Wipro BPO Overview.ppt

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<ul><li>1.Presenter: Chinmaya Saxena Designation: Manager, Global Sales &amp; Solutions Support Date: 14 thMarch, 2005</li></ul><p>2. Agenda How we do2 3 4 1 What we areWhat is BPO PotentialWhat we do 3. Clients Employees Revenues USD Mn </p> <ul><li>Partner to industry leaders and challengers </li></ul><ul><li>31 clients (including 13 for transaction processing),</li></ul><ul><li>12 among Fortune 500 ( as of September 30 th , FY</li></ul><ul><li>2004 - 05) </li></ul><ul><li>Largest third party transaction processing company</li></ul><ul><li>in India**</li></ul><ul><li>Largest third party business process outsourcing</li></ul><ul><li>company in India)* </li></ul><ul><li>Expanding footprint </li></ul><ul><li>Delivery locations : Eight state-of-the-art centers in New Delhi, Mumbai, Chennai, Pune and Kolkata </li></ul><ul><li>Service lines : Largest breadth of services from customer relationship management to back office transaction processing &amp; industry specialized services </li></ul><ul><li>Processes :95 + processes in production; handling 5 million calls and 500,000 back office transactions per month </li></ul><ul><li>Complexity : Providing Level 1,2,3,4 support </li></ul><p>2002-03 2003-04 Leadership in business process outsourcing 41 95 5000 9500 18 23 * NASSCOM, ** Independent Surveys Whowe are 2001-02 11 2500 05 2004-05*** 145 15000+ 31 ***Annualized revenue run rate for FY 2004-05 4. SBU of Wipro Technologies : No. 1 provider of integrated business, technology and process solutions on a global delivery platform * *Ranked leader byIDC, MetaGroup, Forrester - 2004 </p> <ul><li>Partner to industry leaders</li></ul><ul><li>and challengers </li></ul><ul><li>89 global 500 clients </li></ul><ul><li>151 clients among Forbes 2000 </li></ul><ul><li>Global footprint </li></ul><ul><li>35 countries </li></ul><ul><li>10,000 itinerant employees </li></ul><ul><li>9 near shore development centers </li></ul><ul><li>Diverse talent pool </li></ul><ul><li>23 nationalities </li></ul><ul><li>2000 domain consultants </li></ul><ul><li>Sustained growth </li></ul><ul><li>CAGR of 45% in last 5 years </li></ul><ul><li>4th largest in the world in terms of market capitalization in IT services </li></ul><p>1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 14 22 26 28 34 38 150 160 180 272 339 370 8 10 13 14 19 37 (thousands) (Mn USD) 240 384 475 635 934 1300 Global development centers Clients Employees Revenues** ** Annualized revenue run-rate 2004-05 Who we are 5. BPO industry size The 100+bn global outsourcing market will grow at CAGR of &gt; 9% US will continue to constitute majority of the BPO market Source: Gartner Worldwide BPO Spend 100% = $110bn ROW* Europe NorthAmerica $62 bn 2002 56.4% 22.6% 21% $25 bn $23 bn $62 bn 100% = $173bn ROW* Europe NorthAmerica $62 bn 2007 56% 23% 21% $39 bn $37 bn $97 bn CAGR 9.5% CAGR 9.6% CAGR 9.3% 6. India advantageSource: Mckinsey Interviews Indias value proposition Opportunity for leveraging capabilities from remote locationCost </p> <ul><li>40%-60% cost reduction for offshored process</li></ul><ul><li>Differential in wages from the US or UK parent location at approx 70%-80%. </li></ul><ul><li>Interaction costs increase 10%-20% bcoz of India being a remote location.thus net savings of 40%-60% </li></ul><ul><li>Labour cost arbitrage, the reason for cost savings likely to exist for next 20-30 years</li></ul><p>Productivity </p> <ul><li>Faster turnaround time</li></ul><ul><li>Time zone difference</li></ul><ul><li>24X7 service</li></ul><ul><li>Learning curve effect, given increased activity across companies and increased centralization within company</li></ul><p>Quality</p> <ul><li>Established methodologies and processes being rapidly adopted for better performance</li></ul><ul><li>Well defined quantifiable metrics for quality and