29TH

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29TH 30TH JANUARY 2005 -
KARACHI SHERATON
Presents
INTERNATIONAL CONFERENCE "CALL CENTER INVESTMENT
OPPORTUNITIES"
Supported by
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THIS CONFERENCE BRINGS AN INVESTMENT OPPORTUNITY
FOR PAKISTAN FOR THE ESTABLISHMENT OF A 50
BILLION INDUSTRY WITH 30 PER ANNUM GROWTH RATE
LINKED WITH 700 BILLION E-COMMERCE TRADE
WORLD-WIDE!
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INDIA IS THE WORLD LEADER TODAY IN THE CALL
CENTERSPAKISTAN HAS A CHANCE OF REPLACING
INDIA AS THE WORLD LEADER IN THIS INDUSTRY
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WHY IS INDIA THE WORLD LEADER IN CALL CENTERS ?

• Lower input costs, reasonably good
  infrastructure, a trained English-speaking
  workforce and a favorable time zone differential
  vis-à-vis the US have spurred the growth of the
  call center industry in India.
• India has emerged as a major location for
  IT-enabled services such as call centers,
  customer support centers.

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WHAT DID INDIA GET FROM THESE SERVICES ?

• A revenue of US 2.3 billion, year ending March
  31, 2003, up almost 60 percent from the previous
  twelve months
•   A prospect of Indian exports in this area
  exceeding 15 billion annually before the end of
  the decade.  

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WHAT IS INDIAS POSITION TODAY ?

• Today, there are almost 400 call centers
  operating in India (including "captive"
  operations, e.g. GE Capital) employing 170,000
  people in all of these centers.
• Research indicates that over the next few years,
  about a dozen Indian call centers will have
  revenues in excess of 100 million.

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PROMINENT PLAYERS IN THE CALL CENTER AND BPO
MARKET IN INDIA (2002)

• Sales (million USD) People
•        Wipro Spectramind 41 5000
•        Daksh eServices 35 4,000
•        WNS 35 2,500
•        Exl Service.com 28 2,300
•        OfficeTiger 25 1,000
•       

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PROMINENT PLAYERS (CONTINUED)

• Sales (million USD) People
• HCL Technologies BPO.. N/A 1,646
• ICICI OneSource N/A 2,175
• Hinduja TMT 24 1,400
• MsourcE 20 3,162
• Tracmail 11 1,000
• Progeon 4.4 685

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WHY HAS BEEN INDIA ATTRACTIVE ?

• Entry barriers to set up a call center in India
  are low.
• Typically, the average investment levels for a
  100-seat call center vary between Rs 40-60
  million (0.8-1.2 million).
• Salary levels are at around 280-300 per month
  per person.
• Currently the operational cost per seat per hour
  in India is approximately 10.
• Estimates vary depending on location, skills,
  service levels, etc. As a rule of thumb it costs
  40-60  percent less to operate a call center in
  India than in the US.

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WHAT CAN PAKISTAN OFFER OVER INDIA IN THIS
INDUSTRY?

• There are many constraints for growth of Indian
  Call Centers that include
• In the case of voice-based call centers, the
  Indian accent is considerably different from an
  American accent
• Infrastructure problems Transportation for
  employees, power reliability, phone reliability,
  etc

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CONSTRAINTS FOR GROWTH OF INDIAN CALL CENTERS

• High attrition of employees -- 35-40 percent
  annual employee turnover is typical
• Regulatory action against Indian vendors in
  reaction to job losses in the US. Several U.S.
  state legislatures are considering bills that
  would require state contractors to use U.S.-based
  employees

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-CONT-

• There is also a proposal to replace
  state-to-state customs duties (octroi) with a
  national value added tax. Both those tax
  proposals could be combined into a single scheme.
• For India that is a blow on foot, for Pakistan
  that is a golden opportunity

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OPPORTUNITY FOR PAKISTAN !

