It sector & cma's

INSTITUTE OF COST ACCOUNTANT OF INDIA

Project On IT/KPO/BPO and Role Of CMA

1.Introduction2.About BPO3.About KPO4.IT Sector in

INDIA5.Role Of CMA’s6.Case study –

WIPRO & TCS7.Conclusion8.Thankyou

• With the emergence of globalization, more and more companies have started going global by undertaking business activities across their national frontiers. The market is becoming increasingly global and competition becomes fierce more than ever. Coping with the intense competition calls for strategically positioning commercial enterprises- the context in which accountants operate to out compete rivals. As business activities go global trade transactions becomes voluminous and complex to account for.

• In such a competitive environment CMA’s plays a very vital role in BPO and IT sectors by contributing their Analytical expertise for effectively managing the Resources.

Introduction

WHAT IS BPO?

•Business process outsourcing (BPO) is the contracting of a specific business task, such as human resources and customer service, to a third-party service provider.•Originally,This was associated with manufacturing firms, such as Coca Cola that outsourced large segments of itssupply chain

• It is often divided into two categories: - Back Office Outsourcing which includes internal

business functions such as billing or purchasing.- Front Office Outsourcing which includes customer-

related services such as marketing or tech support.

BPO Categories

What is KPO?• Knowledge process outsourcing (KPO)

describes the outsourcing of core information related business activities which are competitively important or form an integral part of a company's value chain.

• KPO requires advanced analytical and technical skills as well as a high degree of specialist expertise.

• Reasons behind KPO include an increase in specialized knowledge and expertise, additional value creation, the potential for cost reductions, and a shortage of skilled labor.

DIFFERENTIATING KPO FROM BPO

A KPO firm requires considerably more skilled personnel. Experts working in KPO keep on learning and accomplished professionals can power their aptitude to produce more incomes for the KPO firm.The main difference between a KPO firm and a BPO firm is that in a KPO firm, the customer is included amid the whole execution process. KPO firms additionally provides their customers with high end services. The pay of KPO representative is much higher than offered to the BPO worker as the individuals working for KPO are exceptionally qualified.

INFORMATION TECHNOLOGY IN INDIA

Information technology in India is an industry consisting of two major components: IT services and business process outsourcing (BPO).

According to NASSCOM, the sector aggregated revenues of US$147 billion in 2015, where export revenue stood at US$99 billion and domestic at US$48 billion, growing by over 13%.[1] India's prime minister Narendra Modi has started 'Digital India' project to give IT a secured position inside & outside India.

WHO WE ARE?

We are

We are Certified Cost & Management accountant From “INSTITUTE OF COST ACCOUNTANT OF INDIA” which is India’s No. 1 Management Accountant Institution And Worlds 2nd Largest Institution .

What We do? Corporate Decision Making Resource Management Performance Management Financial Reporting & Strategy Optimization of Stakeholder’s

value Risk Management Enterprise Governance Audit assurance and Taxation Sustainable Development Corporate Social Responsibility to

CMA’s Contribution to IT Sector

In these days of economic downturn, visibility into IT Operational costs has become increasingly important for Enterprises due to the proliferation of IT into their Business. This visibility is essential in order to establish control over the ever increasing IT expenses, caused by unchecked IT sprawl. Also, understanding the cost of IT, at the point of delivery, lays the foundation for many key themes of today - like Service valuation, Green IT, economic analysis of IT projects etc.

12

MOST FUNCTIONS CAN BE OUTSOURCED TODAY

Source: KPMG, Knowledge Process Outsourcing, February 2008

Offshoring Scoping matrix

Retail Banking Wealth management, life and general insurance

Institutional, Investment & business banking

IT, Infrastructure and administration support (ITO)

Core banking systems Life policy systems maintenance and application development

Loan accounting and equity / Fixed Income trading systems

Application development and maintenance Remote infrastructure management Package implementation and support Database administration, data mining and warehousing solutions Middleware development and support

Product based transaction processing and customer contact centres (BPO)

Mortgage and personal loan origination, processing and servicing collections

eDisputes processing Credit card processing Consumer finance Cash management / Fund transfers

and reconciliations

Insurance claims administration and payment

Policy underwriting Insurance agency management Fraud detection Recoveries Trial balance analysis Brokerage operations Commissions administration

