Wednesday, October 11, 2006
Knowledge Process Outsourcing industry (KPO) is expected to reach USD 17 billion by 2010
Future success of the maturing BPO model
The market for offshore Business Process Outsourcing (BPO) may be developing rapidly, but nonetheless, the untapped market opportunity remains enormous for both buyers and sellers says Greg Baker, Xansa Business Development Director.
"India has all the right credentials to be the offshore location of choice. It has already established a solid foundation for delivering BPO services through a highly skilled but low cost resource base. To fully leverage further market opportunities however, the India model now needs to mature. The focus should shift to improving the business capability of clients, as well as providing the classic low cost, low-end transactional services upon which the current market has been founded" says Baker.
For clients and service providers alike, the delivery of low-end transactional services, such as call centres, from offshore will not optimise the very real business opportunities available through the offshore outsourcing of high-value, complex back-office processes.
Sunday, October 01, 2006
BPO refers to companies farming out tasks...
In principle, BPO arrangements allow companies to cut costs and focus on their core activities. But the deals can be less than ideal. A report last year from Forrester Research found that 20% of a group of North American executives currently using or investigating BPO said their lack of proper performance metrics was a major challenge in working with BPO firms. Some 9% cited overstated supplier expertise as a major challenge, and 19% indicated that savings from BPO was less than expected or had not materialized at all.
Indian BPO industry can process 30 pc of US bank work
"Currently, 8 per cent of the US banking transactions are processed by Indian BPOs and the figure has the potential to rise up to 30 per cent by 2010," he said.
According to a research conducted by Forrester in 2005, there were more security breaches in the UK and the US than in India, he said.
Karnik said there have been two cases in India of breaches in data security in the last 18 months and in both instances arrests were made by the police.
The watchdog of the UK banking industry, Banking Code Standards Board, had announced that they had scrutinised Indian call centres and standards have yet again proven to be amongst the best in the world, he added.
An independent Self Regulatory Organisation (SRO) to establish, monitor and enforce privacy and data protection standards for the ITES and BPO industry in the country would be formed, Karnik said.
The SRO has already completed its initial round of funding and the final roll out phase, including industry memberships, is underway, he said.
Karnik said it would commence operations in the next 3-6 has already received approval of the
Nasscom executive council.
'BPO staff want quick job change'
A first-of-its kind survey commissioned by city-based Essentia Consultancy Services, has revealed certain important facets to the BPO industry in Pune, which approximately has around 30,000 employees.
Pradeep Phadke from Essentia told TOI that the survey was aimed at understanding the resource pool better from the standpoint of satisfaction and attitude. "We surveyed 500 employees, mostly front-line and some at intermediary supervisory levels, across companies," he said.
While Pune tops as the most-favoured destination with 100% rating, the average rating of other cities is just 70%. BPO employees said most other centres, including Hyderabad and Bangalore, were rated below at 86% and 72%, respectively. Chandigarh, Ahmedabad came closest to Pune.
On employee satisfaction, domestic BPOs seem to be placed better (82%) compared to the bigger international ones (73%).
Small BPOs need to do some introspection as the employee satisfaction index is just 53%, the survey revealed. Another interesting revelation is that almost nine out of 10 respondents were working with their present organisation for less than a year.
On an average, respondents had switched two jobs within the BPO space with an average tenure spanning 10 months. "92% of the respondents want to change again, out of which 52% want to do it as soon as possible," Essentia director (facility management and infrastructure) Iftekhar Pathan said.
While inconvenient timing, lack of good processes and unsatisfactory facilities were cited as main reasons for seeking a change, 17% said they were paid less than promised.
Source : Times of India