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					Creating a Global Footprint
        vCustomer
Company Expansion Outlook
       Presented By:
      Nichelle Joyner
      David Manaway
        John White
       Deanna Lowe
       Presentation Agenda
o Executive Summary
o V Customer Company Insight
o Industry Overview
o BPO Overview
o CRM Overview
o Financials
o Situation
o Recommendations
o Conclusions to Be Drawn
o Appendix
vCustomer
Company Insight
                                                                 VCustomer Company Insight,



                vCustomer Mission
                                                                   Industry Overview, BPO
                                                                  Overview, CRM Overview,
                                                                     Financials, Situation
                                                                Recommendations, Conclusions
                                                                   to Be Drawn Appendix




                        Our mission statement is:
                 Provide a new paradigm for customer
                       support using Best-in-Class
            o Technology
            o People
            o Service Solutions




vCustomer is Focused on Best in Class Technology, People, & Service Solutions
                                                     VCustomer Company Insight,



   vCustomer Values
                                                   Industry Overview, BPO Overview,
                                                       CRM Overview, Financials,
                                                     Situation Recommendations,
                                                        Conclusions to Be Drawn
                                                               Appendix

                  Partnership
      Growth through shared goals Quality
       Continuous Process Improvement


                  Excellence
Recognizing and rewarding employee excellence


                   Integrity
              Doing the right thing
                   Respect


                    Respect
    Dignity at every level in the organization


      Exceeding Customer Expectations
  Consistently encouraging proactive behavior

 vCustomer is Built on a Five Prong Value System
                                                        VCustomer Company Insight,




        Company Background
                                                      Industry Overview, BPO Overview,
                                                     CRM Overview, Financials, Situation
                                                     Recommendations, Conclusions to
                                                             Be Drawn Appendix




o Situation-vCustomer currently operates out of
  India, with CRM being 85% of operation and BPO
  AT 15% of operations
o Complication- vCustomer has not reached its full
  potential as far as customers and industries it can
  reach
o Key Questions-
  o Where- Where should vCustomer establish service
    centers?
  o How- How should vCustomer go about entering into the
    country(s)?
  o What- Additional consulting services could our firm
    offer to vCustomer what information is needed to do
    this and provide these services

             vCustomer case background information
                                                                                                                                   VCustomer Company Insight,




                     Key Milestones Timeline
                                                                                                                                 Industry Overview, BPO Overview,
                                                                                                                                     CRM Overview, Financials,
                                                                                                                                   Situation Recommendations,
                                                                                                                                      Conclusions to Be Drawn


                                                                                                                                            Appendix




                                                                                                                               September 2004 :
                    January 2000:                                                                                              Fifth facility goes live in
                       First client signed             March 2002:                     May 2003:                                       New Delhi
                        for email support          Second processing center            Touches the 2000
                     50 startup employees            goes live in New Delhi             employee mark

                                   December 2000:
     June 1999:                     Voice support enabled
                                                                    September 2002:                     November 2003:
 vCustomer incorporated             from V Customer India                                                     Touches the
                                                                        Touches the 1000
with funding from founders                                                                                3000 employee mark
                                                                         employee mark




                                             June 2001:                    January 2003:
October 1999:                        First million dollar quarter          Third round of funding
First India processing                                                     from WestRiver Capital
      center set up                                                                                                      April 2004:
                                                                                                                       Fourth processing
                                                                                         October 2003:               center in Pune goes live

                             June 2000:                       June 2002:                    Third processing
                                                          First million dollar month       center goes live in
                        Second round of funding                                              New Delhi, total
                    in which Warburg Pincus invests                                        capacity reaches
                                                                                           2300 workstations
                                                            VCustomer Company Insight, Industry



                          SWOT Analysis
                                                          Overview, BPO Overview, CRM Overview,
                                                           Financials, Situation Recommendations,
                                                              Conclusions to Be Drawn Appendix



              Strengths                               Weaknesses
                                          •Size of the company makes it
•Close to 100% customer retention
                                           difficult to compete with major
• Little to no Debt
                                           players in the industry
• Strong top management
                                          • Training employees in a
• Ability to develop customized
                                            multilingual capacity is costly
  technology solutions
                                          •Not sufficiently globalized



