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INTRODUCTION
To meet the specific needs of our client partners, we maximize our company experience and focus on
select business industries. By concentrating our experience and resources in this way, HOS is able to
anticipate and identify trends within these specific industries. This helps us proactively meet and
exceed our clients' expectations for the services we provide to support their business objectives
Need someone to man the phones while your company focuses its resources elsewhere? Serving
Fortune 500 and other large companies, Hinduja outsourcing Solutions provides business process
outsourcing (BPO) services across several industries, including telecom, health care, and consumer
products. It offers call center-based customer service for telecom and utility companies; product tech
support for consumer electronics manufacturers and software makers; and claims processing and data
entry services for health insurance companies. The majority of its customers are located in North
America, but it also operates in the UK and India. Founded in 2000, Hinduja Global is part of the
Indian conglomerate Hinduja Group.
Our diversified experience across domains enables us to anticipate and meet business challenges with
tailor-made solutions that adapt to client's strategy and needs.
When you choose HGS as your service provider, we work with you directly to develop solutions that
support your unique business strategies. We will identify, within our organization, experts in your
industry who will partner with you to develop a comprehensive understanding of your programs and
thereby the appropriate solution set to support them. Throughout the life of our relationship with you,
and as your industry changes, we will continue to make program/project recommendations, assuring
the highest levels of satisfaction are always achieved.
Our diversified experience across domains enables us to anticipate and meet business challenges with
tailor-made solutions that adapt to client's strategy and needs.
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 1
Our full suite of solutions target all the four phases in a Customer Service Lifecycle:
Objectives of the study:
To get the practical exposure in the corporate world.
To have a proper balance between the theory and practical knowledge.
To study origin, growth, vision, mission and status of the organization.
To study the functional departments exist in the organization.
To evaluate the effectiveness of the organization.
To study the problem areas in the organization.
To provide some valuable suggestion to improve the efficiency in the organization.
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 2
INDUSTRY PROFILE
HISTORY:
HTMT Global Solutions Ltd is one of the largest transnational business conglomerates in the world.
The company provides information technology enabled services in India and internationally. They
offer professional IT staffing, claims processing, call canter, software development, and consulting
services. They also provide customer relationship management programs integrating inbound contact
centre, Internet, database marketing, market research, closed loop lead management, and fulfillment
services. The company offers services in verticals like automotive, banking and financial services,
consumer electronics, energy and utilities, government/public sector, healthcare and insurance,
household and consumer products, logistics and transportation, media and entertainment,
pharmaceuticals and life sciences, technology and telecommunications. They are having 20 delivery
centres across US, Canada, Mauritius, Philippines and India, all working towards creating leaders out
of their clients. HTMT Global Solutions Ltd was incorporated on January 13, 1995 as Tele Video
Communications India Pvt. Ltd with the objective of carrying out the activities relating to media
business. The company was converted into a public company on May 20, 2006. During the year
2006-07, the company's name was changed form Tele Video Communication India Ltd to HTMT
Technologies Ltd and then to HTMT Global Solutions Ltd. In November 2006, the company
acquired Affina in Illinois State which has multiple centres in Peoria, Waterloo, St Louis, El Paso and
Montreal, has significantly added to the Company's delivery capabilities and global footprint. The
Information Technology and Information Technology Enabled Services, undertaking of Hinduja
TMT Ltd was demerged and transferred to the company on a going concern basis with the appointed
date, October 1, 2006 and thus Source1 HTMT Inc, USA, Affina LLC, USA, HTMT Europe Ltd,
UK, Hinduja TMT France, Customer Contact Center Inc, Philippines, CCubed (Antilles) NV, C-
Cubed BV, Pacific Horizon Ltd became the subsidiary company. The equity shares of the company
were listed on the BSE and NSE on June 19, 2007. HTMT Global solutions Ltd was ranked among
top 15 ITES-BPO exporters for the financial year 2006-07 by NASSCOM. They are ranked No 2 in
the Best performing Call Center Firms worldwide in the Global Services 100 survey conducted by
Neo IT & Global Services Magazine in January 2008. Also, they were the winner of ICT Innovation
Award 2008. In June 2008, the company expanded their footprint to Chennai by inaugurating their
second delivery centre at Nandambakkam. With this, the company has 11 delivery centres across
India in Bangalore, Chennai, Durgapur, Hyderabad, Mumbai and Mysore.
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 3
Industry Recognition:
1 one of the ITES Companies in India,
Winner most Innovative BPO Philippines
Top 15 ITES BPO exporters FY07/08
Top 10 employer’s employee satisfaction HR practices
1 of the 200 'best under a billion forbes Asia'
Gold Medalist Compentency Development
Top 2 call centre companies globally (last 3 years)
Gold Medalist Lean Six Sigma
Indian BPO Industry: The Inside Story:
India on the fast track:
At the turn of the millennium, India has numerous reasons to smile about. The economy is no longer
passive and redundant; on the contrary it is one that is being steered by the winds of social and
economic changes. During the past few years, the country has seen phenomenal developments in its
political, social and economic infrastructure, accelerated by the strong forces of globalization and
Information Technology. A country with a resurgent, progressive economy; India can be rightly
called the foster-child of globalization.
The booming Information Technology (IT) segment comprising ITES (IT-enabled services) / BPO
(Business Process Outsourcing) are the core sectors that have driven the country into the epicenter of
change. The liberalization of the Indian Telecom sector in 1994 gave an unexpected boost to the
ITES/BPO industry. In no time, India has turned into a hot destination for global offshore
outsourcing companies. The expansion in this sector can be attributed to the leading IT giants,
captive players and third party service providers, who dominate the Indian ITES/BPO market. While
the countries around the world are vying for a fair share of the cake, India has grabbed the pie as the
preferred destination for offshore outsourcing. Indeed, India is shining.
BPO Industry: India clicks!
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 4
India became familiar with ‘Business Process Outsourcing’ only in the early and mid 1990’s, but
now the entire country seems to be quivering with the ‘BPO fever'. The foreign direct investment
(FDI) in the country owes a lot to this sector, which is progressing at a break-neck speed. The
different kinds of services offered by BPO's include Customer Support, Technical Support,
Telemarketing, Insurance Processing, Data Processing, Internet / Online / Web Research and so on.
The cheap labour costs and the pool of skilled, English-speaking Indians have always been the two
foremost factors contributing to the BPO boom in the country. As the National Association of
Software Services and Companies (NASSCOM) points out, the other equally motivating factors
include strong quality orientation among players, ability to offer round-the-clock services based on
the country's unique geographic location, positive policy environment which encourages investments
and a friendly tax structure, which places the ITES/BPO industry on almost equal footing with IT
services companies.
The studies conducted by NASSCOM and the global consultants McKinsey & Co. brought to light
certain amazing facts on the Indian BPO segment. According to a NASSCOM study, the country’s
flourishing ITES - BPO sector is estimated to have achieved a 54 per cent growth in revenue in 2003-
04. A key employment - generating sector in the country; the BPO segment created job opportunities
for around 74,400 additional personnel in India in the same year. By the year 2008, the ITES- BPO
sector is expected to employ over 1.1 million Indians, with its sales expected to touch an amazing
21$ to 24 $ dollars.
Where call centres are a part of life:
For today’s youngsters, the call centers are a welcome addiction. The industry has woven such magic
around the entire nation that these days a city without a call centre would be hard to find. Call centers
contribute a fair share to the revenue of the Indian BPO industry. About 70% of the BPO industry’s
revenue comes from call-centers, 20% from high-volume, low-value data work and the remaining
10% from higher-value information work.
The average Indian’s attitude towards life has undergone a drastic change in the last few years. The
motto of today’s young Indian generation is “Live life king size”. The changing lifestyles, demand
for luxury and emergence of high-income spending groups coupled with a thoroughly cosmopolitan
outlook of life are changing the modern Indian. Call centers are a major turn on for young graduates.
In addition to providing employment, the call centres offer excellent benefits, good working
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 5
environment and attractive remuneration packages. So who wouldn’t choose to be a call centre
employee?
When things go wrong:
It is true that the Indian BPO sector is witnessing an unprecedented boom but the flip side of the
industry cannot be ignored. For sometime, the Indian BPO industry has been battling certain complex
problems such as labour attrition, poor infrastructure and lack of data protection laws.
The high attrition rate in the industry is primarily due to the restricted career options or growth
opportunities for the youngsters. Fear of stagnation is a major factor that forces the employees to quit
the industry. While some leave their career mid-way in pursuit of higher education, others are drawn
in by the higher pay packages offered elsewhere. The new entrants into the BPO sector, who are
consistently on the look out for trained youngsters, offer higher remuneration. With the employees
moving to other jobs in less than a year, the industry has to confront the gnawing problem of attrition.
Another key problem is the stressful work schedule, particularly night shifts, which may create both
physical and mental disorders in the long run. Other reasons for the attrition problem include
misguidance by the company, non-conducive policies and procedures, mental strain brought about by
reclusive lifestyle and difficult relationships with peers or managers. According to analysts, labour
attrition rates in the outsourcing industry vary between 20 and 40 per cent in certain companies while
at top firms it’s around an average of 15 per cent. If the current attrition rate continues, the
outsourcing industry is likely to face a shortage of 262,000 professionals by 2012.
Where lays the solution?
The multi-billion dollar BPO industry is racking its brains to solve the crisis, a complicated one that
could prove to be disastrous in the long run. Brand building has come up as a good panacea for the
attrition problem. The Indian BPO industry is focusing on the process of brand building with a view
to create respect and awareness of the job among the people. The problem of talent attrition could be
kept at bay by offering perquisites like the right opportunities for education such as degree courses
for youngsters. While some BPO companies retain their employees by providing free food and
accommodation, there are yet others who offer interest free home and car loans while some others
even offer activities such as bungee jumping and salsa classes. Besides creating a challenging,
competitive work environment, the stress is now on hiring the right employees. Today, most of the
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 6
BPOs are on the look out for freshers and agents with more than one-and-a-half to two years of work
experience, rather than graduates with no prior experience in the industry.
