Airtel Teleopti Presentation – Hasan Mar/08 Abhilasha Hans India India – The Land of Opportunities 2.2% of World‟s Land Coverage 7th Largest Country by Area One third the size of USA India – The Land of Opportunities 17.5% of World‟s People 2nd Most Populated Country Four times the USA population People’s Purchasing Power All Figures - USD 48,900 46,000 36,900 34,400 35,300 33,800 31,000 14,600 9,700 5,300 2,700 USA China Japan Sw eden India Germany UK Brazil Russia Italy Singapore Per Capita GDP @ $ 2700 6% of USA‟s Per Capita GDP 7% of Sweden‟s Per Capita GDP The World Fact book, provided by the Central Intelligence Agency, as of January 24, 2008. All amounts are GDP (PPP) The Emerging Economy Third Highest GDP in PPP terms Second Highest growth rate amongst top 10 economies Strong GDP growth rate – 9.4% Value for money products and services – US$ 50 air flights, 2 cents a minute cell phone service and cardiac operations 1 by top surgeons at a fraction of 11 the costs in US GDP (PPP) 2 Competitive and cost conscious market necessitating innovation 10 and cost optimization 9 8 3 7 6 5 4 The Indian Telecom Story Total Telecom Base ~ 230 million 3rd largest in the world Wireless Sub Base ~ 189 million 3rd largest in the world Wireless Penetration ~ 20% Lowest in the world ARPU < USD 9 One of the lowest Mou/Sub/Month > 490 minutes 2nd Highest in the world Realised RPM ~ 2 cents/ min Lowest in the world (All Inclusive) Indian Telecom – Well placed in world telecom space Source: Based on data in Global Wireless Matrix 1QCL07 - Merrill Lynch .COAI & AUSPI data as at July 31, 2007 Bharti Airtel – The Telecom Leader Company of the Year – ET Corporate Excellence Awards 2006-07 Top Telecom Company India – NDTV Profit Business Leadership Awards 2007 Ranked 3rd for Best Returns to Shareholders – BusinessWeek „The InfoTech 100‟ list 2nd Most Trusted Service Brand – ET Brand Equity Most Trusted Brand Survey 2007 Forbes Global IT Excellence Award – Outsourcing Oscars for Outsourcing arrangement with Nortel Best Emerging Market Carrier – Telecom Asia Awards Most Customer Responsive Telecom Company – Avaya ET Global Connect Awards “Fastest Telecom Company in the World to acquire 50 Million Customers” Bharti Airtel – The Telecom Leader 60000 “Market Leader with a Subscriber Growth ('000s) market share of all India mobile subscribers at 23.6% ” 78 450 3000 1996 2001 2003 2008 Integrated Offerings Broadband & Telephone Services Presence in 94 cities Over 2.0 million customers 33.1% subscribing to DSL Mobile Services Enterprise Services Carriers NLD National Footprint National/International Market Domination Carrier Services Coverage ~ 4,855 census 43,658 KM of fibre towns & 243,584 non Connectivity to East & census towns & villages West (i-2-i and SEA-ME- WE-4) Enterprise Services Corporates One stop telecom solution Personalized Solutions Integrated voice and data solutions 10th Largest Wireless Operations in the world Regional Diversity 2nd Most Populous Country with 1.12 Billion People 2nd most culturally, linguistically and genetically diverse geographical entity (African Subcontinent is 1st) ~70% population in rural areas 28 States and 7 Union Territories Literacy Rate is 64.8% Future growth would only come from rural market. Dialect Diversity Agaria, Ahirani, Aimol, Aiton, Anal, Andamanese, Angani, Angika, Ao, Assamese, Bengali, Bodo, Apatani, Arabic, Armenian, Ashing, Assamese, Asuri, Awadhi, Badaga, Baghelkhandi, Bagri, Baigani, Bajania, Balti, Bangni, Banjari, Basturia, Bauria, Bawm, Bazigar Boli, Bengali, Bhanja- bhumia, Bantu, Bharmauri, Dogri, English, Gujarati, Bhairi, Bhili, Bhojpuri, Bhotia, Bhuiya, Bhumij, Bhunjia, Biate, Bilaspuri, Birhor, Birjia, Bishnupriya, Bodo, Bokar, Bondo, bori, Braj