Description
Presentation on Wipro BPO going rural
The Company: Wipro Ltd.
? Wipro Technologies is a global services provider delivering technology-
driven business solutions
? Wipro is the World's first CMMi Level 5 certified software service
company
? First company outside USA to receive the IEEE Software Process Award. ? The major initiatives of Wipro Limited include:
1. Wipro Technologies Ltd. 2. Wipro InfoTech 3. Wipro BPO
Vision of Wipro Ltd.
Wipro has achieved the pinnacles of process and quality credentials (through ISO 9000, SEI CMM, PCMM and Six Sigma).
? Business Leadership: Among the top 10 Information Technology
Services companies globally and the No.1 Information Technology company in India.
? Customer Leadership: The No.1 choice of customers through
innovative solutions and Six Sigma processes.
? People Leadership: Among the top 10 most preferred employers
globally by creating an environment of empowerment, intellectual challenge and wealth sharing.
? Brand Leadership: Wipro aims to be among the 5 most admired
brand in India.
Wipro BPO
? One of the leading BPO’s in the country offering expert services. ? Highly process driven culture across industry verticals. ? Delivering long-term benefits & measurable value through:
? Business process re-engineering ? Integrating technology with BPO
? Knowledge services
? Wipro BPO has over 19,000 people, operating out of 9 different locations
(India and Eastern Europe).
? The three pillars on which the entire organization works are:
1. Standardization 2. Simplification 3. Optimization
Value Proposition of Wipro BPO
Details about Wipro BPO
BPO Verticals
? Banking and Financial
BPO Horizontals
? Finance and Accounting ? Procurement
Services
? Insurance
? Loyalty services ? Health and life sciences ? HR Services ? Telecom ? Knowledge services. ? Travel and transportation
Financials of Wipro Limited
? Wipro BPO contributes about 20% to the total revenues of the
company.
? Revenue for the 3rd quarter in 2007-08 stood at Rs. 2.998 billion. ? This was a growth of about Rs. 600 million in comparison to the same
period in 2006-07.
? Wipro BPO recorded a Y-O-Y growth of 34.8% in operating margins,
while revenue grew by 19.9%
? 84.2% of their revenues coming from the American market while the
remaining almost 16% comes from the EU.
SWOT analysis of Indian BPO Industry
Strengths
? Large no. of talented graduates ? Affordable and quality education ? English language proficiency ? Well-developed IT industry ? Strong customer base ? Powerful venture capital interest ? Focus on process quality
? Poor telecom infrastructure ? Poor electricity supply ? Cultural differences ? High attrition rates, ? Experience
Weakness
? Scarce foreign language skills
? Lack of customer service culture
? Government SOPS & tax benefits
? Long relationships with nations ? Time zone difference
SWOT(contd.) Opportunities
? Horizontal and vertical expansion ? Increasing awareness of
Threats
? High Billing rates ? Political & religious instability ? India's competitors in Eastern
outsourcing services
? Creation of global brands ? Call center offerings ? Chinese domestic & export
Europe, Latin America and APAC
? Increasing technology automation ? Internal competition for resources ? Over-promise / Under-deliver ? Regional geopolitical uncertainty ? Government blocking reform/deals ? Corruption/piracy/distrust
market
? Develop relationships in West to ? Indian domestic-market growth
access APAC/Middle East markets
Porter’s Five Forces analysis of the Indian BPO Industry
Bargaining power of Buyer ? Costs advantage offered by BPO in other countries.
? Large organizations may be responsible for a major share of the BPO
revenues. ? He can always bargain on the basis of services provided by other organizations.
? Over-dependence on the voice business can be a recipe for disaster.
Bargaining power of suppliers ? Technology strength ? Scale ? Experience with analogous programs that require similar technology ? Low upfront costs and the ongoing costs ? Commitment to quality will lead to customer satisfaction
Porters Model (Contd.)
Threat of new entrants ? High, but lowered in recent times ? Cheap labour in available due to good quality manpower Rivalry among existing firms ? Similar types of services ? Importance is given to brand recognition and brand value ? Spiraling costs of workforce ? Shortage of skilled manpower and high attrition rates ? competition between the firms to move up the value chain ? Existing players are trying to setup base in countries where costs are low
Threat of substitutes
? New counties ready to replicate the success model of India ? Features like cheap qualified manpower, time zone difference, familiarity
with American culture etc. ? Threat from direct customer information centers.
Rationale for going Rural
Rural Literacy Programs
? A rapid increase in the literacy levels of the rural India.
