e xpand bpo
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Your Tier II Partner A RIPCORD CONSULTING GUILD INITIATIVE. E xpand BPO. INDIA. BPO SCENARIO IN INDIA. India is synonymous with the word BPO “We came to India for costs, stayed for the quality, and now investing for innovation” - PowerPoint PPT PresentationTRANSCRIPT
Your Tier II Partner
A RIPCORD CONSULTING GUILD INITIATIVE
INDIA RIPCORD CONSULTING GUILD
India is synonymous with the word BPO
“We came to India for costs, stayed for the quality, and now investing for innovation”
- Dan Scheinman of Cisco System
Grown 30% to $ 10.9 billion (PYR $ 8.4 billion)
The Top 2O alone employs 216,967 (30% of total) - add 57,784 during the year
Huge supply side constraint in the metros Metros overpopulated by BPOs Talent pool migration reaching critical levels Business moving to other countries
Expand BPO to Tier II
Overview Addressing the Issues Competition Business and Operating Models Market Analysis and Segments Company Overview and Management Team Target Customers and Segments Strategy & Implementation Operational Plan and Six-Sigma Ramp Up
ExpandBPO will
Design & deliver the Tier II strategy for major BPOs
Source, hire, train & manage talent in the non-metros
Deliver same quality at much reduced cost
Small labor pool scaling up issues - Even two major BPO units in a single Tier II city is difficult
ExpandBPO to set up 50-100 seat units in multiple locations
Lower skill levels higher training cost & lead time
ExpandBPO to tie up with local educational institutes and engagingly develop the skill pool
Lack of exposure to foreign culture
ExpandBPO to form a co-ordination arm between the client and the end-customer
Very few serious attempts to deliver the Tier II strategy
Most Tier II city operators do low end sub-contracting
Major BPO players themselves the only competition
90% of BPO jobs in seven A-city locations
BPO revenue 5X to $ 50 billion by 2012 if Tier II strategy is implemented - Nasscom
BPO jobs in Tier II cities need to go up to 3 million by 2018 – Nasscom
ExpandBPO will offer services in 4-models:
Build Own* Operate Build Own Operate Transfer Build Operate Transfer Operate
*Own would mean 26% to 100% ownership by the client
Cost plus margin – details will be shared with the client
15-30% savings depending on the nature, scale & duration of the project
Operations will comprise five distinct functions*:
Infrastructure – Civil & IT Manpower – Sourcing & Training Process Study and Design Delivery Account Management
*Each function to be headed by a domain expert
ExpandBPO will
Build Strategic alliances with educational institutes leveraging its long standing relations
Leverage its relations with Nasscom and CII to build on educational initiatives in non-metros
ExpandBPO aims at providing large scale quality employment to the youth outside metros to deliver world class services to BPO majors in India
The management team in place - The core team to commission 100X5 seat units in 6-months time identified
ExpandBPO will target non-voice practices that are conduciveto distributed processing:
Health Care Publishing Logistics Banking Accounting Financial Services and Insurance Pharmaceuticals Education Legal Media & Entertainment Telecom
Extension of the client – ExpandBPO to operate as a SBU
Collaborate to establish & operate 100 seat units in Tier II cities
Scale up or next client only after the first 100 seat unit is commissioned
Work for maximum 10 client companies
50-100 seats pilot project
Face on 500 seats
50% CAGR first 3 years - 30% CAGR thereafter
Cost @ 15% - operational efficiency to neutralize 5%
‘5-W 1-H’ process deployment* Setup physical infrastructure Setup operations team and training Pilot run and freeze operating specs Controlled Production – 3 months Regular Production
*The joint process deployment exercise will be led by*The joint process deployment exercise will be led by ExpandBPO’s Business Practice HeadExpandBPO’s Business Practice Head