Business Process Outsourcing (BPO) and Knowledge Process Outsourcing(KPO)

K. J. SOMAIYA COLLEGE OF SCIENCE AND COMMERCE

VIDYAVIHAR MUMBAI -400077

AUTONOMOUS -AFFILIATED TO UNIVERSITY OF MUMBAI

RE-ACCREDITED "A” GRADE BY NAAC

SEAT NO. 1818105

A PROJECT REPORT ON

RECENT TRENDS IN HRM

BUSINESS PROCESS OUTSOURCING (BPO)

AND

KNOWLEDGE PROCESS OUTSOURCING(KPO)

SUBMITTED BY

MISS. KAJAL ANIL SODE

CLASS - M.COM(BUSINESS MANAGEMENT)PART-1

ROLL NO. 1818105

IN THE SUBJECTS OF

HUMAN RESOURCES MANAGEMENT

ACADEMIC YEAR 2018-2019

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 Business Process Outsourcing (BPO) and Knowledge Process Outsourcing(KPO)

K. J. SOMAIYA COLLEGE OF SCIENCE AND COMMERCE

VIDYAVIHAR MUMBAI -400077

AUTONOMOUS -AFFILIATED TO UNIVERSITY OF MUMBAI

RE-ACCREDITED "A” GRADE BY NAAC

SEAT NO:1818105

THIS IS TO CERTIFY THAT KAJAL ANIL SODE OF M.COM(BUSINESS MANAGEMENT) PART-1HAS

COMPLETED A PROJECT REPORT ON BUSINESS PROCESS OUTSOURCING(BPO) AND KNOWLEDGE
PROCESS OUTSOURCING(KPO) IS IN THE SUBJECT OF HUMAN RESOURCES MANAGEMENT THE
ACADEMIC YEAR 2018-2019.

HEAD OF DEPARTMENT

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 Business Process Outsourcing (BPO) and Knowledge Process Outsourcing(KPO)

DECLARATION

I HEREBY DECLARE THAT THIS PROJECT REPORT ENTITLED BUSINESSS PROCESS

OUTSOURCING(BPO) AND KNOWLEDGE PROCESS OUTSOURCING (KPO) IS THE RESULT OF MY
OWN EFFORTS IN AND AS A PART OF THE CURRICULUM IN M.COM( BUSINESS MANAGEMENT)
PART 1 “K. J. SOMAIYA COLLEGE OF SCIENCE AND COMMERCE” .

KAJAL ANIL SODE

ROLL NO. 1818105

K. J. SOMAIYA COLLEGE OF SCIENCE AND COMMERCE

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 Business Process Outsourcing (BPO) and Knowledge Process Outsourcing(KPO)

ACKNOWLEDGEMENT

THE SATISFACTION THAT ACCOMPLISHES THE SUCCESSFUL COMPLETION OF ANY WORK IS

WHEN WE SAY THANK YOU TO THE PEOPLE WHO MADE IT POSSIBLE, WHOSE CONSTANT
ECOURGMENT AND GUIDANCE HAS BEEN AND GUIDANCE HAS BEEN A SOURCE OF INSPIRATION
THOUGHTFUL THE COURSE OF MY PROJECTS.

I WOULD LIKE TO THANK THE LIBRARIAN OF OUR COLLEGE FOR PROVIDING US WITH BOOK
NEEDED TO COMPLETE MY PROJECT, MY FAMILY & FRIENDS WITHOUT WHOSE SUPPORT MY
PROJECT WOULD NOT HAVE BEEN POSSIBLE.

I AM ALSO IN DEBT TO MY PROFESSOR FOR HIS VALUABLE HELP AND COOPERATION

THROUGHOUT THE PROJECT.

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 Business Process Outsourcing (BPO) and Knowledge Process Outsourcing(KPO)

INTRODUCTION

▪ BUSINESS PROCESS OUTSOURCING (BPO)

Business process outsourcing, or BPO, is a business practice in which one organization hires another
company to perform a task (i.e., process) that the hiring organization requires for its own business
to successfully operate.BPO has its roots in the manufacturing industry, with manufacturers hiring
other companies to handle specific processes, such as parts of their supply chains, that were
unrelated to the core competencies required to make their end products.

However, organizations in other industries adopted the practice through the years. Now, the use of
BPO has expanded so much that organizations of all kinds -- for-profit businesses, non profits, and
even government offices and agencies -- contract with BPO service providers in the United States,
throughout North America and across the world to perform numerous processes.