? Literacy in rural India has gone up by about 15%
? Last 10 years in the single biggest jump in rural literacy in comparative
figure terms
? Rural-Urban Literacy Rates
Year
1991 Rural Urban Total 2001 Rural Urban Total
Male
57.90 81.10 64.13
Female
30.60 64.00 39.29
Percentage
44.70 73.10 52.21
71.40 86.70 75.85
46.70 73.20 54.16
59.40 80.30 65.38
Rationale for going Rural (contd.)
Rural infrastructure: ? Thrust on rural infrastructure ? Penetration of broadband and telecommunication facilities. Bharat Nirmaan ? Time bound business plan for action includes a grant of Rs. 8000 crore ? rural infrastructure, irrigation, roads, housing, water supply, electrification, telecommunication connectivity. Infrastructure Development Fund (RIDF) ? Rural electrification ? The 10th Five Year Plan proposes to electrify 62,000 villages ? This will help create values for the rural society. ? Programs like Rajiv Gandhi Gram Vidutikaran Yojana, Pradhan Mantri Gramodaya Yojana will help create infrastructure.
Governmental and private programs
? Sarva Shiksha Abhiyan (SSA) ? Kasturba Gandhi Balika Vidyalaya (KGBV) ? Mahila Samakhya program. ? Azim Premji Foundation:
? ?
Azim Premji established the Azim Premji Foundation in 2001. It is a not-for-profit organization contributing to quality primary
education for every child
?
The current programs of the Azim Premji Foundation engage 2.5 million children in more than 17,000 schools across India.
Rationale for Wipro BPO going Rural
? A NASSCOM study says, the BPO industry in India has is expected to
face a shortfall of 262,000 professionals by the year 2012.
? Opportunity for the large number of high-school graduates and
undergraduate degree holders in rural areas to fill a part of this gap
? This gives a huge opportunity to create a socio-economic impact.
Hence the project is titled as “PRAYAAS”.
Objectives and rational for “PRAYAAS”
? 100,000 villages in India are to be powered with connectivity in 2007. ? Consider 10 percent of these villages employing 20 people at an average
salary of $65 per month
? This would directly add $1.56 billion to the rural economy per annum ? This would create 200,000 jobs and save high attrition costs of about 10%. ? Effectively narrow the gap of digital divide by leveraging the power of
computing and connectivity
Objectives of the initiative:
? Meeting Demand and supply ? Profitability or Sustainability ? Socio-Economic impact
SWOT of Wipro BPO
? Strengths
? Excellent training modules ? Clients of Wipro BPO (across verticals) ? Wipro centres located across country
? Weaknesses
? Rise in level of attrition rates (48%-highest) ? Cost of infrastructure high than US
? Opportunities
? US jobs moving offshore (business, legal and office)
? Threats
? Anti outsourcing legislations
Key Success Factors (KSF’s)
? Training time period kept to a minimal
? Training is a huge challenge ? Take help of Azim Premji Foundation
? Quality of the final O/P
? Wipro brand name has to be kept intact
? Language and cultural integration ? Integration of PRAYAAS with Wipro BPO
Competitors
? Lason India
? Located around Chennai (5k employees across 60 centres) ? Franchisee based model
? Datamation
? Stand alone model ? Partners HP’s rural BPO initiative-(HP-i Community)
? Satyam BPO
? Partners Gram IT in AP ? Lower end operations of the value chain
? Comat
Consumers
? Government as an institution is huge in itself
? E-Governance projects ? Motives are very different
? Domestic banks, insurers for data entry work ? Consumers main concerns
? Security ? Data threat ? Quality of the output
? Fraud based cases on the rise-Mphasis BFL
Key Drivers and Challenges- “PRAYAAS”
? Drivers
? Costs associated with infrastructure and people are lower than
urban areas ? Employee attrition is lower than urban areas ? Prevents migration from rural to urban ? Large amount of domestic work available ? E-Governance projects ? Challenges ? Infrastructure-Internet & Telecommunication ? Competition and Global BPO margins ? Attrition and growing realty costs ? Issues and expectations from customers ? STPI scheme of the Govt. of India
Viable Strategic Alternatives
? Public Private Partnership Model
? Real estate of the various government offices ? Can take up services for other companies (Ex: Comat)
? Franchisee Model/Business Model
? Lason India
? Franchisee-Real estate, Lason-Technical and motivational support
? Stand alone Model ? Build Own Operate Franchisee (BOOF) Model
? Employees –Training then go to form a co-operative society
? Process that derisks stakeholders, customers and investors
? Internet Kiosk Network
Value Proposition of PRAYAAS
Society
Government Investors
Value Proposition
Rural Citizen
Corporate Clients
PRAYAAS-Business Model
VLE
VLE VLE
Cluster 1
Cluster 2
VLE
Central Hub located at Hyderabad
VLE
Cluster 4
Cluster 3
VLE
VLE
VLE
PRAYAAS-Business Model
? Combination of Franchisee and Stand Alone model ? Nodal town to have a cluster ? Clusters would be set up depending on the roll out in those villages ? Franchisee-A Village Level Entrepreneur (VLE) ? Challenge is to get the VLE onboard
? VLE-Accountability and Wipro would not loose control
? VLE-An opportunity to earn revenue ? Lowest strata grassroot employee-knows the people better
Rural Marketing Mix
? Product/Service portfolio
? Survey, enrollment forms, questionnaires, invoice, product order
forms, healthcare and legal updation. ? Target industry- Government, Wipro’s existing clients, Indian insurance companies, Indian Banks and MNC’s. ? Promotion ? Incentive passed onto the end consumer due to cost savings ? Leveraging on the brand name and reputation of Wipro BPO ? Price ? Revenue model and the processes that govern the linkage between VLE and Wipro BPO.
