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The business process outsourcing industry in India refers to the Services Outsourcing Industry in India, catering mainly to Western operations of MNCs (Multinational Corporations). Image File history File links Question_book-3. ... Business Process Outsourcing (BPO) is the leveraging of technology or specialist process vendors to provide and manage an organisations critical and/or non-critical enterprise processes and applications. ... Outsourcing became part of the business lexicon during the 1980s and refers to the delegation of non-core operations from internal production to an external entity specializing in the management of that operation. ... A multinational corporation (MNC) is a corporation or enterprise that manages production establishments or delivers services in at least two countries. ...

The sector witnessed considerable activity during 2004–05, including a ramping up of operations by major multinational corporations players and Indian organizations stepped up hiring. The domestic BPO market, catalyzed by demand from the telecommunications and BFSI segments, matched the growth of BPO exports. The market experienced maturity and consolidation, a result of numerous mergers and acquisitions taking place within the sector. There were over 400 companies operating within the Indian BPO space, including captive units (of both MNCs and Indian companies) and third-party services providers. The key enabler for this has been cheaper bandwidth leading to low telecom costs for leased lines and availability of educated English speaking workforce in India. Telecommunication involves the transmission of signals over a distance for the purpose of communication. ... Financial services is a term used to refer to the services provided by the finance industry. ... Bandwidth is the difference between the upper and lower cutoff frequencies of, for example, a filter, a communication channel, or a signal spectrum, and is typically measured in hertz. ...

The Indian BPO industry remains on a growth path, emerging as one of the key investment markets in the country.

It is also referred to as Information Technology Enabled Services or ITES, and high end work with specialisation is referred to as Knowledge Process Outsourcing or KPO. There are other variants in use such as Legal Process Outsourcing (LPO). Information technology enabled services, or ITES, is a form of outsourced service which has emerged due to involvement of IT in various fields such as banking and finance, telecommunications, insurance, etc. ... ITES means IT (Information Technology) Enabled Services. ... Knowledge Process Outsourcing (KPO) is a form of outsourcing. ... KPO - Knowledge Process Outsourcing Areas with significant potential for KPO include biotechnology, pharmaceuticals, legal services, research and design, intellectual property, and development of automotive and aerospace industries. ... Legal Process Outsourcing (LPO) is the rapidly developing industry that outsources legal work from areas where it is costly to perform, such as the United States, to areas where it can be performed at a significantly decreased cost, primarily India. ...

NASSCOM is a chamber of commerce that represents this body and lobbies for it, as well as creates a platform for members to take up common issues. NASSCOM services both the Indian Software and the Indian BPO industry. The National Association of Software and Services Companies (NASSCOM), the Indian chamber of commerce that serves as an interface to the Indian Software Industry and Indian BPO Industry NASSCOM’s member companies are in the business of software development, software services, and IT-enabled/BPO services. ...

History

Airlines

In the early 1980s several European airlines started using Delhi as a base for back office operations, British Airways being one among them. The BA captive was finally spun off as a separate organisation called WNS in the current millennium. For the 1930s airline of similar name, see British Airways Ltd. ... WNS is an acronym for: Westside Neighborhood School Wireless Network Simulator ...

Amex

In the second half of the 1980s, American Express consolidated its JAPAC (Japan and Asia Pacific) back office operations into New Delhi. This center was headed by Raman Roy, and has been a source of several leading names in the Indian BPO Industry. American Express (NYSE: AXP), sometimes known as AmEx or Amex, is a diversified global financial services company, headquartered in New York City. ...

