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IT-Enabled Remote Services:

Altaf H. Khan

Pakistan’s IrresistibleValue Proposition

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Overview

• IT-Enabled Remote Services

• The Offshore Model

• Survey results

• Opportunities & Challenges

• Which ITES is right for you?

• Wrap-up

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The SW Export Hype

• Excitement related to SW export is not justified

• Show stopper:– Our inability to produce trained workers in rapidly

increasing numbers

• Is this the end of the Pakistan’s IT revolution that never was?

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Long Live the IT Revolution!

• But how?

• We should try to leverage what we have, and not what we currently don’t!

• We have been unable to produce quality SW developers in increasing numbers, but …

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We Have …

• Doctors• Dentists• Pharmacists• Nurses• Lawyers• Engineers• Architects

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We Have …

• Doctors• Dentists• Pharmacists• Nurses• Lawyers• Engineers• Architects

• Draftsmen• Accountants• MBAs• Artists• English speakers• Clerical staff• ???

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Extending the Offshore Model

• The offshore SW services model has worked profitably for many Pakistani companies

• Can we use the same model for other professions as well?

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SW’s Offshore Model

Offshore CenterOnshoreCenter

Client

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IT-Enabled Services’ Model

Offshore CenterOnshoreCenter

Client

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Top Three …

• Strategic benefits

• Outsourcing users

• Industry sectors

• Barriers to success

• Selection criteria

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Top Three …

• Strategic benefits

• Outsourcing users

• Industry sectors

• Barriers to success

• Selection criteria

1. Achieve cost reductions

2. Focus on company’s core businesses

3. Improve service quality

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Top Three …

• Strategic benefits

• Outsourcing users

• Industry sectors

• Barriers to success

• Selection criteria

1. Canada

2. Australia

3. USA

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Top Three …

• Strategic benefits

• Outsourcing users

• Industry sectors

• Barriers to success

• Selection criteria

1. Energy

2. Financial services

3. Technology

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Top Three …

• Strategic benefits

• Outsourcing users

• Industry sectors

• Barriers to success

• Selection criteria

1. Organizational resistance

2. Unclear performance metrics

3. Loss of control of process

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Top Three …

• Strategic benefits

• Outsourcing users

• Industry sectors

• Barriers to success

• Selection criteria

1. Guaranteed service levels in the contract

2. Proven track record in outsourcing

3. Specializes in the particular outsourcing sector

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IT Enabled Remote Services

• Contact Centers• Accounting & Financial

Services• Transcription• Advice Over the Web• HR Services• Animation Development• Insurance Claims Processing• GIS & CAD

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IT Enabled Remote Services

• Contact Centers• Accounting & Financial

Services• Transcription• Advice Over the Web• HR Services• Animation Development• Insurance Claims Processing• GIS & CAD

– Call Center– Email/Chat– Telemarketing

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IT Enabled Remote Services

• Contact Centers• Accounting & Financial

Services• Transcription• Advice Over the Web• HR Services• Animation Development• Insurance Claims Processing• GIS & CAD

– Remote Accounting– M & A Support– Financial Analysis

& Forecasting

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IT Enabled Remote Services

• Contact Centers• Accounting & Financial

Services• Transcription• Advice Over the Web• HR Services• Animation Development• Insurance Claims Processing• GIS & CAD

– Legal– Medical– Dental

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IT Enabled Remote Services

• Contact Centers• Accounting & Financial

Services• Transcription• Advice Over the Web• HR Services• Animation Development• Insurance Claims Processing• GIS & CAD

– Medical– Legal– Financial

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IT Enabled Remote Services

• Contact Centers• Accounting & Financial

Services• Transcription• Advice Over the Web• HR Services• Animation Development• Insurance Claims Processing• GIS & CAD

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IT Enabled Remote Services

• Contact Centers• Accounting & Financial

Services• Transcription• Advice Over the Web• HR Services• Animation Development• Insurance Claims Processing• GIS & CAD

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kasbtv.com

IT Enabled Remote Services

• Contact Centers• Accounting & Financial

Services• Transcription• Advice Over the Web• HR Services• Animation Development• Insurance Claims Processing• GIS & CAD

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IT Enabled Remote Services

• Contact Centers• Accounting & Financial

Services• Transcription• Advice Over the Web• HR Services• Animation Development• Insurance Claims Processing• GIS & CAD

– Scanning– Raster Vector– Dumb Smart

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Pakistan’s Key Advantages

• Cost of labor

• Tax benefit

• Time zone difference

• Telecom rates

• Cost of infrastructure

• ???

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Key Challenges

• Marketing

• Security & confidentiality

• Culture of quality

• Training

• Managers

• Telecom quality

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Competition

Competition comes in several forms:

• No competition at all:

– In-house service

– Most significant

– Disadvantages: Higher cost; Inefficiency; HR turnover

– Our advantages: Fixed, lower cost

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Competition (2)

• US-based outsourcing companies:

– Disadvantages: Higher cost; High employee turn-over

– Our advantages: Lower cost

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Competition (3)

• Offshore service providers:

– Ireland – Call Centers

– Philippines – Animation; Remote Data Entry

– India – Accounting; Animation; Call Centers

– Many more

– Disadvantages: None– Our advantages: None, but demand exceeds supply

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ITES in Pakistan

• CAD

• Accounting

• Medical transcription

• Call center

• ???

