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Operational Issues in the BPO industry

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Operational Issues in the BPO industry Project Details Objective of the project This project will consist of a thorough study on the various operational issues involved in the BPO industry. The project would focus on the detailed study of these issues in some of the BPO companies. These companies will be studied in depth. The various issues involved in capacity management, service levels and contracts process would be analyzed and compared. Methodology adopted Phase 1: The first phase of the project involves secondary research on the Indian BPO industry and current issues faced by this segment. The literature survey would also involve a study to understand the issues that are involved in a typical call center. The companies to be visited will also be chosen in this phase. Phase 2: This phase would involve a study of selected BPO companies. A couple of visits to the company were made to understand the nuances of the various problems faced in the operations of the company. They were analyzed across different parameters. The questionnaire that was used to get the information is attached in Appendix 1. Business Process Outsourcing Business process outsourcing is defined as the delegation of the ownership, administration and operation of a business process or processes to a third party or to an external service provider. A customer servicing BPO company is typically run with the help of many call centers. Call center It is a functional area within an organization or an outsourced, separate facility that exists solely to answer inbound or place outbound telephone calls. It usually refers to a sophisticated voice operations center that provides a full range of high-volume, inbound or outbound call-handling services, including customer support, operator services, directory assistance, multilingual customer support, credit services, card services, inbound and outbound telemarketing, interactive voice response and web-based services. Types of BPO industry Call Center Outsourcing The three options available to run a call center are: * captive facilities * third-party * outsourcing joint ventures The captive facility option provides the greatest savings and control. ...read more.


At this point of time the agents were not trained. But once the raining got over and the agents were skilled enough the system was hanged to transaction based system. This way the service provider will not be at the losing end n the initial stage where the agents were not skilled enough. Contractual process In any BPO industry there are contracts between the BP industry and the outsourcing firm. These contracts might be obtained through bidding or normally. The size of a call center is determined by the peak demand and not by the average demand. Hence when the companies bid there is a kind of problem that exists due to the inability to predict the actually demand. As a part of the project we will try and figure out how contracts are signed up in the BPO companies. If the client is an established one, they outsource the process of choosing the vendors to a consulting company. They come in the stages of negotiations and final bidding process . If the service provider is an established the clients go up to them, offer their presentations and negotiate the deals. Hence here the negotiating power of either player is an important factor in determining the contract terms and conditions. Performance metrics The performance metrics varies from company to company. They vary based on the type and the policies of the company. They maybe broadly classified under the following heads: Business outcome Metrics: This measures the quality of service from a results perspective. Service metrics: These measures the health of a process using the information provided both by the client and the BPO service provider. Transformation Metrics: This is used to measure the progress or a planned change. These above metrics are measured using the following parameters 1. General: Cost of the project and client satisfaction 2. People: Turnover, experience and performance reviews of people working on the project 3. ...read more.


Appendix 1 SLA's * What are he type of SLA's used * What is the interval of the SLA? * What are the specifications with the client? * Are there any delays in the SLA's? * What is the cost involved in the SLA's? * What kind of seasonality exists in the demand during the day, month, week and year? * What are the penalties of not meeting the SLA's? HR and Staffing * What are the internal incentive schemes given by the HR department? * What are the incentive schemes given by the client to the organization? * What is the staffing variation? * How the staffing is maintained during the peak hours and during the lean period? * How is the attrition maintained? * IS it very high? * What does an employee who joins newly have to go through? (in terms of training) * Is there any safety stock for staffing? * Does the attrition have any effect on the SLA's? Payments * How are the payments made? * Is the payments transaction based or agent based? * What is the trend that is being followed? (transaction based or agent based) * What would a service provider prefer? Other * What is the main objective ( to reduce attrition or to increase the calls) * What is the usual variability in the demand? * How is the utilization rate? Performance metrics * What are the performance metrics? * How are they measured? Clients * Do the clients have a dedicated set of resources? They have a dedicate set of resources. * If there is no dedicated set of resources how are the calls serviced? Contracts * How are the contracts made? * What is the bidding process like? * What are the improvements made on the contracts? * Does the client pose any kind of improvement schemes? Front end * What are the different types of calls that are made? * IS there any time limit for the calls? * What are the monitoring systems? ?? ?? ?? ?? Operational issues in BPO industry 3 ...read more.

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