Post on 01-Jan-2016
description
Baltic States: Baltic States:
Opportunities in Outsourcing & Business Opportunities in Outsourcing & Business
TransformationTransformation
Eastern European Business ForumStockholm, 25-26th November
Nils MelngailisChief Executive Officer
In today’s economy business models are changing towards In today’s economy business models are changing towards decapitalized New Economydecapitalized New Economy
Old Economy New Economy
BRAND CAPITAL
HUMAN CAPITAL
WORKING CAPITAL
“Push” Focus
“Pull” Focus
Production Focus CustomerFocus
High Low
High Low
PHYSICALCAPITAL
(Outsourced Network)
Lattelekom is aLattelekom is an n example of example of a major a major business business transformationtransformation
Before After
Sales & marketing
Network Operations
Billing Customer care
Procurement
HR mgmt
Transportation
Property mgmt
TrainingIT
Sales & marketing
Call centreservices
Billing
TrainingFleet mgmt, leasing
Propertymgmt
Shared services
(HR, project mgmt)
IT
Network Operations
Network Maintenanc
e
F&A
Lattelekom evolution to become a BPO providerLattelekom evolution to become a BPO provider
InternalBusiness
Transformation
Made significant investments in technology
Focus on efficiency and service quality
Contact Centre establishment
Shared Services establishment
Local BPO
Contact Centre e.g.:– Inquiry services– Hansabanka– Statoil / Neste
(Baltic)– Kraft Foods– Governmental– Insurance
Data Centre for several external companies
Payroll Outsourcing for Statoil
Cross-BorderBPO
Softcom Customer Care partnership
Help desk services for Dell PC users
Contact Centre for German mobile operator
Exigen Transformation partnership
A number of success cases signify the trend of business A number of success cases signify the trend of business process & service outsourcing to Baltics along with exchange process & service outsourcing to Baltics along with exchange of local expertiseof local expertise
- Latvia as the key resource base for global IT solutions and outsourced services
- Customer support service in Latvia for Swedish PC users
- Regional lead in e-banking and remote services competence
- Near shore call centres in Estonia (both set up in 2001, with 170 / 70 staff)
- Accenture IT Technology Center established in Riga end of 2002, with staff of 60 professionals serving IT projects in Nordic region.
- Accounting service centre established in Latvia to serve 23countries where Tele2 operates
- One of the earliest Scandinavian capital investments in Latvia, with “Rosme” acquisition in 1993
Introduction to ExigenIntroduction to Exigen
In Brief– Private company (started in 2000)– San Francisco, California– Investor AB among investors– 1100 employees & 300 customers
Operational Innovation for Services Industries
– Financial Services– Communications & Media– Government
Transformation Software and Services
– Business Processes– Legacy Systems– IT Development
Business based on long-term partnership around financial value creation
Pioneered the Business Process Utility™ model – Decoupling and
outsourcing – Transaction processing
leveraging economies of scale
Exigen in LatviaExigen in Latvia
Exigen has developed significant resources and infrastructure in Latvia
12%
7%
6%
69%
6%
100%= 692 Exigen developers*
* Including a/s DATI, which is now an Exigen Group company
Russia
Lithuania
Latvia
Recognizing Latvian advantageous position …
• One of the lowest labor costs in EU
• Availability of qualified and well-educated IT professionals
• Access to reliable infrastructure
• Geographical and cultural proximity to Europe
• Political stability
• Government incentives for IT companies
USA
Other
Transformation SuccessTransformation SuccessIn
du
str
y
Bu
sin
ess
Pro
cess S
oft
ware
Leg
acy
Syste
m
Ou
tsou
rcin
g
Pro
cess a
nd
Tra
nsacti
on
O
uts
ou
rcin
g Universal/Warner Music•9-year relationship•Royalty transaction processing utility
•Target: USD$100+M savings
Prudential Securities•5-year relationship•Application outsourcing for back-office systems
•Target: 35% cost reduction
EDS & Westpac•10-year relationship•Mortgage origination for 1400 person operating center
•Target: 46% cost reduction
2000 2001 2002 2003 2004
Business Process Utility™ ModelBusiness Process Utility™ Model
Shared Royalties Processing – Exigen, Warner, Universal.