              Opportunities                                Threats
                                          •Loss of profit margin if remaining in
•New country/industry expansion
                                           India
•Opportunity to offer more services to
                                          •Forced exit by leading players in the
 clients with more multi lingual agents
                                            industry (i.e. Wipro, IBM Global
•Opportunity and ability to acquire
                                            services…)
 another company if needed
                                          •Threat of acquisition by larger more
                                            powerful companies



                              vCustomer Company SWOT
Industry Overview
                                                                                VCustomer Company Insight,




              IT equipment Suppliers
                                                                                  Industry Overview, BPO
                                                                                 Overview, CRM Overview,
                                                                                    Financials, Situation
                                                                                    Recommendations,
                                                                                 Conclusions to Be Drawn
                                                                                         Appendix




                               Threat of New Entrants Entry (High)
                     oProfessional Employer Organizations (PEO)
                     oBroaden Gates Systems Inc.
                     oFree borders
                     oLuxoft

                                                                            Supplier Power
     Buyer Power                        Market Rivalry
                                                                        IT equipment
Hospitals/ Medical
                                           Sykes                          Suppliers
Banking
                                          Stream
Cellular Phone
                                           Syntel
Companies
Retail                                    Sapient
Customer Service
Software
Development
                                        Threat of Substitute Products
                          Online Customer Support Centers
                          Inclusive outsourcing phases
                                                    VCustomer Company Insight, Industry



           Value vs. Volume
                                                      Overview, BPO Overview, CRM
                                                       Overview, Financials, Situation
                                                    Recommendations, Conclusions to Be
                                                            Drawn Appendix



             Market Value Forecast
o In 2008, the market is forecast to have a
  value of $52 billion, an increase of 29.6%
  since 2003.
            Market Volume Forecast
o In 2008, the market is forecast to have a
  volume of 6 million agent positions, an
  increase of 19.9% since 2003.
o The US dominates the market with a share
  of 50.3%.

           A Promising Future For Market Value/Volume
                                                                                 VCustomer Company Insight,




            Industry Analysis Conclusion
                                                                                   Industry Overview, BPO
                                                                                  Overview, CRM Overview,
                                                                                      Financials, Situation
                                                                                     Recommendations,
                                                                                  Conclusions to Be Drawn


                                                                                         Appendix




Challenges                                    Solution
Rival companies and New entrants              Position vC as a leader in outsourcing
who pose a risk to vC in competition for      solutions in comparison to competing and
marketshare                                   existing companies

Neutralities                                  Acknowledge
IT equipment suppliers who provide products   The IT costs is a necessary measure to insure
to the entire industry                        sufficiency of office operations

Opportunities                                 Benefit
Buyers who need IT outsourcing capabilities   Continuing need for Outsourcing in many
to add more efficiency to their perspective   industries which will result in sustainable
companies                                     growth and stability for vCustomer




           Industry Outlook                            vCustomer Position
BPO Overview
     BPO South Africa vs. India
    SOUTH AFRICA                       INDIA
o Sound infrastructure        o Insufficient power
  and the cheapest              (energy) support
  electricity prices in the
  world

o Creation of 100,000         o Rising wages causing
  jobs by 2009, 25,000 of       increase in operating
  the jobs would be             expenses
  directly involved in BPO

o Time zone, which falls
  comfortably within          o 24 Hour support
  European time zones           systems needed to
                                meet needs of clients
CRM Overview
                                              VCustomer Company Insight, Industry




           South Africa VS. India
                                                 Overview, BPO Overview, CRM
                                                 Overview, Financials, Situation
                                              Recommendations, Conclusions to Be
                                                    Drawn Appendix




           South Africa                  India
o   Off shore Agents        o   Off shore Agents
    Positions 1400              Positions 6300
o   Attrition 6%            o   Attrition 60-70%
o   Call center growth      o   Call center grew 37%
    13% by 2008                 to $2 billion in 2006
o   Currently 494 call      o   25 CTI Call Centers,
    centers                     300-500 non CTI Call
o   2008 939 call centers       Centers
                            o   2008, 43 CTI Call, 510-
                                850 non CTI Call
                                Centers
Financials
                                                             VCustomer Company Insight,



            Economic Freedom
                                                           Industry Overview, BPO Overview,
                                                          CRM Overview, Financials, Situation
                                                          Recommendations, Conclusions to

