SURVEY FINDINGS ON OUTSOURCING

– CHARACTERISTICS OF FUTURE WINNERS

affing
exibili
INTRODUCTION
ty

Focus on
Core
Operati Activities
onal
Control
Continuity
Managemen
t

Cost
savings

Reduced
overhead
 eFunds Corporation
• Start-up Year: 1998

• Area of Operations: Call centre, getting into transaction processing

• Location: Mumbai

• Managing Director: Atul Kunwar, Global Outsourcing Operations

• Promoters/Owners: Efunds Corporation

• Approximate Headcount: 3,000

eFundsBlueprint
Corporation
for success

COMPETENCE
VALUE THIRD-PARTY
START-UP ACCUMALATIO
ADDITTION OPERATOR
N

Captive to Third Party Operator

Cost Overruns
“Time” frame issues
Quality Issues
eFunds Corporation

“Time”
frame
Cost issues
Overruns

quality
issues
SURVEY BACKGROUND

 Human Resource consulting and outsourcing solutions

 February 2009 – How US organizations manage their HR services

 Aim – Understand why companies outsource

 Participants – 104 participants

OUTSOURCING PERCEPTIONS

Attract , Retain & Grow Talent

29%

2006
50% 2009
2010

21%
OUTSOURCING PERCEPTIONS

Focus on core capabilities

35% 35%
2006
2009
2010
30%
OUTSOURCING PERCEPTIONS

Support business Changes

32%
38%
2006
2009
2010
30%
OUTSOURCING PERCEPTIONS

Reducing operating cost

1%

45% 2006
2009
54% 2010
Measuring the ROI of HR Outsourcing

ROI
14% 24%
Improved Service Quality
Improved Operational
19% efficiencies
Reducing Operating Costs
Improved Employee
Satisfaction
HR Staff Realignment
20% 23%
 CASE STUDY

Background
European Business Service Centre

customer services and a shared financial services centre.

Finance and Administration Services to Xerox customers

Shared Service Centre

 Processed Accounts payable

 CASE STUDY

Challenge
Most cost and process-effective

Central scanning and indexing of invoices

Struggle to deliver economies of scale

Outsourcing agreement – cost efficiency

 CASE STUDY

Result
 Costs are tracked by country according to processing volume

 More early-payment discounts

 Improved supplier relations

CASE STUDY

Future
Building on the success of the
accounts payable outsource
solution, Xerox is adopting the
same approach to people,
processes and technology
CASE -RURAL BPO’s
Rural BPO’s
• Concept
• Why?
1. Employment generation
2. Women empowerment
3. Scaling up costs
4. Attrition rates
5. Cost of living & salary
• Obstacles to overcome
1. Technology
2. Acceptance
3.Recruitment & Training
 Introduction

 80 cities across 40 countries

 Services : transmission , IP converged voice,

Mobility, managed network connectivity , data
centers, communication solutions
 Business Situation

 Restructuring owing to change of ownership

 Business expansion over a wide geography

 Lower the cost and improve operational efficiency

 Complying with the stringent regulations

 TCS – TATA COMMUNICATIONS TIE UP

 Adopting Six Sigma technology throughout the value chain

 Working hand in hand with functional heads

 Tata Sigma X workshops were conducted for management team

 Associate training also provided with Six Sigma methodology

(Tata Sigma X – green belt and black belt training)
 Results
Significant financial benefits of 16.4 mm

Increased revenue and reduced cost

Greater employment participation

Reached benchmark values in uptimes

Improved Customer Satisfaction

Legal compliance

15% reduced cost of leased bandwidth

Summary