Reduced capital expenditures (short-term and long-term)– Amortize upfront and future development costs across all participants using
Exigen software (1500+ person years of development) and offshore Eastern European resources
Variable cost base to utility customers– Service provider model charging per transaction– Aligned business model: variable to customer’s business, incentives for
Exigen to create more value in order to increase transaction volumes
Operating cost reduction created by sharing infrastructure– Initial large-scale operation ready to process transactions for new customers– Over 30% operational cost savings
Hansabank Group - regional leader in e-banking solutions Hansabank Group - regional leader in e-banking solutions and remote services competenceand remote services competence
The parent, Swedbank, historically emerged from several organizations, therefore faced with parallel IT systems and consolidation challenges
Hansabank, as many other Baltic counterparts, in much more advantageous position:
– Different, decades younger IT solution generation from ‘90ties – no migration challenges and huge IT re-investment required
– Pan-Baltic IT system built on common platform with localized services
– All technological solutions built with integrated remote access for immediate practical application
One of leading commercial bank groups in Baltics with Swedbank (FöreningsSparbanken) holding 59.7% of group's shares from 1998
Today, Hansabank is the market leader in remote banking services (attractiveness, service penetration) with superior business expertise in the region
Hansabank Group - regional leader in e-banking solutions Hansabank Group - regional leader in e-banking solutions and remote services competence (continued)and remote services competence (continued)
- Over 1 000 000 pan-Baltic Hansabank Internet banking customers -
0
500,000
1,000,000
1,500,000
1996 1997 1998 1999 2000 2001 2002 2003
Softcom Customer Care – A pan-Baltic Call Center Softcom Customer Care – A pan-Baltic Call Center CompanyCompany
Through innovative services, Softcom creates and maintains competitive and profitable customer relationships for its
clients
Softcom runs Customer Care Centers to create outstanding customer relationships for its clients offering higher quality, lower costs, increased revenues and better understanding of customer needs and behavior.
Softcom has three main areas of service:
• Inbound Customer Services and Support• Marketing & Sales• Customer Research and Analysis
These three basic services are combined to dramatically improve customer relationships for our clients. This is professional CRM In practice.
”Each interaction between a customer and a company should be considered as a business opportunity and treated accordingly.”Alf Sjöström, Founder & Owner of Softcom
SoftcomsSoftcoms hashas establishedestablished aa pan-Baltic Virtual Contact Centerpan-Baltic Virtual Contact Center
Hämeenllnna
Riga
Vilnius
Katowice
TallinnBollnäsStockholm
Ronneby
Kristianstad
Hämeenllnna
Riga
Vilnius
Katowice
TallinnBollnäsStockholm
Ronneby
Kristianstad
Pan-BalticVirtual
ContactCenter
9 Contact Center sites
In total 700 agents
Seamless flow of contacts between countries and locations
Call routing based upon– Language– Location– Cost to serve– Type of customer– Competence
Advanced IP-based Callcenter platform
Growing Softcom business in Baltic - customer support Growing Softcom business in Baltic - customer support service for Swedish and Finnish PC usersservice for Swedish and Finnish PC users
Front level support to PC users in Swedish/Finnish languages
Inbound/Outbound helpdesk call handling + emails
Service launched October, 2003 with more than 40 Baltic operators by end of 2004
Fast launch: 3-4 month preparation
Bringing customer cost saving to ~30%
Lattelekom & its partners have the breadth and depth of Lattelekom & its partners have the breadth and depth of capability to deliver business transformationcapability to deliver business transformation
Fixed & Mobile Voice
Networking, Data & Internet
Converged Offer
Busine
ss Cu
stomer D
em
ands
BPO
IT Infrastructure
IT Services
Call center services, Finance & support operations
transformation
Infrastructure outsourcing;Network operations
outsourcing
Business process audit & reengineering
Process transformation outsourcing
IT consultingDesktop supportSystem support
Application development & support
Hardware operationsNetwork operations
Thank You!
Nils.Melngailis@lattelekom.lv
www.lattelekom.lv