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Trinity

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Title: Trinity


1
Keys To Developing a Global Operating Model
February 2007
2
Agenda
  • Introduction Transaction Details
  • Case Studies
  • BPO Solution Stack
  • Offshoring Critical Success Factors
  • BPO Vendor Critical Success Factors
  • The Way Forward
  • Appendix
  • Globalization and Outsourcing Facts

3
African Proverb
Every morning in Africa, a gazelle wakes up. It
knows it must run faster than the fastest lion or
it will be killed. Every morning a lion wakes
up. It knows it must run faster than the slowest
gazelle or it will starve to death. It doesnt
matter whether you are the lion or the
gazelle. When the sun comes up, you had better
start running.
4
Introduction
WNS Global Services is the leading provider of
vertically-focused offshore business process
outsourcing solutions, managing and operating
business processes for leading global
organizations
  • How we deliver the global operating model
  • Vertical domain expertise
  • Over 10 years in the industry
  • Deploy technology solutions in support of BPO
  • Proven, scalable processes and infrastructure
  • 10,500 associates over 4,000 of which run end to
    end processes
  • 8 delivery centers over 100 customers 350
    processes
  • Transact over 10 billion of payables for our
    clients every month
  • Manage more than 12 million customer interactions
    per year
  • Transform data collection and analytics processes
    by reducing costs up to 40 and continuously
    improving quality

WNS acquired Tucson based Trinity Partners in
November 2005 Trinity Partners was the BPO and
IT solutions delivery expert to the US Mortgage
Banking clients, delivering solutions to lenders,
investors, servicers and lender service providers.
5
Case Study 1 End-to-End Mortgage Processing
Client Profile
Scope of Work
  • Top-15 US Wholesale Mortgage Lender (over 45,000
    loans originated per quarter)
  • Loan Document Indexing
  • Shipping Data Entry and Validation (Investor
    Delivery)
  • Final HUD 1 (Document Follow-up)
  • Post Closing, Closing
  • Customer Service Help Desk
  • Broker Approval
  • International Accounting - Accounts
    Reconciliation
  • Policy Audits
  • Risk Management (Loss Mitigation) - SSN
    Verification
  • Asset Grading (Underwriting)
  • International Accounting - Accounts Payable
  • Assignment of Loans
  • Rate Quotes, Locks, Extensions
  • Pay History Reconciliation
  • Purchase Clearing, Purchase Advisory

Client Challenge
  • Rapid growth, wants to manage expansion
  • Unable to focus on strategic imperatives
  • Time to market challenges
  • Cost management

Program Characteristics
  • Executing domain specific processes (gt 25)
    across value chain transaction and contact
    center
  • Executed strategy phase to develop prioritized of
    offshore roadmap
  • Embraced outsourcing as part of business strategy

Consumer/Economic Benefits
Client Benefits
  • Multiple products support for consumers and
    better rates
  • Faster loan closing/funding turn-around time
  • Available capital for expansion and investment in
    the US
  • Improved relationships with constituents
  • Reduced processing costs by up to 50
  • Decrease in processing time higher loan
    velocity
  • Enabled focus on core competencies and tripled
    volumes and growth in 3 years

6
Case Study 2 Loan boarding and due diligence
Client Profile
WNS Scope of Work
  • Loan document indexing
  • Data extraction and loan boarding Due diligence
    and Servicing data
  • Loan Audits Quality control
  • Credit Underwriting
  • Alt-A, non-prime mortgage investor and servicer

Challenges
  • Rapidly increasing volumes
  • Inefficient partners
  • High cost base for required skills
  • Wants more control of its operations

Program Characteristics and Benefits
  • Licensed indexing platform onshore
  • SLAs structured with incentives and penalties
  • Reduced processing costs by up to 50
  • Improved quality of loan files
  • Decrease in processing time higher loan
    velocity
  • Enhanced capacity management

7
BPO Solution Stack
  • BPO solution stack can (should) be categorized
    into four broad areas
  • Strategy consulting services that enable an
    organization to create an offshoring strategy and
    roadmap.
  • Business Process Outsourcing (BPO) services that
    are vertical domain specific and include
  • Transaction Processing
  • Contact Center Services scripted and unscripted
    processes
  • Information Technology delivery as stand-alone
    services and in support of BPO solutions
  • IT delivery team across multiple disciplines
  • Solution Platforms that can be sold as
    stand-alone products

