|
|
 |
| PARTNER WITH US |
Global Service Delivery (GSD) Component
Global research indicates that 40 percent of ITO transactions have an offshore or global service delivery (GSD) component, while fully 76 percent of BPO transactions had GSD as a component. Also, the GSD push shows no sign of abating in the coming years – 80 percent of large enterprises are focusing on getting up to 30 percent of their IT labor force offshore in the next three years.
Traditionally, the GSD component was based on three typical global outsourcing models – Captive Partnership, Third Party Services Provider and Joint Venture. Over the years, global outsourcing has become more critical to successful strategies. As such, organizations are taking a longer-term, strategic perspective. Organizations are employing hybrid models (a mixture of do-it-yourself and outsourcing) and service provider rationalization. Joint Venture, Build Operate Transfer, Traditional Outsourcing, Co-managed Outsourcing, Assisted Build Out, Reserved Capacity operating models are also coming more into vogue. |
 |
 |
Allied Group Value Proposition |
| |
In line with this proven business development strategy, Allied Technologies is committed to develop partnerships based on a longer-term strategic perspective. The aim being to develop a state-of-the-art, full service BPO center in Pakistan which would provide industry standard quality of services to the partner organization while offering 33% to 50% cost savings. It is envisaged that the partner organization will bring business and knowledge of the involved functions while Allied Technologies would bring rich BPO industry experience, a strong financial platform, deep understanding of technology and a vast pool of experienced and competent human resource.
The key success factors of the partnership would be:
 |
Outsourcing readiness of both organizations and the chemistry at the start |
|
Developing close understanding between the partners |
|
Outsourcing relationship based on transparency and responsiveness |
|
Culture and capabilities fit between the partners |
|
Development of cultural compatibility with the partner organization through customization of processes in areas such as HR and Finance. |
|
Sharing of knowledge and expertise by both partners to ensure smooth transition |
|
|
Educated Labor Pool: |
| |
Pakistan is home to over 2 million computer-literate people. The domestic IT workforce is expected to double by the end of 2006, offering a significant human resource pool of technology-literate people. 39% of graduating IT students possesses three years of practical experience. This educated labor pool is fairly cost effective as compared to India, Philippines, South Africa and Egypt. Base monthly labor rates for contact center representatives in Pakistan are lower as compared to India, South Africa and the Philippines.
|
|
Infrastructure: |
| |
Pakistan has a well-developed power and telecommunications infrastructure that allows for high reliability and redundancy, particularly important in the contact center and back office business processing services sectors. |
|
Hub for Top Educational Institutions: |
| |
There are multiple engineering, arts and sciences, medical, law, social sciences and management institutions in Pakistan. In one of the major cities i.e. Lahore we have host of internationally renowned institutions in diverse fields like FAST, Lahore University of Management and Sciences, National College of Arts, King Edward Medical College, University of Engineering and Technology and University of Punjab. |
|
Location and Communications Infrastructure: |
| |
Strategically located in South East Asia, Pakistan serves as a bridge to the world between the Middle East and the Far East. With three major international airports and thirty-eight domestic airports, Pakistan is accessible via fifty international airlines. Pakistan's geographical location, a rapidly expanding transportation and communications infrastructure, and conducive business environment makes it an attractive destination for investors. |
|
Destination of Choice: |
| |
The Government of Pakistan is committed to the growth of the IT industry. National IT policies and regulations, and a highly attractive incentives package, offer a coherent framework within which businesses can operate in Pakistan. These developments have led to the creation of an enabling business environment in the country, where new businesses can be established in less than a week:
|
Pakistan is home to over 2 million computer-literate people |
|
The domestic IT workforce is expected to double by the end of 2006, offering a significant human resources pool of technology-literate people |
|
39% of graduating IT students possess three years of practical experience |
|
There is no language barrier, as the medium of instruction in educational institutes is English |
|
Real estate, bandwidth and PCs are easily available and reasonably priced |
Adoption by Allied Technologies of all the processes and best practices of partner organization.
Informed Decision Making Process: Allied Technologies firmly believes in complete sharing of its knowledge base and expertise with the prospective customer and partner organizations as part of informed decision-making process. We strongly recommend that our prospective customers and partner organizations go through the “Global Outsourcing Models Analysis” and “Partnership Options” to arrive at a sound decision with longer-term strategic perspective.