Plan for Implementation
? Implemented in two phases
? Roll It ? Scale It
? First Phase-Andhra Pradesh
? Node area-Hyderabad Centre
? Rationale
? Good internet connectivity-Rajiv Internet Programme ? Literacy rate above national average ? Large concentration of SHG’s and NGO’s
? Aspects of LR and Analytical ability better than urban AP
? Core work area of Azim Premji foundation
? Phase 2-Scale across other cities
Rationale for “PRAYAAS”
? Revenue from high volume, low value services like data capture, data
and document management. ? Discounts to customers-Rural areas –Benefit to customers ? Reduction in employee costs
? Expect the costs down by atleast 50%
? No transportation cost-local employees ? Real state way less expensive than urban areas ? PRAYAAS lends itself very well to the village model
Contingency Plans
? Nature of the business model brings in a contingency aspect
? VLE could use the facilities according to her discretion ? Long distance programmes and educational modules
? Disaster Recovery Management
? Nodal centre would take care of aspects such as data backup, security and
fraud.
? Change the objectives, integrate the centres into the framework of
Azim Premji Foundation ? Back up for infrastructure issues
doc_869613345.ppt
Presentation on Wipro BPO going rural
The Company: Wipro Ltd.
? Wipro Technologies is a global services provider delivering technology-
driven business solutions
? Wipro is the World's first CMMi Level 5 certified software service
company
? First company outside USA to receive the IEEE Software Process Award. ? The major initiatives of Wipro Limited include:
1. Wipro Technologies Ltd. 2. Wipro InfoTech 3. Wipro BPO
Vision of Wipro Ltd.
Wipro has achieved the pinnacles of process and quality credentials (through ISO 9000, SEI CMM, PCMM and Six Sigma).
? Business Leadership: Among the top 10 Information Technology
Services companies globally and the No.1 Information Technology company in India.
? Customer Leadership: The No.1 choice of customers through
innovative solutions and Six Sigma processes.
? People Leadership: Among the top 10 most preferred employers
globally by creating an environment of empowerment, intellectual challenge and wealth sharing.
? Brand Leadership: Wipro aims to be among the 5 most admired
brand in India.
Wipro BPO
? One of the leading BPO’s in the country offering expert services. ? Highly process driven culture across industry verticals. ? Delivering long-term benefits & measurable value through:
? Business process re-engineering ? Integrating technology with BPO
? Knowledge services
? Wipro BPO has over 19,000 people, operating out of 9 different locations
(India and Eastern Europe).
? The three pillars on which the entire organization works are:
1. Standardization 2. Simplification 3. Optimization
Value Proposition of Wipro BPO
Details about Wipro BPO
BPO Verticals
? Banking and Financial
BPO Horizontals
? Finance and Accounting ? Procurement
Services
? Insurance
? Loyalty services ? Health and life sciences ? HR Services ? Telecom ? Knowledge services. ? Travel and transportation
Financials of Wipro Limited
? Wipro BPO contributes about 20% to the total revenues of the
company.
? Revenue for the 3rd quarter in 2007-08 stood at Rs. 2.998 billion. ? This was a growth of about Rs. 600 million in comparison to the same
period in 2006-07.
? Wipro BPO recorded a Y-O-Y growth of 34.8% in operating margins,
while revenue grew by 19.9%
? 84.2% of their revenues coming from the American market while the
remaining almost 16% comes from the EU.