                                                                 Be Drawn Appendix



         South Africa                          India
Business Freedom        70%       Business Freedom                    49.6%
Corruption Freedom      45%       Corruption Freedom                  29%
Trade Freedom           68.8%     Trade Freedom                       51.2%
Labor Freedom           58.5%     Labor Freedom                       55.1%
Fiscal Freedom          79.3%     Fiscal Freedom                      84.8%
Gov’t                             Government Freedom                  89%
Freedom                 79.3%     Monetary Freedom                    77.2%
Monetary                          Investment Freedom                  40%
Freedom                 78.8%     Financial Freedom                   30%
Investment Freedom      50%
Financial Freedom       60%


              South Africa out Weighs India in Many Key Areas
       Market Value Forecast
Global Call Centers Market Value Forecast: $ Billion
                    2003-2008
     Year                  $ Billion                          Growth%
     2003                     40.1                                   7.10%
     2004                     42.5                                   5.90%
     2005    vCustomer        44.9                                   5.80%
            can benefit
     2006   from market       47.5                                   5.70%
               growth
     2007                     49.8                                   4.80%
    2008                     52.0                                4.40%
               CAGR, 2003-2008: 5.3%
                                                     VCustomer Company Insight, Industry Overview, BPO Overview, CRM

              Global Call Center Industry Analysis
                                                     Overview, Financials, Situation Recommendations, Conclusions to Be
    Incentives in South Africa
  Company                                         Company
 Employment        Strategic Choice              Employment

   People                                              People
  200 to 499,                                               500 +

Investment            GOOD                      Investment
expenditure                                     expenditure
   of at least                                      of at least
$10,277 per seat                                 $12,388per seat

   Grant                                           Grant
qualification         BETTER                    qualification
    $5,138                                           Up to $7,200
   to $6,194




                                       VCustomer Company Insight, Industry Overview, BPO
                                         Overview, CRM Overview, Financials, Situation
                                      Recommendations, Conclusions to Be Drawn Appendix
                   Set Up Cost
o Plant, Equipment (size 35,000-45,000sq. Ft.)
         $1,238,888
o Wage Expense ( plus telephony cost)
         649 dollars x 1000
o Security Expense
           25,000 per month
o Insurance Expense
           15,000 per month
o Corporate Tax
           30% of revenue
o Agents
           1,000

                                    VCustomer Company Insight, Industry Overview, BPO
                                      Overview, CRM Overview, Financials, Situation
           Revenue Forecast




Millions




                          2008 Increase
                          reflects opening of
  Years                   new facilities in
                          South Africa
                          VCustomer Company Insight, Industry Overview,
                         BPO Overview, CRM Overview, Financials, Situation
                           Recommendations, Conclusions to Be Drawn
          Financial Conclusions
EMPLOYMENT STABILITY
    Government                                       INCREASE WAR CHEST
                        Risk factor of
     plans to            investment                       Investing in South
     create                in South                          Africa would
   100,000 new          Africa is LOW                        increase the
   jobs linked to                                            overall
    call centers                                             revenue of
                    LOW ENTRANCE BARRIERS                    vCustomer and
                                                             would create a
                         Deregulation                        steady line of
                         in telecom                          capital
                         industry                           to benefit further
                         would bring                         expansion
                         down cost of
                         lines




                                          VCustomer Company Insight, Industry Overview, BPO Overview,
                                         CRM Overview, Financials, Situation Recommendations, Conclusions
                                                             to Be Drawn Appendix
   Financial Future Merits
In 2006 State of the
 Nation Address
 President Thabo
 Mbeki identified the
 call center industry
 as a government
 strategy to increase
 the country
 economic growth
 rate and boost the
 economy.

