BIBC AABEA Convention Presentation

8/3/2019 BIBC AABEA Convention Presentation

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BIBC Experience inOutsourcing

Ferdous Alam

Jeff Stevenson



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Presentation Layout

• About BIBC

• About Outsourcing

• Skill Sets of Member Companies

• How “You and I ” can help in Outsourcing

• Wrap up



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BIBCBangladesh ICT Business Center

4699 Old Ironsides Drive #370

Santa Clara, CA 95054

Tel: (408) 969-0816

Fax: (408) 969-0824

Email: [email protected]

Website: www.bibc.biz

mailto:[email protected]

mailto:[email protected]



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Mission

• Promote Information Technology Business ofBangladesh in USA

» Work Plan and Road Map 2003

• Promote the growth of Bangladesh softwareexports to USA by:

• Establishment of shared office

• Access the expertise and market presence on NRBcommunity in IT Industry

» PIP: 07 September 2002



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VisionVision

Funds Presence

LeadershipNRB

SupportBIBC

GoodEconomy



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Organization• Highlights

– Second year in existence

– BIBC is a non-profit organization

– Overseen by American Association of Bangladeshi

Engineers and Architect (AABEA) – Funded by Ministry of Commerce, GOB

– Project was Sponsored by World Bank

• As of July ’04, funded by Export Promotion Bureau – 2000 sq ft office space

– 1 regular employee; and 1 sales & marketingconsultant



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Organization, cont• BIBC represents IT Companies

– 36 Bangladeshi companies are members – Shared offices are available for members

– BIBC newsletter distributed quarterly – “Members only” area on web site

– Company Profiles are kept in database

– Company brochures are displayed at BIBC

– Brochures are mailed to customers as needed



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Activities• Involve NRB community

• Seminars and Conferences

• Network with other similar organizations

– The Indus-valley Entrepreneurs

– Korean IT Network

• Sales and Marketing

– Connect USA companies with BD Companies for sales

– Help USA company establish a branch or Dev. Lab

• Attend Seminars and Conferences

– CCNG Membership

• Represent Bangladesh IT Industry where required



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Major Achievements• Established BIBC as an organization

– Set up office, infrastructure

– Recognized entity in the NRB community through

• 2 Open House events last fiscal year

• Product showcase event in March 2004

• Coordinated “lunch & learn” seminars with AABEA – 14+ BD companies used this facility on their USA visit

– Shared office used by Attosoft, Inc. until May 2004

– MeriTek Systems is renting one office space from 11/1

• Evaluated Call Center Companies inBangladesh

• Upgraded Website



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Major Achievements, cont.• Submitted Sales Opportunities to BIBC members

– Pre Press Publishing (2)• 2 Awarded to Aftab IT

– IT Application Development (3)

• 1 Awarded to Inforev Ltd

– Graphics, web site development(1)

– BPO such as e-Accounting (1), Tax services – Call Center (3) , Customer support (1), data processing

and SW (2)



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Current Sales Quotes & Activities• 1,000,000 Book printing quote sent Nov 15, 2004

– Hard Bound Books – CIF St. Louis, Missouri

• 50,000 magazine printing quote sent Nov 16, 2004

• Call Center Lead Gen business being worked on with SalesTeam1

• 1000 a month Linux based computers quote in process withSales Team1

• Helping USA company to set up development branch in BD

• Working with NRB group to set up Int’l Std. Call Center in BD



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BIBC Summary• BIBC is increasingly making inroads to

outsourcing companies

• In 2-3 years it can become self sufficient

by taking commission from outsourcedwork

• BIBC provides a place whereBangladeshi business minds meet



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Outsourcing Destination

A Bright Future for Bangladesh



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B’Desh IT Export EarningsJuly 2003- June 2004

• Data Processing TK 114, 648 K

• Consultancy Services TK 20,597 K

• Software Export TK 288, 305 K

• Total TK 423, 550 K

Source: Bangladesh Bank, Statistics Dept



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2000 01 02

250

200

150

100

50

Global Spending on IT and BPO$bn

IT

BPO

Forecast

03 04 05 06 07 08

Source Gartner / Economist



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IT & BPO employment in IndiaNumbers in ‘000

2002 2003 2006 2009 2012

IT 106 160 379 1,004 2,717

BPO 170 205 285 479 972

Forecast

Source: NASSCOM / Economist



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Economic Impact on Offshoring

Country, 2002Indirect benefits ( Labor re-employed)

Direct benefits (imports, transfers)