Services and Solution Categories
ENVISION TO EXCEL
BUSINESS PROCESS OUTSOURCING
SOLUTION PLATFORMS
  • Vertical and Domain Specific Processes
  • Offshoring Assessment
  • Redesign Optimization
  • Transition Optimize
  • Stand-alone solutions
  • Coupling of IT and BPO

INFORMATION TECHNOLOGY DELIVERY
  • Enterprise Application Design Implementation
  • Application Maintenance Support

8
BPO Solution Stack Mortgage BPO Example
Services and Solution Categories
ENVISION TO EXCEL
BUSINESS PROCESS OUTSOURCING
SOLUTION PLATFORMS
  • Lender Services
  • Loan Administration
  • Loan Origination
  • Contact Center
  • Offshoring Assessment
  • Redesign Optimization
  • Transition Optimize
  • Digital Loan Management
  • Lead Generation
  • Document Follow-up

INFORMATION TECHNOLOGY DELIVERY
  • Enterprise Application Design Implementation
  • Application Maintenance Support
  • Advantages of solution stack
  • End-to-End solution for the client
  • Multiple and Alternative sources of revenue for
    the company
  • Multiple partnership alternatives e.g. technology
    vendors
  • Ability to move to Transaction based pricing
  • Convergence of Information Technology and BPO
    into meaningful industry platforms
  • Intellectual Property (IP) creation for company
  • Diversification of business

9
Offshoring Critical Success Factors
Critical success factors for managing and
maintaining a competitive and efficient offshore
outsourcing operation
  • Ensure the Partnership Model with the offshore
    center(s), whether outsourced or captive, is in
    line with the strategic objectives of the firm
  • Select the partner that understands your
    priorities
  • Strategic Risk Management Financial
    Operational
  • Do not treat India (or other geographic
    locations) as a black box, but as an extension
    of your business
  • Program Governance is clearly defined, supported
    by senior Executive Sponsorship
  • Buy-in for the program is at all levels of the
    organization
  • Program Management Office leverages a
    cross-functional, disciplined approach
  • The Migration strategy is clear and measurable
  • Rapid transition times are achieved if your
    partner understands your business
  • Leads to faster ROI
  • Measurement analysis is in the DNA of the
    delivery partner
  • Dont just measure outputs, you need to
    understand the outcomes to make the right
    business decisions
  • Provide visibility, via integrated dashboards, to
    multiple constituents
  • Ensure that what is being measured and analyzed
    is directly linked to the business strategy

10
Offshoring Critical Success Factors (cont)
  • Recruit, hire, train and retain the right people
  • The senior management team at the remote centers
    must be trusted partners
  • The team must know how to execute Business
    Solutions, not just IT Solutions
  • IT Enablement must be an integral component of
    the offshore partners offering
  • Its not just about infrastructure, but
    enterprise application development to enable
    business process
  • Leverage IT to transition and manage processes
    offshore
  • Accelerate the optimization of the processes to
    gain continual improvement in efficiencies
  • Continually strive for operational excellence and
    efficiency
  • 6-sigma discipline is engrained in the day to day
    operations of the company
  • Navy Seals mentality tightly run operation
  • Link to measurements quality and productivity
  • Leverage the time differential and the 24 hour
    day
  • Security is embedded into everything the
    offshoring partner does
  • Physical and virtual
  • Certification e.g. ISO 17799 (BS 7799) ISO
    90012000
  • Business is not static, neither should the
    relationship
  • Flexibility in contracts
  • Ability to modify processes
  • Continuing Education and Process Training

11
Key Elements for Value Creation in BPO
  • Size Matters
  • Nobody gets fired for choosing IBM mentality
  • Domain Expertise and Experience
  • Demonstrate consistent performance and ability to
    execute on clients business
  • Hire the Right Management Team
  • Three Key People Delivery Operations
    Expertise, Financial Legal, Sales Marketing
  • Passion for the business
  • Differentiate Yourself
  • Unique partnership models, new geographies, new
    industries
  • Focus on the Right Industry
  • Technology and Process laggards
  • Industry is shaped like a hockey stick
  • Consistent and Constant Marketing
  • Always be relevant
  • Stay on message
  • Dont go to market before you are ready

