WNS Presentation

24
´How to Design and Manage a SBU for a BPO companyµ

Transcript of WNS Presentation

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´How to Design and Manage a SBU for a

BPO companyµ

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Group Members :-

Sr. No. Name Roll no

1. Kiran Shinde 50

2. Praful Hedaoo 13

3. Manoj Kapadnis 22

4. Santosh Kakad 19

5. R G Rohit 44

6. Vicky Mate 32

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What is BPO?

BPO stands for ³Business Process Outsourcing" and is

better known as simply "outsourcing´.

BPO is basically the process by which a company can

delegate certain functions of their business to a specializedorganization.

BPO refers to the rearrangement of entire business

functions to some other service providers.

BPO brings together three components :

--->> Technology --> Business processes --> Expertise

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Elements of BPO

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SIGNIFICANCE OF 

BPO

COMPETITION

 ADVANCETECHNOLOGY

SATISSFYING CUSTOMER

NEED

REDUCTIONOF COST

FLEXIBILITY

IMPROVEMENTIN BUSINESS

MORECONCENTR ATIO

REVENUEM AXIMIZATION

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Need for outsourcing

The lack of existing skills to complete a process

To replace a poor internal service (may not be connected to lack of  

skills)

Resources are not available in house to complete the process

The process is difficult to manage (in general or due to business growth)

The process may be performed better and cheaper by other services

Do not have to worry about continually introducing new technologies

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BPO Advantages and Disadvantages

     Advantages Cost reductions

Concentration on core business

Outside expertise

Cater to changing customer demands

Revenue increase

     Disadvantages

Odd working hours

Family life Health issues

Abusive clients

Age factor 

Social Issues / Alcohol Consumption / Sex Issues

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What is WNS? And How they made it ´BIGµ?

They say ³Nothing is strong as an idea whose time has come´ WNS is a first business process outsourcing company to be set up in

India way back in 1996 to manage the backend operations of British

Airways.

a small captive operation of 12 employees set up to undertake its

 backend operations would become a Rs 2,700 crore company having22,000 employees

India¶s first pure play business process outsourcing firm

In 7 years from 1996 to 2003 WNS under British Airways had built

up various backend skills. It had grown to a Rs 264.4 crore company The World Network services became WNS Global Services in 2003

 ± In 2006 WNS was the first Indian pure play BPO to be

listed on the NYSE. Warburg Pincus cashed out

divesting 51% stake and today holds 48.6% stake

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Continue«

Steadily WNS attracted the biggest of big clientele spreading itstentacles all across the globe

It has a network of 22 global delivery centres in USA, UK,

Romania, Switzerland, India, Sri Lanka and Philippines that

responds to needs for language, cultural alignment, redundancy and

24/7 operations WNS Global Services is a wholly owned subsidiary of WNS

Holdings Limited, which was incorporated in Jersey, Channel

Islands

If one were to sum up the success mantra of WNS it will

 broadly be create a clear mission statement. Perhaps this is

why even the changes in top management team, the company

did not lose business or focus

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What is SBU?

In essence, the SBU is a profit making area that focuses on acombination of product offer and market segment, requiring its own

marketing plan, competitor analysis, and marketing campaign.

Three main characteristics of SBUs : Single business or collection of related businesses that can be

planned for separately

Has its own set of competitors

Has a manager who is responsible for strategic planning and profit

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Reasons why Strategic Business Units are important

     SBU¶s make you Organized

     Micro manage

     Segment Targeting and Positioning (STP)

     Investments

     Decision making

     Profitability

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Role SBU·S in BPO Company

Normally BPO functions its operations differently for each andevery different client

These sub unit of BPOs are termed as Strategic Business Units in

Marketing Terminology

Dividing business operations as per each and every client is very

essential in BPOs success, because they carry functions of each andevery process differently from that of others.

SBUs help BPO Company to concentrate on a single client better 

and also help in serving the client better.

With the help of SBU s, BPO companies also allocate their time,

money, human resource, etc to the particular sub unit based on its

capabilities and business worth.