Bhasha, Brijlal, Hindi, Kannada, Kashmiri, Bugun, Bundelkhandi, Burmese, Bushari, Chakhesang, Chakma, Chambilai, Chameali, Chang, Changpa, Chattisgarhi, Chikari, Chinali, Chiru, Chote, Churasi, Dalu, Deori, Dhanki, Dhimal, Dhodia, Dhundhari, Didayi, Dimasa, Konkani, Maithili, Dingal, Dogri, Dommari, Droskhat/Dokpa, Duhlian-Twang, English, French, Gadaba, Gadiali, Gallong, Gameti, Gamit, Gangte, Garasia, Garhwali, Garo, Giarahi, Gondi, Gujarati, Gujjari, Gurung, Gutob, Hajong, Halam, Halbi, Malayalam, Meitei, Marathi, Harauti, Haryanavi, Hebrew, Himachali, Hindi, Hinduri, Hindusthani, Hmar, Ho, Hrusso, Hualngo, Irula, Jabalpuri, Jangali, Jarawa, Jaunsari, Juang, Nepali, Oriya, Punjabi, Kabui, Kachanga, Kachari, Kachchi, Kadar, Kagati, Kakbarak, Kanashi, Kangri, Kannada, Karbi, Karen, Karko, Kashmiri, Kathiawari, Khadiboli, Khaka, Khamba, Khampa, Khampti, Khampti-shan, Kharia, Khasi, Khaskura, Sanskrit, Santhali, Sindhi, Khatri, Kherwari, Khiangan, Khorusti, Khotta, Kinnauri, Kiradi, Kisan, Koch, Kodagu, Koi, Koireng, Kokni, Kolami, Kom, Komkar, Konda, Konicha, Konkani, Konyak, Koracha, Koraga, Korava, Korku, Korwa, Kota, Kotwalia, Tamil, Telugu and Urdu. Kudmali, Kui, Kuki, Kulvi, Kumaoni, Kunbi, Kurukh, Kuvi, Ladakhi, Lahauli, Laihawlh, Lakher (Mara), Lalung,Lambani, Lamgang, Laotian, Laria, Lepcha, Limbu, Lisu, Lodha, Lotha, Lushai, Mag, Magahi, Magarkura, Mahal, Maithili, Majhi, Makrani, Malankudi, Malayalam, Malhar, Malto, Malvi, Manchat, Mandiali, Mangari, Mao, Maram, Marathi, Maria, Maring, Marwari, Mavchi, Meitei, Memba, Mewari, Mewati, Milang, Minyong, Miri, Mishing, Mishmi, Mizo, Monpa, Monsang, Moyon, Muduga, Multani, Mundari, Na, Nagari, Nagpuri, Naikadi, Naiki, Nati, Nepali, Nicobarese, Nimari, Nishi, Nocte, Odki, Onge, Oriya, Padam, Pahari, Paharia, Palilibo, Paite, Panchpargania, Pang, Pangi, Pangwali, Parimu, Parji, Paschima, Pasi, Pashto, Pawri, Pengo, Persian, Phom, Pochury, Punchi, Punjabi, Rai (Raikhura), Rajasthani, Ralte, Ramo, Rathi, Rengma, Riang, Sadri, Sajalong, Sambalpuri, Sangtam, Sansi, Santali, Sadra, Saraji, Sarhodi, Saurashtri, Sema, Sentinelese, Shekhawati, Sherdukpen, Sherpa, Shimong, Shina, Shompen, Sikligar, Sindhi, Singpo, Siraji, Sirmauri, Soliga, Sulung, Surajpuri, Tagin, Tai, Tamang, Tamil,Tangam, Tangkhul, Tangsa, Tataotrong, Telugu, Thado, Thar, Tharu, Tibetan, Toda, Toto, Tulu, Urdu, Vaiphei, Varli, Wagri, Wancho, Yereva, Yerukula, Yimchungre, Zakring (Meyer), Zeliang, Zemi, Zou. Industry Regulation Highly regulated market with extremely influential regulator Multiple licenses: Wireless, Wireline, ILD, NLD… Segregation of Nation into 23 Telecom Circles All states & Metro require separate license to operate. 5-6 players in every license area Powerful State Run Incumbent Operator, with highly subsidized operations Customer Profile High number of first time users of the product. Unexposed to complex products & billing systems Prefers phone over self-service. No contractual obligations (Annual Agreements) with any service provider Not tech savvy Very low internet penetration Extremely sensitive to price The Challenge “We cannot direct the wind but we can adjust the sails.” ~Anonymous A High Propensity to Call Exponential Growth in Customer Base Managing Scale without impacting Customer Experience Reducing Per Customer Revenue Huge Variations in Contact Volumes Innovative Business Model The execution strategy Need to Outsource Scalability… Gearing up for growth Strategic Retention… Attraction/Retention of best talent Outsourcing Predictability… Predictable cost structure Accountability… Clearly defined SLAs, Risk Sharing Partnerships & Customer Innovative Areas Outsourced Alliances Products & Services Information Technology Network Management & Maintenance Leverage on expertise of outsourced partner Call Center Technology FOCUS ON CORE COMPETENCY Contact Center Operations Others :Payroll ,Accounting etc Changing Service Differentiator Yesterday Today • Rapidly Changing Market Customer Dynamics Price Product Experience Place Price Product Place “Product” is a short term differentiator and “Service” the only long term differentiator among multiple operators