SWOT analysis of Indian BPO Industry
Strengths
? Large no. of talented graduates ? Affordable and quality education ? English language proficiency ? Well-developed IT industry ? Strong customer base ? Powerful venture capital interest ? Focus on process quality
? Poor telecom infrastructure ? Poor electricity supply ? Cultural differences ? High attrition rates, ? Experience
Weakness
? Scarce foreign language skills
? Lack of customer service culture
? Government SOPS & tax benefits
? Long relationships with nations ? Time zone difference
SWOT(contd.) Opportunities
? Horizontal and vertical expansion ? Increasing awareness of
Threats
? High Billing rates ? Political & religious instability ? India's competitors in Eastern
outsourcing services
? Creation of global brands ? Call center offerings ? Chinese domestic & export
Europe, Latin America and APAC
? Increasing technology automation ? Internal competition for resources ? Over-promise / Under-deliver ? Regional geopolitical uncertainty ? Government blocking reform/deals ? Corruption/piracy/distrust
market
? Develop relationships in West to ? Indian domestic-market growth
access APAC/Middle East markets
Porter’s Five Forces analysis of the Indian BPO Industry
Bargaining power of Buyer ? Costs advantage offered by BPO in other countries.
? Large organizations may be responsible for a major share of the BPO
revenues. ? He can always bargain on the basis of services provided by other organizations.
? Over-dependence on the voice business can be a recipe for disaster.
Bargaining power of suppliers ? Technology strength ? Scale ? Experience with analogous programs that require similar technology ? Low upfront costs and the ongoing costs ? Commitment to quality will lead to customer satisfaction
Porters Model (Contd.)
Threat of new entrants ? High, but lowered in recent times ? Cheap labour in available due to good quality manpower Rivalry among existing firms ? Similar types of services ? Importance is given to brand recognition and brand value ? Spiraling costs of workforce ? Shortage of skilled manpower and high attrition rates ? competition between the firms to move up the value chain ? Existing players are trying to setup base in countries where costs are low
Threat of substitutes
? New counties ready to replicate the success model of India ? Features like cheap qualified manpower, time zone difference, familiarity
with American culture etc. ? Threat from direct customer information centers.
Rationale for going Rural
Rural Literacy Programs
? A rapid increase in the literacy levels of the rural India.
? Literacy in rural India has gone up by about 15%
? Last 10 years in the single biggest jump in rural literacy in comparative
figure terms
? Rural-Urban Literacy Rates
Year
1991 Rural Urban Total 2001 Rural Urban Total
Male
57.90 81.10 64.13
Female
30.60 64.00 39.29
Percentage
44.70 73.10 52.21
71.40 86.70 75.85
46.70 73.20 54.16
59.40 80.30 65.38
Rationale for going Rural (contd.)
Rural infrastructure: ? Thrust on rural infrastructure ? Penetration of broadband and telecommunication facilities. Bharat Nirmaan ? Time bound business plan for action includes a grant of Rs. 8000 crore ? rural infrastructure, irrigation, roads, housing, water supply, electrification, telecommunication connectivity. Infrastructure Development Fund (RIDF) ? Rural electrification ? The 10th Five Year Plan proposes to electrify 62,000 villages ? This will help create values for the rural society. ? Programs like Rajiv Gandhi Gram Vidutikaran Yojana, Pradhan Mantri Gramodaya Yojana will help create infrastructure.
Governmental and private programs
? Sarva Shiksha Abhiyan (SSA) ? Kasturba Gandhi Balika Vidyalaya (KGBV) ? Mahila Samakhya program. ? Azim Premji Foundation:
? ?
Azim Premji established the Azim Premji Foundation in 2001. It is a not-for-profit organization contributing to quality primary
education for every child
?
The current programs of the Azim Premji Foundation engage 2.5 million children in more than 17,000 schools across India.
Rationale for Wipro BPO going Rural
? A NASSCOM study says, the BPO industry in India has is expected to
face a shortfall of 262,000 professionals by the year 2012.
? Opportunity for the large number of high-school graduates and
undergraduate degree holders in rural areas to fill a part of this gap
? This gives a huge opportunity to create a socio-economic impact.
Hence the project is titled as “PRAYAAS”.
