Moving from transactional service provider to end to end process transformation: Making the shift Rahul Singh CEO & MD,TCS e-Serve Ltd Head, TCS BFS BPO June 10, 2009 PUBLIC
Content • Industry Trends • Buyer Behavior • Need for Transformation • Transformation – TCS BPO case study
Industry Trends Output based Growth and innovation have joined cost management as strategic imperatives for outsourcing.. Source: 2008 EquaTerra
Buyer Behavior Long-Term Business Pressures Drive More Outsourcing
Need for Transformation Cost advantage beyond labor cost can be realized • Alignment of Vision & Strategies • Service Provider Expertise • End-to-end Services 5 – 8 x 3 – 6 x Potential 5 – 8 X benefit 0.5 x 0.2 x 0.3 x x Productivity improvement Delivery innovation Total Savings from offshoring Speed & flexibility Savings from low labour cost Quality improvements • Long-term competitive advantage Nasscom Mckinsey report 2005
Transactional BPO vs. Transformational BPO Transactional Transformational Tactical Strategic Vendor Supplier Relationship Customer Extension Operations/Technology Focus Business Focus – Business Driven Executes Legacy Business Processes Modern Business Re-Alignment, Technology & Services Labor Arbitrage Output/Effectiveness Cost benefits at per-head / business process level Strategic Cost & Competitive advantages Isolates - Some Degree Of Control Delivery Confidence-Manages Risk Reduces Non Core Business Functions - Release Of Capital Business Transformed - Sustained Savings & Sustained Value
BPO Transformation – TCS BPO Case Study Global Market Research Powerhouse Levers of Transformation Global Bank • Servicing Corporate, Consumer , Securities & Wealth Mgmt Products • Operations in 140 Countries. 200+ million customers. • Multi Country, Currency, Collection, Clearing modes • Mass Payment Platform / New Product launch. • Solution involved Platform & Process Design, Systems Specs/UAT, Delivery readiness, Go Live. • Expected benefit of $60M for Client • Providing complex analytical tools & unique market insights • 100+ countries, 2000+ Applications, 750+ products, 40%+ manual work, 40+ languages • Erosion of market share by nimbler & cost efficient competitors. • TCS Solution around BPO/KPO, IT & IS Outsourcing • Solution involved unified reference process, Globalization of Finance & HR, transformation-technology enabled products • Expected savings over $135M through process improvements, etc. • Full Services Play • Innovative Pricing Models • End-to-end Offerings • Platforms • Re-engineering Solutions • And many more….