• To take advantage of this scenario, Govt of India
  is all set to impose a income tax of 36 on all
  call centers owned by foreign companies
• Plus, a proposal is under consideration in new
  Delhi to tax activities conducted over
  international private leased connections (IPLC)
  that carry most of India's voice and data traffic
  to and from the outside world.

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SOME FOREIGN OWNED OPERATIONS

• Examples of Captive Operations in IndiaGE
  Capital............... Customer service
  American Express......... Customer service
  Standard Chartered....... Back office admin
  EarthLink................ Customer service AOL
  Time Warner.......... Customer service
  Citibank................. Back office admin
  HSBC..................... Back office admin
  AXA...................... Insurance claims
  adjudication Willis................... Insurance
  claims adjudication American Annuity
  Group... Insurance claims adjudication
  Lufthansa................ Accounting, frequent
  flier programs World Bank............... Payroll
  processing McKinsey................. Research

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WHY PAKISTAN ?
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PAKISTAN OFFERS FOLLOWING ADVANTAGES OVER INDIA

• Western experience
• Executives at IT firms in Pakistan often have
  worked and gone to school in the U.S, which is
  Pakistan's largest export market.
• Indian IT firms whose managers have worked in the
  West are generally more expensive than similarly
  positioned Indian firms,
• without always providing noticeable differences
  in program implementation capabilities.
• The willingness of Pakistanis to return home from
  the West stands in marked contrast to most
  Indians who arrive for school or work in the West
  and never look back.
• Higher labor availability
• Fewer holidays in Pakistan means less slippage in
  staff availability compared to India.
• IT firms in India are advised to hire a diverse
  workforce so that members of one community can
  enjoy important festivals while members of other
  communities cover the phones and keep production
  going.

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-CONT-

• Good accents
• Pakistan's official language is English.
• Only Kolkata (formerly Calcutta) and the Punjabi
  areas of India can come close to competing with
  accents in Pakistan,
• Language skills and accents provide Pakistan with
  a major advantage over all other Asian
  outsourcing destinations.
• Low cost talent pool
• India's top-tier labor force for IT work has been
  stretched thin, especially Bangalore, escalating
  wage rates, turnover and higher outsourcing
  prices are reaching critical mass.
• The urban infrastructure has exceeded its
  carrying capacity.
• Annual turnover rates reported to International
  Staff.net for most merchant call center
  facilities in India are approaching 100.
• High turnover rates are causing a shift to second
  tier Indian cities and to Kolkata.
• Escalating turnover rates are one of the Indian
  outsourcing industry's dirty secrets.
• Whereas Pakistan's top-tier talent pool is
  largely untapped and turnover rates are less than
  20 percent.

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WHAT PAKISTAN OFFERS

• SWOT
• Strengths
• OK communication infrastructure with wide
  Internet connectivity getting cheaper and more
  reliable
• Highly educated, English speaking work force
  engineers, computer experts, doctors, lawyers,
  MBAs, accountants
• Returning professionals with foreign
  education/training
• Local graduates of increasing number of high
  caliber institutions
• Professionals trained at local operations of MNCs
• Extensive Diaspora in N. America, UK, Europe and
  ME
• Adoption of international standards CMM ISO
  900x
• Supportive and increasingly relaxing government
  policies
• Low cost of operations
• Weaknesses
• Image and perception
• Missing service culture and customer orientation
• Numbers not as large as Indias
• PTCLs mindset and negative attitude towards any
  change in policies