According to the BPO Services Global Industry Almanac 2013-2022 released in May 2018, the overall
BPO Services sector generated revenues of $144.9 billion in 2017.

BPO refers to Business Process Outsourcing. The BPO executives are supposed to monitor many tasks
and the work in the back office which includes helping customers or clients with billing or purchasing or
if the customer wishes to create an account for any product and much more. BPO operation particularly

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means giving the contract to a third party vendor to carry out the back- office tasks. Usually, big
organizations consider it as a money saving tactic by outsourcing their back office business to
another company where they itself carry out the front office themselves.

A BPO executive has many tasks where the most important out of many is to ensure client or the
customer's satisfaction.

RESPONSIBILITIES
 The primary task of a BPO executive is to handle calls from customers or clients and provide them
with a solution to their queries.

 He/She must show the willingness to learn new things every time and then.

 Must discuss every matter with its supervisor or team leader to get any issue sorted

 Giving a resolution to the customers or clients should be the whole and sole responsibility.

 Should carry out various other professional services like Business Research, Legal services, Financial
Analysis etc.

 Must be very effective in providing customer service by providing resolution to their complicated
queries and issues.

 Must efficiently set goals and work on so as to avoid any escalations and maintain the relevancy and
quality while providing service to the customers.

SKILLS
Where communicating with the customers is the only task which is carried out majorly, a
candidate applying for a BPO job should have good Oral and written communication. An
effective communicator, probably fluid with what he/she is speaking and a BPO executive should
a computer literate.
A BPO executive should be flexible enough to adapt to any environment or changes happening
in the sector. They should be patient enough and quite motivated towards learning new things
and execute it effectively on day to day basis. A person should also have a clear view of what the
current market trend is.

 Should have good Oral and written communication.

 An effective communicator, probably fluid with what he/she is speaking.

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 Should be a computer literate.

 Should be flexible enough to adapt to any environment or changes happening in the sector.

 Should be patient enough and quite motivated towards learning new things and execute it
effectively on day to day basis.

 Should also have a clear view of what the current market trend is.

EDUCATIONAL QUALIFICATION
The BPO industry demands a degree in any specification from an accredited institution. Some
BPO organization specifically ask for a bachelor's degree in science, maths or statistics
depending upon the client they are working for.
This sector also asks for school leavers or a high school diploma to work as an intern.

SALARY
A BPO Executive earns an average salary of Rs 202,379 per year. Experience matters the most in
this industry which also helps in promotion. An expertise in the Customer Relationship
Management (CRM) tool automatically makes one eligible for a high pay job. (Source: Pay
scale).

• WHY TO OUTSOURCE IN BPO

The reason for companies to outsource their business processes is pretty

simple. Business Process Outsourcing enables business owners to reduce
the burden of work and concentrate on other core aspects of their operation.

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• WHAT IS BPO USED FOR : Organizations engage in business process outsourcing for two
main areas of work: back-office functions and front-office functions.Organizations can outsource a
range of back-office functions (also referred to as internal business functions) including accounting,
IT services, human resources(HR), quality assurance (QA)and payment processing.Similarly, they can
outsource various front-office functions, such as customer relation services, marketing and sales.

KEY SERVICE OF BPO INDUSTRY:

Basically, Business Process Outsourcing services can be segmented into back
office outsourcing and front office outsourcing. Both the sections include
different services to be taken care of.

Back Office Outsourcing Services: These services include: data entry,

quality assurance, data management, data entry, payment processing, and
surveys.

Front Office Outsourcing Services: These services include email, fax, phone
conversations and other types of interaction with consumers.

Businesses mainly do Business Processes outsourcing (BPO) front office services in

customer support, inbound and outbound sales, appointment scheduling, market analysis
and research, and technical support,
With all this, comes the types of BPOS. If we see it from a geographical perspective: there
are three types of services: offshore, nearshore and on-shore. Adding on to the
geographical types, there is also a difference in the types of services offered by each
vendor. The two most common types are

 Vertical services

 Horizontal services

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Vertical Services: This is the fastest segment of growth in the area of outsourcing
as it stretches the outsourcing/BPO equation by offering another avenue for
businesses to roll out new services, products and more. These may be branded as
the core functionalities earlier. Vertical outsourcing permits even small to medium-
sized businesses to inculcate competencies of their suppliers and outsourcers into
their respective model. Manufacturers have taken a very long approach where
supply chain may be incorporated and redesigned into the business model.

