Archive for February, 2009
KPO Knowledge Process Outsourcing in India
All of us are very familiar with the term BPO. BPO dream took off some five years ago and there were icons to follow. Former GE Capital staffer Raman Roy successfully ran Spectranet. Sanjay Agarwal, another entrepreneur who started life as a DCM management trainee, was making waves with Daksh. Today, though, it would take a brave soul to begin such a venture and sustain it.
Today, BPO’s are loosing it’s sheen as setting up a call centre is expensive, payment cycles are becoming longer, the competition is intense and margins drastically reducing. To add up to all this there is huge number of teenagers working in these bpo’s who change jobs frequently.
Here is when KPO would come to our rescue. Knowledge Process Outsourcing (KPO) is where outsourcers do high-end “knowledge-based†work rather than doing mere backend processing. Philippines and China are already munching on our backend processing market share.
India has a large pool of Chartered Accountants, Economists, engineers and doctors who could be a part to new era of outsourcing for India and fuel the growth of KPO’s.
According to a recent study by Evalueserve, the global KPO market is expected to grow at a cumulative annual growth rate (CAGR) of 46 per cent, from $1.2 billion in 2003 to $17 billion in 2010.
The high-end KPO opportunities are immense for Indian firms. For instance, look at some of the figures pertaining to intellectual property research.
Employee Retention Strategies for BPOs
Retention of Key employees is critical to the long term health and success of any organization. It is a known fact that retaining your best employees ensures customer satisfaction, increased
product sales, satisfied colleagues and reporting staff, effective succession planning and deeply imbedded organizational knowledge and learning.
Employee retention matters as organizational issues such as training time and investment; lost knowledge; insecure employees and a costly candidate search are involved. Hence failing to retain a key employee is a costly proposition for an organisation. Various estimates suggest that losing a
middle manager in most organizations costs up to five times of his salary.
The BPOs in India face an enormous challenge in reducing attrition rate and this being a nascent industry needs to draw parallels, examples from other industry practices as well as develop innovative Employee Relation Initiatives as highlighted below. This has been classified into three groups
1. The Corporate level
2. Managerial/supervisory level
3. Employee Recognition Initiatives
Here this article attempts to highlight the strategies for the corporate level.
Corporate Level Retention strategies:-
· To bring stability in business and increase customer service process.
· Nasscom has estimated that the Indian ITES industry will gross over $5.7 billion by 2005 (based on a conservative year-on-year growth of 65 percent by Nasscom).
· Staff/employee satisfaction translates directly into money quite quickly in the BPO industry compared to other industries.
· To reduce the pressure on the recruiting process.
· Recent acquisition deals both domestic & overseas by BPOs makes it even more critical to stabilize their back end operations to service new customers
Excellent Career Growth prospects
Encourage & groom employees to take up higher positions/openings. If not fulfilled then they will look outside the organization.
Look for talents within the organization and encourage them. For instance,if a person has the potential to be a trainer, groom & develop the employee.
Night shifts
1. Have people from other walks of life to talk about their experiences.Other professions like Army, Medicine, and shop floor workers also have towork in night shifts.
2. Have doctors to advise & guide them about their biological clocks and ways & means to deal with them.
3. Dietary advice:- Do’s and don’ts.
4. Create the passion that they are doing a yeomen service to the nation by bringing the much-required Foreign Exchange.
5. They are helping people (clients) to make their life easier.
6. Special lights in the office/workplace to ensure their bodies get sufficient vitamin D.
7. One distinct disadvantage of night shifts is the sense of disorientation with friends and family members. Concentrate on this problem and develop innovative solutions and ways to deal with it.
India is the preferred destination for BPO Business Process Outsourcing
India is no longer known as land of Elephants and Snakes but the land of High Talent professionals and cost effective corporate BPO solutions. India is becoming the leader in outsourcing with no close competitors. It’s made possible with the help of various factors.
India has a winning edge over other countries because of the following reasons.
* Availability of English speaking, skilled human resources in plenty
* Availability of cheap work force to offer cost effective BPO Solutions.
* Well defined process to address global needs.
* High conscious towards quality.
* Government’s support to develop the industry.
* Availability of advance technology at par with western countries.
* Flexible human resources to work in various time zones.
For more information, please contact Mitul Bhavsar on +91-9825095314 or visit www.designwebgraphic.com now.
BPO Business Process Outsourcing to India
BPO is the new buzz in town, a relatively new concept with strong economical and business fundamentals which IT firms are now reeling towards, which provides an amazingly new plethora of opportunities for what Information Technology Companies can provide for the old-economy firms and how strongly they can get themselves entrenched in their value chain. This would not only make them felt very important in terms of their contribution but also as a tool for their clients, guaranteeing them competitive survival and growth in the current business market place.
BPO conceptually allows an enterprise to just focus on its core Competency and by outsourcing all the other support based facets that generally consumes a substantial amount of a firm’s time and energy. Peripheral activity such as Payroll, Employee Health-Care, Employee benefits, System Support, internal IT division, Sales/Marketing, Inventory Management and the whole gamut of other things which hampers an organizations interest by not allowing it to focus on what it believes are its strategic area of expertise. A firm’s energy should be highly focussed around its core competency which is what ensures it a place in the market, earns revenue for it and keeps it going.
After having decided to outsource all of its business process baring its core competing area, an enterprise also has to plan and strategize of how it would actually outsource, to whom and how it would integrate this whole process which is equally crucial for maintaining its competitive edge of its competition. Any corporate house having debated on the various business processes that it wishes to outsource now needs to pick the right outsourcing firms/agencies by doing the necessary due-diligence in terms of researching and analysing a particular firms capability and credentials and its track record for having accomplished outsourcing activity for reputed clients. Equally essential to brainstorm is how would one be bringing all these different outsourcing firms together while integrating the different business components and ensuring this does not entail into complicated issues consuming more time and energy.
Once this outsourcing model is championed by any firm, having adapted and Integrated it into their business strategy, it can achieve substantial business altitude it terms of its competition by focussing on what is does best and leveraging the outsourced model to its maxim. Also these outsourced Business components can be bench marked as per the organizations quality requirements thus ensuring the qualitative benefits as well.
For the outsourcing firms, BPO presents enormous opportunity to provide more of such peripheral services and support thus making it more important and also allowing it to play a much higher value added role for its clients.
For further information regarding Indian BPO, please contact Mitul Bhavsar on +91-9825095314 or visit www.designwebgraphic.com
What is KPO and Role of India to Become a KPO Hub
KPO is a new phenomenon that is picking pace in India. It is “Knowledge Process Outsourcing”. In simple words it is the upward shift of BPO in the value chain. Old BPO companies that used to provide basic backend or customer care support are moving up this value chain.
KPO is involved in services like valuation and investment research, patent filing, legal and insurance claim processing, etc, explains Ranjit Singh, CEO, Techbooks, a publishing KPO.
According to a study carried out by Baring Private Equity Partners (India) Limited, a venture capital financing firm, the size of the KPO industry, the high-end services entailed in business process outsourcing (BPO) activities, has the potential to touch $16 bn by 2010 globally.
The ideal KPO employee should possess domain specialization, computer skills & English proficiency. With the Indian way of education which lays great emphasis on higher education & specialization, a talent pool with specialized knowledge in any field is readily available.
The cost advantage of Indian BPO is constantly being challenged by ever increasing might of China and Philippines. As it is mandatory for any living organism to mutate to stay alive in the ever changing environment, so is the case with business processes. Therefore change from BPO to KPO is inevitable and mandatory.
If you like to know further, please contact Mitul Bhavsar on +91-9825095314 or visit www.designwebgraphic.com now