Wipro BPO Overview.ppt
Transcript of Wipro BPO Overview.ppt
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Presenter: Chinmaya Saxena
Designation: Manager, Global Sales & Solutions Support
Date: 14th March, 2005
Wipro confidential 2
Agenda
How we do
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1 What we are
What is BPO Potential
What we do
Wipro confidential 3
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
Wipro confidential 4
* 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
Wipro confidential 5
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
Wipro confidential 11
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-
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May-0
1
Jun-0
1
Jul-01
Aug-0
1
Sep-0
1
Oct-
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Nov-0
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MONTHS
SE
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Actual Target
86%87%88%89%90%91%92%93%94%95%96%97%
Au
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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
Wipro confidential 21
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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