The Contact Centre Strategy Fulfill Customer‟s Demand To “TALK” And Manage Growing Cost. Manage Call Volumes Strategic Outsourcing to world class BPOs Consolidate to leverage economies of scale Build a “Command Centre” for optimizing resource utilization „Kill‟ Volumes Customer Profile Increased use of IVR, Speech, Web and Non-Voice Channels of customer contact through customer education and influence. Segmented Service Delivery Move to Non-metro cities Reduced Attrition Lower cost of operations Contact Centre Roadmap . The Changing Call Centre Operations Multiple Localized Inhouse Centers OUTSOURCING AT LOCAL LEVEL – MULTIPLE PARTNERS & SITES Consolidation With 4 Strategic Partners Contact Centre Environment 6 Strategic BPO Partners 25+ Contact Centre Sites 5000+ Seats for Inbound Traffic Alone 12500+ Agents handling Inbound Traffic 50+ Million Calls at Contact Centers Every Month Multiple Wireless, Wireline, Broadband, Corporate product offering, IPTV and DTH to be launched soon Diverse ln-house tools for forecasting and scheduling used by BPO Partners High Forecast Variation and therefore buffer Forecast Variation CUSTOMER First Time User Non Tech Savvy Complexity Confuses Wants to Talk Our Contact Centers BPO Partner are Overstaffed to High Buffers on Staffing Buffer for volume MARKET Lower Agent Occupancy spikes and therefore Highly Volatile face lower Agent Localized Products Occupancies. This • High Variability Bharti Airtel Multiple Competitors • In Call Traffic leads to overstaffing Higher Cost to Serve Higher Guarantee Payout by ~20% which is COMPANY 2000+ Agents and 900+ Seats Brand Leader Innovative Products Customer Orientation The Future Outlook Calls + + Customer Cost of Service 50+ Mn contacts 62M Today ARPU < USD 9 100+ Mn contacts 125M in next 36 Mths ARPU is Southbound Increased Call Traffic & Cost Optimize Agent Optimize Capacity Contact Analysis for Efficiency Utilization Eradication Reduce Agent Numbers Planning, Monitoring, Control Minimize propensity to call Resource Management Creation of a Command Centre – A specialized team, working round the clock, in a state of the art environment, to deliver the following benefits – Improved Forecast Accuracy Real Time Workload Management Improvement in Accessibility & Service Levels Business Continuity & Contingency Management Optimized Resource Utilization TeleOpti – Where it Fits In Contact Volume Forecasting Timely Capacity Creation Advance Capacity Creation leads to under-utilization Reactive Capacity Creation leads to service level impact Scientific Forecasting Processes Standardization of Forecasting Process Due consideration to all call drivers trends Reduction in Staffing Buffers Reduction in Capacity Requirements Planned Management of Spikes Workforce Management Improved Service Levels Higher Agent Occupancy Superior Cost Control Better Contact Center Utilization The Impact 10% reduction in Staffing buffers would deliver USD 44 Million over a period of five years 10% improvement in Agent Occupancies if projected to save USD 20 Million over a period of five years In addition to… Improved Accessibility and Service Levels Improved Customer Satisfaction Ease of Management of Resources Better ROI for the BPO Partners The Progress So Far… Teleopti WFM – Pilot Successfully Completed Inhouse Enterprise Customer Care Centre Improvement in Agent Occupancy by 8% Optimized Schedules & Break Management Reduction in Call Abandonment 94% Intraday Forecasting Accuracy – Up from 89% in pre-pilot phase Pre Forecaster Single Circle Pilot Underway Monthly Forecasting at IVR & Call Centre Level First Cut results at ~95% accuracy at IVR level Roll-out of National Centralized Forecasting Process by Q2 Feel free to contact me at email@example.com The speaker is Head of Partner & Capability Management, Airtel Customer Service. She has over 18 years of experience in customer service spread across Hospitality, Banking, Telecom and BPO industry.