Building Uttarakhand : Linking Technology with hills for...

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October 2014 1 Rural Ethos. Business Ethic. B2R : Rural BPO in Uttarakhand, India Building Uttarakhand : Linking Technology with hills for sustainable alternate rural livelihood with Rural BPO centers

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October 2014

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Rural Ethos. Business Ethic.

B2R : Rural BPO in Uttarakhand, India

Building Uttarakhand : Linking Technology with hills for sustainable alternate rural livelihood with Rural BPO centers

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B2R : RURAL BPO IN UTTARAKHAND, INDIA

BUSINESS PROBLEM: ATTRITION CHALLENGE IN URBAN BPO, RISING COSTS, MARGIN PRESSURE

SOCIAL ISSUE : LACK OF LOCAL EMPLOYMENT IN RURAL AREAS, FORCED MIGRATION, SOCIAL PRESSURE

BUSINESS 2 RURAL

o FOR-PROFIT SOCIAL ENTERPRISE, CREATES LIVELIHOOD

OPPORTUNITIES FOR RURAL YOUTH

o RURAL BPO CENTRES IN VILLAGES OF UTTARAKHAND

o DOMAIN FOCUS: PROVIDE BEST-IN-CLASS BUSINESS

SUPPORT SERVICES (DATA-FOCUS) IN NICHE AREAS:

PUBLISHING, LEGAL, F&A AT ATTRACTIVE PRICE POINT

o TECHNOLOGY IS KEY ENABLER, EMPHASIS ON LEARNING

& DEVELOPMENT

o INVEST IN RURAL DEVELOPMENT PROJECTS

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- Domain focus on identified industry segments - creating capabilities in focus verticals

- Emphasis on learning and development – rapid acceleration of learning curves

- Hub & Spoke: small delivery centers, geographically dispersed, individually managed

- Empowered, values-driven teams with high “connected-ness”

- Tech infra comparable to urban centers using ‘fit-for-purpose’ technology

The Model

- Collaborate with local NGOs/agencies for hiring, infra creation support

- Hard wiring into community - invest profits into rural development projects - resultant long term competitive advantage

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Wireless Internet

connectivity by solar

powered relays

100% Power back - UPS

DG Set

4 MBPS Internet on optic

fiber Scalable Infra

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Infrastructure & Technology

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Key Challenges & Approach

Challenge Key Levers

1. Generating the right kind of demand

Need to break the stereotype of low-end data entry outsourcing to rural areas. True value add not just cost reduction.

• Go Global! Needs demand generation focus from Private Sector, Public Sector, and Government (eGov).

• “Verticalization” strategy to acquire annuity-based work: • Identifying niche service segments • Partnering with domain-specific “anchor” customers • Tie up with larger BPOs (sub-contracting) • Extending services to move up the value-chain

2. Building customer confidence for migrating work to rural centers

• Adopted a phased approach for organization learning: Proof-of-concept pilot -> “Patient” delivery-feedback cycles -> Large, steady revenue streams

3. Training rural youth in complex jobs in a cost-efficient manner

• Deskilled the work into smaller easy-to-learn tasks • Designed training to simulate the production environment • Created a strong training delivery team

4. Access to talent, size of pool • Partner with NGOs for access to talent pool • Generate strong word-of-mouth

5. Internet access in remote areas • Deployed a combination of optic fiber and last-mile wireless technology

6. Unavailability of business skills in local talent pool

• Hired a mix of local and urban managerial talent and subject matter experts

• Implemented a model of local leadership development

7. Building trust in a rural environment • Hard-wiring into community together with NGO partners 5

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Nature of Services that can be provided

MU

TUA

L W

IN-W

IN W

ITH

OU

TCO

ME-

BA

SED

/TR

AN

SAC

TIO

N P

RIC

ING

PUBLISHING LEGAL FINANCIAL SERVICES & ACCOUNTS

Inte

rnat

iona

l

Pub

lishi

ng

com

pan

y

eBooks creation

Books

converted to

eBooks in

various formats:

Adobe, EPUB, &

proprietary

formats

Leading LPO in

India

(for US client)

Contract

Abstraction

Objective

coding of

legal

documents;

Review of

documents,

Extraction of

key fields;

summarizati

on of

information

India’s Leading KPO (for

US SME clients)

Sale

s,

Fina

ncia

l

dat

a

revi

ew

and

pro

cess

ing

Revi

ew

&

con

vers

ion

of

dail

y

stor

e

sale

s

dat

a &

ban

k

stat

em

ents

,

dat

a

scru

bbi

ng

&

rec

onci

liati

on.

