BPO industry to hire over 230,000 in INDIA ( 2012 )

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Will the IT outsourcing market double in 2016? What  are the key factors in growth of BPOs? What’s the scope of BPO industry?

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These and many more questions will be answered at the 26 BPO conferences being organized across India,  which promise to give an insight into leading issues relating to the development sector.

Starting in New Delhi on May 23, the Bharatico BPO Conference, being jointly organized by BPO Association, brand specialist Promozz Media and event management firm Alpcord, is aimed at bringing to the fore interesting and inquisitive facts concerning the BPO industry.

Siddhaarth Sharma, vice president, Promozz Media, says “The Bharatico BPO Conferences will have 26 keynote sessions and workshops along with over a 1000 senior professionals of the BPO industry as speakers and over 10,000 BPO experts as well as government officials presenting and discussing the growth and scope of the BPO industry.”

The conference draws significance as the the BPO industry is set to hire over 230,000 people in 2012.According to a recent survey by Ma Foi, ITES is one of the most optimistic sectors for hiring and they are among the top job generation sectors, with most of these leading from Tier 2 and Tier 3 cities of the country.
“The skill set for BPOs is shifting from urban towns to Tier 2 and 3 cities and that is where lies the answer to the near 400 per cent attrition that is plaguing the sector,” said Sandeep Jain, president of the BPO Association.

The conferences will be held at Mumbai, Bangalore, New Delhi, Chennai, Kolkata, Chandigarh, Hyderabad, Pune, Jaipur, Ahmedabad, Patna, Ranchi, Bhubaneshwar, Panaji, Gandhinagar, Trivendrum, Cochin, Shimla, Dehradun, Pondicherry, Lucknow and Agra.

“While India is best equipped to capitalize on the available opportunities, efforts should be made to ensure that these opportunities are not lost to other offshore destinations,” said Manan Vashisht, senior vice president, Bharatico Infomedia Ltd.

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What is BPO ( Business process outsourcing ) ?

What is business process outsourcing (BPO)? BPO is the process of hiring another company to handle business activities for you.

BPO is distinct from information technology (IT) outsourcing, which focuses on hiring a third-party company or service provider to do IT-related activities, such as application management and application development, data center operations, or testing and quality assurance.

In the early days, BPO usually consisted of outsourcing processes such as payroll. Then it grew to include employee benefits management. Now it encompasses a number of functions that are considered “non-core” to the primary business strategy.

Now it is common for organizations to outsource financial and administration (F&A) processes, human resources (HR) functions, call center and customer service activities and accounting and payroll.

These outsourcing deals frequently involve multi-year contracts that can run into hundreds of millions of dollars. Often, the people performing the work internally for the client firm are transferred and become employees for the service provider. Dominant outsourcing service providers in the BPO fields (some of which also dominate the IT outsourcing business) include US companies IBM, Accenture, and Hewitt Associates, as well as European and Asian companies Capgemini, Genpact, TCS, Wipro and Infosys.

Many of these BPO efforts involve offshoring — hiring a company based in another country — to do the work. India is a popular location for BPO activities.

Frequently, BPO is also referred to as ITES — information technology-enabled services. Since most business processes include some form of automation, IT “enables” these services to be performed.

An offshoot of BPO is KPO — knowledge process outsourcing. Considered by some to be a subset of BPO, KPO includes those activities that require greater skill, knowledge, education and expertise to handle. For example, whereas an insurance company might outsource data entry of its claims forms as part of a BPO initiative, it may also choose to use a KPO service provider to evaluate new insurance applications based on a set of criteria or business rules; this work would require the efforts of a more knowledgeable set of workers than the data entry would. The current definition of KPO encompasses R&D, product development and legal e-discovery, as well as a number of other business functions.

Also coming into use is the term BTO — business transformation outsourcing. This refers to the idea of having service providers contribute to the effort of transforming a business into a leaner, more dynamic, agile and flexible operation.