General Electric

In the 1990s Jack Welch was influenced by K.P. Singh, (A Delhi based realtor) to look at Gurgaon in the NCR region as a base for back office operations. Pramod Bhasin, the India head of G.E. hired Raman Roy and several of his management from American Express to start this enterprise called GECIS (GE Capital International Services). Raman for the first time tried out voice operations out of India, the India operations also was the Beta site for GE Six sigma enterprise. The results made GE ramp up their Indian presence and look at other locations. In 2004 GECIS was spun off as a separate legal entity by GE, called Genpact. GE has retained a 40% stake and sold a 60% stake for $500 million to two equity companies, Oak Hill Capital Partners and General Atlantic Partners. Jack Welch as CEO of GE John Francis Jack Welch, Jr. ... Kushal Pal Singh ( or K.P. Singh as he is known) was born on August 15, 1931, at Bulandshahar in Uttar Pradesh, Today he presides over closely held DLF group [1], One of India’s largest real estate developer with an estimated land bank of 3,000 acres (12 km... , Gurgaon   (Hindi: गुड़गांव) is a city in the northern Indian state of Haryana, and has a population of about 249,000 according to the 2001 national census [2]. Gurgaon is one of Delhis four major satellite cities and is therefore considered to be a part of the National Capital Region... Pramod Bhasin is the president and CEO of Genpact global impact solutions. ... Gecis Logo Gecis or GE Capital International Services is the name on the Business Process Outsourcing (BPO) company of GE. It is the pioneer of BPO in India and the largest BPO company in India. ... The often-used six sigma symbol. ... Genpact is a BPO company in India. ... Oak Hill Capital is a private equity firm with more than $4. ...

Third party BPO's

Till G.E most of the work was being done by "captives"- a term used for in house work being done for the parent organisation. In 2000 Raman Roy and some team members from GECIS quit , and with VC funding from Chrysalis Capital started Spectramind. At the same time an organisation called EXL started in Noida and Efunds started in Mumbai and Gurgaon, and Daksh in Gurgaon. However, recently most of the Indian BPO's even smaller and mid-sized ones are actually setting-up their onshore presence. Most of the serious players are actually improving the outsourced business processes by leveraging on years of experience and now some of them are directly competing with their own older clientbase by marking this transition to KPO 's. EXL Service (NASDAQ: EXLS) is a leading provider of value added offshore Business Process Outsourcing solutions to the Global 1000. ... This article or section does not cite its references or sources. ... KPO - Knowledge Process Outsourcing Areas with significant potential for KPO include biotechnology, pharmaceuticals, legal services, research and design, intellectual property, and development of automotive and aerospace industries. ...

Entry of IT majors

In 2002 Spectramind was bought by software major Wipro, and BPO by then had become mainstream like the IT Industry in India. By 2002 all major Indian software organizations were into BPO, including Infosys (Progeon), HCL, Satyam( Nipuna)and Patni. By 2003 Daksh was bought out by IBM and later in 2006 MphasiS by EDS. Even international 3rd party BPO players like Convergys and Sitel had set up shop in India, swelling the BPO movement to India. Then service arms of organizations like Accenture, IBM, Hewlett Packard, Dell too set up captives in India. It has been suggested that this article or section be merged with Wipro Technologies. ... Infosys Technologies Limited (BSE: 500209, NASDAQ: INFY) is a multinational information technology services company headquartered in Bangalore, India. ... Progeon is the BPO (business process outsourcing) subsidiary of Infosys that started operations in April 2002. ... HCL or HCl can stand for: Hardware Compatibility List Chemical symbol for hydrochloric acid, written HCl Higher Chinese Language, an academic subject in Singapore An Indian software company (previously Hindustan Computers Ltd. ... Satyam Computer Services Ltd. ... Sanskrit for Lady, Mistress, see Potnia Patni Computer Systems Category: ... EDS may refer to: Ed. ... Convergys (NYSE: CVG) is a multi-national corporation that provides management consulting services, outsourced billing, customer care and employee care, and transaction management software. ... Sitel is a US company headquartered in Nashville, TN, which describes itself as a leading global provider of outsourced customer contact center services. It maintains over 145 call centers in 28 countries. ... Accenture (NYSE: ACN, ISIN: BMG1150G1116) is a global management consulting, technology services and outsourcing company. ... For other uses, see IBM (disambiguation) and Big Blue. ... It has been suggested that HP ProLiant be merged into this article or section. ... This article is about the corporation Dell, Inc. ...

Size of industry

The industry has been very growing rapidly. It grew at a rate of 38% over 2005. For the FY06 financial year the projections is of US$7.2 billion worth of services provided by this industry. The base in terms of headcount being roughly 400,000 people directly employed in this Industry. The global BPO Industry is estimated to be worth 120-150 billion dollars, of this the offshore BPO is estimated to be some US$11.4 billion. India thus has some 5-6% share of the total Industry, but a commanding 63% share of the offshore component. The U.S $7.2 billion also represents some 20% of the IT and BPO Industry which is in total expected to have revenues worth US$36 billion for 2006. The headcount at 400,000 is some 40% of the approximate one million workers estimated to be directly employes in the IT and BPO Sector.

