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IT-Enabled Remote Services : Altaf H. Khan
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  1. Pakistan’s IrresistibleValue Proposition IT-Enabled Remote Services:Altaf H. Khan

  2. Overview • IT-Enabled Remote Services • The Offshore Model • Survey results • Opportunities & Challenges • Which ITES is right for you? • Wrap-up

  3. The SW Export Hype • Excitement related to SW export is not justified • Show stopper: • Our inability to produce trained workers in rapidly increasing numbers • Is this the end of the Pakistan’s IT revolution that never was?

  4. Long Live the IT Revolution! • But how? • We should try to leverage what we have, and not what we currently don’t! • We have been unable to produce quality SW developers in increasing numbers, but …

  5. We Have … • Doctors • Dentists • Pharmacists • Nurses • Lawyers • Engineers • Architects

  6. We Have … • Doctors • Dentists • Pharmacists • Nurses • Lawyers • Engineers • Architects • Draftsmen • Accountants • MBAs • Artists • English speakers • Clerical staff • ???

  7. Extending the Offshore Model • The offshore SW services model has worked profitably for many Pakistani companies • Can we use the same model for other professions as well?

  8. SW’s Offshore Model Client Onshore Center Offshore Center

  9. IT-Enabled Services’ Model Client Onshore Center Offshore Center

  10. Top Three … • Strategic benefits • Outsourcing users • Industry sectors • Barriers to success • Selection criteria

  11. Top Three … • Strategic benefits • Outsourcing users • Industry sectors • Barriers to success • Selection criteria • Achieve cost reductions • Focus on company’s core businesses • Improve service quality

  12. Top Three … • Strategic benefits • Outsourcing users • Industry sectors • Barriers to success • Selection criteria • Canada • Australia • USA

  13. Top Three … • Strategic benefits • Outsourcingusers • Industry sectors • Barriers to success • Selection criteria • Energy • Financial services • Technology

  14. Top Three … • Strategic benefits • Outsourcingusers • Industry sectors • Barriers to success • Selection criteria • Organizational resistance • Unclear performance metrics • Loss of control of process

  15. Top Three … • Strategic benefits • Outsourcingusers • Industry sectors • Barriers to success • Selection criteria • Guaranteed service levels in the contract • Proven track record in outsourcing • Specializes in the particular outsourcing sector

  16. IT Enabled Remote Services • Contact Centers • Accounting & Financial Services • Transcription • Advice Over the Web • HR Services • Animation Development • Insurance Claims Processing • GIS & CAD

  17. IT Enabled Remote Services • Contact Centers • Accounting & Financial Services • Transcription • Advice Over the Web • HR Services • Animation Development • Insurance Claims Processing • GIS & CAD • Call Center • Email/Chat • Telemarketing

  18. IT Enabled Remote Services • Contact Centers • Accounting & Financial Services • Transcription • Advice Over the Web • HR Services • Animation Development • Insurance Claims Processing • GIS & CAD • Remote Accounting • M & A Support • Financial Analysis & Forecasting

  19. IT Enabled Remote Services • Contact Centers • Accounting & Financial Services • Transcription • Advice Over the Web • HR Services • Animation Development • Insurance Claims Processing • GIS & CAD • Legal • Medical • Dental

  20. IT Enabled Remote Services • Contact Centers • Accounting & Financial Services • Transcription • Advice Over the Web • HR Services • Animation Development • Insurance Claims Processing • GIS & CAD • Medical • Legal • Financial

  21. IT Enabled Remote Services • Contact Centers • Accounting & Financial Services • Transcription • Advice Over the Web • HR Services • Animation Development • Insurance Claims Processing • GIS & CAD

  22. IT Enabled Remote Services • Contact Centers • Accounting & Financial Services • Transcription • Advice Over the Web • HR Services • Animation Development • Insurance Claims Processing • GIS & CAD

  23. IT Enabled Remote Services • Contact Centers • Accounting & Financial Services • Transcription • Advice Over the Web • HR Services • Animation Development • Insurance Claims Processing • GIS & CAD

  24. IT Enabled Remote Services • Contact Centers • Accounting & Financial Services • Transcription • Advice Over the Web • HR Services • Animation Development • Insurance Claims Processing • GIS & CAD • Scanning • Raster  Vector • Dumb  Smart

  25. Pakistan’s Key Advantages • Cost of labor • Tax benefit • Time zone difference • Telecom rates • Cost of infrastructure • ???

  26. Key Challenges • Marketing • Security & confidentiality • Culture of quality • Training • Managers • Telecom quality

  27. Competition Competition comes in several forms: • No competition at all: • In-house service • Most significant • Disadvantages: Higher cost; Inefficiency; HR turnover • Our advantages: Fixed, lower cost

  28. Competition (2) • US-based outsourcing companies: • Disadvantages: Higher cost; High employee turn-over • Our advantages: Lower cost

  29. Competition (3) • Offshore service providers: • Ireland – Call Centers • Philippines – Animation; Remote Data Entry • India – Accounting; Animation; Call Centers • Many more • Disadvantages: None • Our advantages: None, but demand exceeds supply

  30. ITES in Pakistan • CAD • Accounting • Medical transcription • Call center • ???

  31. Which ITES is Right for You? • Determine your own profile • Determine the profile for various ITESes • Select the ITES whose profile matches best with your own

  32. Dimensions of the Profile • Finances • Initial investment • Returns • Payback period • Ease of exit • Growth • Scalability • Diversification opportunities • Sustainability Marketing • Market size • Competitive advantage Human Resource • Leadership • Availability of: • Experienced pros • Junior pros • Training Infrastructure • Telecom • Distribution channels • Buildings

  33. The Rating Scale

  34. The Rating Scale

  35. The Rating Scale

  36. The Rating Scale

  37. The Rating Scale

  38. Remote Accounting Services

  39. Call Center

  40. Insurance Claims Processing

  41. Medical Transcription

  42. Which ITES is Right for You? • Determine your own profile • Determine the profile for various ITESes • Select the ITES whose profile matches best with your own

  43. Which ITES is Right for You?

  44. Summary • ITES is Pakistan’s irresistible value proposition and an ideal opportunity for entrepreneurs • Keys to success: • Form value-adding partnerships • Focus on operational excellence & customer satisfaction

  45. Final Thoughts • Concentrate on HR-intensive businesses • Look for the widest wage differences • Build on your strengths • Leverage Pakistani expats for business development

  46. Contact • This presentation is available online at: • www.kasbtv.com • My email address: • altaf@kasbtv.com