process</li></ul><ul><li>Access to highly qualified skilled pool </li></ul><p>7. Perspectives on the Indian BPO Industry </p> <ul><li>Industry non-existent a decade back </li></ul><ul><li><ul><li>Only evidence of BPO in India was data entry </li></ul></li></ul><ul><li>Amex set up captive Financial Resources Center in 1994 </li></ul><ul><li><ul><li>Leadership Contribution </li></ul></li></ul><ul><li><ul><li>Set up to service complete financial backoffice of JAPA Region </li></ul></li></ul><ul><li><ul><li>AP, AR, Tax, MIS, Closing of Books, Reconciliations etc. </li></ul></li></ul><ul><li><ul><li>Processing in English and all major Asian languages </li></ul></li></ul><ul><li><ul><li>With success, awarded work from Europe and N America </li></ul></li></ul><ul><li><ul><li>Processing in European languages added </li></ul></li></ul><ul><li><ul><li>Grew to over 500 people in just two years </li></ul></li></ul><ul><li>GE Captive Center set up in 1996 </li></ul><ul><li><ul><li>Backoffice scope beyond Financial areas </li></ul></li></ul><ul><li><ul><li>Leadership introduced voice as recently as 1998 </li></ul></li></ul><ul><li><ul><li>Tremendous success of this center made people notice India </li></ul></li></ul><p>Perspective on the Indian BPO Industry Raman RoyChairman and Managing DirectorWipro Spectramind 8. </p> <ul><li>2000 third party servicing begins in India </li></ul><ul><li>Trends over the last decade </li></ul><ul><li><ul><li>Earlier (Captive) Centers predominantly did </li></ul></li></ul><ul><li><ul><li><ul><li>Accounting/Transaction Processing (eg. Amex, GE) </li></ul></li></ul></li></ul><ul><li><ul><li><ul><li>Voice processes followed with very small number of FTEs </li></ul></li></ul></li></ul><ul><li><ul><li>Centers set up in / after 2000 (Captive or third party) </li></ul></li></ul><ul><li><ul><li><ul><li>Clients showing appetite and interest in moving aggressively to other areas </li></ul></li></ul></li></ul><ul><li><ul><li><ul><li>Most have urgent business drivers and pain areas in voice-based processes (volume, bottom line, Quality, people) skewed the industry to FTEs dedicated to voice </li></ul></li></ul></li></ul><ul><li><ul><li><ul><li>Moving to other areas slowly since the capability is there and the track record is strong </li></ul></li></ul></li></ul><ul><li><ul><li><ul><li>Third Party Industry employs over 200,000 people larger number still employed by captives </li></ul></li></ul></li></ul><p>Perspective on the Indian BPO Industry (contd.) 9. Expanding service lines Industry/specialized services Supply chain services Knowledge services Industry services </p> <ul><li>Insurance claims processing</li></ul><ul><li>Mortgage processing </li></ul><ul><li>Health claims adjudication </li></ul><ul><li>Credit card processing </li></ul><ul><li>Bank reconciliation</li></ul><ul><li>Inventory management </li></ul><ul><li>Direct procurement </li></ul><ul><li>Logistics &amp; dispatch </li></ul><ul><li>Data analysis </li></ul><ul><li>Data mining </li></ul><ul><li>Data management </li></ul><p>Business optimization services (BOSs TM ) Procurement services HR services Finance &amp; accounting services </p> <ul><li>Procure to pay </li></ul><ul><li>Plan to result </li></ul><ul><li>Order to cash </li></ul><ul><li>Compliance services </li></ul><ul><li>Spend data management </li></ul><ul><li>Supplier management </li></ul><ul><li>Procurement processing </li></ul><ul><li>Employee data management </li></ul><ul><li>Recruitment Solutions </li></ul><ul><li>e-HR managed services </li></ul><p> Customers that have a broad range of requirements but only have one major supplier should chooseWipro . It is active in all major functional segments with a broad range of vertical industry capabilities Forrester, April, 2004 Ability to provide multiple solutions for a single client Service offerings Customer relationship management Voice (inbound/outbound) eMail / Web / Chat </p> <ul><li>Telemarketing Selling new/upgrade products/services </li></ul><ul><li>Internal employee help-desk</li></ul><ul><li>Technical Support L1/L2 desktops, network, software </li></ul><ul><li>Customer service billing, new / existing plans, value added services, service order processing, Workforce dispatch, health claims, etc </li></ul><ul><li>Collections early reminders to late stage collections </li></ul><ul><li>Technical support desktops, portables, network, software </li></ul><ul><li>Customer service </li></ul><ul><li>eSales </li></ul><p>10. Customer relationship management Customer relationship management Voice (inbound/outbound) eMail/web/chat </p> <ul><li>Telemarketing selling new/upgrade products/services </li></ul><ul><li>Internal employee help-desk</li></ul><ul><li>Technical support L1/L2 desktops, network, software </li></ul><ul><li>Customer service billing, new / existing plans, value added services, service order processing, Workforce dispatch, health claims, etc </li></ul><ul><li>Collections early reminders to late stage collections </li></ul><ul><li>Technical support desktops, portables, network, software </li></ul><ul><li>Customer service </li></ul><ul><li>eSales </li></ul><p>Illustrative solutions in the telecom domain/ FTE numbers correspond to our telecom clients for voice based processes only </p> <ul><li>5+ million calls per month </li></ul><ul><li>Extensive cultural, language and process skills training to associates </li></ul><ul><li>Robust telecom infrastructure for managing voice &amp; data communication </li></ul><p>Service offerings Customer sales cross sell up sell </p> <ul><li>Consistently over performed onretention/saves SLAs </li></ul><ul><li>1550+ associates supporting these processes </li></ul><p>Single call resolution </p> <ul><li>Managing voice-based processes for that require high % of one call resolution </li></ul><ul><li>2200+ FTEs currently operate to this operating metric </li></ul><p>Explain to the customer changes in a product </p> <ul><li>Servicing client processes that involve explaining service-platform changes </li></ul><ul><li>1800+ FTEs currentlysupporting these processes </li></ul><p>Technical support for internet service </p> <ul><li>The queues that we manage are tier 1 and tier 2 support &amp; network hardware support </li></ul><ul><li>2500+ FTEs currently supporting these processes </li></ul><p>11. BOSs TMservices stack Business optimization services (BOSs TM ) </p> <ul><li>Procurement services </li></ul><ul><li>Spend data management </li></ul><ul><li>Supplier management </li></ul><ul><li>Procurement processing </li></ul><ul><li>HR services </li></ul><ul><li>Employee data management </li></ul><ul><li>Recruitment Solutions </li></ul><ul><li>e-HR managed services </li></ul><ul><li>Finance &amp; accounting services </li></ul><ul><li>Procure to pay </li></ul><ul><li>Plan to result </li></ul><ul><li>Order to cash </li></ul><ul><li>Compliance services </li></ul><p>Application &amp; technology ownership Data cleansing, data management Compliance Data analytics &amp; reporting Platform Key elements of service delivery </p> <ul><li>Imaging </li></ul><ul><li>Indexing </li></ul><ul><li>Workflow management </li></ul><ul><li>Processing </li></ul><ul><li>Reporting and analytics </li></ul><ul><li>Controls and compliance </li></ul><ul><li>Procurement expertise</li></ul><ul><li>Seamless process integrating with multiple procurement platforms </li></ul><ul><li>Supplier management experience managing worldwide suppliers </li></ul><ul><li>Best in class process management</li></ul><ul><li>Multi channel share services delivery infrastructure </li></ul><ul><li>Self service enablement for easy access and decision making capabilities for employees/managers </li></ul><ul><li>Multi-channel (web and call) helpdesk </li></ul><ul><li>End-to-end HR data processing</li></ul><ul><li>Global employee data-warehouse for