White Paper on Business Process Outsourcing in Automotive Industry

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1 White Paper n Business Prcess Outsurcing in Autmtive Industry

2 Intrductin As autmtive industry is stepping int a market landscape which is favrable t it, there is untapped market ptential which is critically scrutinizing each and every prduct ffering befre making a decisin. The industry is facing challenges f meeting Envirnmental & Emissin nrms while dealing with rising Capital Csts, increased cmpetitin due t glbalizatin and liberalizatin, stringent ecnmic factrs and custmer relatinship management. Peple at the tp f the pyramid will have t take strategic decisin t deal with this situatin and reallcate their resurces apprpriately in rder t sustain in this highly cmpetitive industry. Summary Indian Autmtive industry is cming ut f a tugh fiscal year. Trends at the beginning f this fiscal seem t be prmising fr the autmtive industry, but challenges that the industry has been facing are still lingering arund. Industry players need t be fcused n their strategies and shuld nt get carried away by prmising scenaris. They need t be wary f these challenges. Meeting Envirnmental & Emissin nrms, increased cmpetitin in the market, stringent ecnmic factrs and custmer relatinship management are the majr challenges that this industry faces. This is the perfect time fr the market players in this industry t strategically align themselves with the changing envirnment and fcus n their cre cmpetency f delivering better prduct prpsitin, strengthening their brand value and vlunteering in envirnmental prtectin causes; utsurcing nn cre business prcesses gives them the advantage f reduced verhead, imprved custmer satisfactin and lwer perating csts while strengthening their after sales service prpsitin as well. Challenges in Autmtive Industry The industry is facing challenges t effectively handle their custmer relatinship management and brand reputatin in the cnditins, which as f nw, are favrable fr the industry but hand n hand they need t meet rising custmer expectatin and their changing preferences. T cnfrnt these impediments utsurcing is the strategic, cst effective chice and slutin fr the autmtive industry. Business Prcess Outsurcing in Autmtive Industry

3 Custmer Relatinship Management Custmer Relatinship Management (CRM) is the buzz wrd in this industry. Sle reasn being the after sales market plays a prminent rle in this industry. Custmer decisins are highly driven by hw s the grip f the player in the after sales market. Efficient and prmpt service delivery n vehicle breakdwn and cmbating the prblem f cunterfeit spare parts are the majr pillars which impacts verall custmer relatinship status. Nt nly the CRM impacts the prduct purchasing decisin f the custmer but als plays instrumental rle in repeat purchase decisins and marketing initiatives f the rganizatin by turning data int custmer insights. Unfavrable Ecnmic Factrs Ecnmic health f the cuntry and autmtive industry are very much crrelated with each ther. If ecnmic drivers f the cuntry are nt flurishing, it will impact the whereabuts f the autmtive industry as well. Current ecnmic scenari where interest rate fr lans is skyrcketing, currency fluctuatin is acting as a catalyst in nly wrsening the state f the autmtive industry. Industry players becme helpless if these tw things are nt in their favr because they are nt in the driving seat which decides the future curse f actin fr the health f the ecnmy. Envirnmental Issues & Emissin Nrms Develpment and grwth which cmes at the cst f damaging the envirnment is unwanted by the peple. In tday s fast paced wrld it has becme ne f the mst sensitive issues. Manufacturing f autmbiles and its spare parts is an ambit where in all the stages f the Business Prcess Outsurcing in Autmtive Industry