Lack of top-class infrastructure is also another key problem to be dealt with. As part of country’s
infrastructure development, measures need to be taken to improve the quality of roads, power,
transport and communication and connectivity. Further, the industry and the Government need to join
hands so as to create an efficient legal machinery to enforce stringent laws. This will ensure a
smooth, protected environment for the operation of businesses, particularly in connection with
laws/policies governing data/cyber security and intellectual property rights.s
The road ahead:
Although countries like Australia, China, Philippines and Ireland have emerged as the close
competitors in the ITES/BPO sector, India is still the favored market for BPO companies. As for
2005, NASSCOM predicts that there would be a considerable expansion in the captive operations of
global organizations and MNCs in the BPO sector. Another key development would be the rapid
growth in offshore outsourcing, especially in the sectors of Automatic data management, Human
Resources (HR), Finance and Accounting and Healthcare.
The rating agency ICRA reports that by 2006, India is expected to capture 56 per cent share of
offshore business process outsourcing business, with the demand for BPO services increasing at an
annual growth rate of 50 per cent during 2004-06. The size of the Indian BPO market is likely to be
around $9-12 billion by 2006 and it will employ around 400,000 people.
While figures are a source of comfort for the BPO segment, there is much to be done to smooth the
edges. We might have a multitude of issues to take care of, but at the end of it all India will be
shining even brighter.
Growth in Domestic BPO Market to outpace that of offshore BPO:
While the offshore (international) BPO market faces pressures with economy-wide slowdown in
developed markets, the domestic BPO market is getting ready to take off. According Arun
Jethmalani, CEO, Value Notes, "Unlike the overseas business, labor or cost arbitrage does not drive
the domestic BPO market. It's strategic factors such as the need to scale rapidly, focus on core
competencies, enhanced productivity and reduced time to market that are driving domestic demand".
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 7
Value Notes' research indicates that the domestic BPO industry stands at an inflection point, with the
growing scale of Indian buyers as well as the emergence of significant vendors with greater
capabilities.
The recently released report by ValueNotes estimates the share of third party revenues is 27% of the
domestic BPO market, at Rs. 18 billion for FY08. This is expected to grow at a CAGR of 44% over
the next four years reach Rs. 77 billion by FY12.
Specific triggers for heightened outsourcing differ across verticals. While deregulation, massive
growth and entry of new players drives outsourcing amongst telecom operators; severe competition
and widespread adoption of IT are enabling growth in the banking sector. However, industry growth
(growth of organized sector) coupled with aggressive adoption of IT by Indian companies will
remain as compelling drivers for outsourcing across all segments. Further policy reform or de-
regulation, especially in markets like banking, retail or government; could provide significant
discontinuous growth opportunities that will make these estimates appear conservative.
The study found that there are over 700 vendors offering a variety of BPO services to domestic
clients. Most of the top vendors have grown their domestic BPO operations by over 60% over the last
one year. A number of international focused BPOs (such as Infosys, Genpact, etc) are now seriously
looking at the India market. However, services outsourced by the Indian companies are largely
limited to low value, high volume, back office jobs and customer support activities. Managing rapid
growth while maintaining competitive costs and quality will be critical to the growth of BPO service
providers. Building and developing specialized services and solutions that provide greater value will
be a key challenge for vendors to sustain profitable growth in the long term.
According to Pranav Dixit, analyst and co-author of the report, "Potential for BPO services will
rapidly increase especially for verticals such as Government, Financial services and Retail. As clients
mature in their IT initiatives, the scope to leverage on experience in IT services outsourcing is set to
expand." Adds Neeraja Kandala, analyst and co-author of the report, "Aggressive expansion plans of
existing players coupled with entry of large international BPOs will intensify competition in the BPO
market. With a large number of small and mid-sized vendors focused on the domestic market,
inorganic growth will be an attractive option for the international players looking to build scale
rapidly. We expect increase in M&A activity post 2008."
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 8
The Value Notes report: "Opportunities in the Indian Domestic BPO Market" provides an in-depth
analysis of the domestic BPO market. The study analyzes the sectorial opportunity and emerging
trends in the large and emerging verticals - Banking, Financial Services, Insurance, Telecom,
Government, Retail, Logistics, Airlines and Travel and Hospitality.
About Value Notes:
Value Notes Database is a leading provider of business intelligence and research, with expertise
across selected domains and types of customer needs. Working with clients across the globe we have
significant understanding of international markets.
About Value Notes Outsourcing Practice:
The Value Notes Outsourcing Practice is one of the largest information providers on the outsourcing
industry. Our Outsourcing Practice uses a comprehensive, analytical framework providing fresh
insights into the fast emerging and yet, complex outsourcing space. We extensively track the
outsourcing space in-depth through a regular analysis of news and events and continuous primary
research and contact with the industry.
Objectives:
The objectives of the BPO Policy are:
To sustain Karnataka's competitive advantage in Human Resources, Telecom and other
infrastructure areas.
To create new employment opportunities in Karnataka.
To promote investment and create an investor-friendly environment for the BPO sector.
To provide the necessary framework to ensure Data Security and Customer Secrecy for BPO
companies.
To pro-actively market the State of Karnataka and its value proposition.
To provide a state level mechanism for certification and accreditation of HR Training
Agencies.
Qualified Manpower - Karnataka's most competitive advantage
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 9
Karnataka's major edge is its Human Resource Bank. The State has begun to actively address
and remove the existing bottlenecks in this area to sustain and improve its competitive
advantage.
Karnataka has a multitude of Arts, Science, Commerce, Engineering, Law, Medical and
Nursing colleges as well as high quality training institutions.
The State's Education Policy initiated almost 50 years ago is one of the best in the country.
For instance, Karnataka has actively encouraged the private sector in education - of the 124
Engineering colleges only 2 are government run; of the 62 Medical & Dental colleges only 5
are in government sector; and of the 58 Law institutions only 12 are in governement sector.
Because of this early initiative the State has seen exxtraordinary investment in the field of
education ensuring its comparative superiority.
There are large number of Primary and Secondary schools with excellent infrastructure.
Bangalore also has many world-standard International Schools with international curricula
that can cater to expatriates' needs.
The State has a considerable talent pool of well qualified graduates who can be employed by
BPO companies. There are over one million educated housewives in the State of Karnataka
who are an important source of manpower for BPO companies
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 10
COMPANY PROFILE
HGS, part of the multi-billion dollar conglomerate - Hinduja Group, provides outsourcing solutions
that include Back Office Processing, Contact Center services and customized IT solutions to its
global clientele comprising several Fortune 500 Companies. We have been ranked among the Top 3
‘Best Performing Call Centers Worldwide’ by the Global Services Magazine in 2008. We were
among the Global Best 10 for Sales Service in the ‘2010 Global Outsourcing 100’ list by the
International Association of Outsourcing Professionals.
With the benefit of experience and client partnerships dating back to 1973, we provide an
unprecedented depth of outsourcing expertise and best-in-class practices.
HGS has a global footprint with 42 delivery centers in India, United States, United Kingdom,
Canada, Mauritius and Philippines. With our targeted solutions, designed for the diversified sourcing
and servicing needs of our clients, we live by our mission of making our clients more competitive.
The Contact Center & Back Office Services Division houses multiple international voice centers &
back office processing units for leading Insurance, Telecommunications, Pharmaceuticals, Life
Sciences, Banking & Financial Services, Consumer Electronics / Products, Technology, Automotive,
Government, Media & Entertainment, Energy & Utilities and Transportation & Logistics companies.
With an inspired global team of over 22,000 people, we partner with our clients to deliver outsourced
contact center and back office solutions that improve business processes and strengthen customer
relationships. Across our geographically diverse organization, we design and deploy customized
solutions on behalf of our clients, across a wide range of industry verticals. Our client partners enjoy
a high quality of service, optimized cost containment, and a competitive edge.
HGS is a public limited company, listed as 'Hinduja Global Solutions Limited' (Symbol: HGSL) on
both the leading stock exchanges in India, the National Stock Exchange (NSE) and the Bombay
Stock Exchange (BSE).
HGS – an overview:
Hinduja Global Solutions started its operations with one client and 25 employees in the year
2000. Today, it is a leading provider of outsourcing solutions to a global clientele of Fortune
500 companies, From its inception, Hinduja Global Solutions had set its sights high, and was
focused on building client's businesses. The success graph grew rapidly. Between 2000 and
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 11
2003, Hinduja Global Solutions acquired businesses of major international clients, some of
who were among the leaders in the insurance & telecom industries, thus establishing itself as a
major player to reckon with. 2003 also marked the company’s entry into international
markets, with the establishment of its center in Manila.
Today, Hinduja Global Solutions has 23 delivery centers across the US, Canada, Mauritius,
the Philippines and India all working towards creating leaders out of their clients.
The company’s vision is to be a globally preferred business process transformation partner for
its clients, creating value in their business through innovative outsourcing solutions.
The company is a part of Hinduja Group that was founded in 1914 by a young entrepreneur
from Shikarpur, Parmanand Deepchand Hinduja. He spotted opportunities and seized them
wherever they surfaced. He traveled to Mumbai in 1914, and quickly learnt the ropes of
business. The business journey which began in Sind, entered the international arena in 1919,
with an office in Iran, the first outside of India. Merchant banking and trade were the twin
pillars of the business. The Group remained headquartered in Iran until 1979, when it moved
to Europe.
Products and services offered by the company are:
Consumer Electronics:
Parts / Accessories Sales
Health Insurance
Insurance Policy Sales
Banking and Financial Services
Credit Card Sales
Extensive and Intensive Technical Support for various consumer electronic products.
including -
Installation
Configuration
Provide technical support for software applications
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 12
Installation
Configuration
How to use the application
Awards & Achievements:
Industry Recognition:
1 one of the ITES Companies in India,
Winner most Innovative BPO Philippines
Top 15 ITES BPO exporters FY07/08
Top 10 employer’s employee satisfaction HR practices
1 of the 200 'best under a billion forbes Asia'
Gold Medalist Compentency Development
Top 2 call centre companies globally (last 3 years)
Gold Medalist Lean Six Sigma
Quality Certification:
ISO 9001:2000 – UKAS
ISO 9001:2000 – ANAB
ISO 27001
HIPAA – Health Insurance
Six Sigma Process Improvement
ISO 27001 – Underway
SAS 70
Milestones of the company:
2000 Launch of HTMT brand First International Customer with 23 seatsISO 9001:2000
certification
2001-2004 Acquisition of Philippines center1500 seat facility in Bangalore India Employee
strength 1700
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 13
2005-2006 Acquired source oneBS 7799 certification Strategic foray into national markets
300 seat DR center in Mauritius HIPAA certification Employee strength, 7000
2007-2008 Acquired Affina Foray into more verticals Expansion into Tier 2 cities in India
First Healthcare contact center in Manila ISO 27001 certification Most Innovation BPO
company ICT
2009-2011 Employee Strength 14500 Entry into the UK market Expansion into China
Inorganic growth – Acquisition underway.
