BPO Service (Marketing Research With Prod Life Cycle)

Title : BPO Services (Service
industry)
Subject : MABD
Program : GPBL
Level / Semester : SEM 1
Name of Student : Girish Masur
Word count : 1050

Word Limit : 2000
1
Table of Content
S.NO Content Page(s)
1. Introduction – Service sector in India 5
2. BPO Industry in India- A Report 6
2. Progeon- Infosys BPO 7
3. Segmentation 8-9
4. Product life-cycle 10
5. Bibliography 11
2
BPO Service
Service Sector in India
Introduction
Service Sector in India today accounts for more than half of India's GDP. According
to data for the financial year 2006-2007, the share of services, industry, and
agriculture in India's GDP is 55.1 per cent, 26.4 per cent, and 18.5 per cent
respectively. The fact that the service sector now accounts for more than half the
GDP marks a watershed in the evolution of the Indian economy and takes it closer
to the fundamentals of a developed economy.
Services or the "tertiary sector" of the economy covers a wide gamut of activities
like trading, banking & finance, infotainment, real estate, transportation, security,
management & technical consultancy among several others.
BPO Industry in India- A Report
Business process outsourcing (BPO) is a broad term referring to

outsourcing in all fields. A BPO differentiates itself by either putting
in new technology or applying existing technology in a new way to
improve a process.
3
Business Process Outsourcing (BPO) is the delegation of
one or more IT-intensive business processes to an external
provider that in turn owns, administers and manages the selected
process based on defined and measurable performance criteria.
Business Process Outsourcing (BPO) is one of the fastest

growing segments of the Information Technology Enabled Services
(ITES) industry.
Few of the motivation factors as to why BPO is gaining
ground are:
• Factor Cost Advantage
• Economy of Scale
• Business Risk Mitigation
• Superior Competency
• Utilization Improvement
Different Types of Services Being Offered By BPO's
1. Customer Support Services
2. Technical Support Services
3. Telemarketing Services
4. Employee IT Help-desk Services
5. Insurance Processing
4
Infosys BPO
The company was started as Progeon Limited in April 2002 and is today among the top
third-party BPOs in India according to NASSCOM. It was started as a 74% and 26%
joint venture between Infosys and Citibank Investments. In 2006 Infosys bought out
Citibank's share at a price of Rs 592 per share, Citi having invested at Rs 0.20 per share.
Initially, the CEO was Akshaya Bhargava, who was formerly in Citibank. Bhargava left
the organisation in 2005 and Amitabh Chaudhry, the COO took over as the CEO.
It has its headquarters in Bangalore and has operations in

• Chennai, India
• Gurgaon, India
• Jaipur, India
• Pune, India
• Monterrey, Mexico
• Łódź, Poland
• Brno, Czech Republic
• Bangkok, Thailand
• Hangzhou, China
• Manila, Philippines
Segmentation
• Geographic
5
Region: BPO service has a strong impact on the southern part of
India because of the large development and presence of IT
companies.
Cities like Bangalore, Hyderabad, Chennai, Mysore all together
constitute the silicon valley of India and hence makes a strong
target market for BPO industry. Recently, there has been a great
rise for BPO market in the northern part of India like Delhi, Noida,
Gurgaon.
Urban areas: BPO services has a strong demand in urban

areas/bigger cities as the population in such cities are educated
and do not have enough time for most of the things and hence
largely depend on BPO services.
Most of the BPO services are given via telephone/mobile phones or
internet and hence require skilled and educated people to
understand the services provided by such services.
Rural areas: The services provided by BPO industry are minimal

or absolutely zero in the rural area as the majority of the
population is illiterate. Also the telephone service or internet
service in rural area restricts the usage of this service.
• Demographic
The demographic segmentation plays a very important role in the
usage of BPO services. This segment involves a large spectrum of
people from different categories like age, gender, occupation,
education etc.
• Age(23- 50) Age is an important factor here. The main target
for the BPO industry is the working class people who do not
enough time for other important things. E.g. People who do
not have time to go to the nearest bank and transfer money
can call up the customer service and do the transfer.
6
Age(14-22): Other important age group is the college going
public who are the major user of the mobiles/cell phones. Such
segment also makes use of BPO services on a large scale. E.g.
all the mobile phone service related issues are served by the
BPO services.
• Gender:
Males are the major consumers of the BPO services as compared
to females because they hold a majority under the working class
people.
Females are not a very strong consumer as compared to males.
• Education :
Education here plays a really important role as not many people
know about the services offered by the BPOs today. 8 out of 10
people who make use of the BPO services are literates.
• Generation
Today’s generation is fast moving and largely depends on mobile
phones and internet. Hence BPO plays a very important role for
the new generation people as it offers most of the services via
internet and mobiles.
E.g. Most of the people today use internet for shopping and
buying stuff online. BPO services give such people support about
the product dispatch numbers, total cost and new offers.
• Psychographic
Psychographic segmentation is sometimes also referred to as
behavioral segmentation. This type of segmentation divides the
market into groups according to customers’ lifestyles.
Lifestyle: Modern family or the new/young generations are the
major consumers or receivers of the BPO services.
E.g. Most of the people these days use credit cards and net
banking services. Most of the post service after the usage of such
facilities is provided by BPOs.
7
Product life cycle of BPO services
Phases
Introduction: BPO industry started in early 1980s in India with
the help of some European airlines.
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 organization called WNS Global Services in 2002.
Growth: The Indian BPO market is estimated to have grown from

$4.6bn in 2004 to $6.3bn in 2005, recording a growth of nearly 48
per cent – accounting for 27 percent of total software and services
exports.
Maturity: After a fast growth in Indian market, BPO reached a

maturity level in 2006-2007. Due to economic slowdown, the
growth rate was slow.
8
Decline: Due to global
meltdown, recession and
mainly because of the major
impact on America’s
economy the BPO industry
started experiencing decline
in its growth and sales.
Bibliography
• Philip Kotler
• Wikipedia
• http://tutor2u.net/business/marketing/segmentation-
psychographic.html

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Title : BPO Services (Service

Word count : 1050

S.NO Content Page(s)

1. Introduction – Service sector in India 5

2. BPO Industry in India- A Report 6

2. Progeon- Infosys BPO 7

BPO Industry in India- A Report

Business process outsourcing (BPO) is a broad term referring to

Business Process Outsourcing (BPO) is one of the fastest

It has its headquarters in Bangalore and has operations in

Urban areas: BPO services has a strong demand in urban

Rural areas: The services provided by BPO industry are minimal

Females are not a very strong consumer as compared to males.

Growth: The Indian BPO market is estimated to have grown from

Maturity: After a fast growth in Indian market, BPO reached a

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