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PAKISTANS LABOR ARBITRAGE POTENTIAL
Sources (1) National Education Policy document,
Ministry of Education, Government of
Pakistan (2) Business Week (3) Industry
sources (4) TMT Ventures estimates
Pakistan is producing over 600,000 graduates
every year in various disciplines vs 2m in India
of these 30-50 are of the required quality
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PAKISTANS LABOR ARBITRAGE POTENTIAL US SALARY
RATES
Source Business Week
Salaries in Pakistan are 5-10 of US salaries in
some trades as low as 2
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PAKISTANS LABOR ARBITRAGE POTENTIAL CALL
CENTER COST COMPARISON
Source Nasscom Strategic Review 2003, Merill
Lynch, TMT Ventures estimates
The wage cost in India is just about one-fifth
or one-sixth of US levels. Salaries represent
only 50 of the total costs. When you add the
other costs (real estate, telecommunication,
utilities, etc) Indian operations would cost
about a third of what they would in the US.
Alok Aggarwal, Co-founder Chairman of
Evalueserve, a large Indian BPO company
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WHAT ARE WE DOING ?

• IN ORDER TO ADDRESS, THIS OPPORTUNITY, WE ARE
  HOLDING THE FIRSTEVER INVESTMENT CONFERENCE ON
  CALL CENTERS
• THIS CONFERENCE IS IN KARACHI ON 29TH-30TH
  JANUARY 2005
• LEADING SPEAKERS AND BUSINESS HOUSES FROM USA,
  UK, AUSTRALIA, MALAYSIA, SWEDEN, SOUTH AFRICA,
  HONG KONG, SINGAPORE INDIA ARE COMING TO SPEAK
  AND SHARE THEIR EXPERIENCES
• CALL CENTER BUSINESS WILL BE OFFERED AND PLEDGED
  BY INTERNATIONAL COMPANIES TO PAKISTANI
  INVESTMENT COMMUNITY
• JOINT VENTURES WILL BE OFFERED BY INDIAN CALL
  CENTERS ALREADY OVERLOADED WITH PROJECTS
• GOVT OF PAKISTAN HAS ENDORSED THIS CONFERENCE
• MINISTRY OF IT TELECOM, PAKISTAN SOFTWARE
  EXPORT BOARD (PSEB), BOARD OF
  INVESTMENT AND PASHA ARE THE PARTNERS

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SOME OF THE COMPANIES ATTENDING AS SPEAKERS?

• Nortel Networks A internationally renowned
  company on Call Center Telecom
  solutions-UK.
• AOL Time Warner Operates a major call centers in
  INDIA
• 3D Networks Call Center Integration solution
  providers-Singapore
• Teleopti Work force Management system ( used
  worldwide)- Sweden
• WNS Operators of 3000 seats at their call
  centers in India (British Airways, and 10
  other airlines) are operated through these
  call centers which are located at Pune,
  Mumbai, Nastiq as well as in Colombo,
  Srilanka.
• Concerto Customer Relation Management Systems
  (CRM)- USA
• DELL Computer terminals and network servers-USA
• AstraNetcom A major call center operator from
  Dehli, INDIA
• Khoday Systems A Major Call Center, INDIA
• SEIBEL World renowned company in CRM
  solutions-USA
• Davox Predictive Dialers USA
• NovaTel Call Center Integrator, USA
• Global Connect Business Out sourcing company
  USA
• CinCom Call Center Business outsourcing company
  from Cincinnati-USA
• PCW Formerly known as HONG KONG Telecom

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SOME OF THE SPEAKERS

• Carl Bildt Chairman, Teleopti Former Prime
  Minister of Sweden
• Chris Luxford Chairman, 3D Networks, Australia.
• Mark Stevens Asian Head, Nortel Networks,
  Singapore
• S. K. Jha Country Manger 3DNetworks,India.
• Atul Pai CTO, Khoday Systems, India
• Rakesh Gupta Chairman, Astra Netcom, India
• Romi Malhutra Managing Director, DELL India
• David Tibble Head of WNS call center for
  British Airways and 10 major airlines of USA,
  India
• David Smith CEO Global Connect USA.
• Asish Paul CEO, CinCom, USA
• Imran Aftab Global Outsourcing, AOL Time Warner,
  USA
• Michael Parker COO, NovaTel, USA

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THANK YOU
www.callcenter.net.pk
info_at_callcenter.net.pk