How to Design and Manage a SBU for a

BPO company

Group Members :Sr. No. 1. 2. 3. 4. 5. 6. Name Kiran Shinde Praful Hedaoo Manoj Kapadnis Santosh Kakad R G Rohit Vicky Mate Roll no 50 13 22 19 44 32

What is BPO? BPO stands for Business Process Outsourcing" and is better known as simply "outsourcing. BPO is basically the process by which a company can delegate certain functions of their business to a specialized organization. BPO refers to the rearrangement of entire business functions to some other service providers. BPO brings together three components : --> Technology --> Business processes --> Expertise -

Elements of BPO

COMPETITION

REVENUE MAXIMIZATION

ADVANCE TECHNOLOGY

MORE CONCENTRATIO N

SIGNIFICANCE OF BPO

SATISSFYING CUSTOMER NEED

IMPROVEMENT IN BUSINESS

REDUCTION OF COST

FLEXIBILITY

Need for outsourcing

 The lack of existing skills to complete a process  To replace a poor internal service (may not be connected to lack of skills)  Resources are not available in house to complete the process  The process is difficult to manage (in general or due to business growth)  The process may be performed better and cheaper by other services  Do not have to worry about continually introducing new technologies

BPO Advantages and Disadvantages Advantages

Cost reductions Concentration on core business Outside expertise Cater to changing customer demands Revenue increase

Disadvantages
Odd working hours Family life Health issues Abusive clients Age factor Social Issues / Alcohol Consumption / Sex Issues

What is WNS? And How they made it BIG?

They say Nothing is strong as an idea whose time has come WNS is a first business process outsourcing company to be set up in India way back in 1996 to manage the backend operations of British Airways. a small captive operation of 12 employees set up to undertake its backend operations would become a Rs 2,700 crore company having 22,000 employees Indias first pure play business process outsourcing firm In 7 years from 1996 to 2003 WNS under British Airways had built up various backend skills. It had grown to a Rs 264.4 crore company The World Network services became WNS Global Services in 2003 In 2006 WNS was the first Indian pure play BPO to be listed on the NYSE. Warburg Pincus cashed out divesting 51% stake and today holds 48.6% stake

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Steadily WNS attracted the biggest of big clientele spreading its tentacles all across the globe It has a network of 22 global delivery centres in USA, UK, Romania, Switzerland, India, Sri Lanka and Philippines that responds to needs for language, cultural alignment, redundancy and 24/7 operations WNS Global Services is a wholly owned subsidiary of WNS Holdings Limited, which was incorporated in Jersey, Channel Islands If one were to sum up the success mantra of WNS it will broadly be create a clear mission statement. Perhaps this is why even the changes in top management team, the company did not lose business or focus

What is SBU?
 In essence, the SBU is a profit making area that focuses on a combination of product offer and market segment, requiring its own marketing plan, competitor analysis, and marketing campaign. Three main characteristics of SBUs : Single business or collection of related businesses that can be planned for separately Has its own set of competitors Has a manager who is responsible for strategic planning and profit

Reasons why Strategic Business Units are important  SBUs make you Organized  Micro manage  Segment Targeting and Positioning (STP)  Investments  Decision making  Profitability

Role SBUS in BPO Company

Normally BPO functions its operations differently for each and every different client These sub unit of BPOs are termed as Strategic Business Units in Marketing Terminology Dividing business operations as per each and every client is very essential in BPOs success, because they carry functions of each and every process differently from that of others. SBUs help BPO Company to concentrate on a single client better and also help in serving the client better. With the help of SBU s, BPO companies also allocate their time, money, human resource, etc to the particular sub unit based on its capabilities and business worth. Success or failure of a Sub unit (SBO) does not have great effect on the overall standings of the company.

How SBUs are designed in WNS? [Business Structure of WNS]

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WNS has broadly categorized its operations into many major sectors such as Banking, Insurance, etc In that particular single sector they have sub processes of that sector Each sub process has different clients opted for that particular operations. These clients operations are known as different processes which is nothing but A Strategic Business Unit [SBU] These SBUs in WNS are mutually exclusive units and have no direct relationship with other processes or SBUs Same client can have different processes but they are considered as different processes. For e.g. Bank of America have banking as well as insurance processes with WNS but both have no interconnection whatsoever

Structure of SBUs in WNS

[Hierarchy of one SBU]

How Structure of SBUs in WNS actually works?

In above diagram, it is shown that how SBUs for different clients based upon their operations are carried out in WNS. Each client has one vice president devoted to each client, who looks after all its operations and also coordinated between the different processes of the client. Vice president is also supported with the Assistant vice president who generally acts as the coordinator between lower management and vice president. Then we have general manager, which can be same as assistant vice president in some cases and vertical HRs as support function to that particular process. Normally there are two HRs per process but it may differ process to process. Then teams are formed as per the clients operations with WNS.

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Each team has team manager who coordinates between team leaders, quality leaders, HRs, and upper level managers. Each team consists of at least one team coach who handles actual responsibilities of team and shares work with team accordingly, who also undertakes training aspects of the team in that particular process. Then we have senior customer service associates, customer service associates and trainee customer service associates who actually perform the tasks. In this hierarchy if an trainee customer service associates wants to grow to the position of vice president then he have to go through all the steps, but time taken for each step is different to each trainee. Team hierarchy of the particular team is also dependent on the no of people in the team. Some teams with very few no of employees might not have all these positions.

SWOT analysis for WNS

STRENGTH
Excellent Client Base Strong Market Presence Wide Service Offerings

WEAKNESSES
Over dependence on UK Operations Reliable on Limited Customers Financial Health

SWOT
OPPORTUNITIES
Growth of BPO Industry Recognitions

THREATS
High Competition Changes in Technology

Opportunity Matrix

1. The economic slowdown will drive

star Outsourcing

globalization as companies will use offshore outsourcing. 2. The strong recognitions and honors show the company's market leading capabilities and operational potentiality to perform for further growth. 3. The economic slowdown will drive globalization as companies will use offshore outsourcing. 4. WNS recognized as one of the five performers in the Finance and Accounting (FAO) services domain in 2010.

Threat Matrix

star 2010.

1. The economic slowdown will drive globalization as companies will use offshore outsourcing. 2. The strong recognitions and honors show the company's market leading capabilities and operational potentiality to perform for further growth. 3. The economic slowdown will drive globalization as companies will use offshore outsourcing. 4. WNS recognized as one of the five performers in the Finance and Accounting Outsourcing (FAO) services domain in

BCG Matrix for WNS

WNS is into the market for last 15 years but its process of growth has not slowed down and it is consistently showing on an average 12.7% increase in revenue per year. Hence in next few years it might enter into Cash flow phase representing higher cash inflows and greater market share.

BCG Matrix for its SBUs

There are No. of SBUs WNS There individual success or failure does not have big effect on the WNS as a whole Single SBU, at any point of time can be at any stage of BCG cycle

Conclusion Marketing Advantages for SBU in WNS

Easy and more one to one relationship with the clients Relatively Small business is easy to handle Because of the SBU setup, more and more attention can be given to single employee because size of the team and operation is relatively small. Easy strategy formulation targeted to one to one client. Operational effectiveness and strategic advantages Easy feedback is available and controlling becomes relatively easy