Indi

a’s

lead

ing

law

pub

lish

er

Digitization and

Data conversion

: XML Tagging

Legal judgments

received in

scanned form,

data extracted

with OCR, XML

tagged as per

data structure,

output XML file

Large Indian Micro-

Finance orgn.

Ne

w

cust

om

er

acc

oun

t

setu

p

Cus

tom

er

appl

icati

on

for

m

veri

fica

tion

and

new

cust

om

er

acc

oun

t

setu

p

WEB RESEARCH, DATA MINING, DATA SCRUBBING, DATA MANAGEMENT

Large Indian B2B

portal

Product classification and mapping

Categorization & mapping of products and services on online

portal

International

advertising

company (for US

client)

Data Extraction for Retail

Extraction of information enabling analysis of purchase

trends across (grocery) stores in USA

Advertisement

analytics

company

Video review : pre-analytics for audit of outdoor media

Review of video content, data extraction, mapping of

information for analytics

Leading trade

marketing

organization

Backend support for MIS generation

Consolidate daily MIS reports from sales team in web-

application; educate team to send reports in correct & timely

manner

IT Product

company (SaaS

for SME clients)

Procurement back-office services

Data migration for new customers, ongoing procurement

data management (BPaaS)

MU

TUA

L W

IN-W

IN :

OU

TPU

T-B

ASE

D P

RIC

ING

PUBLISHING LEGAL FINANCIAL SERVICES

International

Publishing

company

eBooks creation Leading LPO

in India

(for US

client)

Contract

Abstraction

India’s Leading

KPO (for US SME

clients)

Financial data

review and

processing

India’s leading

law publisher

Digitization and

Data conversion :

XML Tagging

Large Indian

Micro-Finance

organization

New customer

account setup

WEB RESEARCH, DATA MINING, DATA SCRUBBING, DATA MANAGEMENT

Large Indian B2B portal Product classification and mapping

International advertising company (for US

client)

Data Extraction for Retail

Advertisement analytics company Video review : pre-analytics for audit of

outdoor media

Leading trade marketing organization Backend support for MIS generation

IT Product company (SaaS for SME clients) Procurement back-office services

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The way forward ….

Who What they can do

Private sector Public Sector

• Focus on demand generation in the form of work to be done in rural BPO centers e.g. Digitization & Records archiving, Data entry and Information Processing, Accounting, Payroll, Customer Support (Sales, Service).

• Part-fund set up of rural BPO centers (as part of CSR). • Partner (as “anchor customers”) to impart job-specific skills • Create employee volunteering opportunities (to support initial and

ongoing activities in such centers)

Government • Focus on demand generation in the form of work to be done in rural BPO centers e.g. Digitization, Data entry and Information Processing, eGovernance initiatives, Citizen Support Services (related to different areas e.g. healthcare, education).

• Get better Internet bandwidth in rural areas : use combination of optic fiber and wireless last mile

• Create and implement a rural BPO policy across the country to incentivize setting up of such rural BPO units (learn from other countries: e.g. states of Karnataka, Andhra Pradesh, Tamilnadu in India) : fund part of initial cost, and part-ongoing cost for gestation period; set up monitoring mechanisms.

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Key Takeaways …

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• Do not forget the big picture – Nation building through inclusive Economic growth

• Focus on Demand generation – For a customer it is Business first

• Focus on tasks that can be componentized, distributed, managed, packaged and integrated

• Learning mechanisms need to be strong • Stay engaged with the community – it is a lifetime

commitment

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Delivering Happiness

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Delivering Happiness

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