LEADERSHIP:
Leadership Team:
Our Senior Management collectively represents a deep pool of international experience and
expertise, spanning manysuccessful decades of providing high-value services across key
verticals. Each member of this inspired team is committed todelivering the best quality
services to its global clientele and maximizing value for all our stakeholders.
Partha De Sarkar - Chief Executive Officer:
Partha De Sarkar is Chief Executive Officer of Hinduja Global Solutions and leads
theorganization across all its geographies.Partha is responsible for having built Hinduja
Global into a global organization by focusing on being a preferred business process
transformation partner for our clients, and creating value in all our customer relationships
through innovative eoutsourcing solutions. Partha has 20 years of experience in customer
service and operations across industries like Banking, Financial Services, Healthcare and
Insurance. Prior to joining Hinduja Global Solutions Ltd, Partha has set up complex
outsourcingprojects in organizationslike Deloitte Consulting, GE Capital International
Services and Bank of America. He was responsible for setting upoperations for large remote
processing centers in India to service international clients in the US, UK, Australia and the
Asia-Pacific region. Partha holds a post-graduate degree in Management from the Indian
Institute of Management (IIM), Bangalore, and a Masters degree in Technology from t he
Indian Institute of Technology (IIT), Chennai. He has also done his Ph.D in Strategic
Management at IIT Delhi.
Srinivas Palakodeti - Chief Financial Officer:
Srinivas Palakodeti, fondly called Pala, is a recent addition to our leadership team. He spear-
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 14
heads our Finance function across all global locations and subsidiaries. An integral member of
our Global Executive Council, he plays a key role in Mergers & Acquisitions strategy and
execution. Pala has a long association with the Hinduja Group, handling versatile assignments
and diverse roles in the Group Companies - Ashok Leyland Investments Services,Hinduja
TMT Ltd, IndusInd Bank and IndusInd Media & Communications Ltd. Prior to joining
HGSL, he was working as the Executive Vice President - Strategy for the Hinduja Group.He
was responsible for the Technology, Media &Telecommunications verticals. Pala has served
as the CFO of companies like IMCL, Sahara One Media and Entertainments Ltd and Sakal
Papers Ltd. He brings with him 21 years of rich industry experience with cross functional
capabilities in operations, project planning & implementation, deal structuring and investor
relations. Pala holds a Post Graduate Diploma in Management from Indian Institute of
Management, Ahmedabad and a Bachelors degree in Metallurgical Engineering from Institute
of Technology,BHU,Varanasi.
Anthony Joseph - Executive Vice President, Global Human Resources:
As the Global Head of Human Resources, Anthony is responsible for developing,
recommending, implementing and leading human resources strategy and policy in support of
the Business Objectives of Hinduja Global Solutions. He implements our operational and
strategic goals by providing a fully integrated and effective human resources service. He
guides the development of our structured Recruitment Process and our comprehensive
Training and Development Programme. He has commendable expertise and substantial
interest in managing change in a fast moving business environment. Anthony joins us from
the NSL group, where he had the group responsibility for Human Resources and Industrial
Relations. In his illustrious career spanning 25 years,he has initiated and implemented HR
best practices across global corporations like Deloitte Consulting, G.E. Plastics and
Convergys. He has directly and indirectly been responsible for recruitment of over 10,000
employees across Information Technology (IT), Information Technology En abled Services
(ITeS) and Engineering & Manufacturing sectors. Anthony is a Post Graduate in Personnel
Management and Human Resources from XLRI, Jamshedpur and a graduate in commerce
from St Xavier's College, Calcutta. As an opinion leader in the ITeS sector, he is a speaker
and mentor at NASSCOM & CII forums.
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 15
Subramanya C - Senior Vice President & Global Chief Technology Officer:
Subramanya is responsible for the Technical Services Group at Hinduja Global Solutions
Ltd.He is an expert in Information Technology and Information Security and is responsible
forimplementing, maintaining and monitoring our wo rld class technology and information
security.Subramanya has over 18 years' experience in the technology domain across various
industries,and handles various aspects of conceptualizing and commissioning of Business
Process Outsourcing (BPO) and other IT Enabled Services operations including transition of
projects across our global facilities. Subramanya is an Engineering graduate in Computer
Science from MEI Group of Institutions, India and has undergone short term courses in
Customer Support and Finance from India Institute of Management (IIM), Bangalore, India.
Ross Beattie President & CEO, On-Line Support Inc, Canada (An HGS Company):
Ross has over 30 years experience in the Technology Sectors. As a Senior Account Manager
at Digital Equipment he assisted the hardware giant to multiply sales six-fold to blue chip
accounts such as Michelin Tire, Pratt & Whitney and Litton Systems. Ross's entrepreneurial
spirit led him to a number of start-up opportunities. These skills and the reputation he gained
through these experiences brought him to the President's chair at ITI(Information Technology
Institute). In April 2000, Ross led an investment group that purchased OLS, where he led the
company to grow from a 20 person, 1 internal staff and external partners to promote a
business culture built on his own values, of honesty, fairness and site operation to its current
size of 10 sites with over 2000 employees.
Mr. Kanti Mohan Rustagi - Executive Vice President Legal:
Mr. Kanti Mohan Rustagi joins the team as Executive Vice President – Legal. He leads the
legal function at HGSL. Kanti has the responsibility for all legal matters pertaining to
contracts, statutory compliances on commercial, property, labour, intellectual property
rights,patents & government matters. Kanti has over 25 years of professional experience in the
corporate sector as well as in his professional practice. Kanti has worked with Steel Tubes of
India, Pro-Agro Seeds Company Limited and Coca-Cola India in the both the legal functions
as well as performing the statutory role of a company secretary. In addition to legal
responsibilities for India, Kanti was a member of the global legal function of The Coca-Cola
Company, USA. Kanti has extensive legal experience comprising legal support for IPR
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 16
protection, structuring and execution of joint venture and licensing arrangements, securing
government approvals, interacting with national and international legal experts and attorneys.
Prior to joining HGSL, Kanti was managing his own firm in Delhi. Kanti has a Bachelor’s
Degree in Law, is a qualified Company Secretary from the Institute of Company Secretaries
of India as well as a Cost and Management Accountant from the Institute of Cost and Works
Accountants of India.
ORGANISATION CHART:
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 17
PRESIDENT
( CHIEF EXECUTIVE OFFICER )
BOARD OF DIRECTORS
VICE PRESIDENT
MARKETING
CONTROLER
Cost accounting Cost management Data processing General ledger (pay roll,
A/Cs Receivables/ payable)
Government Reporting (IRS, SEC)
Internal control Preparing Financial
statements
VICE PRESIDENT
OPERATIONS
TREASURER
Capital budgeting Cash management Commercial banking &
investment banking, credit management
Dividend management Financial analysis &
planning Investor relations Pensions
VICE PERSIDENT FINANCE
(CHIEF FINANCIAL
Recent developments :
Hinduja outsourcing Solutions plans to set-up a new facility in the Delhi NCR (National
Capital Region) and another at an yet-to-be-identified location in Western India to create
capacity of 300-500 seats each. The centres are expected to come-up in the third or fourth
quarter this fiscal.
Hinduja outsourcing Solutions has announced its plans to build an additional 1000 seat
facility in Manila.The company has received an LOI from one of its clients for incremental
business which will require additional capacity of 300 seats. Based on this, and visibility of
incremental demand from other existing clients, HGSL will increase the number of seats in
Manila by 1000 seats which will take the total seats in that region to 3150.
With the benefit of experience and client partnerships dating back to 1973, we provide an
unprecedented depth of outsourcing expertise and best-in-class.
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 18
HUMAN RESOURCE DEPARTMENT
Offering a wide range of services such as payroll, statuary compliance and others to more than 350
clients in the country, HCCA is a leading player in Human Resources Outsourcing. The organisation
caters to a large number of industry verticals including baking and financial services.
An interesting development happened as the BPO arm of Hinduja Group, Hinduja Global Solutions
Ltd. (HGS), acquired the human resources outsourcing unit of 3i Infotech, HCCA Business Services
Pvt Ltd. The acquisition aims to strengthen the organisation's India focused business.
As the Indian firms are expanding at a rate more than the global rate, they are also juggling with
challenges such as high attrition and other people-centric issues. In such a scenario, they are
increasingly seeking the assistance of external partners to address their problems. Moreover, India
offers these global players a wide market for HR outsourcing that is also low uncast.
Policies are ground rules that keep people and processes in order. HR, or human resource, policies
are those that are written for the workplace, and must be adhered to by employees-
o According to US Legal, HR policies are official guidelines and rules that are put into place by
a company's HR department to hire, train, evaluate and reward staff.
o US Legal explains that HR policies serve to prevent or clarify misunderstandings between
employers and employees, which have to do with rights and obligations in the workplace.
Employees use HR policies for guidance and direction if there are any questions about office
processes or expectations.
o Establishing consistency across the organization will help employers maintain order in the
workplace. HR policies also serve to protect employers in the court of law. If employees bring
their employers to suit, the court may look to the company's HR policies to protect the
organization (or protect the employee if HR policies are deficient).
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 19
o HR policies include behavioral, ethical and professional codes that employees must abide by.
They also include policies on training requirements, performance evaluations, benefits and
wages, overtime, breaks and termination protocols.
CHART OF HRD:
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 20
Junior Personnel Officer
DGM (HRD-1) Workers
Office Manager
Personnel Officer
Junior Personnel Officer
Office Manager
DGM (HRD-1) Workers
Personnel Officer
General Manager HR
Senior Asset Administrator
AGM (HRD) AGM (HRD)
Senior Asset Administrator
Managing Director
HR Director
HGS believes that its true investment lies in its workforce, and their happiness lies in the future of
HGS, it therefore strives to make every effort to promote a work culture that enable an employee to
give his very best.
