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Presenter: Chinmaya Saxena Designation: Manager, Global Sales & Solutions Support Date: 14th March, 2005

Agenda

1 2 3 4

What we are

What is BPO Potential

What we do

How we do

Wipro confidential

Who we are

Leadership in business process outsourcing

Partner to industry leaders and challengers  31 clients (including 13 for transaction processing), 12 among Fortune 500 ( as of September 30th, FY 2004 - 05)  Largest third party transaction processing company in India**  Largest third party business process outsourcing company in India)* Expanding footprint  Delivery locations: Eight state-of-the-art centers in New Delhi, Mumbai, Chennai, Pune and Kolkata  Service lines: Largest breadth of services from customer relationship management to back office transaction processing & industry specialized services  Processes:95 + processes in production; handling 5 million calls and 500,000 back office transactions per month  Complexity: Providing Level 1,2,3,4 support
31 23 18 05 9500 5000 145 2500 95 41 11
2001-02 2002-03 2003-04 2004-05***

Clients

15000+

Employees

Revenues USD Mn

***Annualized revenue run rate for FY 2004-05 * NASSCOM, ** Independent Surveys


Wipro confidential

Who we are

SBU of Wipro Technologies : No. 1 provider of integrated business, technology and process solutions on a global delivery platform *

Clients

150

160

180

272

339

370

Partner to industry leaders and challengers


 89 global 500 clients  151 clients among Forbes 2000

Global development centers

34 28 14 22 26

38

Global footprint
 35 countries  10,000 itinerant employees  9 near shore development centers

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Employees

Diverse talent pool


 23 nationalities  2000 domain consultants

19 8 10 13 14

(thousands)

1300
Revenues**

Sustained growth
 CAGR of 45% in last 5 years  4th largest in the world in terms of market capitalization in IT services ** Annualized revenue run-rate 2004-05

934 240
1999-00

384
2000-01

475
2001-02

635

(Mn USD)

2002-03

2003-04

2004-05

* Ranked leader by IDC, MetaGroup, Forrester - 2004


Wipro confidential

BPO industry size

The 100+bn global outsourcing market will grow at CAGR of > 9%


Worldwide BPO Spend
100% = $173bn
$37 bn ROW* 21%

100% = $110bn
ROW* $23 bn 21% Europe 23% $25 bn Europe 22.6% $97 bn $39 bn

$62 bn $62 bn North America $62 bn 56.4% North America

56%

2002
Source: Gartner

2007

US will continue to constitute majority of the BPO market


Wipro confidential

India advantage

 40%-60% cost reduction for offshored process - Differential in wages from the US or UK parent location at approx 70%80%. - Interaction costs increase 10%-20% bcoz of India being a remote location.thus net savings of 40%-60%  Labour cost arbitrage, the reason for cost savings likely to exist for next 20-30 years

Cost

 Faster turnaround time -Time zone difference - 24X7 service  Learning curve effect, given increased activity across companies and increased centralization within company

Indias value propositio n

 Established methodologies and processes being rapidly adopted for better performance Well defined quantifiable metrics for quality and process Access to highly qualified skilled pool Source: Mckinsey Interviews

Opportunity for leveraging capabilities from remote location


Wipro confidential

Perspective on the Indian Industry Perspectives on the Indian BPOBPO Industry

Industry non-existent a decade back


 Only evidence of BPO in India was data entry

Amex set up captive Financial Resources Center in 1994


       Leadership Contribution Set up to service complete financial backoffice of JAPA Region AP, AR, Tax, MIS, Closing of Books, Reconciliations etc. Processing in English and all major Asian languages With success, awarded work from Europe and N America Processing in European languages added Grew to over 500 people in just two years

Raman Roy Chairman and Managing Director Wipro Spectramind

GE Captive Center set up in 1996


   Backoffice scope beyond Financial areas Leadership introduced voice as recently as 1998 Tremendous success of this center made people notice India

Wipro confidential

Perspective on the Indian BPO Industry (contd.)

 

2000 third party servicing begins in India Trends over the last decade
 Earlier (Captive) Centers predominantly did Accounting/Transaction Processing (eg. Amex, GE) Voice processes followed with very small number of FTEs  Centers set up in / after 2000 (Captive or third party) Clients showing appetite and interest in moving aggressively to other areas 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 Moving to other areas slowly since the capability is there and the track record is strong Third Party Industry employs over 200,000 people larger number still employed by captives

Wipro confidential

Service offerings

Expanding service lines

Ability to provide multiple solutions for a single client

Industry services
     Insurance claims processing Mortgage processing Health claims adjudication Credit card processing Bank reconciliation

Industry/specialized services
Finance & accounting services
    Procure to pay Plan to result Order to cash Compliance services

Supply chain services


 Inventory management  Direct procurement  Logistics & dispatch

Business optimization services (BOSsTM)

Knowledge services Voice (inbound/outbound)


 Telemarketing Selling new/upgrade products/services

Procurement services
 Spend data management  Supplier management  Procurement processing

 Data analysis  Data mining  Data management

Customer relationship management


eMail / Web / Chat
 Technical support desktops, portables, network, software  Customer service  eSales

