it-enabled remote services: pakistan's irresistible value
TRANSCRIPT
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IT-Enabled Remote Services:
Altaf H. Khan
Pakistan’s IrresistibleValue Proposition
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Overview
• IT-Enabled Remote Services
• The Offshore Model
• Survey results
• Opportunities & Challenges
• Which ITES is right for you?
• Wrap-up
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The SW Export Hype
• Excitement related to SW export is not justified
• Show stopper:– Our inability to produce trained workers in rapidly
increasing numbers
• Is this the end of the Pakistan’s IT revolution that never was?
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Long Live the IT Revolution!
• But how?
• We should try to leverage what we have, and not what we currently don’t!
• We have been unable to produce quality SW developers in increasing numbers, but …
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We Have …
• Doctors• Dentists• Pharmacists• Nurses• Lawyers• Engineers• Architects
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We Have …
• Doctors• Dentists• Pharmacists• Nurses• Lawyers• Engineers• Architects
• Draftsmen• Accountants• MBAs• Artists• English speakers• Clerical staff• ???
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Extending the Offshore Model
• The offshore SW services model has worked profitably for many Pakistani companies
• Can we use the same model for other professions as well?
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SW’s Offshore Model
Offshore Center
OnshoreCenter
Client
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IT-Enabled Services’ Model
Offshore Center
OnshoreCenter
Client
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Top Three …
• Strategic benefits
• Outsourcing users
• Industry sectors
• Barriers to success
• Selection criteria
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Top Three …
• Strategic benefits
• Outsourcing users
• Industry sectors
• Barriers to success
• Selection criteria
1. Achieve cost reductions
2. Focus on company’s core businesses
3. Improve service quality
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Top Three …
• Strategic benefits
• Outsourcing users
• Industry sectors
• Barriers to success
• Selection criteria
1. Canada
2. Australia
3. USA
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Top Three …
• Strategic benefits
• Outsourcing users
• Industry sectors
• Barriers to success
• Selection criteria
1. Energy
2. Financial services
3. Technology
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Top Three …
• Strategic benefits
• Outsourcing users
• Industry sectors
• Barriers to success
• Selection criteria
1. Organizational resistance
2. Unclear performance metrics
3. Loss of control of process
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Top Three …
• Strategic benefits
• Outsourcing users
• Industry sectors
• Barriers to success
• Selection criteria
1. Guaranteed service levels in the contract
2. Proven track record in outsourcing
3. Specializes in the particular outsourcing sector
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IT Enabled Remote Services
• Contact Centers• Accounting & Financial
Services• Transcription• Advice Over the Web• HR Services• Animation Development• Insurance Claims Processing• GIS & CAD
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IT Enabled Remote Services
• Contact Centers• Accounting & Financial
Services• Transcription• Advice Over the Web• HR Services• Animation Development• Insurance Claims Processing• GIS & CAD
– Call Center– Email/Chat– Telemarketing
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IT Enabled Remote Services
• Contact Centers• Accounting & Financial
Services• Transcription• Advice Over the Web• HR Services• Animation Development• Insurance Claims Processing• GIS & CAD
– Remote Accounting– M & A Support– Financial Analysis
& Forecasting
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IT Enabled Remote Services
• Contact Centers• Accounting & Financial
Services• Transcription• Advice Over the Web• HR Services• Animation Development• Insurance Claims Processing• GIS & CAD
– Legal– Medical– Dental
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IT Enabled Remote Services
• Contact Centers• Accounting & Financial
Services• Transcription• Advice Over the Web• HR Services• Animation Development• Insurance Claims Processing• GIS & CAD
– Medical– Legal– Financial
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IT Enabled Remote Services
• Contact Centers• Accounting & Financial
Services• Transcription• Advice Over the Web• HR Services• Animation Development• Insurance Claims Processing• GIS & CAD
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IT Enabled Remote Services
• Contact Centers• Accounting & Financial
Services• Transcription• Advice Over the Web• HR Services• Animation Development• Insurance Claims Processing• GIS & CAD
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IT Enabled Remote Services
• Contact Centers• Accounting & Financial
Services• Transcription• Advice Over the Web• HR Services• Animation Development• Insurance Claims Processing• GIS & CAD
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IT Enabled Remote Services
• Contact Centers• Accounting & Financial
Services• Transcription• Advice Over the Web• HR Services• Animation Development• Insurance Claims Processing• GIS & CAD
– Scanning– Raster → Vector– Dumb → Smart
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Pakistan’s Key Advantages
• Cost of labor
• Tax benefit
• Time zone difference
• Telecom rates
• Cost of infrastructure
• ???