The related Industry dependent on this are Catering, BPO training and recruitment, transport vendors, (home pick up and drops for night shifts being the norm in the industry). Security agencies, Facilities management companies.

From a PricewaterhouseCoopers survey

An Indian call center

Currently the Indian BPO Industry employs in excess of 245,100 people and another 94,500 jobs are expected to be added during the current financial year (2005-2006) Image File history File linksMetadata Download high resolution version (480x640, 53 KB) Summary Author: Sonam Saxena Shot at Location at offices of BPO India Call Center by the author Licensing File history Legend: (cur) = this is the current file, (del) = delete this old version, (rev) = revert to this old version. ... Image File history File linksMetadata Download high resolution version (480x640, 53 KB) Summary Author: Sonam Saxena Shot at Location at offices of BPO India Call Center by the author Licensing File history Legend: (cur) = this is the current file, (del) = delete this old version, (rev) = revert to this old version. ... For other uses, see Europe (disambiguation). ... Map showing general definition of Asia-Pacific The term Asia-Pacific generally applies to littoral East Asia, Southeast Asia and Australasia near the Pacific Ocean, plus the states in the ocean itself (Oceania). ...

Nearly 75% of US and European multinational companies now use outsourcing or shared services to support their financial functions. 72% of European multinational companies have outsourced financial functions over the past two years.

Additionally, 71% of European companies and 78% US companies plan to use these services in the next 12-24 months. Overall, 29% of US and European companies expect to increase their use of outsourcing of financial functions, with spending expected to be nearly 16% higher than current levels.

Growth in this sector will get a further impetus as Indian BPO companies have robust security practices and emphasis is laid in developing trust with clients on this score. While earlier there were varying quality standards on this aspect, today there is focus on standardization of security, such as data and IP security.

Leading BPO-ITes cities in India

Bengaluru, Chennai, Hyderabad, NCR (New Delhi, Delhi, Gurgaon, Faridabad, NOIDA, Greater Noida, Ghaziabad), Pune, Mumbai are Tier I cities that are leading IT cities in India. For other uses, see Bangalore (disambiguation). ... , “Madras” redirects here. ... Hyderabad or Haydarābād (Telugu: హైదరాబాదు Urdu: حیدر آباد ) is the capital city of the Indian state of Andhra Pradesh. ... The National Capital Region (NCR) in India is an informal name for the conurbation or metropolitan area which encompasses the entire National Capital Territory of Delhi as well as the neighbouring satellite towns of Faridabad and Gurgaon in Haryana, and Noida, Greater Noida and Ghaziabad in Uttar Pradesh. ... , This article is about the urban region that is the capital of India. ... For other uses, see Delhi (disambiguation). ... , Gurgaon   (Hindi: गुड़गांव) is a city in the northern Indian state of Haryana, and has a population of about 249,000 according to the 2001 national census [2]. Gurgaon is one of Delhis four major satellite cities and is therefore considered to be a part of the National Capital Region... , Faridabad is a city and a municipal corporation in Faridabad district in the state of Haryana, India. ... For Greater Noida see Greater Noida , New Okhla Industrial Development Authority is a department of the government of Uttar Pradesh in Gautam Buddha Nagar District, India. ... Greater Noida (GN) (Hindi: नोएडा, Urdu: نویڈا /Noyḋā/) is a planned township close to Delhi, India, situated in the state of Uttar Pradesh. ... , Ghaziabad   (Hindi: गाज़ियाबाद, Urdu: غازی آباد) is an industrial city in the Indian state of Uttar Pradesh. ... , Pune (IPA: , Marathi: पुणे) is a city located in the western Indian state of Maharashtra. ... , Bombay redirects here. ...