For instance: Nike has focused a great deal on development and design of the new
products and together with this, marketing the core manufacturing process that it
outsources. Now a lot of businesses in this service industry have realized the strength of
vertical outsourcing too.

Horizontal Services: These are the services provided by Providers to a particular

industry niche or vertical. For instance: Financial services and insurance. A BPO
outsourced provider may have specialization in offering outsourcing services to the
BFSI clients, but may also offer multiple types of outsourcing service support to the
consumers. Companies may offer inbound call center support, chat support, email
support, forms processing, digitization services, etc., everything geared toward
financial services and banking but not to any other industry vertical.

Geographical Types of BPO

As companies across the globe offer BPO services to other organizations, BPO can be
segmented into different types on the basis of the service provider’s location.

Offshore Outsourcing: Offshore outsourcing or only offshoring takes place when an

organization signs a contract for services offered by a company in the foreign country.

Onshore Outsourcing: Domestic outsourcing or onshore outsourcing takes place when an

organization contracts for services offered by a company operating in the same country as
a hiring organization.

Nearshore Outsourcing: Nearshored outsourcing is when an organization contracts for

the services offered by companies located in the neighboring countries.

IMPORTANT
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 Business Process Outsourcing (BPO) and Knowledge Process Outsourcing(KPO)

Business Process Outsourcing is an important component of Business Strategy of

major organizations worldwide. BPO is positively related to the quest for more efficient
organizational designs: cost reduction, productivity growth and innovative capabilities.
Hence, BPO is important source for strategic advantage.

TYPES OF BPO SERVICES

BPO offer all types of international BPO services which are

▪Data entry

▪ File conversion

▪Transport

▪Voice Processing

▪Telemarketing and many

other types of services throughout the globe.

TOP TEN BPO COMPANIES IN INDIA

1) GENPACT
2) TATA CONSULTANCY SERVICES(TCS)
3) WIPRO
4) Aegis Limited
5) Infosys BPO
6) Serco Global Services
7) WNS Global Services
8) First source Solutions
9) Hinduja Global Solution

¤ EXAMPLES:

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 Business Process Outsourcing (BPO) and Knowledge Process Outsourcing(KPO)

1)TATA CONSULTANCY SERVICE (TCS)

The BPO segment of Tata Consultancy Services (TCS) is one of the biggest names in the Indian BPO
industry. The BPO segment is responsible for generating 12% of the company’s total revenue. TCS BPO
ranks among the top 10 IT services providers in the world.
TCS offers a variety of services that include enterprise services, platform solutions, analytics & insights
services, etc. TCS BPO has garnered a name for itself in this sector through excellent customer services.

¤ EXAMPLES:

2)Wipro BPO
Wipro is an iconic global brand in the Information Technology sector and has a presence in more than
175 cities spread across 6 continents. Wipro entered the BPO industry in 2002. Wipro BPO made its mark
in the industry through a combination of operational excellence, industry expertise and transformation
capabilities.
The company offers a wide range of services, including customer management services, human resource
outsourcing and knowledge service.

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 Business Process Outsourcing (BPO) and Knowledge Process Outsourcing(KPO)

KNOWLEDGE PROCESS OUTSOURCING (KPO)

Knowledge Process Outsourcing of job that require knowledge,skill, expertise. The work in KPO
involves process like market research, survey analysis, data mining etc.) information-related
business activities which are competitively important or form an integral part of a
company's value chain.
Reasons behind KPO include an increase in specialized knowledge and expertise additional
value creation, the potential for cost reductions, and a shortage of skilled labour. Region which
are particularly prominent in Knowledge Process Outsourcing include India, Sri Lanka, and
Eastern Europe, especially Poland, Romania, and the Baltic States.
KPO is a continuation of Business process outsourcing, yet with rather more of business
complexity. To be successful in Knowledge process outsourcing, a lot of guide is required
from inter organizational system.

KPO, which I believe every one of you is aware of is Knowledge Process Outsourcing,
which in general terms means outsourcing some knowledge based work of the
organization to be done by any third party in consideration for some pay.

This knowledge-based work is mostly technical in nature which requires specialized

skills and the person or team should be analytical in their approach.

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In general, India is considered to be the major hub for KPOs along with China, Ireland,
Israel, and Russia. It is also said that approximately 70% of the KPOs work is
outsourced to Indian companies. The apparent reason being.It is also said that nearly
70% of the KPOs work is outsourced to Indian companies. The apparent reason being
the availability of technical skill set of engineers, doctors, graphics and website
designers, Chartered Accountants, Architects, Economist, etc. at a very low cost.