12
The Way Forward
  • Vertical and Domain Expertise
  • Convergence of IT BPO
  • Knowledge Process Outsourcing (KPO)
  • Innovative Partnership Models

13
The Way Forward Domain Vertical Expertise
  • Verticalization of Resources Businesses
  • Successful BPO players have developed vertical
    Business Units to address the market need for
    domain expertise.
  • Demand for greater granularity in verticalization
    is coming
  • Example Financial Services versus Investment
    Banking, Retail Banking, Insurance Mortgage
    Banking
  • Business Solutions versus Point Solutions
  • Solution is composed of Process, People,
    Technology and Domain Expertise.
  • Offering only one component of the solution is no
    longer an option for outsourcing vendors.

14
The Way Forward Convergence of IT and BPO
  • Cost is no longer the driving factor for
    outsourcing, instead businesses are looking for
    help with managing growth and value creation
  • Translates to contractual terms that call for
    measurable process improvements over time
  • Not possible to achieve process improvement and
    optimzation with re-engineering and six-sigma
    alone Technology integration and enablement of
    processes is a must have.
  • IT players have a distinct advantage over the
    traditional BPO players
  • Proven relationships and Master Services
    Agreements in place
  • IT outsourcing is a mature industry when compared
    with BPO
  • Confidence in process execution if youve built
    and maintain the system for a client.

15
The Way Forward KPO
The BPO market is changing rapidly as customers
demand higher value offshore services and
providers look maintain their profit margins
the result is the growth of KPO
  • KPO defined
  • KPO Knowledge Process Outsourcing
  • Subset of services offered by the BPO industry
    it is the next natural extension of traditional
    BPO
  • Involves the delivery of high-level, knowledge
    intense transaction, contact center, research, or
    analysis functions by workers with
    domain-specific, vertical skills
  • KPO drivers
  • Customers demand more specialized and higher
    value services and solutions they want a
    provider who knows their business
  • Margins in traditional BPO are squeezed as
    providers undercut each other on price to win
    deals
  • Competitive pressures on early market leaders
    like India from countries like the Philippines,
    China, Sri Lanka have forced players to offer
    higher value services in order to maintain market
    share
  • Industry consolidation has driven the creation of
    niche KPO players who must differentiate in order
    to gain market share

16
The Way Forward KPO Advantages
KPO has tremendous advantages for customers, KPO
providers, and employees of KPO firms alike
  • Customers
  • Strategic extension of their business offshore
  • Access to a highly skilled workforce
  • Greater focus on quality and value-add than
    traditional BPO the provider understands their
    business
  • Moves the offshore play beyond pure wage
    arbitrage
  • Providers
  • Deeper client relationships and longer term
    contracts
  • Fewer retention woes (KPO attrition rates are
    much lower)
  • Increased profit margins
  • Better ability to compete with captive operations
  • Employees
  • Clearer career trajectory jobs are now in a
    specific industry, rather than in BPO
  • More extensive training opportunities and more
    transferable skills
  • Higher pay
  • Uniquely positioned to capitalize on local
    markets once they evolve

17
The Way Forward Innovative Partnership Models
  • There are several distinct partnership models
    when creating an outsourced presence.
  • Traditional Outsourcing
  • End to end or sub-component of a business process
    is transitioned and executed in the offshore
    delivery center
  • Optimal model for commodity, non-core business
    processes
  • Partner has full execution responsibilities
  • Client monitors the processes through metrics
    review and dashboards
  • Build, Operate and Transfer (BOT)
  • Vendor sets up the remote offshore center from
    initiation through to process delivery
  • Leverage the Vendors relationships and
    intellectual capital to recruit staff, acquire
    and setup facilities, build the infrastructure,
    manage vendors, and deal with regulatory issues
  • Ownership and management responsibilities are
    transferred to the customer after a pre-defined
    period
  • BOT ensure process integrity and diffuses
    inherent build-out and migration risks to enable
    the client to achieve the creation of a captive
    center
  • Assisted Build Out
  • Works well for clients that require assistance
    with specific processes associated with captive
    operations
  • Services include acquiring and setting up
    facilities, entering a foreign market, build out
    of the global delivery infrastructure, recruiting
    and training
  • Joint Venture
  • Vendor and the client create a joint venture that
    will service the clients business
  • Client provides knowledge of the existing
    business function while Vendor provides the local
    expertise and service skills
  • The JV may also deliver services to other
    entities, enabling the client to acquire an
    additional revenue stream