Employee participation in decision making negotiations has enabled the employee to develop a sense
of belongingness and in turn contributes to the progress of the organisation. A high professional
approach to recruitment, induction, on the job training appraisals and proper channels of promotion
help HGS get personnel of the finest quality.
Human resource department concerned with managing/developing people. As the organisation is
made up of people, they should be managed/developed to attain higher level of performance this can
be done by developing their skills and motivating them. This helps the organisation to achieve its
objective.
HGS has a dedicated of 2287 professionals, which share the vision of the HGS technocrats,
administrators and supporting staff of HGS joining hands to give more power to Karnataka.
HRD MISSION:
A congenial work environment supportive of high performance leading to attainment of HRD in
HGS. Maintaining optimum staff level nurturing and developing talents, trust, empowerment,
concern for people and reward and key elements of congenial work environment which is dynamic.
HGS’s strength is its people. In its journey to achieve excellence, HGS is focusing on every aspect
and area of work with the trust area being the development of its human resource.
Functions of the Human Resource Department:
RECRUITMENT:
It is the process of finding and attracting capable applicants for employment. It is the process of
searching for and obtaining applicants for jobs, from among whom the right people can be selected.
Online Recruitment:
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 21
200 Engineers recruited in 2005 Website notification.
About 4500 applications received online.
Written test through IIsc.
Interview/selection finalized in about 3 months.
TRAINING:
Every year the corporation the training program for the benefit of the employees and the company.
During the year 2009-10 in house and external training 92 programs were conducted totally 1151
employees consisting of 1031 corporate and 120 non-corporate cards benefited from the training was
Rs.41.07 lakhs.
IN-HOUSE TRAINING PROGRAMMES:
Corporate excellence through co-operation and collaboration.
Company a/c’s and accounting standards.
Performance management.
Managing conflict for organisation excellence.
Total quality management.
Motivating and goal setting. BPR and bench marking.
Attitudinal shift through self-development.
EXTERNAL TRAINING PROGRAMMES:
National seminars on utilization of fly ash.
Earthquake resistance design of dams.
Renewable energy source and energy audit.
National seminar views of the future civil engineering in 21st century.
Role of energy efficiency in the Indian energy sector.
Seminar on instrumentation engineering practice, team and research. Conference on the
condition monitoring of plant and equipment.
International conference on civil engineering.
PERFORMANCE APPRAISAL:
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 22
To ensure greater objectivity in appraising the performance of employees and also taking in to
account the present day practices in professionally managed organisation, HGS decided to introduce
a new system called performance appraisal and development system in the corporation. The PADS
will apply to all the employees in the corporation cards. In HGS once in year the performance
appraisal will be sent to the entire department in order to know the appraisal of employees. It will be
measured by immediate supervision, reviewing authority and accepting authority.
TRANSFER:
Transfer of an employee from one place of work to another place of work or one job to another job is
ordered primarily in the interest of the service of the corporation. Request of an employee for transfer
is given consideration and acted upon if it is in consonance with the interest of the service of the
corporation. Transfer also aims at rotation of employees among relate jobs of the discipline to which
the employee belongs, thereby enabling the employee to acquire wider knowledge and experience in
the discipline. Transfer and non-transfer, however is not a matter of right for any employee.
HGS has right to transfer any employee from one place to another place with in the country. Transfer
may arise due to:
Administrative grounds
Suitability
Higher studies
Medical grounds
Joining spouse
RETIREMENT:
The corporation has multiple schemes of retirement benefits of its employees, majority of employees
retiring under the pension and allied schemes, few employees retiring under contributory provident
fund schemes prevailing them, a scheme exempted.
WELFARE ACTIVITIES:
The HR Department is in charge of all the welfare activities in the organisation. The welfare
activities under taken by HGS are:-
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 23
School recreation, club.
House journal.
Libraries and reading rooms.
Sports and games.
Consumer co-operative society.
Literacy programmes. Canteen.
Medical facilities.
Cultural activity.
LOANS:
House building / purchase / repairs improvement and extension advance may be granted to the
employees of HGS for his bonafide, residential purpose only.
Vehicle advance to the employers and employees.
Festival advance to the employees of the corporation.
Loan assistance for the personal computer.
SAFETY MEASURES:
Providing conveyance and other facilities to the employees involved in the accident while on duty or
service.
Accidents resulting in minor injuries / service injuries.
Fatal accidents while on duty. Death of employee while on service.
Lost homage, Free conveyance, Retention.
See also:
Globalization
Business process outsourcing in India
References:
1. Outsourcing thriving in Britain despite India bash
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 24
2. Call Center Security How: to Protect Employees and Customers
External links:
BPO: In India data security cost skyrockets
India acts on call centre fraud
Offshore Outsourcing: Big Savings, Big Risk
Employee Benefits and HR Policies:
Policies and Procedures ...
Understanding the Family and Medical Leave Act:
The Family and Medical Leave Act (FMLA) of 1993 is one of many regulations that makes it
imperative for small business owners to consider human resources in a different light to avoid losing
expensive lawsuits, alienating your workforce and distracting your attention.
Sponsored Links:
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www.worldatwork.org
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www.grassrootsindia.in
Business Centre Details of business offices Rental and rates Information in HK
www.gohome.com.hk
5 Ways to Reduce Small Business Health Insurance Costs:
Small business health insurance may take a huge chunk out of your revenue, but benefits often attract
better employees and help retain existing workers. Satisfied, healthy employees are more likely to
help your business grow. If you're struggling to provide health insurance, here are some tips that
could reduce your small business health insurance costs.
Employee Stock Options Make Work More Than Just a Job:
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 25
Once a perk reserved for executives, many publicly held companies now offer stock options to rank-
and-file employees. Small businesses do so to give their workers a sense of ownership, providing
them with financial incentives to make their companies succeed.
8 Uncommon Employee Benefits Your Staff Will Love:
You may not have the benefit budget of a Fortune 500 company but there are employee benefit
solutions to make your staff happy without breaking the bank. Discover the "8 Uncommon Employee
Benefits Your Staff Will Love."
Outsourcing Payroll Deductions for Small Business:
For small businesses that lack a dedicated accounting department, this can be a tough road. Learn the
benefits of farming out the payroll process and how to find the right specialist for your small
business.
401K Information:
For a quick overview of 401k plans, 401k Center provides the information. Six of a plan functions
are covered: design, investments, administration, recordkeeping, employee communication and cost
control.
Employee Benefit Headlines:
For the latest information and news on employee benefits this site scans the news. News on COBRA,
health plans, IRA's, disabilities and all the other benefits a business might offer.
Employee Benefit Research:
Are your employee benefits in line with the market or do you wonder why turnover is so high? Better
check out the latest research on employee benefits from the Employee Benefit Research Institute.
EBRI mission is for sound employee benefit programs and public policy.
Salary Reviews:
Check out if your salary package is competitive to the current market rates. The salary wizard will
search by job category and state and metro area.
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 26
Innovation in HR policies of BPO Companies:
High attrition rates and talent shortage in the BPO space have led to innovation in HR policies.
India's leading BPOs are spending cores on recruitment campaigns and are hiring specialised ad
agencies to conceptualise and design them.
Not only this, call centres are banking on call centres to hire people. Some of them have set up
dedicated call centres within their offices to hire candidates. WNS, a Mumbai-based BPO, rolled out
a glossy ad campaign, which cost the company around Rs 4-5 core. Conceptualised and designed by
Black slate, the ad brought WNS a whopping 30,000 job applications.
This is much more than the average of around 600 job applications that the company used to get
earlier from its channels like consultants. "The idea behind running the campaign was to create brand
awareness and to reach out to the remote towns to get the best," a WNS spokesperson told. The
company has an attrition rate of 35%.
ICICI OneSource also has a dedicated call centre in its office from where they call the prospective
candidates and offer them a job. "We are using our core-competencies to attract talent," says Aashu
Calappa, vice-president-HR, ICICI OneSource. As metros get saturated, BPOs are looking at hiring
people from tier II and tier III cities, who report lower attrition rates and are available for lesser
salaries.
Genpact, a Delhi-based BPO, has launched eight "Launchpads" across the country in cities like
Kolkata, Delhi, Kochi, Indore, Lucknow, Dehradun and Vishakhapanam. These are hiring offices
where job interviews are conducted on a daily basis. On an average, Genpact hires 1,000 people in a
month. The company has an attrition rate of less than 10%, said Ashok Tyagi, senior vice-president,
Genpact.
"Targeted advertising can help attract the right talent as well as help strengthen the brand image by
creating awareness and visibility," he believes. However, Kishore Velankar, vice-president-HR,
Integrin, says, "Glossy ad campaigns may get good quantitative response, but they may not be the
right one."
Integreon has a zero expense recruitment system called "Boomerang". The company has seen many
of their former employees coming back to them. In the last quarter, around 20 people quit and five of
them have come back, says Mr Velankar. This is very unique because there is no need to take those
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 27
employees through induction and orientation programmes. "They become productive from the day
they join.
Why people are moving?
When there are so many benefits associated with BPO industry…. when there are so many privileges
for the BPO employees than what makes them to change the company/industry?? Is it only MONEY
that matters or anything else as well?? After taking exit-interviews and analyzing the trend I am able
to list out following reasons for a BPO professional to change his/her job.
No growth opportunity/lack of promotion
For higher Salary
For Higher education
Misguidance by the company
Policies and procedures are not conducive
No personal life
Physical strains
Uneasy relationship with peers or managers
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 28
FINANCE DEPARTMENT
Financial banking is the science of managing money and other assets pertaining to a specific
business. We all know that banks offer basic loans, deposits and financial advice, but they also
facilitate transactions on sophisticated financial instruments such as private equity, bonds and mutual
funds. Most top performing candidates typically view careers in Banking as the pinnacle of
achievement, and sectors such as treasury, equity trading, investment banking and private banking
are viewed as the most lucrative jobs for new graduates.
In addition to traditional banks, other financial institutions such as credit unions, trust companies,
mortgage loan companies, insurance companies, brokerage firms and asset management firms also
offer a host of financial advice. Hence, when viewing the opportunities in the sector, one must also
carefully consider these other specialized financial institutions.
Performance:
The financial crisis of 2007-2008 was triggered by an insolvent United States banking system
(catalysts of which were sub-prime lending, over leveraging and poor regulation) resulting in the
collapse of large financial institutions, the bailout of banks by national governments and downturns
in stock markets around the world.
