Wipro BPO Overview.ppt

21
1 Presenter: Chinmaya Saxena Designation: Manager, Global Sales & Solutions Support Date: 14 th March, 2005

Transcript of Wipro BPO Overview.ppt

Page 1: Wipro BPO Overview.ppt

1

Presenter: Chinmaya Saxena

Designation: Manager, Global Sales & Solutions Support

Date: 14th March, 2005

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Agenda

How we do

2

3

4

1 What we are

What is BPO Potential

What we do

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Clients

Employees

Revenues USD Mn

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 support20

02-0

3

2003

-04

Leadership in business process outsourcing

41

95

5000

9500

18

23

* NASSCOM, ** Independent Surveys

Who we are

2001

-02

11

2500

05

2004

-05*

**

145

15000+

31

***Annualized revenue run rate for FY 2004-05

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* Ranked leader by IDC, MetaGroup, Forrester - 2004

Partner to industry leaders and challengers

89 global 500 clients

151 clients among Forbes 2000

Global footprint

35 countries

10,000 itinerant employees

9 near shore development centers

Diverse talent pool

23 nationalities

2000 domain consultants

Sustained growth

CAGR of 45% in last 5 years

4th largest in the world in terms of market capitalization in IT services

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05

14 2226

2834 38

150 160180

272339 370

8 10 13 1419

37

(thousands)

(Mn USD)240 384 475

635934

1300

Globaldevelopment

centers

Clients

Employees

Revenues**

** Annualized revenue run-rate 2004-05

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

Who we are

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Source: Gartner

Worldwide BPO Spend

100% = $110bn

ROW*

Europe

North

America

$62 bn

2002

56.4%

22.6%

21%

$25 bn

$23 bn

$62 bn

100% = $173bn

ROW*

Europe

North

America

$62 bn

2007

56%

23%

21%

$39 bn

$37 bn

$97 bn

CAGR – 9.5%

CAGR – 9.6%

CAGR – 9.3%

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

US will continue to constitute majority of the BPO market

BPO industry size

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India advantage

Source: Mckinsey Interviews

India’s value

proposition

Cost

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

Productivity

Faster turnaround time

-Time zone difference - 24X7 service

Learning curve effect, given increased activity across companies and increased centralization within company

Quality

Established methodologies and processes being rapidly adopted for better performance

Well defined quantifiable metrics for quality and process

Access to highly qualified – skilled pool

Opportunity for leveraging capabilities from remote location

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Perspectives on the Indian BPO IndustryPerspective on the Indian BPO 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

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

Raman Roy

Chairman and Managing Director

Wipro Spectramind

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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

Perspective on the Indian BPO Industry (contd.)

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Industry/specialized services

Supply chain services

Knowledge services

Industry services

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

Inventory management Direct procurement Logistics & dispatch

Data analysis Data mining Data management

Business optimization services (BOSsTM)

Procurement services

HR services

Finance & accounting services

Procure to pay Plan to result Order to cash Compliance services

Spend data management Supplier management Procurement processing

Employee data management Recruitment Solutions e-HR managed services

Expanding service lines

“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

Customer relationship management

Voice (inbound/outbound)

eMail / Web / Chat

Telemarketing – Selling new/upgrade products/services

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

Technical support – desktops, portables, network, software

Customer service

eSales

Ability to provide multiple solutions for a single client

Service offerings

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Customer relationship management

Customer relationship management

Voice (inbound/outbound)

eMail/web/chat

Telemarketing – selling new/upgrade products/services

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

Technical support – desktops, portables, network, software

Customer service

eSales

Customer salescross sell – up sell

Consistently over performed on

retention/saves SLA’s 1550+ associates supporting

these processes

Single call resolution

Managing voice-based processes for that require high % of ‘one call resolution’

2200+ FTEs currently operate to this operating metric

Explain to the customer changes in a product

Servicing client processes that involve explaining service-platform changes

1800+ FTEs currently supporting these processes

Technical support for internet service

The queues that we manage are tier 1 and tier 2 support & network hardware support

2500+ FTEs currently supporting these processes

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

5+ million calls per month

Extensive cultural, language and process skills training to associates

Robust telecom infrastructure for managing voice & data communication

Service offerings

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BOSsTM services stack

Business optimization services (BOSsTM)

Procurement services Spend data management Supplier management Procurement processing

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

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

Application & technology ownership

Data cleansing, data management

Compliance

Data analytics & reporting

Pla

tfo

rm

Key elements of service delivery Imaging

Indexing

Workflow management

Processing

Reporting and analytics

Controls and compliance

Procurement expertise

Seamless process integrating with multiple procurement platforms

Supplier management experience managing worldwide suppliers

Best in class process management

Multi channel share services delivery infrastructure

Self service enablement for easy access and decision making capabilities for employees/managers

Multi-channel (web and call) helpdesk

End-to-end HR data processing

Global employee data-warehouse for benchmarking, decisions and analysis

Service offerings

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Industry/specialized solutions

Industry/specialized services

Supply chain services

Knowledge services

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

Inventory management Direct procurement Logistics & dispatch

Data analysis Data mining Data management

Leading energy and power C\company (US, UK)

OTC logistics call center to gas service stations

Bio sciences research organization

Internet-based lending company

Large life insurance company (Among top 5 in UK)

Building genomics database

Underwriting & funding review – providing making recommendation to approve/disapprove home equity loan or line of credit.

