Post on 06-Apr-2018
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: bibc@sbcglobal.net
Website: www.bibc.biz
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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