The destabilization of the banking sector in the U.S. had a domino effect on the global financial
industry, with effects felt in Europe, the Middle East and the Asia Pacific. 24 months later, the global
financial industry still hasn’t regained its lost glory, and even countries with deep pockets such as the
U.A.E. and Singapore have exhibited limited sectoral growth.
The Indian financial industry underwent rapid transformation post liberalization in the early 90’s,
resulting in greater inflow of investments from FII's into the capital market. Despite the foray of
foreign banks in the country, nationalized banks continue to be the biggest lenders in the country,
primarily due to their size and penetration of networks. In fact, Industry estimates indicate that over
80% of commercial banks in India are in the public sector and of the 50-odd private banks, less than
half are foreign banks. The Reserve Bank of India is the Indian equivalent of the Fed. The
opportunities in this industry remain extremely promising due to its relatively low penetration of both
basic as well as advanced financial products.
Though the Indian finance and banking industry did suffer significantly during the past 2 years, it
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 29
was relatively sheltered from the triggers of the global melt-down, suffering instead due to monies
from FII’s drying up, falling interest rates, rapidly rising inflation and poor investor confidence.
Annual reports suggest that most of the larger Banks have begun to pick up from where they left off,
albeit with more caution, and most industry pundits are optimistic about the current fiscal year.
Growth Potential:
There are a range of retail jobs to suit most skill sets, including banking officer, probationary officer,
loan agent, assessor, mortgage loan underwriter, loan processing officer, accountant, product
marketing and sales executive, and customer service executive among others. However, job security
is not very high in retail banking as many players suffer from shrinking margins and poor customer
retention due to increasing competition and limited market differentiation, leading to lay-offs.
Meanwhile, there are also more skilled jobs available such as actuarist, equity researcher, forex
trader, securities linked products developer and portfolio manager for those with the relevant
knowledge and ambition. The biggest opportunity in this sector remains in improving information
flow to customers. Hence, there is a growing emphasis on in-house research and market intelligence.
Future Prospects:
In the upcoming 12 months, hiring is likely to remain robust. Many banks are investing in training
programs to upgrade worker skills to enhance their competitive edge in anticipation of the segment
once more regaining its rightful place as the harbinger of development and progress. This is all about
functional departments. Let us know each department in depth.
To know the all the Departments detailed information.
To carry out the easy work.
To know how the company process is taken place.
To forecast the future needs of the each Department.
To provide timely services to each department.
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 30
FINANCE CHART:
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 31
Managing Director
Accounts Officer
General Manager (Accounts)
Asst Accounts Officer
Asst GM (Accounts)
Accounts Officer
Asst Accounts Officer
General Manager
(Finance)
AsstGM (Finance)
Finance Director
Senior Asst
DGM (A/C’s) DGM (Finance)
Senior Asst
Finance department is very essential for any organisation to be set up. It is the backbone of any
organisation. Similarly the finance department plays a vital role in the set up and running of HGS.
Chief accountant manager and chief finance manager works under the direct control of finance
Director at HGS. Other top executive in the finance department are executive (Finance), divisional
officer (Finance), accounts officer, assistant officer, senior assistant (Accounts) and assistant
(Accounts). The chief finance manager and accounts manager handle various activities in the finance
department. Each of them has their tasks cut out systematically in these areas.
In HGS, finance and accounting department is subdivided into 11 sub departments:
Salary department
Cash department
Bills department
Budget and costing department
Consultancy department
Provident fund department
Monthly and annual accounts department
Debt servicing department
On going project department
Taxation department
Pension department
Its brief explanation as follows:
Salary Department:
In HGS salary department looks after the advances to employee’s salary payable to the employees.
Salary department calculates the salary of employees, on the basis of information given by the
Human Resource department regarding the employee’s attendance, leave, leave not sanctioned, under
salary amount deduction made in respect of provident fund, tax, and remittance charges, recoveries
for advance. Salary department credit net salary amount and reimbursement of Medical and
Electricity charges amount to employee’s bank account by issuing cheques.
Cash department:
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 32
The cash section is responsible for all receipts and payments of cash, cheques, etc., and accounting
the same in the books of accounts.HGS provided 15 corers as working capital to cash department, to
carryout its transactions. If need arises beyond 15 corers, it requires to get permission from senior
executive of finance.
The functions of Cash department are:
Operation of Bank accounts.
Withdrawal of cash from bank, to cater for daily needs.
Payment of voucher by cheques / cash
Cash disbursement to salary department for payment of salaries, wages and other payments.
Writing of cash / bank books.
Preparation of Bank reconciliation statement.
Safe custody of cash, cheque book, revenue stamp & other documents like bank guarantees,
fixed deposit receipts and investment etc.
Reconciliation of inter transfer of funds transaction.
Bills department:
Bills department concerned with the verification of bills relating to expenses after verification, the
bills will be sent to cash section for payment. Bills department ensure that the bills amount are not
exceeds the budgeted amount. If bills amount exceeds the budgeted amount, the bill department is not
having power to process the bill, in that case managing director has power to process the bill. In the
department bills are divided in to two types.
1. Major bills.
2. Minor bills.
Major bills:
Major bills stands for amount payable for suppliers to supply goods to the power generating units
according to the predetermined agreements. Agreement is made on Rs. 100/stamp papers. In case of
delay in supply of goods, penalty of 10% on the purchase work is demanded. 80% of the payment
will be made during the agreement, if the goods are being transported by railways. In case, goods are
transported roadways, payment will be made only on receiving the goods, at the site, the quality and
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 33
quantity of goods are verified and inspection report will be sent to the bills section. In bills section
the terms and conditions based on the agreement are verified and if they are found to coincide with
inspection report, then the bills will sent to cash section for payment. If C-formis producing or
submitted the right of royalty and exercise duty would be 4%, otherwise 12%. C-form is issued only
after receiving the goods.
Minor Bills:
The minor bills include:-
Payment of interest of loan, debenture, repayment of loan amount and debenture.
Payment of rent, telephone bill, office expenses printing and stationary, computer
maintenance expenses.
Payment of director’s fee and remuneration.
Reconciliation of balance of head offices with Banks.
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 34
Budget department:
Budgeting is nothing but the blue print of the future needs of the company. Budget refers to forecast
of future need. HGS involves two types of Budget.
Revenue budget:
The revenue budget mainly focuses on the sales revenue and the associated costs to generate the
power. The power generation is budgeted on the basis of average of last ten years sales and expenses
on the basis of previous year actual and estimation received from different departments.
Establishment and general expenses:
Operation and maintenance.
Fuel and chemicals.
Royalty paid for water use.
Financial charges the outstanding loans.
Depreciation.
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 35
BUDGETING
CASH BUDGETREVENUE BUDGET
Cash budget:
Cash budget is helpful in estimating each requirement, planning short term financing and scheduling
payments in connection with capital expenditure project, planning purchase of materials.
Consultancy department:
HGS today has the capability to undertake large scale power projects from concept to
commissioning. It can also operate the plant on an EPC basis, with a host of exclusive auxiliary
services.
HGSs Consultancy and Engineering Services Division, an offshoot of its core competency, offers its
clients a wide spectrum of consultancy inputs across the complete cycle of power project
development. It has the expertise in analysis and design of structures using STADPRO – 2006, NISA
– Finite Element package, AUTOCAD – 2006, micro station and in house developed software
packages for reservoir operation, Stability of Dams etc.
These include:
Feasibility studies / evaluation and the compilation of detailed project reports
Design, Engineering, procurement and construction services
Consultancy on both Thermal and Hydel Power Stations, including handling of international
competitive bids
Project Management from project scheduling to preparation of final invoice and certification.
Supervision of erection, commissioning and operation of civil, electrical, mechanical systems
and equipment.
Operation and maintenance services, Rehabilitation of dams in distress
Renovation, modernization and updating of hydro stations
Overall project and performance management.
Insurance department :
Insurance is a service of an undertaking taken in order to over come or setoff the losses or damages
while operating the business. In order to cover the risk and maintenance GHS has taken out insurance
policy with many companies. The risky projects among all power generating project are RTPS in
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 36
order to cover all those risks while operating all those insurance policies covered under RTPS can be
classified:
1. Maintenance
Standard fire and special perils.
Boiler explosion policy.
Terrorism.
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 37
TECHNICAL DEPARTMENT
Information technology (IT) is defined as the design, development, implementation and management
of computer-based information systems, particularly software applications and computer hardware.
Today, it has grown to cover most aspects of computing and technology. The reason why it has
catapulted in importance is due to the improving accessibility, awareness and utility of technology. It
is a common fact that a country’s IT potential is paramount for its march towards global
competitiveness, healthy GDP and defense capabilities.
IT professionals perform a variety of duties ranging from data management, networking, engineering
computer hardware, database and software design, to the management and administration of entire
systems. With the already high penetration of conventional personal computer and network
technology, coupled with the growing convergence of information, communication and
entertainment, the industry is now keenly focused on the integration with other technologies such as
mobile phones, automobiles and televisions etc, thereby increasing the demand for such jobs. The
largest firms globally include IBM, HP, Dell and Microsoft.
A global business transformation service provider in the contact center, BPO and customized IT
Solutions space. HGS excels in partnering with its clients to deliver solutions that improve business
processes and maximize the strength of customer relationships. Operations in 6 countries employing
16000 professionals supporting over 100 global clients.
Specialties
Healthcare BPO, Contact Centers, Fulfillment Services
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 38
CHART OF TECHNICAL DEPARTMENT:
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 39
Managing Director
Technical Director
Executive Director
Chief Engineer
Superintend Engineer
Executive Engineer
Assistant Engineer
Junior Engineer
Performance :
In India, it is important to make the distinction between IT and ITES (IT enabled services). The latter
refers to services delivered over telecom networks/ Internet to a range of external business areas
(Colloquially referred to as KPO and BPO) and is treated elsewhere on this website (see ITES
industry overview). Hence, we shall focus on the IT industry here by limiting the discussion to
electronics hardware manufacturing and software development and services.
Despite the unprecedented global economic downturn, the Indian IT industry has weathered the
storm well, and will achieve sustainable growth going forward. India is expected to witness an
average 8% salary increase in 2010 and ~50% of companies have strong hiring plans, according to a
survey by global HR consultancy Mercer, giving yet another indication of the high confidence levels
among the country’s corporate houses after the economy staged a faster-than-expected recovery from
the slowdown.