 Internal employee help-desk  Technical Support L1/L2 desktops, network, software  Customer service billing, new / existing plans, value added services, service order processing, Workforce dispatch, health claims, etc  Collections early reminders to late stage collections

HR services
 Employee data management  Recruitment Solutions  e-HR managed services

Customers that have a broad range of requirements but only have one major supplier should choose Wipro. It is active in all major functional segments with a broad range of vertical industry capabilities
Forrester, April, 2004
Wipro confidential

Service offerings

Customer relationship management

Voice (inbound/outbound)
 Telemarketing selling new/upgrade products/services

Customer relationship management


eMail/web/chat
 Technical support desktops, portables, network, software  Customer service  eSales

 Internal employee help-desk  Technical support L1/L2 desktops, network, software  Customer service billing, new / existing plans, value added services, service order processing, Workforce dispatch, health claims, etc  Collections early reminders to late stage collections Explain to the customer changes in a product Customer sales cross sell up sell

 Consistently over performed on retention/saves SLAs  1550+ associates supporting these processes  Managing voice-based processes for that require high % of one call resolution  2200+ FTEs currently operate to this operating metric  Servicing client processes that involve explaining serviceplatform changes  1800+ FTEs currently supporting these processes  The queues that we manage are tier 1 and tier 2 support & network hardware support  2500+ FTEs currently supporting these processes

Single call resolution

 5+ million calls per month  Extensive cultural, language and process skills training to associates  Robust telecom infrastructure for managing voice & data communication
Technical support for internet service

Illustrative solutions in the telecom domain/ FTE numbers correspond to our telecom clients for voice based processes only
Wipro confidential

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Service offerings

BOSsTM services stack

Key elements of service delivery


Finance & accounting services
    Procure to pay Plan to result Order to cash Compliance services  Imaging  Indexing  Workflow management  Processing  Reporting and analytics  Controls and compliance

Business optimization services (BOSsTM)

Procurement services
 Spend data management  Supplier management  Procurement processing  Procurement expertise  Seamless process integrating with multiple procurement platforms  Supplier management experience managing worldwide suppliers

HR services
 Employee data management  Recruitment Solutions  e-HR managed services

 Best in class process management  Multi channel share services delivery infrastructure  Self service enablement for easy access and decision making capabilities for employees/managers

Application & technology ownership Data analytics & reporting Data cleansing, data management Compliance Platform

 Multi-channel (web and call) helpdesk  End-to-end HR data processing  Global employee data-warehouse for benchmarking, decisions and analysis

Wipro confidential

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Service offerings

Industry/specialized solutions

Illustrative solutions
Industry services
     Insurance claims processing Mortgage processing Health claims adjudication Credit card processing Bank reconciliation Large life insurance company (Among top 5 in UK) New business processing, broker follow-up, data capture, risk analysis (underwriting) and policy document generation. Underwriting & funding review providing making recommendation to approve/disapprove home equity loan or line of credit.

Industry/specialized services

Internet-based lending company

Supply chain services


 Inventory management  Direct procurement  Logistics & dispatch Leading energy and power C\company (US, UK)

OTC logistics call center to gas service stations

Knowledge services
 Data analysis  Data mining  Data management

Bio sciences research organization

Building genomics database

 Domain expertise through vertical business structure  25+ transition specialists  500,000 + transactions per month  Global employee data-warehouse for benchmarking, decisions and analysis

Wipro confidential

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Delivery through phased, proven approach to impart benefits over the entire relationship lifecycle
Wave 1 Wave 2 Wave 3 Process re- engineering Transition

Customer value

Increasing customer value

Process optimization

Cost savings & process standardization Operations Operations Operations Applications Applications Infrastructure

Process
 Test processes, prove concept  Maintain quality  Initial cost savings through arbitrage

Process + applications

Process + applications + infrastructure

 Best in class process and technology  Process improvement using Six optimization Sigma and domain expertise  Consolidation across operations / processes  Knowledge management  Evaluate technology, automation &  Maximize savings through better turn-around and reduced defect rates consolidation options
Wipro confidential

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Making it happen

 8 world class delivery sites  Robust DS3 architecture  Extensive BCP methodology  First in India to achieve compliance on Data protection act of UK  Multiple levels of data & information security  COPC certification  Six sigma rigor

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

remote
 Dedicated project migration team  Proprietary transition toolkit

support
 Best in class for providing Integrated services

"We have been very pleased with Wipro's performance and attention to security and privacy" Chris Larsen,
Chief Executive Officer, E-LOAN Inc

 More than 13,500 employees  Experienced management team  Innovative HR Practices

Wipro confidential

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Quality that yields benefits to clients

Average Handle Time

Six Sigma
 Wipro is the first company in India to adopt the six-sigma TQM methodology for defect and cycle time reduction  Wipro has demonstrated tremendous cost savings using tested processes within Six Sigma for its customers  Small, incremental improvements used in conjunction with 6-sigma  Focus is on implementing small ideas without any investments  A person uses his/her creativity to come up with new ideas  Only an implemented idea is an improvement  Developed by a group of professionals from Amex, Dell, Microsoft and others.  The Malcolm Baldrige Quality award used as a basis  Standard exclusively for BPO centers

