E xpand BPO

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