DUTIES AND RESPONSIBILITIES

There are a number of duties and responsibilities which have to be fulfilled by a KPO
and they are as follows:

 The person has to monitor the random calls daily for the reduction of number of
mistakes or errors and for better performance as well.
 He or she has to carry out many professional services, like legal services,
business research, management consulting and financial analysis.
 He or she needs to handle all the complex customer queries, complaints, issues
and questions calmly.
 It will be the responsibility to improve the quality, escalating sales, efficiency, and
high speed.
 It will be needed to inspire and motivate the staff by providing the bonus,
rewarding schemes, etc…
 He or she has the responsibility to maintain the coordination with supervisors,
team leaders, people in charge, and other individuals to collect information.
 He or she has to oversee the performances of the employees perfectly so has to
make an examination of the performance statistically.
 The duty includes managing the daily tasks and work of the KPO perfectly.
 He or she should be very clear about the concepts of the business and have very
clear understanding of technical skills.

SKILLS:

The person needs to be an excellent communicator and should have skills both verbal
and written with the basic computer knowledge .He or she needs to have ability to adapt
to perpetual changes in KPO sector.He or she should be very patient and motivated
towards the work.
Interpersonal skills, positive attitude and getting along with people are the
required skill set for KPO career. Excellent domain knowledge, analytical
skills, web researching skills and hands-on experience in MS Office Suite
(Word, Excel, and PowerPoint) are the essential skills for this industry.

EDUCATIONAL QUALIFICATION :

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 The basic degree required is a high school diploma from an accredited institution.
 The other required degree is a Bachelor’s degree in science, engineering, or
commerce, or any related field from an accredited institution.
 The person should have done diploma in Management from certified college.

WHY TO OUTSOURCE IN KPO ?

Organizations tend to use the KPO services when they find it beneficial to them
regarding finance, time, and manpower.Instead of creating a division for doing the
particular work they prefer to outsource the same since it is more beneficial to them.
Whenever the cost of creating a division for any specific skilled work is more, then the
organization prefer to outsource the same, since they get the same work done more
efficiently, with more skill sets and with better quality at a lesser cost.

KEY SERVICE OF KPO INDUSTRY

 Financial consultants.

 Research and development.

 Business operations.

 Technical analysis.

 Investments.

 Legal.

 Medical.

 Data analysis and interpretation.

IMPORTANT

The developing rivalry has brought about shorter time to market cycles, and clients are getting to be
more demanding regarding quality. This has constrained the firms to give operational proficiency
and increase the value of their products and services. The customer can launch an item quicker and
get to the market immediately. A company can lessen the complexities included in overseeing and
constantly constructing information in an extensive pool of human resources.
core competencies and focus only on them; and getting everything else done through outside
agencies.

TOP TEN KPO COMPANIES

•Genpect

• Evalueserve

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• Ugam Solutions

• WNS Global Services

• 24/7 Customer

• ICICI OneSource

• EXL Service

• Copal Partners

• Pangea3

• TechBooks

¤ EXAMPLE

Genpect:

Genpect was previously called as GECIS and in addition to KPO sector, they are the top
company in India in the BPO Sector as well. The KPO hand of this biggest BPO organization
has a staff strength of 1200 people and most of their staff members are advanced degree
holders. They specialize in the KPO Sector in the following areas:

• Database generation

• Research

• Customer Value mapping

• Customer relationship management

• Program tracking

• Campaign management

• Competitive intelligence

¤ EXAMPLE :

WNS Global Services

WNS Global Services are based in Mumbai and they are one among the top players in India
in the BPO Sector as well. They have engaged more than 300 of their staff members in the
KPO industry and in the KPO sector they are offering the following services:

• Business research

• Investment research

• Market research

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CONCLUSION

After completing my project I conclude the detail study of Business Process Outsourcing(BPO)
and Knowledge Process Outsourcing (KPO).I also come to know how they work and what
qualification or skilled is required to work their even their future career or salary or
remuneration given by them. Both BPO and KPO have their various types and importance. In
India they are many companies who work with BPO and KPO such as TCS, Wipro,Genpack.With
the help of this all information I achive my objective to learn deeply about BOP and KPO and
complete my project.

REFERENCE

▪ https://software-it-outsourcing.com/what-is-bpo/kpo

▪ https://www.businessprocessincubator.com

▪HUMAN RESOURCES MANAGEMENT TEXT BOOK BY MANAN PRAKASAN

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