south africa bpo

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  2. 2. Enabling the delivery of sophisticated As the global sourcing market has evolved, organisations have started to broaden the scope of their offshore portfolios rapidly. Offshoring is moving from transactional processes to areas that are complex and core to operations. As this happens, the value that can be derived from the globalisation of work increases and so does the risk of failure. To deliver these sophisticated operations successfully, companies need access to talent that possesses industry expertise, has specialist trainingSouth Africa is recognised as and understands the source market environment.having a sophisticated and world South Africa is uniquely positioned among developing countries to meet these requirements. class nancial services industry. Its mature domestic market has led to theWe in Old Mutual are looking to development of a management pool with deep leverage our South African skills domain skills. Its education system provides industryand capability for the benet of with a wide range of professional and specialist our wider global business. programmes. Given the historical business ties, the domestic market regulations and standards are very Old Mutual similar to the UK and Europe. In summary, South Africa has the talent to add signicant value to global businesses. It does so with First World infrastructure and business environment and at costs 50-60% lower than source markets.Johannesburg Stock Exchange
  3. 3. business processes Highlights of current delivery from South Africa Insurance product modelling Eligibility servicesfor hospitals Actuarial data processingLegal discoveryICD 10 coding Litigation document reviewLate stage collectionsSouth Africa becomes an integral partof our growth strategy. The clients willbenet from greater scale, deeper domainexpertise, comprehensive and exible Financial portfolio analyticssolution offerings, robust nancialstrength, and a rich international talentpoolLegal due-diligencesupportAparup Sengupta, CEO and MD, AegisExamples of leading rms sourcing complex, judgment-oriented processes from South Africa
  4. 4. Distinct domain advantage:Banking, Financial Services, Insurance, Legal,South Africa is being used by buyers in the insurance, nancial services, healthcare and legal sectors. There areseveral examples that demonstrate delivery of complex work in these sectors.Insurance Case example Services for a global major through USan integrated delivery model India South Africa delivers high value workTransactional work(e.g. actuarial analysis), while lowvalue, high volume work (e.g. claimsprocessing) is delivered from IndiaComplex workSouth AfricaWe are hitting and even surpassing US standards. The labourpool in South Africa is deep and the people hardworkingLeading global supplierHealthcareExamples of processesbeing deliveredSouth AfricaCase example Technology, processing, servicingand analytics for a leading UKprivate insurerKPOVoiceNon-voiceIT Specialised services (e.g. ICD 10coding) delivered; agents areBroker ICD 10 coding ProductActuarialalso able to build empathy withmanagement developmentanalysiscustomersAt PruHealth we extract signicant benet from having our centre located in SouthAfrica with a ready supply of passionate agents ... able to ll the more specialised medicalcare functions and have actuarial oversight from a risk perspectivePruHealth UK
  5. 5. Healthcare Financial Services MarketingChannelmgmt. BusinessCase example Productacquisition developmentAsset administration for top 10 Account servicing UK asset managers SAs strengthsSouth African entrepreneurTransaction developed a technology platformMerchant processingservices for fund administration to Institutional Treasury serve the domestic market and relationships operations Control/ expanded to provide services forcompliance international markets We have been successfully delivering BPO services in the investment management sector. We believe that South Africa is best placed to deliver these services as its mature nancial services industry provides skilled and experienced talent pool. Leading supplier, SALegal Patent analysis Case exampleLegal researchContract drafting Wide range of services forUK law rms E-discovery South Africas strengths Scope of work has expanded analysisfrom secretarial functions toinclude more complex work, such Due diligence ofPortfolio analysisas claims handling, documentcontracts in M&ALegal secretarial servicesreview and discovery We chose South Africa because of its time zone, language and culture and the fact that its legal system is similar to the UK. The paralegals and junior lawyers are very good with excellent technical skills and the creatives are of extremely high quality David Holme, Director - Exigent
  6. 6. Drivers of the domain advantageMatureLarge domestic industryAfnity towardsdomestic exotic products US$ 300 billion bankingmarketassets, US$ 43 billion Rich product managementinsurance premiums experienceProvides a skilled Larger than most offshore Advanced risk productstalent pool locations Matureexperienced in marketworking withWell developed Strong IP in scaledregulatory environment back-ofcescomplex products. Early adopters of Basel II 120,000 employees in domestic+ Emphasis on data protection captivescompliance IP in products and processingcapabilitiesDeveloped Specialised degrees in actuarial, nancial mathematics, investment managementeducation Sector-specic training programssystemNumber of Chartered Accountants Number of CFA charter holders Number of qualied actuariesGenerates a 2009; `000s 2009; Total number2009; Total numberlarge number ofIndia 90 4,000-4,500 225qualied personnelin specialist areasPhilippines1570-8065(e.g. actuaries) Czech Republic4 80-90 80 South Africa 26 800-900770+Strength of Auditing and Reporting StandardsSimilarities Similar data protection laws to Score (1 = extremely weak, 7= extremely strong) RankEuropean Union(out of 139 countries)with Westernstandards Regulations for providing nancialadvice, anti-money launderingSouth Africa6.351Similar regulatorysimilar to UKframework, data UK5.62 22 Ranked amongst top 10 nationsprotection laws,by World Economic Forum forthe sophistication of its nancialIndia 5.13 45products andmarketscertications allow Professional qualications (e.g. Czech Republic5.1 47easy transition andactuarial) are similar to the UKstabilisation of Philippines 4.6475operations.Source: World Economic Forums The Financial Development Report 2010-2011
  7. 7. Providing signicant savingsin a rst world environmentCost 50-60% lower than source marketsSouth Africa has a competitive cost structure and offers signicant savings from source markets (e.g. UK).South Africa is signicantly more cost competitive than most locations in the UK, Central and Eastern Europe,Latin America and many Asian locations that offer comparable quality of life and underlying infrastructure.Direct operating cost for non-voice BPO2010; `000 per annum per Full Time Equivalent (FTE) 45-4741-4331-3327-3125-2722-24 UK Tier 2 IrelandCzech PolandRomania South Africa Republic The Gautrain, South Africas rst high-speed trainRobust enabling environmentSouth Africa is a politically and economically stable location. The telecom infrastructure has improvedconsiderably with increased bandwidth and falling tariffs. The country offers an attractive investment climate.First World experienceSouth Africa offers a First World experience with superb infrastructure and good quality of life. The timedifference between South Africa and most of Europe (including UK) is less than 2 hours.
  8. 8. In summary, South Africasproposition for non-voice BPO Mature domestic market and large Costs 50-60% lower than sourceexperienced talent pool markets Specialised skills in nancial services, Narrowing differential with lower-costinsurance, healthcare and legal domains locations Standards and regulations similar tosource markets Deep Signicant domain cost skillssavings Robust enabling First world environmentexperience Attractive investment climate and First World infrastructurestrong public sector support Superior quality of life for expats Rapidly improving telecom Time zone similarities and ease of access Political and socio-economic stability Design Copyright by ALLART 2010


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