While the larger players continue to lead growth, gradually increasing their share in the industry
aggregate, several high-performing small and medium enterprises have also stood out.
Growth Potential :
The strong demand for electronic hardware and software in India has been fuelled by a variety of
drivers including the high growth rate of the economy, emergence of a vast domestic market catering
to the new generation of young consumers, a thriving middleclass populace with increasing
disposable incomes and a relatively low-cost work force having advanced technical skills.
Indeed, the Government has also identified growth of this sector as a thrust area as there remains
great expectation for significant growth given the fairly low levels of penetration of technology
among the 1.1 billion population; There were only 60 million Internet users in 2009, 7 million DVD
players and personal computers were sold in 2008-09, and 11 million new mobile subscribers were
added every month in the same period. In this scenario there is now a big opportunity to step up the
production to gain higher global share besides meeting the domestic demands.
The Indian IT sector has also built a strong reputation for its high standards of software development
ability, service quality and information security in the foreign market- which has been acknowledged
globally and has helped enhance buyer confidence. The industry continues its drive to set global
benchmarks in quality and information security through a combination of provider and industry-level
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 40
initiatives and strengthening the overall frameworks, creating greater awareness and facilitating
wider adoption of standards and best practices.
Future Prospects
The industry is likely to continue growing from strength to strength, as local players incorporate best
in class practices from global counterparts whilst retaining their edge in terms of lower cost of labor
and focused governmental investments.
New graduates with degrees in related fields such as electrical engineering and computer science can
hope to achieve significant professional growth and a healthy remuneration from companies looking
to hire the best talent available, given the high proportion who leave to pursue jobs in this sector
overseas.
Information technology (IT) is defined as the design, development, implementation and management
of computer-based information systems, particularly software applications and computer hardware.
Today, it has grown to cover most aspects of computing and technology. The reason why it has
catapulted in importance is due to the improving accessibility, awareness and utility of technology. It
is a common fact that a country’s IT potential is paramount for its march towards global
competitiveness, healthy GDP and defense capabilities.
IT professionals perform a variety of duties ranging from data management, networking, engineering
computer hardware, database and software design, to the management and administration of entire
systems. With the already high penetration of conventional personal computer and network
technology, coupled with the growing convergence of information, communication and
entertainment, the industry is now keenly focused on the integration with other technologies such as
mobile phones, automobiles and televisions etc, thereby increasing the demand for such jobs. The
largest firms globally include IBM, HP, Dell and Microsoft.
Computer network specialist:
Computer networking allows one computer to connect to other in a limited area or beyond, and
exchange information. Network specialists design, implement and monitor computer networks.
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 41
Ethical Hacker :
An ethical hacker is employed by an organisation to protect its computer network.Hacking is felony,
but when it is done on request and under a contract between an ethical hacker and an organisation, it
is legal.
MIS professional:
A management information systems (MIS) professional collects, analyses data and provides
information in formats that can be used by different departments of an organization accordingly.
IT tester :
An IT tester tests software for defects, risk to management and customers and ensures that any given
software meets the standards of functioning and safety. Good programming and planning skills are a
vital requirement for the job.
Computer programmer :
A computer programmer’s job entails preparation of coded instructions that computers can follow to
perform a specific task. If you have good problem-solving skills and a knack for software languages,
you can choose it as a career.
Information Technology-Enabled Services:
The Information Technology-Enabled Services (ITES) industry provides services that are delivered
over telecom or data network to a range of external business areas. Examples of such business
process outsourcing (BPO) include customer service, web-content development, back office
management and network consultancy etc.
Performance:
The in India has mushroomed over the past decade. India has enjoyed its dominant position in the
global BPO segment due to its low cost but qualified workforce, Indians’ fluency in the English
language, governmental support and a stable legislative and economic framework. The 12 hour time
zone difference with the primary originator of most BPO jobs, the United States, is an added bonus,
as day and night shifts can be carried on as routine. The governmental drive to offer subsidies and tax
relief benefits to the ITES industry has been an important factor in the enhanced competitiveness of
India.
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In 2008, ~1.0 million people were employed in this sector, and it generated annual revenues of ~$11
billion (1% of GDP). The client base is primarily in the United States (~60%) followed by the United
Kingdom (~30%), with majority of the clients typically engaged in either the IT, financial services or
telecom industries.
Challenges:
The significant demand for the industry has also had to deal with skyrocketing real estate and
infrastructure costs in Tier-1 cities. Due to these escalating costs, many pundits argue that the
trajectory of 30% annual growth is unsustainable going forward; As a result, many Indian BPOs in
Tier-1 cities have been looking at migrating operations to Tier-2 and Tier-3 cities. Indian BPOs’
competitive edge is being further eroded as wages rise by 10-15% p.a. as a result of skill shortage. In
a further blow, countries like China, Mexico and Vietnam are becoming real threats, expanding
outsourcing operations and often providing cheaper services.
Coping with Competition :
In an attempt to differentiate themselves and stay ahead of the competition, the industry has begun to
focus on more lucrative knowledge intensive outsourcing services, popularly known as knowledge
process outsourcing (KPO). The services require high-end skills and intellectual attributes and range
from R&D, business and technical analysis, animation and design and learning solution to market
research, data analytics, IPR and legal research. India has a first mover advantage in this area and as a
result, has captured lion’s share of this segment.
Given the strong dependence of the ITES industry players on the robustness of their’ client’s
financial health, the industry was very badly affected by the global recession, with many in the red.
Most client companies, especially in the US, chose to cut budgets across the board and generate
governmental support by not promoting overseas enterprise at the cost of already suffering local jobs.
As a result, most Indian BPO companies faced a tough 18-24 months.
Growth Potential:
However, many leading players believe the worst is over, and are optimistic about the future, “The IT
sector is expected to grow at 15-20% and so is the BPO sector. With the US economy back on the
recovery path, we expect double-digit growth as against 4-7% last fiscal. We are, hence, planning to
expand our business and hire more people. We plan to hire 7,000 personnel across the country this
year," Intelenet CEO Susir Kumar shared at a recent Press Conference.
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Future Prospects:
Given the optimism surrounding the prospects of the KPO segment specifically, graduates with skills
in financial analysis, equity research, treasury operations, credit decision processes and accrual
services among others are those most likely to be in demand. Successful candidates who also display
strong communication and IT skills can further dividends in this higher pay scale category. Given the
growth of MNC’s in this industry, there may be exciting opportunities for further development and
placements over the next 3-5 years as this segment too matures.
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OUTSOURCING DEPARTMENT
Business process outsourcing (BPO) is the contracting of a specific business task, such as payroll, to
a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a
company requires but does not depend upon to maintain their position in the marketplace. BPO is
often divided into two categories: back office outsourcing which includes internal business functions
such as billing or purchasing, and front office outsourcing which includes customer-related services
such as marketing or tech support.
BPO that is contracted outside a company's own country is sometimes called offshore outsourcing.
BPO that is contracted to a company's neighboring country is sometimes called nearshore
outsourcing, and BPO that is contracted with the company's own county is sometimes called onshore
outsourcing
Organization Chart - Outsourcing Website Design and Development Department:
The entire work that is involved in any project taken up by us is carried out by our team in the
custom website development and custom software development services. Each member of the
team is assigned with specified job duties in which area the concerned hand is found to be the best
suitable. The following organization chart is based on the order of the work process with overlapping
responsibilities as and when required. The aim is to synchronize operations so as to ensure efficiency,
perfection, and timely completion of the task in our organization.
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Distribution of job duties:
Members of the web site design and organization web site development team in website
development are classified on the basis of the nature of their work and accountability for each job
duty. However, since many duties depend upon the support, contribution or collaboration of other
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staff members, job profile may vary marginally. This is a combination of accountable tasks and
shared tasks for each job title. Here is a list of job duties assigned for each position:
Subject Matter Expert (SME):
The Subject Matter Expert is the basic source of information that will provide the clear picture of
requirements regarding a particular project. The SME will have a complete idea about what will be
the function of the software, and how the process works. The requirements of different projects are
most probably changing constantly and at times new clients (internal or external) are brought in to
help design a solution. Often the client himself will act as the SME. And the SME need not be a
person from the IT field, except when the solution is being designed to support IT.
Solutions Architect (SA):
The Solutions Architect is responsible for transforming the requirements created by the Functional
Analyst into a set of architecture and design documents that can be used by the rest of the team to
actually create the solution. The SA is responsible for matching technologies to the problem being
solved.
Quality Assurance (QA):
The QA's role is primarily to find bugs before they find their way to the end customer. Using a
variety of techniques, the Quality Assurance team is responsible for ensuring the quality of the
solution and that it fits in to the requirements gathered by the Functional Analyst.
Development Lead (DL) Organization:
The Development Lead's role is focused on providing more details to the Solution Architect's
architecture. This would include detailed program specifications creation. The Development Lead is
also the first line of support for the developers.
Organization Developer:
Developer is the heart and soul of the process. The Developer actually writes the code for the
specifications provided by the Development Lead.
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Tester:
The Tester's role is to create the Test documents from the Plans and Scripts created by the QA. This
document is reviewed by another tester who is called the Reviewer.
Project Manager (PM):
The Project Manager is responsible for ensuring consistent reporting, risk mitigation, timeline, and
cost control. This is a problem solving role. The PM is involved in each and every process taking
place in web designing and development department.
Development Manager (DM)/Director:
The Development Manager will be responsible for managing multiple priorities of conflicting
projects. The Development Manager is the final word in issues where finding solutions are difficult.
The DM is involved in each and every process taking place in web designing and development
department.
Outsourcing Information Technology Systems and Services
Outsourcing is growing at a rapid rate in the United States, Europe and Asia because organizations
view outsourcing as a way to achieve strategic goals, reduce costs, improve customer satisfaction and
provide other efficiency and effectiveness improvements. Like any organizational decision,
outsourcing is not free of risk and requires effective management from the outset of the outsourcing
evaluation through the life of the contractual relationship. This article outlines fifteen critical factors
for successful outsourcing.
1. Define the Objectives:
Outsourcing must be done carefully, systematically, and with explicit goals. Companies that rush into
outsourcing without fully understanding what they hope to gain may find themselves mired in a
contractual battle with a chosen vendor or the recipient of services that worsen rather than improve.