New business processing, broker follow-up, data capture, risk analysis (underwriting) and policy document generation.

Domain expertise through vertical business structure

25+ transition specialists

500,000 + transactions per month

Global employee data-warehouse for benchmarking, decisions and analysis

Illustrative solutions

Service offerings

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Process Process + applications Process + applications + infrastructure

Increasing customer value

Cost savings & process standardization

Processoptimization

Processre- engineering

Tra

ns

itio

nWave 1 Wave 2 Wave 3

Customervalue

Operations

Applications

Operations

Infrastructure

Operations

Applications

Test processes, prove concept

Maintain quality Initial cost savings

through arbitrage

Process improvement using Six Sigma and domain expertise

Knowledge management Evaluate technology, automation &

consolidation options

Best in class – process and technology optimization

Consolidation across operations / processes Maximize savings through better turn-around

and reduced defect rates

Delivery through phased, proven approach to impart benefits over the entire relationship lifecycle

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Making it happen

remote support

"We have been very pleased with Wipro's performance and attention to security and privacy"

Chris Larsen, Chief Executive Officer, E-LOAN Inc

“From the first day in dealing with Wipro, there’s

been nothing but quality, character, highest

integrity, highest quality work. As a JV partner you

wouldn’t find a better partner. As a supplier, you

wouldn’t find a higher quality partner“

Jack Welch COPC certification Six sigma rigor

Dedicated project migration team Proprietary transition toolkit

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

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

Best in class for providing Integrated services

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Quality that yields benefits to clients

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

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

Six Sigma

02040

6080

100120

140160180

Mar-

01

Apr-

01

May-0

1

Jun-0

1

Jul-01

Aug-0

1

Sep-0

1

Oct-

01

Nov-0

1

MONTHS

SE

CO

ND

S

Actual Target

86%87%88%89%90%91%92%93%94%95%96%97%

Au

g-0

1

Se

p-0

1

Oct

-01

No

v-0

1

MONTHS

PE

RC

EN

TA

GE

Actual Target

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

Average Handle Time

Quality Score

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Delivery model: migration approach

How to outsource

Managing what is outsourced2 3

What to migrate – pre-analysis / analysis

Managing what is outsourced - operations

How to migrate - transition

3

2

1

What tooutsource1

Customer interaction – on-site / offsite, via questionnaires / interviews

Migration based on de-couplability, offshoreability of processes, legal requirements, resource availability, customer benefits, risk, skill set availability, technology, etc

Pre-analysis / analysis Developing process maps, standard

operating procedures Developing detailed timelines for

migration – project plan Baselining of SLA’s Engagement model -

communication plans

Process migration Operations and customer

point of contacts Engagement model Change management Cost savings analysis

Engagement approach

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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

Participation in planning of

work & setting targets (commitment is more binding when choice is explicit & public)

Reward & recognition programs

Higher education programs – Wipro SEED

Attract Motivate Retain

iOrbit

A culture that motivates people to continually push the bar

Providing a fun-filled environment

Creating growth opportunities – “Wings Within”

Job rotation & enrichment Performance orientation Performance-linked

incentive plan Competitive compensation

Talent transformation

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Introduction to Wipro Spectramind

Vision, culture, mission

Wipro Spectramind values and functions

Quality awareness

Welcome program-WSWP

Bridging cultural gaps

Effective communication

Voice-accent neutralization

Industry overview

Overview of customer systems, etc

Pre-process training Process-specific

knowledge and skills

Systems and process skills

Process training Buddy system

Shadowing

Live calls and/or Transactions

On the job training

Level 1: 2 days

Level 2: 2-3 Weeks

Level 3: 2-6 weeks (process dependent)

Level 4: 2-8 weeks (process dependent)

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 computer-based and instructor-led classrooms

Training methodology

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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

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

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

Health• Dr. Max Onsite

• Mediclaim• Group personal accident

insurance

Amenities offered to employees

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Risk mitigation & Information security

Top management focus

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

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

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

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

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

Secure availability

"We have been very pleased with Wipro's performance and attention to security and privacy"

Chris Larsen, Chief Executive Officer, E-LOAN Inc

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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.

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