Non-Disclosure Agreement: At Allied Technologies, we value our customers and partners businesses and stress strict confidentiality in all of our business dealings. When we work with a customer or a partner, we are fully bound by a Mutual Non-Disclosure Agreement (NDA). We always respect and honor these agreements.
Partner With Us: If you are interested in working with Allied Technologies as a partner organization, please click on the link “Partner With Us” fill up the details on the form and we will revert back to you with more details.
|
|
Global Outsourcing Models Analysis |
| |
Allied Technologies undertook detailed analysis of the traditional global outsourcing models based on the following objectives:
|
Why do buyers opt for a particular model of offshore BPO |
|
Does the decision on the BPO model differ for different categories of buyers (Outsourcers vs. End users)? |
|
Are there patterns across different verticals? |
|
What is the influence of buyer size and management bandwidth on the model decision? |
|
Is there a criteria set to decide on the appropriate model for offshore BPO? |
Study Findings: The JV/Partnership model inculcates the best of the captive and third party models and hence is appealing across buyer segments.
| Criterion for Evaluation |
Captive Model |
Third Party Services Provider |
JVs/ Partnerships |
| Process Maturity |
Low |
High |
High |
| Initial set up costs |
High |
Low |
Low |
| Operation Mode |
Cost centers |
Cost centers |
Profit center |
| Pay back period |
4-5 Years |
6 months to one year |
6 months to one year |
| Exit costs |
High |
Low |
Medium |
| Data security |
High |
Low |
High |
| Scale required |
Large |
Low/Medium/Large |
Low-Medium |
| Lead time before offshoring the process |
Long |
Short |
Short |
| Management Control over Process |
High |
Low |
High |
| Management buy-in and commitment to spend time |
High |
Medium |
High |
| Flexibility to source from multiple vendors |
Low |
High |
Low |
| Nature of processes commonly outsourced |
Core and critical |
Non core and non critical |
Non-core and critical |
| Destination familiarity required |
Yes |
No |
No |
| Business Continuity Risks Perceived |
Low |
High |
Medium |
| Operational Efficiencies |
Low |
High |
High |
| Resource Flexibility |
Low |
High |
Low |
|
|
Partnership Options |
| |
TAllied Technologies is desirous of developing meaningful partnerships with renowned international customer organizations based on longer-term, strategic perspective. We are open to discuss and enter into one of the following partnership options with prospective customer organizations:
Joint Venture: Joint Venture arrangements are being increasingly used in establishing offshore centers, particularly in Pakistan, India and Philippines. In this engagement model, the customer organization and offshore supplier set up a joint venture entity that will predominantly service the customer's business. The offshore supplier brings the local expertise and service skills while the customer brings its knowledge of the existing business function while maintaining greater management control. In the long-term, JV partnership model is the most appropriate for all categories of buyers excepting very large buyers. For mid-sized outsourcers, the partnership model is ideal to kick off and grow offshore operations. This proven service platform enables the customer organization to achieve following advantages:
|
Process maturity level is high |
|
Initial setup costs are low |
|
Operation mode of business as a profit center |
|
Pay back period is 6 months to one year |
|
Exit costs are medium |
|
Data security is high |
|
Business start-up scale is low-medium |
|
Lead time before off shoring the process is short |
|
Management control over process is high |
|
Management buy-in and commitment to spend time is high |
|
No destination familiarity is required |
|
Business continuity risks perceived are medium |
Build Operate Transfer: Through this model, the outsourcing provider helps the client set up the contact center from start to finish. The association covers establishment of the operation, acquisition of facilities and staff and extends to actually running the center for a defined period. Once the center and services are well established, management and ownership is transferred to the customer. This proven service transfer platform is designed to ensure process integrity and minimize inherent migration risks.
Traditional Outsourcing: In the traditional outsourcing an entire business process is moved offshore in order to leverage the expertise and cost benefits offered by the outsourcing partner. This model works well for routine, non-core business processes. The outsourcing company takes complete responsibility for carrying out the business process. The company makes quality measurements on process outcomes, but does not directly manage the process.
Co-Managed Outsourcing: Co-managed outsourcing follows the traditional outsourcing model; the only difference is that a manager from the customer organization is located at the offshore center. This approach provides an added level of confidence because of the presence of an experienced company manager, while it takes full advantage of the offshore partner's knowledge of local laws and culture, |
|