Sensible reasons to consider outsourcing include both strategic and tactical concerns on both a
department and organizational level.
Outsourcing might be justifiable for a department with high costs that cannot be reduced or a lack of
competency in specific areas. Organizational needs that generate consideration of outsourcing
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include the ability to compete globally with global services or relief from financial pressures
achieved through immediate cost savings.
Outsourcing is not an excuse to wash management's hands of a poorly managed, costly, or
misunderstood function. Understand the costs of a function and manage it effectively before
evaluating its potential for outsourcing. Otherwise, you are probably deciding to outsource for the
wrong reason, you may be giving the outsourcing vendor gains you could have reaped, and you may
be starting a relationship that is destined to fail.
Organizations should consider (or reconsider) the overall merits of selective outsourcing every three
to four years. Revisiting outsourcing may be particularly relevant under changing market conditions
or when internal, industry, or technology changes have occurred.
2. Outsource for the Right Reasons:
A. Figure 1 and Figure 2 summarize the main tactical and strategic reasons for outsourcing.ssess
outsourcing's potential tactical and strategic benefits and disadvantages. Potential disadvantages
include outsourcing for the wrong reasons, losing control of the resource, losing personnel who have
been trained in the organization's particular business practices and have become a part of the
organizational family, and the risk that the outsourcing vendor may not be able to achieve the desired
benefits or may fail in providing critical services
3. Answer Key Questions:
The outsourcing issue should be part of a larger one regarding how the function or functions being
evaluated for outsourcing fit into the organization. As part of the outsourcing evaluation, questions
like the following should be answered:
What are our core competencies?
Which services or corporate support functions are not integral to or close to our core
competencies?
What are the barriers raised by the corporate culture?
What is the cross-functional impact?
Can we fix ourselves internally before we consider outsourcing?
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What might be better accomplished by an outside vendor?
What are the goals we want to achieve from outsourcing?
What kind of relationship with a vendor is most appropriate?
How do we deal with the people issues?
4. Use a Methodical Approach:
The process of deciding whether outsourcing is warranted involves numerous steps or phases.
These are: identifying requirements; preparing and distributing a request for proposal (RFP);
examining proposals; evaluating vendors; negotiating contracts; and implementing outsourcing.
Adopt a methodology that describes the various steps to be performed and lays out the project
plan necessary for a thorough evaluation. Just as applications development activities should be
guided by a written, explicit methodology, the effort to consider and possibly implement
outsourcing should be systematically conducted and documented.
The various phases are as follows:
Planning Phase. The objectives and scope of the outsourcing idea are defined and the
feasibility of outsourcing is determined before a decision to proceed. The effort is
planned in terms of time, budget and resources needed.
Analysis Phase. Baselines are determined and the service levels required of vendors
are specified. Relationships between the information system function(s) to be
outsourced and other functions that will remain in-house are also clarified so that
contracts with vendors are certain to include proper interfaces with in-house services.
The request for proposal is developed, responses are collected from vendors and
analyzed, and a vendor is chosen.
Design Phase. Negotiations proceed with the vendor and a contract is developed and
signed.
Implementation Phase. The transition from in-house provision of services to
outsourcing is made.
Operations Phase. The outsourcing relationship with the vendor is managed and any
maintenance or changes in the outsourcing relationship are negotiated and
implemented.
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Termination Phase. At the end of the contracting period the decision is made to
negotiate another contract with the vendor or a new vendor, and the cycle begins
again. Alternatively, a decision is made to bring the function back inside the
organization.
5. Consider All Stakeholders:
Managers who have made the decision to outsource should be able to predict the likely impact
that outsourcing will have on the organization's stakeholders, who include stockholders,
customers, suppliers, and employees. For example, news of a pending outsourcing arrangement
may alert the stock market to perceived organizational troubles or send a signal that "something is
finally being done at Company X" thus causing the stock to rise. After anticipating the impact of
an outsourcing evaluation on stakeholders, managers should include the revealed issues in the
outsourcing plan.
6. Get the Right People Involved:
Early in the evaluation, persons must be identified who will take leadership responsibility, perform
the analysis, and make the decisions.
The persons who should be involved depend on what is to be outsourced and the circumstances
surrounding the outsourcing decision. An executive sponsor or champion is desirable, and in cases
that involve organizational politics such support is absolutely critical. For larger outsourcing
initiatives, top management must play a role. For smaller efforts, middle-level managers might do the
heavy lifting with the support of higher managers. The team likely needs a mix of managerial and
technical talent. The team should also include representatives from user areas that will be directly and
heavily impacted by the outsourcing under consideration. User views may be critical for setting scope
and for assessing risks.
The size of the team depends on the scope and size of the project, but smaller teams are generally
more effective than larger teams. The team can be quite small in the planning phase and expanded in
size when analysis begins. Teams with full-time members are often more focused and effective than
teams composed of people who work part-time, although full-time allocation may only make sense
for big outsourcing projects. It helps tremendously to have persons experienced in outsourcing on the
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team for the insight they bring to the issues and the realism they bring to cost and benefit estimates.
Outside consultants are highly recommended.
Once the decision is made to outsource, identify persons who will be given responsibility for
oversight and management of the outsourcing arrangement and vendor relations after the contract is
signed. These people should be part of the team that crafts the contract. Their inclusion is critical for
several reasons. First, there is no better way to understand the issues involved in outsourcing than to
be involved in all aspects leading up to the deal. Second, relationships with vendors start at the
moment discussions begin. Being on the ground floor and having continuity in the relationship with
people in the vendor organization contributes to success.
When outsourcing threatens to upset the status quo in an organization -- as in instances of
outsourcing motivated by high costs or poor performance-- it may not be possible to rely on internal
sources for accurate estimates of internal costs or internal effectiveness. Under these circumstances,
bring in objective outsiders for the assessment work.
7. Understand the Vendors:
Vendors that offer various outsourcing services aggressively market and pursue organizations to
adopt outsourcing. Although the information that such vendors provide is often useful for
establishing the types and general prices of services that might be outsourced, the actual price an
organization will pay is set in actual negotiations related to specific requirements.
Managers should take care not to be misled by what other organizations are paying or what a vendor
might casually offer as a possible pricing scheme. After narrowing potential vendors to a manageable
handful, better pricing and service agreements can often be reached by negotiating with the best-fit
two or three vendors and then striking a final deal based on the best final offer.
Because the path toward outsourcing can be a difficult one, managers should seek outside assistance
from advisor(s) who can help coach an internal team during the evaluation and negotiation processes.
It is important to bear in mind that outsourcing vendors have fine-tuned their approach and are
usually armed with seasoned staff. Using unbiased advice to guide an organization through the
process from beginning to end helps level the playing field.
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8. Realize that Outsourcing is not All or Nothing:
Total outsourcing transfers most equipment, staff and responsibility for delivery services to a vendor,
while selective outsourcing is the outsourcing of one or a few selected information systems functions.
The sum of what is outsourced is substantially less than total outsourcing.
Total outsourcing isn't easy because of the scope of the endeavor and because of the consequences if
it isn't done well or if it shouldn't have been done at all. The stakes are high. A considerable sum of
money is usually involved, not to mention the effectiveness of an information pillar that supports
your organization's structure and performance.
Total outsourcing is a major undertaking and no organization should do it without considerable
thought. These deals are often structured to last for long periods -- usually more than five and often
ten years. Vendors plan to make their margins on economies of scale and on replacing hardware in
the future at costs that are substantially below costs today. Total outsourcing arrangements only yield
acceptable margins over longer periods of time. Morever, clients who enter into total outsourcing
arrangements must spend considerable time, effort and money analyzing the deal and contracting
with a vendor and information systems flexibility may be considerably reduced. Technology will
certainly change over a five or ten year period. The business environment will change, yet it is hard
to set contracts that allow for large changes in scope. If the arrangement with the vendor does not
succeed, it is necessary to either contract with another vendor, which involves substantial costs and
disruption, or it's necessary to bring the function back inside the organization with all the attendant
costs and problems. This is not to say that total outsourcing should never be considered, but it drives
home the point that it should not be undertaken lightly.
9. Choose the Right Relationship:
Contracting relationships can be viewed as a range or continuum. At one extreme are market-like
relationships in which your organization has a choice of many vendors capable of performing the
work, relatively short contract durations, and the ability to switch to another vendor at the end of a
contract for future work of the same type with little or no cost or inconvenience. At the other extreme
are long term partnership arrangements in which your organization contracts repeatedly with the
same vendor and develops a mutually beneficial relationship that lasts a long time. The middle of the
continuum is occupied by relationships that must endure and remain reasonably harmonious until a
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major piece of work is completed; these are termed "intermediate" relationships. Since it is a
continuum, there are relationships that lie closer to market relationships and relationships that lie
closer to partnerships, as well as those that are midway between the two extremes.
Market relationships cost the least to set up and administer and are relevant for work that is fairly
simple and straightforward. Intermediate relationships cost more and are relevant for work that is
more complex and has substantial benefits. Partnerships cost the most and are only relevant when the
benefits of a close relationship with a vendor are substantial. Choosing the wrong relationship could
result in excess costs or failures.
10. Negotiate a Sound Contract:
There are several critical components of a good outsourcing agreement. The emphasis from the outset
should not be on who wins the best deal, but rather on negotiating a fair and reasonable contract for
both parties. Because each aspect of the outsourcing relationship is governed by the contract, both
your organization and the outsourcing vendor need to agree on everything. This also means that
managers must think of every possible contingency to cover in the contract. The parties also need to
agree on how to resolve disputes after the contract is signed. Such an agreement should not take the
form of an open-ended assurance of goodwill but rather delineate the who, what, when, and where of
conflict resolution.
The manner in which employees are handled during the outsourcing process and contractual
loopholes with a chosen vendor can lead to lawsuits. For these reasons, managers should ensure the
involvement of in-house legal staff throughout the process and consider using outside legal advisors
with expertise in outsourcing matters. An outsourcing contract may last for a long time, and both the
organization and the vendor must understand how the relationship will be managed throughout the
life of the effort.
Some of the important contract considerations are:
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Terms of the agreement. The trend is toward a shorter-term renewal option (e.g.,
three to eight years). Managers should ensure that the contract stipulates that a
renewal of the contract occurs only if a renewal notice is sent.