benchmarking, decisions and analysis </li></ul><p>Service offerings 12. Industry/specialized solutions Industry/specialized services Supply chain services Knowledge services Industry services </p> <ul><li>Insurance claims processing</li></ul><ul><li>Mortgage processing </li></ul><ul><li>Health claims adjudication </li></ul><ul><li>Credit card processing </li></ul><ul><li>Bank reconciliation</li></ul><ul><li>Inventory management </li></ul><ul><li>Direct procurement </li></ul><ul><li>Logistics &amp; dispatch </li></ul><ul><li>Data analysis </li></ul><ul><li>Data mining </li></ul><ul><li>Data management </li></ul><p>Leading energy and power Ccompany (US, UK)OTC logistics call center to gas service stations Bio sciences research organizationInternet-based lending company Large life insurance company (Among top 5 in UK) Building genomics database Underwriting &amp; funding review providing making recommendation to approve/disapprove home equity loan or line of credit. New business processing, broker follow-up, data capture, risk analysis (underwriting) and policy document generation. </p> <ul><li>Domain expertise through vertical business structure </li></ul><ul><li>25+ transition specialists </li></ul><ul><li>500,000 + transactions per month</li></ul><ul><li>Global employee data-warehouse for benchmarking, decisions and analysis </li></ul><p>Illustrative solutions Service offerings 13. Delivery through phased, proven approach to impart benefits over the entire relationship lifecycle Process Process + applications Process + applications + infrastructure Increasing customer value Cost savings &amp;process standardization Process optimization Process re- engineering Transition Wave 1 Wave 2 Wave 3 Customer value Operations Applications Operations Infrastructure Operations Applications </p> <ul><li>Test processes, prove concept </li></ul><ul><li>Maintain quality </li></ul><ul><li>Initial cost savings through arbitrage </li></ul><ul><li>Process improvementusing Six Sigma and domain expertise </li></ul><ul><li>Knowledge management </li></ul><ul><li>Evaluate technology, automation &amp; consolidation options </li></ul><ul><li>Best in class process and technology optimization </li></ul><ul><li>Consolidation across operations / processes </li></ul><ul><li>Maximize savings through better turn-around and reduced defect rates </li></ul><p>14. Making it happen remote support "We have been very pleased with Wipro's performance and attention to security and privacy"Chris Larsen ,Chief Executive Officer, E-LOAN Inc From the first day in dealing with Wipro, theres been nothing but quality, character, highest integrity, highest quality work. As a JV partner you wouldnt find a better partner. As a supplier, you wouldnt find a higher quality partner Jack Welch </p> <ul><li>COPC certification </li></ul><ul><li>Six sigma rigor </li></ul><ul><li>Dedicated project migration team </li></ul><ul><li>Proprietary transition toolkit </li></ul><ul><li>More than 13,500 employees </li></ul><ul><li>Experienced management team </li></ul><ul><li>Innovative HR Practices </li></ul><ul><li>8 world class delivery sites </li></ul><ul><li>Robust DS3 architecture </li></ul><ul><li>Extensive BCP methodology </li></ul><ul><li>First in India to achieve compliance on Data protection act of UK </li></ul><ul><li>Multiple levels of data &amp; information security </li></ul><ul><li>Best in class for providing Integrated</li></ul><ul><li>services </li></ul><p>15. Quality that yields benefits to clients </p> <ul><li>Wipro is the first company in India to adopt the six-sigma TQM methodology for defect and cycle time reduction </li></ul><ul><li>Wipro has demonstrated tremendous cost savings using tested processes within Six Sigma for its customers </li></ul><ul><li>Small, incremental improvements used in conjunction with 6-sigma </li></ul><ul><li>Focus is on implementing small ideas without any investments </li></ul><ul><li>A person uses his/her creativity to come up with new ideas </li></ul><ul><li>Only an implemented idea is an improvement </li></ul><ul><li>Developed by a group of professionals from Amex, Dell, Microsoft and others. </li></ul><ul><li>The Malcolm Baldrige Quality award used as a basis </li></ul><ul><li>Standard exclusively for BPO centers </li></ul><ul><li>Wipro Spectramind is the first company to qualify for the standard using Six Sigma framework </li></ul><p>Six Sigma </p> <ul><li>30+ full time black belts</li></ul><ul><li>Performance on customer critical performance measures (CPMs) </li></ul><ul><li>Processes meeting customer CPMs after stabilization </li></ul><ul><li>All associates kaizen trained </li></ul><ul><li>More than 3000 kaizen s implemented by employees </li></ul><p>Average Handle Time Quality Score 16. Delivery model: migration approach How tooutsource Managing what is outsourced 2 3 What to migrate pre-analysis / analysis Managing what is outsourced - operations How to migrate - transitionWhat to outsource 1 </p> <ul><li>Customer interaction on-site / offsite, via questionnaires / interviews </li></ul><ul><li>Migration based on de-couplability, offshoreability of processes, legal requirements, resource availability, customer benefits, risk, skill set availability, technology, etc </li></ul><p>Pre-analysis / analysis </p> <ul><li>Developing process maps, standard operating procedures </li></ul><ul><li>Developing detailed timelines for migration project plan </li></ul><ul><li>Baselining of SLAs </li></ul><ul><li>Engagement model - communication plans </li></ul><p>Process migration </p> <ul><li>Operations and customer point of contacts </li></ul><ul><li>Engagement model </li></ul><ul><li>Change management </li></ul><ul><li>Cost savings analysis </li></ul><p>Engagement approach 3 2 1 17. Talent transformation </p> <ul><li>Top talent from campus - Day 1 in all top universities in India</li></ul><ul><li>Strength of leadership team</li></ul><ul><li>Press / PR </li></ul><ul><li>Recruitment from commerce collegesand accounting/finance departments of local companies </li></ul><ul><li>Participation in planning of work &amp; setting targets (commitment is more binding when choice is explicit &amp; public) </li></ul><ul><li>Reward &amp; recognition programs </li></ul><ul><li>Higher education programs Wipro SEED </li></ul><p>Attract Motivate Retain iOrbit A culture that motivates people to continually push the bar </p> <ul><li>Providing a fun-filled environment </li></ul><ul><li>Creating growthopportunities WingsWithin </li></ul><ul><li>Job rotation &amp; enrichment </li></ul><ul><li>Performance orientation </li></ul><ul><li>Performance-linked incentive plan </li></ul><ul><li>Competitive compensation </li></ul><p>18. Training methodology </p> <ul><li>Introduction to Wipro Spectramind </li></ul><ul><li>Vision, culture, mission </li></ul><ul><li>Wipro Spectramind values and functions </li></ul><ul><li>Quality awareness </li></ul><p>Welcome program-WSWP </p> <ul><li>Bridging cultural gaps </li></ul><ul><li>Effective communication </li></ul><ul><li>Voice-accent neutralization </li></ul><ul><li>Industry overview </li></ul><ul><li>Overview of customer systems, etc </li></ul><p>Pre-process training </p> <ul><li>Process-specific knowledge and skills </li></ul><ul><li>Systems and process skills </li></ul><p>Process training </p> <ul><li>Buddy system </li></ul><ul><li>Shadowing</li></ul><ul><li>Live calls and/or Transactions </li></ul><p>On the job training Level 1: 2 days Level 2: 2-3 Weeks Level 3: 2-6 weeks (process dependent) Level 4: 2-8 weeks (process dependent) </p> <ul><li>All but level 1 customized or custom-built </li></ul><ul><li>Certification and assessment built in at every stage </li></ul><ul><li>90 trainers across the country </li></ul><ul><li>Ability to train in excess of 3000 people simultaneously, across</li></ul>