4 prduct develpment, envirnmental issues are needed t be adhered t, nt nly that, when a vehicle is n rad it has t be in cmpliance with emissin standards f the cuntry. Every cuntry has instituted its set f emissin standard prtcls. Sme f the cuntries fllw Eurpean emissin regulatins. T cmbat such stringent nrms and regulatins market players in the industry are vlunteering in the envirnmental causes which are impacting their verall value prpsitin. Highly Cmpetitive Market Liberalizatin f the market and simultaneus rise f glbalizatin has allwed the entry f freign players in the market. Market has never been as cmpetitive as it is nw in the autmtive industry. This in ne way is beneficial fr the custmers as it gives them the bargaining pwer and varied chices t select frm. But cmpetitrs have t be n their tes t gain the attentin f the custmers. If cmpetitrs dn t they will ultimately see custmers switching frm their brand t anther. Due t this market has becme highly cmpetitive and it will nly be survival f the fittest. Pints t pnder in the Current Situatin Strengthening Custmer Relatinship Management in the rganizatins by strategically categrizing cre and nn-cre activities and prcesses. Reengineering & benchmarking the cre activities t bring them at par with glbal industry practices. Persistent brand rejuvenatin activity t distinguish and achieve the desired psitining in the mind f the cnsumer t achieve tp f the mind recall. Cst benefits analysis f keeping the nn cre activities in-huse vs. utsurcing them t a third party vendr. Surcing and evaluatin f third party vendrs fr utsurcing nn cre activities. Business Prcess Outsurcing in Autmtive Industry

5 Quick Glance at Nn Cre Activities & Service Offerings f a BPO Sme f the prcesses which might be intriguing t an Autmtive Industry Players are as fllws: Radside Assistance Prgram Order t Pay/Payable Helpdesk Vendr and Dealer Helpdesk Custmer Satisfactin & Fllw Up Surveys HR Payrll Prcessing Cmpetitive Benefits Derived Frm Outsurcing Nn Cre Activities Key advantages f utsurcing nn cre activities t a third party vendr are as fllws: Strengthen After Sales Service Prpsitin Outsurcing nn-cre activities like Radside Assistance Call Handling and Custmer Satisfactin Surveys which predminantly impacts the brands After Sales Service Prpsitin nt nly will reduce peratinal cst but als cnslidates brand s service prpsitin which is ne f majr factr that decides prduct purchase decisins. Better Funds fr Research & Innvatin Outsurcing tasks which are regular in nature brings the peratinal cst dwn and lwers verheads. At a lwer cst industry players are engaging with a partner wh is having imprved arsenal in handling thse tasks. This als allws additinal flw f funds in the rganizatin which can be utilized fr research & innvatin t imprve prduct fferings. Fcus n Cre Cmpetencies Outsurcing nn cre activities t a third party vendr allws an rganizatin t devte mre time t fcus n cre cmpetencies- Brand Management etc. Better Resurce Allcatin Outsurcing nn-cre activities gives the rganizatin an pprtunity t reframe their Resurce Allcatin. Due t utsurcing many resurces can get free and can be utilized in mre fruitful way. Business Prcess Outsurcing in Autmtive Industry

6 Cnclusin Autmtive industry is in transfrmatin phase leaving behind dawn where it faced tugher situatins and utcmes and meticulusly rising up t explit the untapped market ptential where strategic decisin makers f the rganizatin shuld lk t utsurce CRM related nn critical tasks in rder t fcus n their cre value prpsitin and reduce peratinal cst at the same time. Decisin t utsurce nn-cre activities will diffuse mre funds in the rganizatin due t reduced peratinal cst. These funds can be spent n R&D and Innvatin department t imprve the prduct value prpsitin and thus ultimately t distinguish ne s brand frm the rest f the market players. Abut Allsec Allsec is a glbal cmpany with vast expertise in prviding Business Prcess Slutins acrss varius industry verticals. Funded in 1998, Allsec Technlgies Limited began as an integrated cntact centre fr businesses intending t utsurce their supprt prcesses. Gaining ver 15 years f dmain experience, the cmpany has rapidly expanded with acquisitins acrss the glbe and has extended its expertise t a wide gamut f prcesses that augment and supprt businesses. Our slutins are testimny t the fact that we are a highly custmer-centric, flexible and transparent service prvider. By taking prcess respnsibility, imprving cst efficiencies, and adding value t client businesses thrugh cntinuus prcess imprvements and quality assurances, Allsec distinguishes and enhances business experience fr its clients. Learn mre abut us Visit us at Delivery Lcatins Texas, US Manila, Philippines Chennai, India Delhi, India Mumbai, India Bangalre, India Trichy, India Business Prcess Outsurcing in Autmtive Industry

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