Minimum services levels. It is vital that the contract specify as accurately as possible
the services to be provided in the contract. This includes establishing minimum
service levels and identifying any ancillary services to be provided.
Ownership and confidentiality of data. The agreement must specify that the
customer retains ownership of the data it submits to the vendor and that the data is
kept strictly confidential.
Warranty. Managers must ensure that the vendor warrants that it will provide the
services as defined in the agreement and that it will accommodate a specified increase
in requirements.
Exhibits. Exhibits should be carefully read. As complex transactions, first-drafts of
outsourcing contracts usually contain exhibits that are incomplete.
Incentives. Consider providing the vendor with an incentive to perform. Such
incentives include guaranteed savings, shared benefits/risks, profitability index,
teaming arrangements, and cross-marketing opportunities.
Disclaimers. Accept the fact that disclaimers will be part of the contract but ensure
that a disclaimer does not void the warranty and indemnity sections.
Bankruptcy. Both parties to the outsourcing contract should consider the possibility
that the other may go bankrupt, which changes the outsourcing situation and
obligations entirely.
Force Majeure (Acts of God). These provisions state that the vendor is excused from
performance if it experiences certain conditions. Such events should be limited to 30
to 60 days.
Performance measures. A sound contract must include performance measures, because
without them, there are no objective criteria for managing the outsourcing
relationship. It helps considerably to develop such measures long before the contract,
so that a history of effective measures can be used in the negotiations. Managers
whose organizations lack such measures should not ignore them in the contract,
however, but instead include a provision stipulating that the two parties agree to
establish a baseline and begin using the metric on some specified date.
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Anticipating change. Contracts should provide for both good and bad times and
accommodate cycles of demand that require an adjustment in services. If, for example,
an organization becomes smaller, it could find itself paying for services that were
priced based on conditions that no longer exist. Consider all the reasons why a
contract might not work and ensure that the agreement can be terminated if necessary.
11. Use Performance Incentives and Penalties:
Incent the vendor to meet and exceed the contracted performance standards. Pay bonuses when the
vendor exceeds expectations and charge penalties when performance falls below expectations.
Ensure the incentives of the individual managers on both the customer and vendor sides are also
consistent with the overall goals and with each others incentives.
12. Establish a Relationship Management Structure and Processes as Part of the Contract:
Provide in the contract for a formal relationship management structure linking the customer and
vendor. This structure typically takes the form of joint management teams which have responsibility
for day-to-day, tactical, and strategic aspects of the relationship. Each team has a clearly defined
responsibility, agenda, frequency of meetings, and relationship to the other teams.
Identification, resolution and rapid escalation of issues should be a key responsibility of each team.
13. Use Objective Performance Criteria:
Successful outsourcing relationships focus on results. To be meaningful, these results must be
objective, measurable, quantifiable, and comparable against pre-established criteria.
The specific performance criteria differ depending upon the types of services being provided, the
customer requirements, and the level of service. Properly defined performance criteria for an
outsourcing engagement are objective, quantifiable, and collectable at a reasonable cost, and should
be metrics which can be benchmarked against performance of other organizations and providers.
14. Emphasize the Development of the People Responsible for Relationship Management:
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The individuals responsible for managing the outsourcing relationship for the customer should
receive specific training on how to do the job. This includes a complete understanding of the business
goals of the contract, the specific performance criteria agreed to, and individual roles,
responsibilities, authority, and reporting structure. The same information should be communicated to
the larger end-user community. In this way, the entire organization understands what is intended,
why, how problems will be identified and resolved, communication channels, what is expected, etc.
This training and communications can also help reduce resentment or resistance.
Encourage training for the vendor personnel on the customer business environment and goals.
Although the vendor personnel are experts in their fields, they require specific, ongoing training on
the client's business and its goals. In this way, they develop the needed sensitivity to the issues
driving the client's needs.
You are also encouraged to involve both customer's and vendor's personnel in informal meetings and
social events; education on company heritage and history; rotation of employees between the
companies; participation of employees in "internal" meetings of the other firm; participation in the
partner's internal improvement programs, such as quality teams; jointly sponsored recognition events,
etc.
15. Manage the People Issues:
Managers who make the decision to evaluate outsourcing need to consider a host of people issues, the
foremost of which is communication. Although communication requires more effort than might be
anticipated, it is critical to a successful evaluation process.
One of the first steps managers should take to ensure good communication is the establishment of a
hotline to manage the rumor mill. Various forms of communications (e.g., newsletters and
organizationwide meetings) help ensure that the right message is traveling as fast and as widely as
the rumor mill.
Keeping people informed every step of the way and working out a deal perceived as fair for them is
important because an organization trades more than its physical assets to the vendor in an outsourcing
arrangement-it often gives away its people as well. The customer's employees may become the
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vendor's employees, and individuals who feel they have been mistreated will have the power to bring
systems down. Pragmatic reasons aside, treating people as fairly as feasible is the right thing to do.
Also, consider human factors from the perspective of the user community. Users should be provided
with points of contact before implementation, and an issue-resolution process should be immediately
instituted.
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SOWT ANALYSES
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Strength:
HGS Company holds experience in the field of technology management. 10 years’ experience
in the field.
It provides good services than other competitors in terms of accuracy in performance.
It has long term partnerships and even provides solution to the customers.
It has a strong position in US Projects.
It has a proper management of services and resources.
Weaknesses:
Lack of resources for customer support and further technological development.
Lack of performances management process and team spirit.
Requirement of huge capital for R&D.
Poor performance of employees due to lack of training.
Opportunities:
HGS Company can acquire most of the ASIAN countries by improving service quality.
There can be improving more outsourcing information technology.
Company can explore more outsource.
Still there is a wide range of market to be explored the business throughout the world.
Threats:
Threat from foreign countries like China, Japan, South Korea, etc.
Rapid increase in price competition.
Increased R&D needs.
Shifts in consumer taste away from the firms services.
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Summary:
The company has to improve the strengths keeping in mind the opportunities available and try to
irradiate the weakness and face the threats with competitive sprits. The company should follow the
business ethics while conducting business.
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FINDINGS, SUGGESTIONS AND CONCLUSION
FINDINGS:
The organisation is reimbursing the medical bills on time.
The organisation is providing good leave facility to its employees.
The promotion scheme in HGS is mostly based on seniority.
The training given in HGS is serving the purpose that is employees are improving the
performance on the job.
The canteen facility provided should be improved so that the employees work efficiency and
their by to improve the productivity of the organisation.
Since the employees felt that there is disturbance at work place due to noise necessary steps
should be taken to remove it.
The financial performance of the company is good compare to previous financial year
The investors are getting good returns.
The employees are satisfied very much with good benefits.
More training and development is required.
SUGGESTION:
Motivational factors
Motivational factors are those which motivate employees to work hard and enjoy their work.
Good Pay
Employees in the company feel that pay should be directly to the performance. Company
should bring modifications towards overtime pay. An effective communication has to be
rolled out to all employees to help them understand the worth of their proportion of
contribution towards the organization. This is a sensitive issue and needs to be handled with
care, taking senior managers into confidence.
Match People to the Jobs
Human resource planning should be carefully done so that the right person is placed in the right job
there by fully utilizing the employees’ skills and knowledge.
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Supportive Supervisory Style
As per my study in the company the supervisory style is supportive and they should encourage
employees to know and perform their job well for organizational benefit. So the company should be
keen while selecting supervisors, as they play a very important role in motivating shop floor workers.
Special Benefits and Perks
A number of employers use a wide range of special benefits and perks to attract and retain
employees. Special benefits like canteen facilities, pickup and drop of employees, provide employees
with assistance in personal matters at their places of work etc,. By offering these special benefits and
perks, employers hope to reduce the time employees spend after work on personal chores and to be
seen as more desirable employers thereby motivating the employees to continue with their present
jobs.
Recognition and Rewards
Employee recognition as a form of reward can be both tangible and intangible. Tangible recognition
comes in many forms, such as employee of the month, perfect attendance, or other special awards.
Recognition also can be intangible and psychological in nature. Feedback from managers and
supervisors that acknowledges extra effort and performance of individuals provides recognition, even
though monetary rewards are not given.
Work Flexibility
Flexibility in work schedules and how work is done has gained significant importance. Work
flexibility is particularly vital in the wake of organizational work load pressures that have increased
due to organizational restructuring and right sizes. It is crucial that employers wishing to retain
employees monitor the workloads placed on them. If these demands become too great then
employees are more likely to change jobs to reduce their work loads. One way employers can provide
work flexibility is through work scheduling alternatives.
Work - Life Balance:
One of the greatest benefits of work flexibility is that it meshes well with work/family efforts by
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 63
employers. Balancing work responsibilities, family and personal life demands is very difficult.
Work/life programs offered by employers could include a wide range of items such as, flexible work
schedule, job sharing or Tele commuting, sick leave policies etc. The purpose of all these offerings is
to convey that employers recognize these challenges when balancing work/life demands. Even
pensions, medical facilities, paid insurance, provident fund, gratuity will motivate employees towards
their work.
CONCLUSION:
I have done my project titled dissertation in AT&S India Private Limited Nanjangud, as a project
trainee in HR department. It was a feeling of being part of the organization. It was an excellent
learning experience for me to understand various departments and their style of functioning. From
this exposure I understood that there can never be practical without theory.
The various aspects I learned are:
What the company manufactures.
How work done inside the company.
How organization models help to manage huge number of programs.
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CHAPTER 7
Bibliography
SURANA COLLEGE CENTRE FOR POST GRADUATE STUDIES, BANGALORE Page 65
Bibliography
BOOKS:
1. Financial Management, Prasanna Chandra, Tata McGraw-Hill Publishing Company Ltd,
7th Edition.
2. Human Resource Management, K. Ashwathappa, Tata McGraw-Hill Publishing
Company Ltd, 7th Edition.
3. Quantitative Techniques for managerial decisions, Srivastava, Shenoy, and Sharma, 2nd
Edition.
4. Robbins, Stephen P. (2004), Organizational Behaviour (10th Edition), Prentice-Hall India
Websites
Websites:
1. http://www.teamhgs.com
2. www.bloomberg.com
3. www.Mumbai best.com
4. http://www.hgs.in/about-us/about-group.html
5. http://www.Outsourcing.in/news/press-release.html
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