contract with SITA
IBM DAKSH 1. Telecom service providers 2. Insurance sector
Wipro BPO
Application development
Smart Enterprise Processes
It believes in organic growth
Cooperation Strategies
Tianjin Economic and Technological Development Area.
Differentiation
1. Six Sigma for Process Transitions 2. Global expertise 3. First mover advantage
1.End to end service offering. 2.Integrated global delivery network. 3.Mature delivery excellence model.
International Strategy
Mergers and Acquisition
• Genpact ? Genpact Ltd acquires GE Money Administrations- from GE ? GENPACT ACQUIRE INTELENET GLOBAL SERVICES PVT. LTD FROM SKR BPO ? Genpact Ltd acquires Symphony Marketing Solutions from Symphony Tech Grp LLC ? Genpact Mortgage Services acquires a minority stake in High Performance Partners LLC ? GENPACT BUYS EUROPEAN SAP FIRM ICE ENTERPRISE • WNS ? Town And Country Assistance, Ipswich, UK (aug 2002) ? Claims bpo, USA (sept 2003) • WIPRO ? Infocrossing, US
Challenges Ahead…
• Client Acquisition and Retention
• Retaining employees
• Productivity • Quality and compliance issues • Resource and Skill Gaps • Funding
• Emerging Foreign Destinations
• Physical Infrastructure
THANK YOU
doc_398775152.ppt
The PPT highlighting BPO industry.
BPO INDUSTRY
What is BPO?
• Business process outsourcing (BPO) is the contracting
of a specific business task, such as human resources
and customer service, to a third-party service provider. • This allows companies to focus on their core business processes. • BPO is implemented as a cost-saving measure for tasks
that a company requires.
BPO Business Models and Types
Business model • Transactional BPO • Niche BPO • Comprehensive BPO It is often divided into two categories: - Back Office Outsourcing - Front Office
Key Terms: - Offshore Outsourcing - Nearshore Outsourcing - Onshore Outsourcing
Problems in India
• Poor infrastructure • Cultural differences • Internal competition for resources
• Rising labor costs
• Political and religious instabilities
Market Segmentation
• Industry Structure – Leader – Follower Genpact WNS
– Challenger
– Niche
IBM DAKSH
WIPRO BPO
• It is a fragmented and oligopoly market
SWOT ANALYSIS
? STRENGTHS ? Talented graduates ? Cheaper workforce
? Strong customer base
? WEAKNESSES ? Lack of customer service culture ? Expensive and poor quality telecom infrastructure ? Cultural differences
? OPPORTUNITIES ? Horizontal and vertical expansion of existing customer base into new markets
? Increasing awareness of outsourcing services
? THREATS ? Political instability ? India's competitors in Eastern Europe ? Increasing technology automation.
PESTLE ANALYSIS
? Political Issue • Long inclusive enforced copyrights • Direct its topics to the involved clients
? Economical Issue • High barriers to entry • Understanding the supply, demand, price, inflation etc ? Social Issue • Releasing a new web site to realize your aim
? Technological Issue • Strong digital rights management • Decrease time and error-prone processes
? Legal Issues
• Tax exemptions • Strict rules for the safety of their employees while commuting to and from work ? Environment Issues
• Outsourcing stopped in US
• Growing Chinese market
VALUE CHAIN ANALYSIS
GENPACT
? Primary activities Services: • Leader in managing business processes, • Genpact has developed modular analytics processes Outbound logistics: • Services are seamlessly delivered Operations: • Continuous Process Improvement Quality Process Reengineering and Technology Initial Implementation • Process Performance Benchmarking repeated and reliable ? Support activities: Human resource management: • Best-in-Class Effective Management • Training the sales force so that they are equipped with • Knowledge to convert the clients needs with requisite analytical solutions Technological development: • Genpact has developed Smart Enterprise Processes (SEPSM)
WNS
? Primary Activities Logistics
• Sales and customer care through booking and customer care
Operations • Schedule maintenance, space utilisation Sales , Marketing • Service delivery customer feedback management
Financial and accounting
• Procure and pay, Record to report, Order to cash, Industry specific accounting
IBM DAKSH
? Primary Activities Procurement • Best SCM service Inbound , Outbound logistics and Operations • Integrated into one operating unit Marketing and sales • Broadened to Asian countries Service • providing clients high value added and valuable process Secondary Activities HRM • HRM improves capacity to innovate Technology development • Spends around $5 to $6 billion for R&D focusing in high growth opportunities
Wipro BPO
Primary activities: Service: • Diversified range of services • 1st in India to achieve compliance of data protection act of UK. • Maintain quality in processes Marketing and sales: • They have increased their sales team from 10-12 members to 300 strong Wipro team. • Team is supported by pre-sales teams populated by domain specialists and BPR (business process re-engineering) professionals whose job is to identify pain points within a customer's business. Outbound Logistic: • Robust quality framework. • Customized global offshore / near shore delivery model, which makes it a single point station for clients and faster delivery.