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Which ITES is Right for You?

1. Determine your own profile

2. Determine the profile for various ITESes

3. Select the ITES whose profile matches best with your own

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Dimensions of the ProfileMarketing

– Market size– Competitive advantage

Human Resource– Leadership– Availability of:

• Experienced pros• Junior pros

– Training

Infrastructure– Telecom– Distribution channels– Buildings

Finances– Initial investment– Returns– Payback period– Ease of exit

Growth– Scalability– Diversification

opportunities– Sustainability

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The Rating Scale

■ ■ ■ ■ ■Very

UnattractiveUnattractive Moderate Attractive Highly

Attractive

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The Rating Scale

■ ■ ■ ■ ■Very

UnattractiveUnattractive Moderate Attractive Highly

Attractive

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The Rating Scale

■ ■ ■ ■ ■Very

UnattractiveUnattractive Moderate Attractive Highly

Attractive

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The Rating Scale

■ ■ ■ ■ ■Very

UnattractiveUnattractive Moderate Attractive Highly

Attractive

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The Rating Scale

■ ■ ■ ■ ■Very

UnattractiveUnattractive Moderate Attractive Highly

Attractive

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Remote Accounting ServicesDimension RatingMarket size ■ ■ ■ ■ ■Competitive advantage ■ ■ ■Leadership ■Experienced professionals ■ ■Junior professionals ■ ■ ■ ■ Training ■ ■ ■ Telecom ■ ■ ■ ■ ■Distribution channels ■ ■ ■ ■ ■Buildings ■ ■ ■ ■ ■Initial investment ■ ■ ■ ■ Returns ■ ■ ■ ■ ■Payback period ■ ■ ■ ■Ease of exitScalability ■ ■ ■ ■Diversification opportunities ■ ■ ■ ■ ■Sustainability ■ ■ ■ ■ ■

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Call CenterDimension Accounts CCMarket size ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Competitive advantage ■ ■ ■ ■ ■ ■Leadership ■ ■Experienced professionals ■ ■ ■Junior professionals ■ ■ ■ ■ ■ ■ ■ ■ ■Training ■ ■ ■ ■ ■ ■Telecom ■ ■ ■ ■ ■ ■ ■Distribution channels ■ ■ ■ ■ ■ ■ ■Buildings ■ ■ ■ ■ ■ ■ ■ ■Initial investment ■ ■ ■ ■ ■ ■ Returns ■ ■ ■ ■ ■ ■ ■ ■ ■Payback period ■ ■ ■ ■ ■ ■ ■Ease of exitScalability ■ ■ ■ ■ ■ ■ ■ ■ ■Diversification opportunities ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Sustainability ■ ■ ■ ■ ■ ■ ■ ■

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Insurance Claims ProcessingDimension Accounts CC InsuranceMarket size ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Competitive advantage ■ ■ ■ ■ ■ ■ ■ ■ ■Leadership ■ ■ ■Experienced professionals ■ ■ ■ ■ ■Junior professionals ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Training ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Telecom ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Distribution channels ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Buildings ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Initial investment ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Returns ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Payback period ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Ease of exitScalability ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Diversification opportunities ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Sustainability ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

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Medical TranscriptionDimension Accounts CC Insurance TranscriptMarket size ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Competitive advantage ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Leadership ■ ■ ■ ■Experienced professionals ■ ■ ■ ■ ■ ■ ■ Junior professionals ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Training ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Telecom ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Distribution channels ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Buildings ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Initial investment ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Returns ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Payback period ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Ease of exitScalability ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Diversification opportunities ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Sustainability ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

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Which ITES is Right for You?

1. Determine your own profile

2. Determine the profile for various ITESes

3. Select the ITES whose profile matches best with your own

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Which ITES is Right for You?Dimension Accounts CC Insurance TranscriptMarket size ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Competitive advantage ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Leadership ■ ■ ■ ■Experienced professionals ■ ■ ■ ■ ■ ■ ■ Junior professionals ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Training ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Telecom ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Distribution channels ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Buildings ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Initial investment ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Returns ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Payback period ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Ease of exitScalability ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Diversification opportunities ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Sustainability ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

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Summary

• ITES is Pakistan’s irresistible value proposition and an ideal opportunity for entrepreneurs

• Keys to success:– Form value-adding partnerships– Focus on operational excellence & customer

satisfaction

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Final Thoughts

• Concentrate on HR-intensive businesses

• Look for the widest wage differences

• Build on your strengths

• Leverage Pakistani expats for business development

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Contact

• This presentation is available online at:– www.kasbtv.com

• My email address:– altaf@kasbtv.com