With rising infrastructure costs in these cities, many BPO's are shifting operations to Tier II cities like Mangalore, Mysore, Hubli-Dharwad, Belgaum, Coimbatore, Madurai, Hosur, Nagpur, Kochi, Trivandrum, Chandigarh, Mohali, Panchkula, Kolkata, Ahmedabad, Bhubaneshwar, Jaipur, and Vishakapatnam. , Mangalore (Kannada: ಮಂಗಳೂರು, Mangalooru; Tulu: ಕುಡ್ಲ, Kudla; Konkani: ಕೊಡಿಯಾಲ್, Kodial; Beary: ಮೈಕಾಲ, Maikala)   is the chief port city of the state of Karnataka, India. ... , For other uses, see Mysore (disambiguation). ... Hubli-Dharwad ಹುಬ್ಬಳ್ಳಿ-ಧಾರವಾಡ is a twin city in the state of Karnataka in India. ... , Belgaum (proposed to be renamed Belagaavi) (Kannada: ಬೆಳಗಾವಿ, Marathi: बेळगांव;  ), also known as Belgaon, is a city and a municipal corporation in Belgaum district in the state of Karnataka, India. ... , Coimbatore   (Tamil: ), also known as Kovai (Tamil: ), is a major industrial city in India. ... , Madurai   (Tamil: , IPA: ) is a city and a municipal corporation with a city population of 922,913 according to 2001 census. ... , Hosur (Tamil: ஓசூர்) is a Town and a municipality in Krishnagiri district in the Indian state of Tamil Nadu. ... , Nāgpur   (Marathi: नागपुर) Third largest city in the western Indian state of Maharashtra after Mumbai and Pune with a population of 2. ... “Cochin” redirects here. ... Indian Coffee House Thiruvananthapuram or Thiruvanathapuram (formerly known as Trivandrum) is the capital (population - 889,191 (2001)) of the state of Kerala, India. ... , Chandigarh   (Punjabi: , Hindi: , pronunciation: ) also called The City Beautiful , is a city in India that serves as the capital of two states: Punjab and Haryana. ... Mohali (Punjabi: , ) is a suburb of Chandigarh, 18th District in Punjab, India. ... , Panchkula (Hindi: , Punjabi: ) is a planned city in Panchkula District, Haryana, India. ... , “Calcutta” redirects here. ... , Ahmedabad (Gujarati: , Hindi: अहमदाबाद ) is the largest city in the state of Gujarat and the seventh-largest urban agglomeration in India, with a population of almost 51 lakhs (5. ... Bhubaneswarଭୂବନେଶ୍୊଒଍୅ଵର is the capital of the state of Orissa (ancient Kalinga). ... , Jaipur   (Hindi: जयपुर, Rajasthan Capital), also popularly known as the Pink City, historically sometimes rendered as Jeypore, is the capital of Rajasthan state, India. ... Visakhapatnam (Also Vishākhapatnam, shortened and Anglicized: Vizag) is a large city in the Indian state of Andhra Pradesh. ...

Tier II cities offer lower business process overhead compared to Tier I cities, but may have a less reliable infrastructure system which may hamper dedicated operations. The Government of India in partnership with private infrastructure corporations is working on bringing all around development and providing robust infrastructure all over the nation. Business process overhead is the amount of resources used by an organization just to maintain existence. ... The Government of India (Hindi: भारत सरकार [1]Bhārat Sarkār), officially referred to as the Union Government, and commonly as Central Government, was established by the Constitution of India, and is the governing authority of a federal union of 28 states and 7 union territories, collectively called the Republic of...

Leading BPO organizations in India

The Dataquest BPO Top 20

• Bootstrap Technologies Pvt Ltd.
• Genpact
• Transworks
• IBM Daksh
• TCS BPO
• Cambridge Solutions
• WNS Global Solutions
• Wipro BPO
• Convergys India
• Firstsource Solutions
• HCL BPO
• Aegis BPO
• Infosys BPO
• EXL Services
• Outsource Partners International
• Sutherland Global Services
• vCustomer
• HTMT Global
• 24/7 Customer
• Aptara
• e2z
• MphasiS BPO

Source : dqindia.ciol.com/dqtop20/2007/sas&bpo07/ Genpact is a BPO company in India. ... This article or section does not cite its references or sources. ... Infosys BPO Limited (formerly Progeon Limited) is the BPO (business process outsourcing) subsidiary of Infosys Technologies Ltd. ... Sutherland GlobalServices Sutherland Global Services is US based multinational company specialised in Businees Process Outsourcing & ITES. The major clients include Symantec, HP, AOL, Dell, Mcafee & Microsoft. ...

