Maximizing Your Enterprise with India-Based Outsourced Contact Centers
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1 Maximizing Your Enterprise with India-Based Outsourced Contact Centers Session 2 Copyright Printed in USA.
2 Agenda Introduction Advantage India Competitive Landscape Technology Deployment Models Business Benefits Customer References Cisco India and Partners Summary 3 Introduction ITES BPO involves: Outsourcing of processes that can be enabled with IT Transfer of ownership and management of the processes from customer to a service provider Critical yet non-core processes outsourced Vendor s value add is to provide better profitability by reducing execution time or by improving quality ITES-BPO Industry Million USD 2,500 2,000 1,500 1, Source: NASSCOM 4 Copyright Printed in USA.
3 Outsourcing Drivers Upgrade Serviceability Levels Inability to Source Adequate Manpower Reduction of Operating Costs Capital Cost Conversion to Expenses Focus on Core Business 0 % 5 % 10 % 15 % 20 % 25 % 30 % 35 % Source: Cushman & Wakefield Research 5 ITES Services Gradations High Decision Making Requirement Low Back Office Processing /Data Processing Call Center Business Process Outsourcing Value Addition Service Domain High-End Financial Services Portfolio Management Fund Management, etc. Payroll Management Accounts Consolidation Retail Sales Data Management, etc. Medical Transcription Data Handling/Phone Banking/Reservation, etc. High Source: Cushman & Wakefield Research 6 Copyright Printed in USA.
4 Advantage India 7 Advantage India Abundant skilled English speaking manpower ranking high on qualifications, experience, skills set, etc. Time zone difference with U.S. makes it possible to offer 24x7 service and reduce turnaround times, enabling work in synch with U.S. business Telecom and physical infrastructure approaching parity with others (current 1.5Gbps to increase to 16Tbps by end 2005) No. of incentives specially relating to IT and ITES tax breaks, duty exemptions, etc. Employee Attrition Rates 40% 30% 20% 10% USA Ireland Australia India Entry Level Min. Wages ($/wk) USA Ireland Australia India 8 Copyright Printed in USA.
5 Services Pricing Indicative Pricing for Some ITES BPO Services Type of Service Indicative Rate (US$/Hour) Inbound Customer Service Outbound Sales/collections and Web Based Support/services 8 12 Inbound Voice Technical Helpdesk CRM Based Transaction Processing Medical Transcription 6 8 Source: MsourcE Corporation, Max Healthcare India, Progeon and Scope Research 9 Pricing Models Common Pricing Models 1. Time and Manpower Based Normally Expressed in US$/Hour 2. Time-Based Only Normally a Lump Sum per Month 3. Transaction Based For Example, per Call or per Statement or Per Line Transcribed; This Is a Common Form of Pricing and Imparts for Some Predictability to Revenues 4. Per Seat per Month This Is in Case a Number of Seats Are Guaranteed by the Customer 5. Per Employee per Month Similar to Seat per Month 10 Copyright Printed in USA.
6 Preferred Indian Cities Hot Spots Pune Delhi Chennai Hyderabad Bangalore Telecom Rating Mumbai Pune Delhi Chennai Hyderabad Bangalore Mumbai Power Rating Energy Cost (Rs./unit) Power Availability Mumbai Bangalore Delhi/Noida/ Gurgaon Pune Hyderabad Chennai 11 Preferred Indian Cities Hot Spots Cost of Living Index Pune Delhi Indexed to Delhi Chennai Hyderabad Bangalore Mumbai Rent and Travel Food Aggregate Mumbai Bangalore Delhi/Noida/ Gurgaon Pune Hyderabad Chennai Source: Economic Times, India 12 Copyright Printed in USA.
7 Telecom Scenario Network Status India Has the 8 th Largest Telecom Network in the World and 2 nd Largest amongst the Developing Countries After China # of Tel Connections (Fixed Lines) 40 Million # of Telephone Exchanges 36,000 Switching Capacity Internet Services Internet Subscribers 50 Million 600 Cities 6 Million Internet Cafes 12,000 International Long Distance Players 4 National Long Distance Players 4 Contact Centers (Medium Size) 300 Agent Seats 120, Telecom Scenario International Bandwidth Submarine Cable Capacity System Capacity SEA-ME-WE-2 SEA-ME-WE-3 FLAG SAFE Network i2i DishnetDSL 1 Gbps 20 Gbps 10 Gbps 80 Gbps 8.4 Tbps 7.68 Tbps Such huge capacity is resulting in dropping of prices by % for an STM-1 link At a retail level, the drop will be 30 to 40 percent over a twelve month period 14 Copyright Printed in USA.
8 Competitive Landscape 15 Competitive Landscape India China Fast emerged into a US$1.5 billion market Location attractiveness improving High unemployment and low attrition rates Primarily servicing Asian market Emerging destination but way behind in terms of manpower skills Rapidly evolving infrastructure Philippines Ireland Only a US$100 million market Quantum of manpower supply and scalability a problem Sizeable presence in only call centers and medical transcription Moderate unemployment rates, high attrition rates Moving towards the high end spectrum of business outsourcing Source: Cushman & Wakefield Research 16 Copyright Printed in USA.
9 Technology Deployment Models 17 Deployment Model (Small to Medium Inbound ONLY) India CC Site xxx-xxxx T1 Voice E1 Links Voice Agent V T1 Data IPLC IPCC Express Voice Agent CC Site-3 Capacity: Seats CC Site-1 CC Site-2 18 Copyright Printed in USA.