Contd..
Support activities: Firm infrastructure: • BS 7799 framework comprehensively addresses physical security, information security and BCP • Robust telecom infrastructure for managing voice and data communication Human Resource Management • Diverse talent pool • Extensive cultural, language and process skills training to associates • Customer relationship management: Technological developments: • It has partnered with Oracle Corp. for best-of-breed HR platform solutions. • selected The Hackett Group to provide empirical data, best practices and world-class performance insights on the development of its innovative bundled solution platform.
VIRU
Genpact WNS IBM DAKSH WIPRO BPO
Valuable
Blend of six sigma and lean expertise. Client contacts all over the world Smart enterprise processes (SEPSM) Wide global network
Research and Development
Robust framework
Inimitable
HRM
Highest quality work
Rare
Efficiency and margin improvement Business Partner relationship
The solution simplify(tm)
Unique
Partnered with Oracle corp.
BCG and GE Matrix
BCG Matrix
LEADER Follower
WNS (73%)
Industry Growth(38%)
IBM DAKSH (15%) GENPACT (12%) WIPRO (8%)
Relative Market Share
GE Model
BUSINESS STRENGTH INDUSTRY ATTRACTIVENESS
STRONG MEDIUM WEAK
HIGH
GENPACT
WNS DAKSH
IBM
MEDIUM
WIPRO BPO
LOW
Competitive Strategy
Strategies
Typologies Leader Challenger Follower Niche Pioneers
Who Genpact WNS IBM DAKSH WIPRO BPO Genpact
Why
Revenue 2009-10 (Rs crore) 4,592 (12%) 3,142 (73%) 2,106 (15%) 1,610 (8%) Manpower 40,365 (30%) 29,400 (29%) 25,426 (12%) 19,000 (19%)
Market dominance strategies
First to Support Broad Portfolio, Introduce Six Sigma for Process Transitions & Employee Issue etc….. At TCS BPO, they understand the industry-specific BPO services and cross-industry They have created significant value through tools and
Innovation strategies
Late followers
TCS BPO
Close followers
IBM DAKSH
Market penetration Intensive growth strategy Ansoff’s Growth Matrix
1. Genpact concentrates more on domestic ITeS -BPO market. 2. WNS entering into 2-tier cities. Genpact entering China Market Actuarial services provided by Genpact Engineering Process Outsourcing, Legal Process Outsourcing,
New market development New product development Diversification
Corporate Level Strategy
GENPACT Concentration Vertical growth
WNS
IBM DAKSH
WIPRO BPO
Automotive, banking & financial services Banking & financial services, transportation & logistics, manufacturing etc…… Finance & accounting, procurement & supply chain, collections, enterprise application services, human resource services etc…… Axis risk consulting in 2007 Starts ngen-a media process JV with NDTV To enter in to as many industries Aviva global services(captive market), marketics(market research)
Diversification
Conglomerate
External Mechanisms
Acquisitions
N/a
Citi technology services ltd (citos)
Strategic alliances
N/a
N/a
N/a
Stability strategies
Profit strategies
N/a
N/a
N/a
Pause/cautious Proceed
N/a
Healthcare, government and public sector
It believes in organic growth than inorganic
Focusing on technology, delivery innovation, and productivity Adjusting employees
Retrenchment strategies
Turnaround
Adjusting employees
Adjusting employees
Adjusting employees
Business Level Strategy
GENPACT Internal growth strategie s Market development 1. Auto Carnation. 2. Hikari Tsushin 3. Unitech Wireless
WNS 1.Multi service contract with IHG 2.Contract with Sabre Holdings 3.Contract with SITA
IBM DAKSH 1. Telecom service providers 2. Insurance sector
Wipro BPO
Application development
Smart Enterprise Processes
It believes in organic growth
Cooperation Strategies
Tianjin Economic and Technological Development Area.
Differentiation
1. Six Sigma for Process Transitions 2. Global expertise 3. First mover advantage
1.End to end service offering. 2.Integrated global delivery network. 3.Mature delivery excellence model.
International Strategy
Mergers and Acquisition
• Genpact ? Genpact Ltd acquires GE Money Administrations- from GE ? GENPACT ACQUIRE INTELENET GLOBAL SERVICES PVT. LTD FROM SKR BPO ? Genpact Ltd acquires Symphony Marketing Solutions from Symphony Tech Grp LLC ? Genpact Mortgage Services acquires a minority stake in High Performance Partners LLC ? GENPACT BUYS EUROPEAN SAP FIRM ICE ENTERPRISE • WNS ? Town And Country Assistance, Ipswich, UK (aug 2002) ? Claims bpo, USA (sept 2003) • WIPRO ? Infocrossing, US
Challenges Ahead…
• Client Acquisition and Retention
• Retaining employees
• Productivity • Quality and compliance issues • Resource and Skill Gaps • Funding
• Emerging Foreign Destinations
• Physical Infrastructure
THANK YOU
doc_398775152.ppt