Project finance documentation Support FX, currency ops and

derivatives settlement Trade finance and LCs – advice

and settlement Corporate finance Risk management Securities processing Custody operations and trade

Inbound/outbound contact center Customer query handling Data entry, indexing and content management Customer background verification and finalization Loyalty retention (customer care program) Customer statement and other periodic reporting Regulatory requirements/mandate related support and administration Payment processing

Analytics Outsourcing activities (KPO)

Mortgage and personal loans Portfolio pricing Data warehousing Data-mining Marketing analytics

Fund performance analysis Reporting and accounting Actuarial support Product pricing including Dynamic

Financial Analysis (DFA) models Financial model validations

Equity research and M&A analytics support (valuation and related financial modeling)

Credit proposal analysis, preparation and documentation, portfolio analytics

Library services

Top 10 players in IT Services

S.No Company Name

1 Tata Consultancy Services Ltd

2 Infosys Ltd

3 Wipro Ltd

4 HCL Technologies Ltd

5 Tech Mahindra Ltd

6 L&T

7 Syntel Ltd

8 MphasiS Ltd

9 Genpact India Pvt. Ltd.

10 MindTree Ltd

1. Tata Consultancy Services BPO.2. Genpact Limited3. WNS Global Services (P) Ltd.4. Aegis Limited5. Wipro BPO6. Firstsource Solutions Ltd.7. Infosys BPO Limited8. Aditya Birla Minacs9. Hinduja Global Solutions Ltd.10. EXL Service

List of 10 Top BPO

Revenue in US$

Tata Consu

ltancy

Servi

ces B

PO.

Genpact Lim

ited

WNS Global

Servi

ces (P

) Ltd.

Aegis Lim

ited

Wipro BPO

Firsts

ource So

lutions Ltd.

Infosys BPO Lim

ited

Aditya B

irla M

inacs

Hinduja Global

Solutions L

td.

EXL Servi

ce

0500

1000150020002500

Revenue($)

16

INCREASED SA

VINGS

HIGH COMPLEXITY GENERALLY MEANS MORE SAVINGS

Value Addition

Low Medium High

• Increased complexity can lead to higher savings with potentially less risk

RESEARCH & ANALYTICS(40-60%)

TRANSACTION PROCESSING(25-40%)

ACCOUNTING / CALL CENTRES (35-40%)

IT SERVICES(25-50%)

INSURANCE(40-60%)

Wipro Limited (Western India Products Limited is an Indian multinational Digital Strategy, IT Consulting and System Integration services company headquartered in Bangalore, India.

Wipro Group of Companies:1. WIPRO2. Wipro Consumer Care &

Lighting3. Wipro Infrastructure

Engineering4. Wipro GE Medical Systems

Shareholders (as on 20-January-2016) Shareholding

Promoter group led by Azim Premji 73.36%

Foreign Institutional Investors (FII) 10.68%

Indian Public 04.99%

Bodies Corporate 02.50%

Mutual Funds/UTI 01.90%

NRI 01.11%

Trusts/Others 0.77%

American Depositary Shares

02.30%

Total 100.0%

Shareholdings

Net worth WIPRO VS TCS

Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-160

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

WIPROTCS

Total income of Last 5 years

2015

2014

2013

2012

2011

0 10000 20000 30000 40000 50000 60000 70000 80000

Chart Title

Earning Per Share

2015

2014

2013

2012

2011

0 20 40 60 80 100 120

Chart Title

TCS WIPRO

Return On Capital Employed

2015 2014 2013 2012 20110

10

20

30

40

50

60

Chart Title

Axis Title

Net Operating Profit

2015 2014 2013 2012 20110

50

100

150

200

250

300

350

400

Chart Title

WIPRO TCS

ConclusionBPO and IT Sector Is India’s largest industry where CMA’s can add Value and contribute maximum to this Sector.

“Behind every Successful Business Decision, There is always a CMA”.

Presented by Group Kiwi

• CMA Rahul Rai• CMA Pooja Goenka• CMA Sibasis Paul• CMA Sabyasachi nandy• CMA Anil Biswal• CmA Gurdish Singh• CMA Dhannu Gupta• CMA PraKash Roy