10 Deployment Model I (Medium to Large Inbound ONLY (Pre-Routed Calls_IPCC) India CC Site xxx-xxxx T1 Voice E1 Links IP IVR Voice Agent V T1 Data IPLC Voice/Web Agent CC Site-3 CC Site-2 CC Site-1 19 Deployment Model II (Medium to Large Inbound ONLY (Pre-Routed Calls_ACD) India CC Site xxx-xxxx IVR T1 Voice E1 Links T1 Voice T1 Data IPLC WAN Switch ACD PG Voice Agent LAN Switch CC Site-3 Server Farm CC Site-1 CC Site-2 20 Copyright Printed in USA.
11 Deployment Model III (Medium to Large OUTBOUND + INBOUND_IPCC ONLY) India CC Site E1 Links IP IVR Voice Agent (InBound) T1 Voice V IPLC Dialer Telephony Server Voice/Web Agent Dialer Application Servers Voice Agent (OutBound) Scenario : Dialer Telephony Server in USA 21 Deployment Model IV (Medium to Large OUTBOUND + INBOUND_IPCC ONLY) India CC Site E1 Links IP IVR Voice Agent (InBound) T1 Voice V IPLC V Voice/Web Agent Dialer Telephony Server Dialer Application Servers Voice Agent (OutBound) Scenario : Dialer Telephony Server in India 22 Copyright Printed in USA.
12 Business Benefits 23 Cisco IPCC Benefits (Call Centers to Customer Interaction Networks) Rapid deployment Ease of piloting Launching campaigns Virtual Contact Center Selective remote monitoring of agents Multimedia contact management Multimedia skilled agents 24 Copyright Printed in USA.
13 Cisco IPCC Benefits (Call Centers to Customer Interaction Networks) Integration with heterogeneous ACDs Standards-based and out-of-the box application support Universal queuing Track media demand and network utilization for all media types VoIP minutes from carriers Flexibility in disaster management 25 Concerns: Perception vs. Reality Perception: Concern about Voice Quality Delayed CTI Screen Pop-Ups Lack of System Availability Site Redundancy Technology Stability Reality: Near Toll Quality Voice Available with QoS and Call Admission Control (CAC) QoS and Dedicated Bandwidth Assignment for CTI Applications Five 9s Availability Redundant Cisco IPCC Can Be Deployed in Same City or across Different Cities 15+ Cisco IPCCs Already up and Running 26 Copyright Printed in USA.
14 Customer References 27 vcustomer Operational since Dec 2000, carry US voice traffic seamlessly to multiple contact centers in India Handles 2,000,000 calls per month for 6 significant voice clients (with 1,800 seats as of March 03) Cisco powered network Services Technical support Catalog order entry Reservations and loyalty programs Billing and customer support Claims processing Loan application processing Cisco customer interaction network Cisco IP Contact Center Enterprise Cisco CallManager Cisco IP IVR Cisco ICM Cisco Manager option Cisco Unity 28 Copyright Printed in USA.
15 Phoenix Global Interactions Serves clients in the insurance, financial services, telecommunication and high technology industries In Operations since May 2002 (with 450 seats as of Dec 2002) Services Inbound customer care and retention services Customer satisfaction and loyalty services Outbound telemarketing E-Contact services IT help desk technical support 29 Transworks Services inbound and outbound (400 seats as of Dec 2002) Voice: Inbound voice support, outbound telemarketing and collections, web-call back management services, inbound product transaction and technical support; outbound -based marketing and sales follow-up Live -chat: Website navigation, co-browsing, online search and information support; online transaction and technical support Business Process Outsourcing (BPO) services Transaction processing services: order processing, claims processing and loans/ mortgage processing Financial and accounting services: billing, A/R management and A/P management Human resource services: benefits administration, recruitment support and record management 30 Copyright Printed in USA.
16 Manjushree Infotech Manjushree Infotech is a part of of US$1.2 Billion B.K. Birla Group companies, provide tailor made solutions for: Software projects Software products Project consulting IT-enabled services Industry focus Healthcare Logistics, retail, manufacturing and utilities Telecom and networking Insurance, banking and financial solutions Operates since Dec 2001 and has reached 200 seats as of Dec Cisco IPCC Deployments India IPCC Deployments in India (Seat Count) vcustomer 1800 Prudential Life 900 Phoenix Global 450 Transworks 440 Reality Stores 350 Ocwen Financial 250 Manjushree 200 Nirvana 150 Talisma 50 Equinox Tech 50 AXA Life 50 GAVS Services 25 Process Mind Copyright Printed in USA.
17 Cisco India and Partners 33 Cisco India Wholly owned subsidiary of Cisco Systems Inc. HQ in Delhi, established in Regional offices 85 employees Capabilities for Solution design, supply, deployment and support Equipped with Labs facilities for all Cisco technologies Specialized partners with skills in voice/contact center solutions Bangalore R&D center with 500 developers Large base of Cisco Development Partners Infosys, Wipro, HCL Cisco India Office Locations Mumbai Bangalore Delhi Hyderabad Chennai Kolkata 34 Copyright Printed in USA.
18 Changing Business Models: Internet Ecosystem Outbound Dialers Call Recording Phones and Applications Accounting and Billing 35 Return on Investment 36 Copyright Printed in USA.
19 ROI Comparison of Operating Cost US$ Cost of Full Time Employees USA India India as a % of USA Cost Personnel 42,927 6,179 14% G and A Expenses 8,571 1,000 12% Telecom 1,500 2, % Property Rentals 2, % Depreciation 3,000 1,500 50% TOTAL EXPENSES 58,598 11,854 20% Source: Industry Sources, Merrill Lynch, Summary Technology of choice = Cisco IPCC Most favored destination = INDIA Make the next move: Contact your Cisco Account Team in US/mail to: outsource2india@external.cisco.com Contact Cisco IPCC outsourcers based in India 38 Copyright Printed in USA.
20 Please Complete Your Evaluation Form Session Copyright Printed in USA.
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