                        VCustomer Company Insight, Industry Overview, BPO Overview,
                          CRM Overview, Financials, Situation Recommendations,
                                    Conclusions to Be Drawn Appendix
    Situation
        &
Recommendations
South Africa Map




   vCustomer’s Promise land
                                                                    VCustomer Company Insight, Industry



                     Situational Review
                                                                      Overview, BPO Overview, CRM
                                                                       Overview, Financials, Situation
                                                                    Recommendations, Conclusions to Be
                                                                            Drawn Appendix


             Current Situation                     Proposed Situation




               Observations                           Observations
 •High attrition rate 60%                •Low attrition rate 6%
                                         •According to Datamonitor, by 2008 South
                                         Africa will be ahead of India with quality
 •Saturated Service Market
                                         and service
                                         • South Africa has pool of multilingual
 •Stronger accent problematic to         agents servicing call agents
 customers

South African Call Centers are Clearly More Beneficial Than Indian Call Centers
     Benchmarking Best in Class Practices

              Our benchmarking approach created three strategic
          recommendations to establish a more efficient reverse service
                                  location

          Benchmarking Approach

                                               Defined V Customer               Tested Best in
            Research CRM/BPO Best                                                                        Defined Strategic
                in Class Practices               Current State                  Class Practices
                                                   Operations                                            Recommendations
                                                                                 Applicability

Definition • Benchmarked industry       • Reviewed business problem     • Reviewed all             • Defined
             best practices               and identified overall case     identified best in         recommendations based
           • Best in class practices      situation, complication, key    class practices within     on best in class practices
             were obtained from:          question, and key messages      research phase and         that were identified as
             — Public sector case       • Further researched and          determined their           having substantial
                studies                   reviewed the business problem applicability to the         impact and
             — Public private sector      to further detail V Customers   V Customers specific       implementation success
                case studies              current state situation (e.g.   business problem
             — Public industry            process flow model)
                specific trend articles


                      Our Practices will be Based Upon Best in Class Practices
                                                                                                                   VCustomer Company Insight, Industry
                                                                                                                     Overview, BPO Overview, CRM
                                                                                                                      Overview, Financials, Situation
                                                                                                                   Recommendations, Conclusions to Be
                                                                                                                           Drawn Appendix
                                                                                               VCustomer Company Insight,




                              Implementation Plan
                                                                                             Industry Overview, BPO Overview,
                                                                                            CRM Overview, Financials, Situation
                                                                                            Recommendations, Conclusions to
                                                                                                    Be Drawn Appendix




                                                                   2007/2008
Phase                               May   Jun   Jul    Aug   Sep   Oct   Nov   Dec   Jan   Feb       Mar            Apr
Phase One:
Expansion to South Africa
oAnnounce Expansion
oConsolidation Strategy
oRedeployment
of services to South Africa

Phase Two: Asset Disposition
Strategy
- Finalize Training Strategy
- Finalize Communication Strategy
-Finalize Risk Mgt. Plans
- Match/Purge System
development
 - Training Plan
 - Human Capital Mgt. Plan
 - Communication Plan
 - Organization Model
 - Business Architecture
 - Data Architecture
 - Application
  Architecture
 - Technology Architecture
 - Security Architecture
 - Governance Architecture

Phase Three: Full time
implementation
Performance Tracking &
Monitoring
  - Risk Management Plan
 - Performance Tracking
 - On-going Training



                                                      Making The Shift
Conclusions to Be Drawn
        What This All Means
o Increasing value will allow vCustomer to
  reach its full operating potential
o The industry is stable and optimal for
  company growth
o Financial and Government Incentives will
  result in a low cost of entrance
o Our recommendations and implementation
  plan will allow vCustomer to become and
  remain a leading competitor in vital
  markets
    Thank You
For Your Time and Attention

        We Will Now Open
           The Floor To
          Any Questions
Appendix
vCustomer's Comprehensive Retail Services Portfolio
 Customer Service             Sales/ Telemarketing                   Back Office / Analytics

Customer queries      Order processing                        Customer feedback
                                                                 management
   Product info          Order management
   details                                                          Data entry/ processing
                         Presales
   Fault                                                            Forms and rebate
   management            Cross-sell / up-sell                       processing

   Billing queries       Telesales for extended warranty            Inventory planning

   Change                Telemarketing of co-branded                Demand forecasting
   management            credit cards
                                                                    Credit card management
   Warranty returns
                                                                    Inventory management
   Third party
   verification                                                     Industry analysis

                                                                    Marketing analysis

                                                           VCustomer Company Insight, Industry Overview, BPO Overview,
                                                             CRM Overview, Financials, Situation Recommendations,
                                                                       Conclusions to Be Drawn Appendix
vCustomer's telecom services portfolio
Operational Support Systems             Product and Sales               Business Support Systems