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Key Challenges
• Marketing
• Security & confidentiality
• Culture of quality
• Training
• Managers
• Telecom quality
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Competition
Competition comes in several forms:
• No competition at all:
– In-house service
– Most significant
– Disadvantages: Higher cost; Inefficiency; HR turnover
– Our advantages: Fixed, lower cost
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Competition (2)
• US-based outsourcing companies:
– Disadvantages: Higher cost; High employee turn-over
– Our advantages: Lower cost
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Competition (3)
• Offshore service providers:
– Ireland – Call Centers
– Philippines – Animation; Remote Data Entry
– India – Accounting; Animation; Call Centers
– Many more
– Disadvantages: None– Our advantages: None, but demand exceeds supply
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ITES in Pakistan
• CAD
• Accounting
• Medical transcription
• Call center
• ???
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Which ITES is Right for You?
1. Determine your own profile
2. Determine the profile for various ITESes
3. Select the ITES whose profile matches best with your own
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Dimensions of the ProfileMarketing
– Market size– Competitive advantage
Human Resource– Leadership– Availability of:
• Experienced pros• Junior pros
– Training
Infrastructure– Telecom– Distribution channels– Buildings
Finances– Initial investment– Returns– Payback period– Ease of exit
Growth– Scalability– Diversification
opportunities– Sustainability
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The Rating Scale
■ ■ ■ ■ ■Very
UnattractiveUnattractive Moderate Attractive Highly
Attractive
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The Rating Scale
■ ■ ■ ■ ■Very
UnattractiveUnattractive Moderate Attractive Highly
Attractive
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The Rating Scale
■ ■ ■ ■ ■Very
UnattractiveUnattractive Moderate Attractive Highly
Attractive
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The Rating Scale
■ ■ ■ ■ ■Very
UnattractiveUnattractive Moderate Attractive Highly
Attractive
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The Rating Scale
■ ■ ■ ■ ■Very
UnattractiveUnattractive Moderate Attractive Highly
Attractive
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Remote Accounting ServicesDimension RatingMarket size ■ ■ ■ ■ ■Competitive advantage ■ ■ ■Leadership ■Experienced professionals ■ ■Junior professionals ■ ■ ■ ■ Training ■ ■ ■ Telecom ■ ■ ■ ■ ■Distribution channels ■ ■ ■ ■ ■Buildings ■ ■ ■ ■ ■Initial investment ■ ■ ■ ■ Returns ■ ■ ■ ■ ■Payback period ■ ■ ■ ■Ease of exitScalability ■ ■ ■ ■Diversification opportunities ■ ■ ■ ■ ■Sustainability ■ ■ ■ ■ ■
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Call CenterDimension Accounts CCMarket size ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Competitive advantage ■ ■ ■ ■ ■ ■Leadership ■ ■Experienced professionals ■ ■ ■Junior professionals ■ ■ ■ ■ ■ ■ ■ ■ ■Training ■ ■ ■ ■ ■ ■Telecom ■ ■ ■ ■ ■ ■ ■Distribution channels ■ ■ ■ ■ ■ ■ ■Buildings ■ ■ ■ ■ ■ ■ ■ ■Initial investment ■ ■ ■ ■ ■ ■ Returns ■ ■ ■ ■ ■ ■ ■ ■ ■Payback period ■ ■ ■ ■ ■ ■ ■Ease of exitScalability ■ ■ ■ ■ ■ ■ ■ ■ ■Diversification opportunities ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Sustainability ■ ■ ■ ■ ■ ■ ■ ■
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Insurance Claims ProcessingDimension Accounts CC InsuranceMarket size ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Competitive advantage ■ ■ ■ ■ ■ ■ ■ ■ ■Leadership ■ ■ ■Experienced professionals ■ ■ ■ ■ ■Junior professionals ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Training ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Telecom ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Distribution channels ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Buildings ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Initial investment ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Returns ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Payback period ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Ease of exitScalability ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Diversification opportunities ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Sustainability ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■
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Medical TranscriptionDimension Accounts CC Insurance TranscriptMarket size ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Competitive advantage ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Leadership ■ ■ ■ ■Experienced professionals ■ ■ ■ ■ ■ ■ ■ Junior professionals ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Training ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Telecom ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Distribution channels ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Buildings ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Initial investment ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Returns ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Payback period ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Ease of exitScalability ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Diversification opportunities ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Sustainability ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■
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Which ITES is Right for You?
1. Determine your own profile
2. Determine the profile for various ITESes
3. Select the ITES whose profile matches best with your own
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Which ITES is Right for You?Dimension Accounts CC Insurance TranscriptMarket size ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Competitive advantage ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Leadership ■ ■ ■ ■Experienced professionals ■ ■ ■ ■ ■ ■ ■ Junior professionals ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Training ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Telecom ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Distribution channels ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Buildings ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Initial investment ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Returns ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Payback period ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Ease of exitScalability ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■Diversification opportunities ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Sustainability ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■
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Summary
• ITES is Pakistan’s irresistible value proposition and an ideal opportunity for entrepreneurs
• Keys to success:– Form value-adding partnerships– Focus on operational excellence & customer
satisfaction
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Final Thoughts
• Concentrate on HR-intensive businesses
• Look for the widest wage differences
• Build on your strengths
• Leverage Pakistani expats for business development
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Contact
• This presentation is available online at:– www.kasbtv.com
• My email address:– [email protected]