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