Objectives and rational for “PRAYAAS”
? 100,000 villages in India are to be powered with connectivity in 2007. ? Consider 10 percent of these villages employing 20 people at an average
salary of $65 per month
? This would directly add $1.56 billion to the rural economy per annum ? This would create 200,000 jobs and save high attrition costs of about 10%. ? Effectively narrow the gap of digital divide by leveraging the power of
computing and connectivity
Objectives of the initiative:
? Meeting Demand and supply ? Profitability or Sustainability ? Socio-Economic impact
SWOT of Wipro BPO
? Strengths
? Excellent training modules ? Clients of Wipro BPO (across verticals) ? Wipro centres located across country
? Weaknesses
? Rise in level of attrition rates (48%-highest) ? Cost of infrastructure high than US
? Opportunities
? US jobs moving offshore (business, legal and office)
? Threats
? Anti outsourcing legislations
Key Success Factors (KSF’s)
? Training time period kept to a minimal
? Training is a huge challenge ? Take help of Azim Premji Foundation
? Quality of the final O/P
? Wipro brand name has to be kept intact
? Language and cultural integration ? Integration of PRAYAAS with Wipro BPO
Competitors
? Lason India
? Located around Chennai (5k employees across 60 centres) ? Franchisee based model
? Datamation
? Stand alone model ? Partners HP’s rural BPO initiative-(HP-i Community)
? Satyam BPO
? Partners Gram IT in AP ? Lower end operations of the value chain
? Comat
Consumers
? Government as an institution is huge in itself
? E-Governance projects ? Motives are very different
? Domestic banks, insurers for data entry work ? Consumers main concerns
? Security ? Data threat ? Quality of the output
? Fraud based cases on the rise-Mphasis BFL
Key Drivers and Challenges- “PRAYAAS”
? Drivers
? Costs associated with infrastructure and people are lower than
urban areas ? Employee attrition is lower than urban areas ? Prevents migration from rural to urban ? Large amount of domestic work available ? E-Governance projects ? Challenges ? Infrastructure-Internet & Telecommunication ? Competition and Global BPO margins ? Attrition and growing realty costs ? Issues and expectations from customers ? STPI scheme of the Govt. of India
Viable Strategic Alternatives
? Public Private Partnership Model
? Real estate of the various government offices ? Can take up services for other companies (Ex: Comat)
? Franchisee Model/Business Model
? Lason India
? Franchisee-Real estate, Lason-Technical and motivational support
? Stand alone Model ? Build Own Operate Franchisee (BOOF) Model
? Employees –Training then go to form a co-operative society
? Process that derisks stakeholders, customers and investors
? Internet Kiosk Network
Value Proposition of PRAYAAS
Society
Government Investors
Value Proposition
Rural Citizen
Corporate Clients
PRAYAAS-Business Model
VLE
VLE VLE
Cluster 1
Cluster 2
VLE
Central Hub located at Hyderabad
VLE
Cluster 4
Cluster 3
VLE
VLE
VLE
PRAYAAS-Business Model
? Combination of Franchisee and Stand Alone model ? Nodal town to have a cluster ? Clusters would be set up depending on the roll out in those villages ? Franchisee-A Village Level Entrepreneur (VLE) ? Challenge is to get the VLE onboard
? VLE-Accountability and Wipro would not loose control
? VLE-An opportunity to earn revenue ? Lowest strata grassroot employee-knows the people better
Rural Marketing Mix
? Product/Service portfolio
? Survey, enrollment forms, questionnaires, invoice, product order
forms, healthcare and legal updation. ? Target industry- Government, Wipro’s existing clients, Indian insurance companies, Indian Banks and MNC’s. ? Promotion ? Incentive passed onto the end consumer due to cost savings ? Leveraging on the brand name and reputation of Wipro BPO ? Price ? Revenue model and the processes that govern the linkage between VLE and Wipro BPO.
Plan for Implementation
? Implemented in two phases
? Roll It ? Scale It
? First Phase-Andhra Pradesh
? Node area-Hyderabad Centre
? Rationale
? Good internet connectivity-Rajiv Internet Programme ? Literacy rate above national average ? Large concentration of SHG’s and NGO’s
? Aspects of LR and Analytical ability better than urban AP
? Core work area of Azim Premji foundation
? Phase 2-Scale across other cities
Rationale for “PRAYAAS”
? Revenue from high volume, low value services like data capture, data
and document management. ? Discounts to customers-Rural areas –Benefit to customers ? Reduction in employee costs
? Expect the costs down by atleast 50%
? No transportation cost-local employees ? Real state way less expensive than urban areas ? PRAYAAS lends itself very well to the village model
Contingency Plans
? Nature of the business model brings in a contingency aspect
? VLE could use the facilities according to her discretion ? Long distance programmes and educational modules
? Disaster Recovery Management
? Nodal centre would take care of aspects such as data backup, security and
fraud.
? Change the objectives, integrate the centres into the framework of
Azim Premji Foundation ? Back up for infrastructure issues
doc_869613345.ppt