Captive

Bootstrap Technologies Pvt Ltd., Motorola Inc. ... This article is about the telecommunications corporation. ... Prudential plc is a United Kingdom based financial services company. ... Principal Financial Group in Hong Kong Principal Financial Group NYSE: PFG is a publicly traded corporation based in Des Moines, Iowa, USA. The Principal Financial Group (The Principal) is a leading global financial institututional clients a wide range of financial products and services. ... Reuters Group plc (LSE: RTR and NASDAQ: RTRSY); pronounced is known as a financial market data provider and a news service that provides reports from around the world to newspapers and broadcasters. ... Siemens has the following uses: Siemens is a German family name carried by generations of the telecommunications industrialists, including Werner von Siemens, Sir William Siemens, Wilhelm von Siemens and Peter von Siemens Siemens AG is a German electrical and telecommunications company, founded as a telegraph equipment manufacturer by Werner von... Standard Chartered Bank (LSE: STAN, SEHK: 2888) is a British bank headquartered in London with operations in more than fifty countries. ... , For other uses, see Tesco (disambiguation). ... UBS AG (NYSE: UBS; SWX: UBSN; TYO: 8657 ) is a diversified global financial services company, headquartered in Basel and Zürich, Switzerland. ... UnitedHealth Group Incorporated NYSE: UNH is a managed health care company. ... Yahoo! - Wikipedia, the free encyclopedia /**/ @import /skins-1. ...

Companies Outsourcing to India

This is a list of companies sending work to 3rd parties in India, or having partners to run their centers.^{[citation needed]}

Aetna, Inc. ... This article is about the company. ... Aviva plc (LSE: AV.) is the worlds fifth-largest insurance group, the biggest insurance group in the UK and the second-largest insurance group in Canada. ... Barclays Bank is the fourth largest bank in the United Kingdom. ... For other uses, see BBC (disambiguation). ... It has been suggested that Blue Shield of California be merged into this article or section. ... BT Group plc (formerly British Telecommunications plc) which trades as BT (pronounced Bee tee) (also previously as British Telecom and is still commonly known as such amongst the general public) is the privatised UK state telecommunications operator. ... Capital One Financial Corp. ... Cisco may refer to: Cisco Systems, a computer networking company Cisco IOS, an internet router operating system CISCO Security Private Limited, a security company in Singapore Commercial and Industrial Security Corporation, a statutory board in Singapore Abbreviation for San Francisco, California Cisco (wine) The Cisco Kid, a fictional character created... Delta Air Lines, Inc. ... Helion-Prime is a provider of software outsourcing services for SMEs, specializing in enterprise application development, system integration and business automation tools, with industry-specific software expertise in financial, telecom and media sectors. ... Hewitt Associates LLC, NYSE: HEW, based in Lincolnshire, Illinois is a global human resources (HR) outsourcing and consulting firm delivering a complete range of integrated services to help companies manage their total HR and employee costs, enhance HR services, and improve their workforces. ... The original definition of a Mercer is a merchant or trader, though its current meaning is more specifically a merchant who deals in textiles. ... Norwich Union is an insurance company in the UK. It is the biggest life-insurer in the UK, and has a strong position in motor insurance. ... This article or section should include material from Bell Atlantic This article or section should include material from GTE Verizon Communications (NYSE: VZ) is a local exchange telephone company formed by the merger of Bell Atlantic, a former Bell Operating Company, and GTE, which was the largest independant local exchange...