 ± Success or failure of a Sub unit (SBO) does not have

great effect on the overall standings of the company.

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How SBUs are designed in WNS? [Business Structure of WNS]

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WNS has broadly categorized its operations into many major sectorssuch as Banking, Insurance, etc

In that particular single sector they have sub processes of that sector 

Each sub process has different clients opted for that particular  

operations.

These clients operations are known as different processes which is

nothing but A µStrategic Business Unit¶ [SBU]

These SBUs in WNS are mutually exclusive units and have no direct

relationship with other processes or SBUs

Same client can have different processes but they areconsidered as different processes. For e.g. Bank of America

have banking as well as insurance processes with WNS but

 both have no interconnection whatsoever 

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Structure of SBUs in WNS [Hierarchy of one SBU]

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How Structure of SBUs in WNS actually works?

In above diagram, it is shown that how SBUs for different clients based upon their operations are carried out in WNS.

Each client has one vice president devoted to each client, who looks

after all its operations and also coordinated between the different

 processes of the client.

Vice president is also supported with the Assistant vice presidentwho generally acts as the coordinator between lower management

and vice president.

Then we have general manager, which can be same as assistant vice

 president in some cases and vertical HRs as support function to that

 particular process. Normally there are two HRs per process but it

may differ process to process.

 ± Then teams are formed as per the clients operations with

WNS.

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Each team has team manager who coordinates between teamleaders, quality leaders, HRs, and upper level managers.

Each team consists of at least one team coach who handles actual

responsibilities of team and shares work with team accordingly, who

also undertakes training aspects of the team in that particular 

 process. Then we have senior customer service associates, customer service

associates and trainee customer service associates who actually

 perform the tasks.

In this hierarchy if an trainee customer service associates wants to

grow to the position of vice president then he have to go through all

the steps, but time taken for each step is different to each trainee.

 ± Team hierarchy of the particular team is also dependent

on the no of people in the team. Some teams with very

few no of employees might not have all these positions.

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SWOT analysis for WNS

STRENGTH

Excellent Client Base

Strong Market Presence

Wide Service Offerings

 

WEAKNESSES

Over dependence on UK Operations

Reliable on Limited Customers

Financial Health

 OPPORTUNITIES Growth of BPO Industry

Recognitions

 THREATS High Competition

Changes in Technology

SWOT

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Opportunity Matrix

1. The economic slowdown will drive

globalization as companies will use

offshore outsourcing.

2. The strong recognitions and honors

show the company's market leading

capabilities and operational potentiality

to perform for further growth.

3. The economic slowdown will drive

globalization as companies will useoffshore outsourcing.

4. WNS recognized as one of the five

star performers in the Finance and Accounting

Outsourcing (FAO) services domain in 2010.

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Threat Matrix

1. The economic slowdown will drive

globalization as companies will use

offshore outsourcing.

2. The strong recognitions and honorsshow the company's market leading

capabilities and operational potentiality

to perform for further growth.

3. The economic slowdown will drive

globalization as companies will use

offshore outsourcing.

4. WNS recognized as one of the five

star performers in the Finance and Accounting

Outsourcing (FAO) services domain in2010.

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BCG Matrix for WNS

WNS is into the market for last 15 years but its process

of growth has not slowed down and it is consistentlyshowing on an average 12.7% increase in revenue per 

year. Hence in next few years it might enter into Cash

flow phase representing higher cash inflows and greater 

market share.

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BCG Matrix for its SBUs

There are No. of SBUs WNS

There individual success or failure does not have

 big effect on the WNS as a whole

Single SBU, at any point of time can be at any stage

of BCG cycle

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Conclusion

Marketing  Advantages for SBU in WNS ± Easy and more one to one relationship with the clients

 ± Relatively Small business is easy to handle

 ± Because of the SBU setup, more and more attention can be

given to single employee because size of the team andoperation is relatively small.

 ± Easy strategy formulation targeted to one to one client.

 ± Operational effectiveness and strategic advantages

 ± Easy feedback is available and controlling becomesrelatively easy

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