BPO Demystified

September 15, 2012




1. Shift of Jobs by Verticals 

By the year 2015 an estimated 3.3 million US jobs would have moved offshore, a whooping 3000% increase from the year 2000. 

Number of U.S. Jobs Moving Offshore

Sl.No

Job Category

2000

2005

2010

2015

1

Management

0

37,477

117,835

88,281

2

Business

10,787

61,252

161,722

48,028

3

Computer

27,171

108,991

276,954

72,632

4

Architecture

3,498

32,302

83,237

84,347

5

Life Sciences

0

3,677

14,478

36,770

6

Legal

1,793

14,220

34,673

74,642

7

Art, Design

818

5,576

13,846

29,639

8

Sales

4,619

29,064

97,321

26,564

9

Office

53,987

295,034

791,034

1,659,310

 

Total

102,674

587,592

1,591,101

3,320,213

Source: U.S Department of Labour and Forrester Research, Inc.

2. Skills required for BPO verticals

SEGMENTS

SKILLS

Call center

Good communication and language skills, accent understanding team leadership, basic computing skills

Remote customer interaction

Language and accent understanding

Date search, Integration

Computing, language and analytical skills

Human Resource Services

Country specific HR policies, rules and regulations

Remote education

Subject knowledge, computing and language skills

Engineering and design

Technical and engineering design and computing skills

Translation, medical transcription and Localisation

Language understanding, basic computing (word processing knowledge) and understanding of various medical terminologies

Animation

Drawing and creative skills, computer graphic skills

Finance and accounting

International/ country specific accounting rules

Market Research

Understanding statistical sales and marketing concepts

Network Consultancy and management

Understanding different network configurations and support equipment, technical/ computing skills

3. Global geographical distribution of BPO Providers

India ranked first in the survey on where financial services companies' BPO providers are located with 21% . Russia is next with 10% followed by the Philippines (9%) and Eastern Europe (8%). The United States, Mexico, and Israel tied at 7%. (source FSOoutsourcing.com)

4. Attrition Rates in Indian BPO industry

A useful comparison of attrition rate of BPO employees vis a viz employees in other industries. This is arrived at by mapping the time an employee has spent in the same organisation.

Sr.No

Sector

0-3 years

4-7 years

8-12 years

13+ years

% change from 2006 to 2007

Expected increase in 2008

1

Pharma & Chemicals

25.00%

10.00%

5.00%

2.00%

-5.00%

6.00%

2

Manufacturing

8.58%

2.46%

2.46%

3.00%

5.00%

-3.50%

3

Financial Services

20.00%

20.00%

20.00%

20.00%

 

 

4

Hospitality

35.00%

25.00%

20.00%

7.50%

13.00%

20.00%

5

Ad & Media

40.00%

35.00%

20.00%

15.00%

17.00%

22.00%

6

BPO

40.00%

30.00%

20.00%

10.00%

 

 

7

Automobile

7.00%

3.00%

2.00%

2.00%

No visible

14.00%

8

Auto Component

12.00%

15.00%

20.00%

12.00%

5.00%

6.00%

9

Banking

10.00%

5.00%

2.50%

2.50%

2.00%

2.00%

10

Infrastructure

16.00%

11.00%

7.00%

11.00%

9.00%

20.00%

11

IT & Telecom

32.00%

25.00%

10.00%

5.00%

5.00%

9.00%

Source: Emmay HR / BusinessWorld, 4 Feb 2008