SECONDS

180 160 140 120 100 80 60 40 20 0 Apr-01 May-01 Mar-01 Jul-01 Aug-01 Jun-01

Actual

Target

Sep-01

MONTHS

Quality Score

 30+ full time black belts  Performance on customer critical performance measures (CPMs)  Processes meeting customer CPMs after stabilization  All associates kaizen trained  More than 3000 kaizen s implemented by employees

PER CENTAGE

 Wipro Spectramind is the first company to qualify for the standard using Six Sigma framework

97% 96% 95% 94% 93% 92% 91% 90% 89% 88% 87% 86% Au g-01 Se p-01

Actual

Target

MONTHS

Nov-01

Oct-01

Nov-01

Oct-01

Wipro confidential

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Delivery model: migration approach

Managing what is outsourced operations

3 2
How to migrate - transition

What to migrate pre-analysis / analysis

What to outsource

How to outsource

Managing what is outsourced

Pre-analysis / analysis
 Customer interaction on-site / offsite, via questionnaires / interviews  Migration based on decouplability, offshoreability of processes, legal requirements, resource availability, customer benefits, risk, skill set availability, technology, etc

Process migration
 Developing process maps, standard operating procedures  Developing detailed timelines for migration project plan  Baselining of SLAs  Engagement model - communication plans

Engagement approach
 Operations and customer point of contacts  Engagement model  Change management  Cost savings analysis

Wipro confidential

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Talent transformation

Attract
 Top talent from campus Day 1 in all top universities in India  Strength of leadership team  Press / PR  Recruitment from commerce colleges and accounting/finance departments of local companies

Motivate
 Participation in planning of work & setting targets (commitment is more binding when choice is explicit & public)  Reward & recognition programs  Higher education programs Wipro SEED

Retain
 Providing a fun-filled environment  Creating growth opportunities Wings Within  Job rotation & enrichment  Performance orientation  Performance-linked incentive plan  Competitive compensation

iOrbit
A culture that motivates people to continually push the bar
Wipro confidential

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Training methodology

 All but level 1 customized or custom-built  Certification and assessment built in at every stage  90 trainers across the country  Ability to train in excess of 3000 people simultaneously, across our facilities in computerbased and instructor-led classrooms Level 2: 2-3 Weeks
Pre-process training

Level 4: 2-8 weeks (process dependent) Level 3: 2-6 weeks (process dependent)
Process training On the job training

 Buddy system  Shadowing  Live calls and/or Transactions

 Process-specific knowledge and skills  Systems and process skills

Level 1: 2 days
Welcome program-WSWP

 Bridging cultural gaps  Effective communication  Voice-accent neutralization  Industry overview  Overview of customer systems, etc

 Introduction to Wipro Spectramind  Vision, culture, mission  Wipro Spectramind values and functions  Quality awareness

Wipro confidential

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Amenities offered to employees

Quality of work life


State - of - the -art facilities 24 hour cafeteria Pick -up and drop facility In campus ATM facility Concierge desk Help desks travel, tax & investment, technology Online HR help Recreation facilities

Career/personal growth
Bridge training for pre hires Spectramind talent engagement program Six Sigma and Pragati R&R Wipro Spectramind leadership development program Outbound trainings Employee satisfaction Surveys

Health
Dr. Max Onsite Mediclaim Group personal accident insurance

Family/ society
Birthday leave Paternity/maternity leave Leave travel assistance Examination leave Compensatory time off MediClaim for self and dependants

Wealth
Employee stock option plan Attendance incentive Process based pay Productivity linked incentives Performance pay Reward and recognition

Wipro confidential

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Secure availability

Risk mitigation & Information security

Process security
 Comprehensive risk assessment during new service introduction in IT  External, internal and customer audits to provide security assurance  Information Security Policy guidelines & Policies for Organizational Security, Email & Internet, Back office functions etc

Network security
 Secure dedicated channel between Wipro and client  Offshore centers insulated from internet and other networks  Multi-layered virus/worm/spam protection for the ODC network  Separate isolated VLAN based network for ODC

Top management focus


Security forum (CIO, CFO, CQO) report to chairman.

Physical security
 Offshore centers are physically and logically insulated  Offshore centers are declared restricted access  Liaison with external agencies to collect threat information  Layered access control system

Employee security
 All security procedures explained during employee induction  All employees sign confidentiality agreement at the time of joining

BS 7799 framework comprehensively addresses physical security, information security and BCP

"We have been very pleased with Wipro's performance and attention to security and privacy" Chris Larsen, Chief Executive Officer, E-LOAN Inc

Wipro confidential

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Thank you for your time

Our promise
With utmost respect to Human Values, we promise to serve our customers with Integrity, through Innovative, Value for Money solutions, by Applying Thought, day after day
Information contained and transmitted by this presentation is proprietary to Wipro Limited and is intended for use only by the individual or entity to which it is addressed, and contains information that is privileged, confidential or exempt from disclosure under applicable law. Wipro confidential

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