18
  • APPENDIX

19
Globalization and Outsourcing Factoids
  • In 2003, 25,000 US Tax returns done in India. In
    2005, expected to be 400,000
  • China has over 160 cities with populations of 1
    million or more
  • In China, when you are one in a million, there
    are 1,300 other people just like you
  • In 2003, China replaced the U.S. as the largest
    importer of Japanese products
  • Since the mid-1990s, cheap imports from China
    have saved American consumers roughly 600M and
    have saved U.S. manufacturers untold billions in
    cheaper parts for their products. Which as, in
    turn, enabled the Federal Reserve to hold down
    interest rates longer.
  • Yale Fall 1985 71 Chinese, 1 Russian….Yale Fall
    2003 297 Chinese, 23 Russian
  • In 2004, Infosys received one million
    applications from young Indians for 9,000
    technology jobs (gt1001)
  • Forrester predicts that 3.3 million US jobs will
    be offshored by 2015, which translates to
    approximately 210,000 jobs per year over the next
    decade
  • The US economy is expected to see a significant
    decline in the working population over the next
    decade, by as much as 15.6 million workers
  • So if we assume that no jobs are added to the
    economy over the next 10 years (assuming the
    number of job positions remains at 138MM), the US
    will need to supplement the declining work force
    through immigration, increased innovation and
    productivity, and outsourcing of jobs (by 15.6
    3.3 12.3 million people)

Tom Friedman, The World is Flat 2005,
Forrester, National Public Radio, McKinsey Global
Institute, Gartner Dataquest
20
Globalization and Outsourcing Factoids
  • For every 1 spent in India to offshore US
    services, approximately 67 cents in direct
    benefits are brought back to the US, in the form
    of savings and investment in US goods and
    services
  • The US is attracting jobs here currently there
    is approximately 1.3 trillion direct foreign
    investment in the US, maintaining 6.5 million
    insourcing jobs in the US. Put up trade barriers,
    and its a two way street 200,000 US jobs
    outsourced per year vs. 1.3 trillion in
    investment, creating jobs in the US. Pick the one
    that benefits the US economy the most…
  • Estimates from Forrester Research and the Labor
    Department postulate that about 300,000 jobs have
    been lost to outsourcing over the past 3 years.
  • 1 of annual productivity growth eliminates about
    1.3 million jobs. Source Forrester Research, the
    Labor Department, Business Week
  • Since early 2002, US companies have been able to
    squeeze out productivity gains on the order of 5
    annually

Tom Friedman, The World is Flat 2005,
Forrester, National Public Radio, McKinsey Global
Institute, Gartner Dataquest
21
Can America survive? -- Yes!
  • America will do fine in a flat world with free
    trade, provided it continues to churn out
    knowledge workers who are able to produce
    idea-based goods and services that can be sold
    globally. There may be a limit to the number of
    good factory jobs in the world, but there is no
    limit to the number of idea-generated jobs in the
    world.
  • Todays wants become tomorrows needs Internet,
    Starbucks, Google
  • Post WWII, America integrated a broken Europe and
    Japan and yet our standard of living has
    increased every decade since. Our unemployment
    remains under 5
  • 150 years ago, 90 of Americans worked in
    Agriculture. Today its lt4
  • We can innovate, and retain high function, high
    paying jobs here HP, Dell, Google, Microsoft,
    Cisco
  • We remain the worlds largest domestic consumer
    market, full of early adopters

Tom Friedman, The World is Flat 2005
22
Arizona Advantages and Disadvantages
Arizona as a headquarters location has had
several unique advantages and disadvantages for a
BPO business
  • Lower labor costs than other US states
  • Access to bilingual skills in English and Spanish
  • Less competition for talent than on the East or
    West Coasts big fish in a small pond
  • Skillset shortage many of Trinitys employees
    were imports to Arizona
  • Lack of cultural openness around outsourcing
    the anti-outsourcing factor
  • Longer travel times to US and international
    destinations

23
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