Good afternoon. We have heard what the opportunity is there for growth and it is exciting. At Dell we have been growing in the last six years and not without pain. So, what I would like to shared today is our learnings from our growth on what are the imperatives to capitalize on this growth. Just to set the context, our operations in India is spread across four sites outside of our manufacturing operations in Chennai. We started six years ago with one site and focusing mainly on voice based tech support. Today our services range from tech support, customer service, sales – all functions which are essentially front office for us, back-office processing (collections, account receivable, order processing, credit card processing), procurement services, software development. We also have vertical specific services : product design, software design, and testing. We have a Global development center. We also have a reasonably large analytics group which focuses on market analytics, website research, supply chain analytics etc. With the growth has its own challenges. If Dell was the opportunity space, we have tried to penetrate both the horizontal services and vertical space. We have grown in terms of headcount close to 12 times in 6 years.
Roadmap 2012: Capitalising on the Expanding BPO landscape, Ganesh Lakshminarayanan, Managing Director,
Capitalizing on the Expanding BPO Landscape Imperatives for Growth Ganesh S. Lakshminarayanan
Dell in India 7 Years 12x DELL CONFIDENTIAL Voice - Tech Support - Customer Service Voice - Sales Back Office – AR, Collections, OP Software Development Procurement, HR, Finance. Vertical Specific – R&D Center Help Desk for corporate customers Knowledge Services Analytics Process Engineering
Cost is King <ul><li>Cost will drive sourcing decisions more than ever given the economic conditions in the US market. </li></ul><ul><li>For captives, operational excellence and lower cost of delivery will be more important in these conditions. </li></ul><ul><li>Investing in the front-line tenure and improving productivity are the only sustainable cost differentiators – size, location, ownership etc are irrelevant. </li></ul>
Align our Success to the Profitability of our Customers
Aligning Objectives <ul><li>For captives, having more people in our sites may not necessary mean growth in profitability. </li></ul><ul><li>Vendors should pro-actively drive restructuring of contracts to move from transaction based pricing to sharing value realization. </li></ul><ul><li>Driving end-to-end process innovation (e.g. LEAN) will help us differentiate in commoditized “horizontals”. </li></ul>
Effect of Commoditization <ul><li>Most “Horizontal” services are already commoditized. To be in this space, being in best cost position is required for survival. </li></ul><ul><li>Differentiation should be focused on improving the profitability of our customers. </li></ul><ul><li>Standardization of “vertical specific” services will help us penetrate faster. </li></ul>