 Activation /Ordering                Network Service Management               CRM

 CRM software services               Research and targeting                   CSR Training
 - Client /manager CSR monitoring
 - CSR ID, and performance tracker   Cross-sell / Up-sell                     Account Maintenance
 - CSR desktop call handling
 software                            Follow-up verification                   Warranty/Replacement
 - CSR Recorder and DB search          Consulting Services                    Programs

 Tech Product Support and            - Regulatory support services            Rebate Processing
 troubleshooting                     - Product management support
 - Mobile platforms                  services                                 Business Analytics
 - Networking devices                - Project management support
 - Storage                           services

 Consulting Services
 - Computer Telephony Integration

 Helpdesk
 - Productivity Apps

 Escalation Resolution


                                                                   VCustomer Company Insight, Industry Overview, BPO
                                                                     Overview, CRM Overview, Financials, Situation
                                                                  Recommendations, Conclusions to Be Drawn Appendix
   vCustomer's technical services portfolio
                                                                                                     Account
                            Technology Support
                                                                                                      activation

Technical troubleshooting/networking support (L1, L2, L3)                                            Order
                                                                                                     fulfillment
IT products (desktops, PCs, laptops, PDAs, displays, printers, input/ output cards,
routers, hubs, switches, hot spots & storage devices)                                                Cross
                                                                                                     selling/up
IT infrastructure (server monitoring, worldwide networks management, server                          selling
maintenance support for Linux-based email, web, proxy, firewall , VPN,
database, LDAP, customized applications)                                                             Data entry
                                                                                                     and
Applications maintenance & support (ERP & CRM software)                                              transaction
                                                                                                     processing
Contact center solutions for process value additions in the areas of IVR, CRM/CTI
focused application development & web enablement                                                     Billing
                                                                                                     support,
                                                                                                     inquiries and
                                                                                                     collections

                                                                                                     Other
                                                                                                     support
                                                                                                     domains


                                                                      VCustomer Company Insight, Industry Overview, BPO
                                                                        Overview, CRM Overview, Financials, Situation
                                                                     Recommendations, Conclusions to Be Drawn Appendix
vCustomer's travel & hospitality services portfolio

 Customer Support       Passenger Operations        Transaction Processing



 Information calls      Reservation processing   Loyalty program management

 Address changes        Fares/Rates              Baggage tracking/ Handling

 Loyalty programs       Seat allocation          Forms processing

 Up Sell/ Cross Sell    Revenue management       Fare refunds

 Schedule changes       Deal rate filing         Procurement

 Promotions/discounts   Onward booking

 Collections            Departure control

 Grievance handling




                                                  VCustomer Company Insight, Industry Overview, BPO
                                                    Overview, CRM Overview, Financials, Situation
                                                 Recommendations, Conclusions to Be Drawn Appendix
                                                                              VCustomer Company Insight,



                    Five Force Analysis
                                                                                Industry Overview, BPO
                                                                               Overview, CRM Overview,
                                                                                  Financials, Situation
                                                                             Recommendations, Conclusions
                                                                                to Be Drawn Appendix

                                    Threat of New Entrants Entry
                      Current new entrants are operating and generating
                       below 30 million in revenue which is projected to
                       increase and could create the possibility for these
                       companies to expand into more service sectors as
                       well as countries

     Buyer Power                                                         Supplier Power
                                       Market Rivalry                Suppliers who
Firms who choose to
 outsource call            Current companies who are in               provide the
 center operations          the call center sector of                 telephone systems
 for their company          outsourcing generating                    as well as software
                            revenues in the same range                for call center
                                                                      operations




                                  Threat of Substitute Products
                   Internet generated “help-centers” for customer care
                    and all phases of “office efficiency” programs
               Business Analytics
                                                    VCustomer Company Insight, Industry
                                                 Overview, BPO Overview, CRM Overview,
                                                  Financials, Situation Recommendations,
                                                     Conclusions to Be Drawn Appendix




vCustomer’s ‘solutions’ approach ensures operational
excellence through efficient real time responses
focused on issues that impact customer satisfaction,
through proactive monitoring and reporting. With
operational systems which react to customers needs
in real time. Which allows vcustomer capabilities such
as:
•Effective Resource Management
•Analyzing and Validating Client Forecasts
•More accuracy in scheduling shifts
•Enabling better handling of Peak volumes