Savings for customers and investors

1.25

1.00

0.75

0.50

0.250.00

1.25

1.00

0.75

0.50

0.250.00

For every €1 of corporate

spending moved to India (40%)

or Eastern Europe (60%), €

For every $1 of corporate

spending moved to India, $



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Outsourcing Dynamics

BespokeCore items

Commodities

Stays LocalCustom

IT/Mfg

Std BasedOutsourced

Standardization of Middle Layer by SAP,

People Soft and others



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Summary of Outsourcing Trends

• Outsourcing is here to stay• Active standardization of work processes

• Newer outsourcing venues sought

• Infrastructure with well structured labor

will attract outsourcing companies• Cost is only one selection parameter



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Skill Sets of Members



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Development Experience• Complete Application Package Development

– Restaurant Management Systems – Centralized or Branch Banking Systems

– Enterprise Resources Management

– Human Resources Management Systems

– Reservation and Ticketing Systems

– Educational Software

– Database compilation in Oracle, SQL etc



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Countries Project Implemented*

USA 8

AUS1

BD

7

Bahrain

1

Vietnam1

UK3

Denmark1

Canada3Germany

2

Spain1

UAE1

Malaysia1

Holland1

Switzerland1

*As of Dec. 2003



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Challenges of DevelopmentBusiness

• Bangladesh has programming capability in

different programming languages and platforms

• But:

– The developed packages are not readily acceptablein USA

– Bangladesh is stacked lower among competitors

– Pricing is not the only selection criterion



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Web Development & GraphicDesigns

• High end web development with E-

commerce engine – American Eagle Nieman Marcus

– Old Navy Sears

– Sharper Image TJ Maxx

– USPS Mail Tracker KB Toys

• Gaming and Animation Products – Video Games are consumed in the local market

– Learn “Bangla” SW uses some animation



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Challenges of Web DevelopmentBusiness

• Large supply of local talents in USA is making

Web development very competitive – Creating the BIBC web site made us realize how

local design contact is essential

• Bangladeshi Organization in USA should play arole in outsourcing web site development andmaintenance

– Getting your local Bangladesh Association web sitedone in Bangladesh will be a good start.



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Pre-press, Printing & FileConversion• Pre Press/Printing

– Mac and PC platform work

– Extensive use of Adobe/Macromedia and QuarkXpress

– Work done overnight using “Web Proof”

• File Conversion

– Most prevalent business among IT Companies in BD

– Some data entry work is also being done



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Summary of Skill Sets

• Varied skill sets are available

• Educated labor are plentiful

• Good working ethics

• Fast learners



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How “You and I” can HelpBangladesh



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Barriers of Entry must be

reduced



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Offer USA companies deals

they cannot refuse



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Help Bangladesh Companiesget business themselves

Here is how……



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Lead Generation Call Centers

• Distribute cost of generating leads

• Qualify few customers from many

• We then call those qualified customers andOpen quotes for BD Companies to bid

• Best Service provider win bid

• Commission paid out to Sales Broker



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Buy Call Lists

Gen. ScriptsLead Gen

QualifiedCust. ListGen RFQ

Call Cust

Company Win Bid

Gen BidsSubmit Bids

USA

Bangladesh



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Finance 101• Call List (10K) $500 - $1000

• Call Center Payout $3,000 - $4,000• Generated leads (1%) 100

• Gen Business (5%) 5

• Gen Business ($) 5 x $25K = $ 125K

• Comm. Payout (30%) $ 37,500 – $5,000= $ 32,500

• BD Company earns ($) $ 92,500

$5,000

You can contribute in investing in the purchase of Call List andCall Center payout. We can work up a deal for your investment

with good ROI.



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Risks & Challenges• Quality of the call list is key

• Our assumptions could be optimistic

• Call Center Learning Curve may be steep• New regulations could hamper progress



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Summary

• We will need few test runs

• We will need financial help at first

• Can you pledge support for test runs?

• Can you pledge support to get Business?• Please fill in the pledge card distributed



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Wrap up• Outsourcing is here to stay

• BIBC has an integrating effect on all parties – Bangladesh Authority / World bank

– Bangladesh Companies

– NRB and USA companies

• We are trying to teach business by self help

– Call Centers used as marketing tool

– Call Centers learn to become better

– Other services benefit from Call Center effort

– Breaks the barrier of entry

• Bangladesh, Outsourcing venue from 2005



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How can you help?• Inform us about opportunities

• Connect BIBC to the source

• Sponsor an idea, skill set, company

Spread the word

IT Destination, Bangladesh

Documents

BIBC AABEA Convention Presentation