References

See also

• Globalization
• Software Technology Parks of India
• Nalini by Day, Nancy by Night — 2005 documentary on outsourcing in India
• Business process outsourcing in the Philippines
• Call center security
• Tidel Park
• HITEC City
• InfoPark, Kochi
• Technopark Kerala
• Silicon Valley of India
• Azim Premji — Father of the Indian Outsourcing phenomenon
• Jack Welch — Pioneer of Outsourcing to India
• Medical Transcription

The rise of multinational corporations and outsourcing have played a crucial part in globalization. ... Software Technology Parks of India (STPI) is a government agency in India, established in 1991 under the Ministry of Communications and Information Technology, that manages the Software Technology Park scheme. ... Nalini by Day, Nancy by Night is a 2005 documentary film by filmmaker Sonali Gulati. ... Business process outsourcing or BPO is an emerging industry in the Philippines. ... Information security has emerged as a significant concern for banks, mobile phone companies and other businesses that use call centers or business process outsourcing. ... Tidel Park Tidel park is located in south Chennai and is served by the Chennai MRTS Tidel Park is an IT Park situated in the city of Chennai, India. ... HITEX Exhibition Center, HITEC City HITEC City stands for Hyderabad Information Technology Engineering Consultancy City, a major technology township built in Hyderabad, India. ... The Vismaya building at InfoPark, Kochi InfoPark is a information technology park promoted by the government, located at Kochi, India. ... Technopark campus Park Centre, Technopark Technopark Kerala, located at Trivandrum (Thiruvananthapuram), India, is Indias first industrial park dedicated to electronics, software, and IT ventures. ... The Silicon Valley of India is a nickname of the Indian city of Bangalore. ... Premji (born July 24, 1945) is the Chairman & CEO of Wipro Technologies, which today is one of the largest software companies in India. ... Jack Welch as CEO of GE John Francis Jack Welch, Jr. ... Medical transcription, also known as MT, is an allied health profession which encompasses the process of transcription or converting voice-recorded reports as dictated by physicians and/or other healthcare professionals into text format. ...

Further reading

• Friedman, Thomas L. (2005). The World is Flat: A Brief History of the Twenty-First Century. ISBN 0-374-29288-4. 
• Kobayashi-Hillary, Mark. Outsourcing to India: The Offshore Advantage. ISBN 3-540-20855-0. 
• Sengupta, Arunabha. Labyrinth - A Novel about the Software Industry. ISBN 0-595-39697-6. 
• Sengupta, Arunabha. Big Apple 2 Bites. ISBN 8-188-81198-X. 

• Davies, Paul. What's This India Business?: Offshoring, Outsourcing, and the Global Services Revolution. ISBN 1-904838-00-6. 
• Aalders, Rob. The IT Outsourcing Guide. ISBN 0-471499-35-8. 
• Das, Gurcharan. India Unbound: The Social and Economic Revolution from Independence to the Global Information Age. ISBN 0-385720-74-2. 
• Brown, Douglas. The Black Book of Outsourcing: How to Manage the Changes, Challenges, and Opportunities. ISBN 0-471718-89-0. 

For other uses, see The World Is Flat (disambiguation). ...

External links

• NASSCOM (National Association of Software & Service Companies)
• Ministry of Communications & Information Technology, Department of Information Technology, India
• Legal Process Outsourcing (LPO) India Resources Of Legal Process Outsourcing Services

Articles

• "India being Bangalored by China", by Venkatesan Vembu, Daily News & Analysis, 27 May 2007
• The Rise Of India, Business Week Online
• Inside Outsourcing in India, CIO.com
• India's New Faces of Outsourcing, The Washington Post
• Outsourcing: Silicon Valley East, MSNBC
• Where the Good Jobs Are Going, Jyoti Thottam, Time.com
• Out Of India, CBS News
• Some U.S. hospitals outsourcing work: Shortage of radiologists spurs growing telemedicine trend, Associated Press
• U.S. homework outsourced as "e-tutoring" grows, by Jason Szep, Reuters
• BBC Will Outsource Accounting to India, Associated Press
• Strategic application of Offshoring in a CPA Practice , by Dev Purkayastha
• Radiology Outsourcing In India: IMC Breaks New Ground, medicalnewstoday.com
• Business Process Outsourcing: News Articles, DataBPO.com

Videos Daily News & Analysis, or DNA, is a popular English language newspaper based in Mumbai, India. ...

• The Other Side of Outsourcing, Discovery Times Channel
• Exporting IT: Austin to India, News 8 Austin
• Will India's outsourcing boom ever bust?: Infosys Chairman N.R. Narayana Murthy talks outsourcing, News.com
• India 101 on eweek Video Seminars hosted by Stan Gibson
• 30 Days - Outsourcing In India
• The Rise of India, ABC News