        Key Benefit:       Optimized workforce productivity
Healthcare Insurance in the USA (Oct. 2005)
                              MARKET SIZE
The US market for health insurance has grown by 11.2% since 2003 to reach a
value of US$200.7 billion in 2004.
Over the five-year review period, premium sales increased by 58.5%.
Growth slowed somewhat in 2004 after several years of steadily increasing
double-digit rates, but health insurance costs, like other health care
expenses, continue to outpace inflation and other general economic
indicators.
The high cost of brand-name prescription drugs, technological advancement,
and generally unhealthy habits across most of the population all contribute to
higher health costs, which in turn lead insurers to raise premiums in order to
remain profitable.
The premiums being paid for health insurance are rising as 70.9% of insured
Americans, who have employment-based insurance are being required to
bear a greater proportion of premiums as employers find themselves unable
to keep up with such rapidly growing health benefit costs.
There is currently no consensus on how to deal with health costs, so leading
insurers see an opportunity to take the initiative in looking for

                                                     VCustomer Company Insight, Industry Overview, BPO
                                                       Overview, CRM Overview, Financials, Situation
                                                    Recommendations, Conclusions to Be Drawn Appendix
  Emerging Outsourcing Players
       Company               Country categorization                                                              Size
                                                                                                  $100 million to $500
          Softtek                         Mexico
                                                                                                        million
                                                                                                  $100 million to $500
         Politec                             Brazil
                                                                                                        million
        Bluem Inc.                          China                                                  Below $100 million
    Neusoft Group Ltd.                      China                                                  Below $100 million
BroadenGate Systems Inc.                    China                                                   Below $30 million
       Freeborders                          China                                                   Below $30 million
          Luxoft                            Russia                                                  Below $30 million
    EPAM Systems, Inc.                      Russia                                                  Below $30 million
                                                                                                  $100 million to $500
  Ness Technologies Inc.                     Israel
                                                                                                        million
     ASCI S.A. de C.V.                    Mexico                                                    Below $30 million
          Neoris                          Mexico                                                    Below $30 million
         DataArt                            Russia                                                  Below $30 million
           ITCI                             Russia                                                  Below $30 million
Venus Software Corporation                  China                                                   Below $30 million
        DBAccess
                                       Venezuela                                                    Below $30 million
                               VCustomer Company Insight, Industry Overview, BPO Overview, CRM Overview, Financials, Situation Recommendations,
                                                                      Conclusions to Be Drawn Appendix
BPO Information
                                          VCustomer Company Insight, Industry


                   India BPO
                                        Overview, BPO Overview, CRM Overview,
                                         Financials, Situation Recommendations,

                                           Conclusions to Be Drawn Appendix


o India’s BPO industry started with foreign
  “captives”, or subsidiary organizations that
  handled the respective parents’ in-house work.

o Pioneers in BPO operations like GE, American
  Express, and British
o Airways, arrived in India in the late 1990s.
  o For instance, GE’s Indian subsidiary, GECIS, handled
    administrative processing work for the parent firm’s
    financial businesses.
  o These companies were joined by some domestic call-
    center operations such as 24x7, EXL, Spectramind,
    Daksh, and vCustomer.3
                                          VCustomer Company Insight, Industry



              BPO South Africa
                                            Overview, BPO Overview, CRM
                                             Overview, Financials, Situation
                                          Recommendations, Conclusions to Be

                                                   Drawn Appendix



                         Key factors
o   Time zone, which falls comfortably within
    European time zones
o    English-language capacity
o   South Africa produces 300,000 school leavers and
    100,000 graduates a year
o   Low budget deficit
o   Sound infrastructure and the cheapest electricity
    prices in the world
o   Highly attractive lifestyle
                                         VCustomer Company Insight,




      Scope of BPO Services
                                       Industry Overview, BPO Overview,
                                           CRM Overview, Financials,
                                         Situation Recommendations,
                                            Conclusions to Be Drawn


