Bpo
Bpo
Bpo
5 February 2007
Experience Certainty.
BPO Services : Agenda
•Business Overview
•Market Opportunity
•Growth Strategy
•Case Study
5 February 2007
Business Overview : Revenue by Service Line
Infrastructure, 5.5%
Enterprise Solution,
11.8%
Business Intelligence,
ADM, 53.5% 9.5%
Assurance, 2.3%
5 February 2007
Value
Delivery Extraction Shared Industry Specific
Excellence Approach Services Offerings
Securities Processing
Check Processing
Banking &
Transition
Fin.Services
Mortgage Processing
Task Level
Automation
Policy Servicing
Claims Administration
HR- Payroll
Closed Book Administration
Insurance
Operations
New Business Servicing
Infrastructure
Warranty/Spare Parts
Manufacturing
Management
IT & BPO
Bundling
Business Overview : Offerings
Revenue Assurance
Finance & Accounting
Order Provisioning
Telecom
Quality
Clinical Data Mgmt.
Care
Health
Statistical Analysis
HR
Revenue Accounting
Loyalty Administration
Travel &
Utility
Hospitality
Services
Fare Filing
Customer Analytics
5 February 2007
Other HR Processes (e.g. Employee Data Mgmt.)
Retail
Merchandising
Administration
Growth Strategy : IT and BPO Synergies
Source : McKinsey
5 February 2007
Growth Strategy : Sustainable Competitive Advantages
5 February 2007
Case Study : Pearl Deal
Company Overview Business Needs:
• Over 2 million • Reduce cost of operations
policyholders • Transparency in pricing and joint value discovery to reduce costs ??
• £27 billion of assets.
• Closed book
insurance policy
portfolio Business Solution Offered By TCS:
16% 45%
• Comprehensive transformation plan
– Migrate 13 platforms to TCS platform (IIMs)
– Offshoring from year 2 18%
– Process improvements
• Investment mindset
11%
– Development of proprietary L&P platform – IIMs
Process Platform Off-shoring Total
– Upfront investments for takeover of operations consoli- savings
opti-
• Experienced deal team mization dation from out-
and auto- sourcing
– Practitioners with significant UK L&P business
mation
– expertise
– Dedicated deal team created from TCS! Insurance practice
• IT/BPO synergies
– Cost savings maximized by bundling ITO and BPO using platform rationalization, process-re-
Size of deal
engineering and off shoring
• $847 million over 12
years
Business Benefits
• 950 FTEs
• 45% total savings to Pearl form outsourcing by process optimization, platform consolidation and
automation, offshoring
• System rationalization, productivity improvement, selective offshoring and economies of scale via new
books
• Ability to address large “closed book market” as a third party provider
5 February 2007
Case Study : Large Retail Chain - Chargebacks
Company Overview Business Needs:
• Fortune 50 large US • Tracking of Process metrics
retail chain with • To improve Chargeback reversal rate
revenues greater than
• Movement to paperless operations
USD 80 B.
5 February 2007
Case Study : Global Publishing & Media Co.
Company Overview Business Needs:
• A large Global • Inefficiencies in processes onshore, resulting in poor performance on metrics
publishing, financial, • High cost of providing service in a non-revenue center
information and media
• Inability to improve process efficiency due to Physical work flow tracking and reporting system
services Company
Business Benefits:
• FTE Cost arbitrage of approx. $ 80,000 / month.
Systems Used: • Increased first day applications rates by 5 % , thereby reducing follow ups with customers resulting in
operational savings.
• Oracle and Lawson
based AR System
5 February 2007
Case Study : Large US Retailer
Company Overview Business Needs:
• Fortune 100 Retail chain • Consolidate processes to deliver from single location providing a standardize & unified experience.
with annual revenues Removal of redundant and manual activities
greater than $80 B. • Reduction of Backlogs
• Targets the home • Prevent $0.5m revenue leakage due to excess payment made to vendor every month
improvement market
Business Solution:
Size and Scope of • Lift & Drop Approach to transition. Phased transition by process
Process
• Developed the workflow applications for easy tracking and effective monitoring
• Finance & Accounting
(150) • Web Portal developed to provide the clients with online reports
• Technical Helpdesk (80) • Developed an utility to prioritize activities
• Email Support (100) – Chargeback reversals prioritized by date and value
• CC Chargeback (40) • Digitized some of the activities
• Merchandizing (15) – Added a digital Fax solution
• Price Change
• SKU Count Mgmt &
status update.
• Suspense Purchase Business Benefits:
Order (PO) deletion and
status change • BPR drives savings worth 18 million dollars annually
• Customer Interaction ( – Identified the top 20 accounts for the companies & resolved In the past 7 months $3.6m
30) overpayment by adjusting open credit notes to over due invoices
• Voice / Email Helpdesk – Created visibility on warranty invoices and saved more than $1m in past 7 months
• Services (45) – Introduced system changes in the billing software leading to reduction in incorrect billing
and resulting in $1MM (Approx) saved every month
Systems Used: • 24 hours assured cycle time on retail price change adds to the Competitive Advantage by allowing
• IBM Mainframes implementation of new promotions in a very short time
• Access Database • Credit Card Chargeback reversal rate increased from 40 % to 75% resulting in increased savings of
• Microsoft Outlook $1 MM a month.
5 February 2007
Case Study : A leading Global Investment Bank
Company Overview Business Needs:
• Large Global Investment Bank • To reduce Cost of Operations and Improve productivity
with over € 1,097 billion in assets • Client data validation and system integration to enable efficient reporting system
across 138 nations
• Centralised operations to support multiple regions
• Dedicated team for each process
5 February 2007
Thank You
5 February 2007
Experience Certainty.