                                                  Appendix




      Function            Shares of Revenue

 Human Resources                14%

 Payment Services                9%

   Manufacturing,               59%
Distribution, Logistics
    Finance and                 11%
   Administration
 Sales, Marketing,               7%
  Customer Care
                                                VCustomer Company
                                              Insight, Industry Overvie.
                                               w, BPO Overview, CRM




  Global Spending on IT and BPO Off shoring
                                                Overview, Financials,
                                                      Situation
                                                  Recommendations,
                                              Conclusions to Be Drawn



                                                     Appendix




MILLIONS




                     YEARS
           BPO Conclusion
 In conclusion the BPO market in India is
   extremely saturated, and rising wages, and
   operating cost make it difficult to remain
   competitive.
In order for vCustomer to expand and remain
   competitive we recommend that
   vCustomer relocate to the new BPO
   promise land which is South Africa.
        BPO South Africa Facts
                                        VCustomer Company Insight, Industry
                                     Overview, BPO Overview, CRM Overview,
                                      Financials, Situation Recommendations,


                                        Conclusions to Be Drawn Appendix




 South African government's strategy
o Raise economic growth to 6% and halve
  poverty and unemployment by 2014.
o Deregulation and promotion of competition
  adding that a five-year, R30-billion
  investment
o Creation of 100,000 jobs by 2009, 25,000 of
  the jobs would be directly involved in BPO
                                          VCustomer Company




     South Africa BPO Industry
                                        Insight, Industry Overview,
                                           BPO Overview, CRM
                                          Overview, Financials,
                                                  Situation
                                            Recommendations,
                                         Conclusions to Be Drawn
                                                  Appendix




 South African government's strategy
o South Africa's BPO industry employs 80,000
  people, with, probably, less than 5,000
  devoted to foreign businesses
o The government will allocate one billion
  rand, or US$138 million,
o To subsidize service-provider training for
  call center and other types of outsourcing
  work.
                                           VCustomer Company




    Companies In South Africa
                                         Insight, Industry Overview,
                                            BPO Overview, CRM
                                           Overview, Financials,
                                                    Situation
                                            Recommendations,
                                          Conclusions to Be Drawn
                                                   Appendix




o Other companies investing in the country
  include IBM - with 1,540 special technical
  support staff working in its South African
  integrated delivery centre, servicing 280
  European companies including Boots. Shell
  is also setting up a captive support centre
  in the country to support its Benelux
  customers.
                                     VCustomer Company Insight, Industry



          Incentives for BPO
                                       Overview, BPO Overview, CRM
                                        Overview, Financials, Situation
                                     Recommendations, Conclusions to Be
                                             Drawn Appendix




o A company employing between 200 to 499
  people, with an investment expenditure of
  at least R74 000 per seat, would qualify for a
  grant of R37 000 to R44 600, while a
  company employing more than 500 people
  with a qualifying investment of R89 200 per
  seat could receive up to R52 000
                                               VCustomer Company Insight,



           BPO in South Africa
                                             Industry Overview, BPO Overview,
                                            CRM Overview, Financials, Situation
                                            Recommendations, Conclusions to
                                                    Be Drawn Appendix




o BPO is considered a key sector under the
  Accelerated and Shared Growth Initiative for
  South Africa (Asgi-SA), which seeks to achieve an
  annual economic growth rate of 6% between
  2010 and 2014, in order to halve poverty and
  unemployment by 2014.
o In the first six months of 2006, South Africa created
  3,000 jobs in this sector. Based on this evidence,
  we are of the view that we should achieve our
  targets of 100,000 new jobs by 2010
CRM
                                              VCustomer Company Insight, Industry




           South Africa VS. India
                                                 Overview, BPO Overview, CRM
                                                 Overview, Financials, Situation
                                              Recommendations, Conclusions to Be
                                                    Drawn Appendix




           South Africa                  India
o   Off shore Agents        o   Off shore Agents
    Positions 1400              Positions 6300
o   Attrition 6%            o   Attrition 60-70%
o   Call center growth      o   Call center grew 37%
    13% by 2008                 to $2billion in 2006
o   Currently 494 call      o   25 CTI Call Centers,
    centers                     300-500 non CTI Call
o   2008 939 call centers       Centers
                            o   2008, 43 CTI Call, 510-
                                850 non CTI Call
                                Centers
  Global Call Center Market Facts
o The global call centers market reached a
  value of $40.1 billion in 2003, having grown
  with a compound annual growth rate
  (CAGR) of 7.4% in the 1999-2003 period
o By 2008, the market is forecast to reach a
  value of $52 billion,
o Equating to a compound annual growth
  (CAGR) of 5.3% in the period 2003-2008




             Global Call Center Industry Analysis
                                                    VCustomer Company Insight, Industry Overview, BPO Overview,
                                                      CRM Overview, Financials, Situation Recommendations,
Market Volume Forecast Agent Positions
        Global Call Centers Market Value Forecast:
                 Agent Positions Million
                        2003-2008
Year                Agent Positions         Growth %
                         Millions
       2003                 5.0               5.50%
       2004                       5.2                       4.40%
       2005                       5.4                       4.30%
       2006                       5.6                       3.70%
       2007                       5.8                       3.00%
       2008                       6.0                       3.00%
                     CAGR, 2003-2008: 3.7%
                                                                  VCustomer Company Insight, Industry
                                                                     Overview, BPO Overview, CRM

       The Growth in the Number of Agent Positions is Declining      Overview, Financials, Situation
                                                                  Recommendations, Conclusions to Be
                                                                           Drawn Appendix
Market Volume Forecast Agent Positions




                         VCustomer Company Insight, Industry Overview, BPO Overview, CRM
                         Overview, Financials, Situation Recommendations, Conclusions to Be
                                                    Drawn Appendix
Global Call Center Segmentation
Global Call Centers Market Segmentation Share,
               Buy, Value 2003

    Geography                            Share %

         US                               50.30%

       Europe                             37.00%

    Rest of World                         08.00%

    Asia-Pacific                          04.70%

        Total                                 100%
                Global Call Center Presence
                                               VCustomer Company Insight, Industry Overview, BPO
                                                 Overview, CRM Overview, Financials, Situation
                                              Recommendations, Conclusions to Be Drawn Appendix
Global Call Center Segmentation




           Global Call Center Presence
                                         VCustomer Company Insight, Industry Overview,
                                            BPO Overview, CRM Overview, Financials,
                                         Situation Recommendations, Conclusions to Be
Global Call Center Market Segmentation
Global Call Centers Market Segmentation Share by Value
                           2003
        Category                                Share %
    Communications                              18.50%
       Outsourcing                              15.60%
    Financial Services                          13.40%
          Retail                                08.00%
          Other                                 44.60%
           Total                                100.0%
                                                 VCustomer Company Insight, Industry Overview, BPO
                    Markets with Call Centers      Overview, CRM Overview, Financials, Situation
                                                Recommendations, Conclusions to Be Drawn Appendix
Global Call Center Market Segmentation




              Markets with Call Centers
                                            VCustomer Company Insight, Industry Overview, BPO
                                              Overview, CRM Overview, Financials, Situation
                                          Recommendations, Conclusions to Be Drawn Appendix
Financials
      FINANCIALS
Market Value Forecast In Dollars




                      VCustomer Company Insight, Industry Overview, BPO Overview, CRM
                    Overview, Financials, Situation Recommendations, Conclusions to Be Drawn
                                                      Appendix
  VCustomer Company Insight, Industry Overview, BPO
    Overview, CRM Overview, Financials, Situation

 Recommendations, Conclusions to Be Drawn Appendix
                                                          South Africa                      India
Economic Overview
GDP real growth rate                                  4.5%                      8.5%
GDP per capita                                        $13,000                   $3,700
GDP purchase Power                                    $576.Bil                  $4.04tril
Labor Force                                           $16.09mil                 $509mil
Unemployment rate                                     25%                       7.8%
Inflation Rate                                        5%                        5.3%
Country Overview
Population Growth                                     43.9mil                   1.1tril
Birth Rate                                            17.94/100,000pop          22.69/100,000pop
Infant Mortality                                      59.44/100,000live birth   34.61%/1000 live birth
Literacy Rate                                         86.4%                     59.5%
Communications
Main line & use                                       4.729mil                  49.7mil
Mobile cellular                                       33.96mil                  69.1mil
Internet host                                         64,179                    1.5mil
Internet users                                        5.1mil                    60mil




                               The new promise land vs. The old promise land

				
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