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Business Transformation and Innovative Business Models


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Business Transformation and Innovative Business Models

  1. 1. ©2008 Tata Communications, Ltd. All Rights Reserved. Confidential & Proprietary NASSCOM BPO Strategy Summit Business Transformation and Innovative Business Models Srinath N MD & CEO, Tata Communications 09 JUN 2008
  2. 2. Confidential & Proprietary 2 NASSCOM BPO Strategy Summit Tata Communications: Vision Emerging Markets Converged IP Solutions Managed Services INDIA, ASIA incl CHINA, SOUTH AFRICA New WORLD of Communications New WORLD of Communications To deliver a new world of communications to advance the reach and leadership of our customers India’s Gateway To the World
  3. 3. Confidential & Proprietary 3 NASSCOM BPO Strategy Summit Monopoly ILD Provider ILD (89%); Others (11%) Wholesale Voice, Wholesale & Enterprise Data, Retail Broadband VSNL in 2002 Tata Comm in 2008 Carriers; Retail (Dial-up) Customers Carriers, Large Enterprises, Mobile Operators, Broadband Consumers India-Centric Play; negligible global operations Global Infrastructure, Global Customers Revenues: $1.6 bn Market Cap: $1.2 bn Revenues: ~$2.0* bn Market Cap: >$3.5 bn *FY07 Transformation Story Lines of Business Reach Financials Customers
  4. 4. Confidential & Proprietary 4 NASSCOM BPO Strategy Summit A Transformation in the midst of adversity
  5. 5. Confidential & Proprietary 5 NASSCOM BPO Strategy Summit Revenue Enhancement in Existing Businesses • Creation of Enterprise Business Unit • Expansion of VPN networks, Data Centers • Implementation of ATM and MPLS networks • Launch of Voice Calling Cards Recovery and Transformation Process Improving Competitiveness of the Company • Focus on Customer Service • Balance Sheet Restructuring • Business process re-engineering • Redeployment / Sale of assets & recovery of debts Investments in New Businesses - Domestic Investments in New Businesses - International • Entry into NLD Voice and Data Services • Entry into new Corporate Data offerings – vertical solutions for BPO, IT, BFSI, Media… • Managed Services • Broadband Services, incl. WiFi and Content • Entry into Sri Lanka and Nepal • Expansion into USA, UK, Singapore • New submarine cable to Singapore • Acquisitions of TGN and Teleglobe • Entry into South Africa
  6. 6. Confidential & Proprietary 6 NASSCOM BPO Strategy Summit India Leadership India Enabled A New World • International & Internet bandwidth led • Expansion into NPLC, IP / MPLS & Ethernet • Global MPLS & Ethernet • Targeted fiber investments • Expansion of Managed infrastructure, collaboration & security • India + Asia + South Africa leadership • Global MPLS • Data center expansion • Introduction of Global Ethernet & managed services • WiMAX-led last mile access in India 2005-06 2007-08 2009-102003-04 Transforming our Enterprise Business
  7. 7. Confidential & Proprietary 7 NASSCOM BPO Strategy Summit Organization Change Transformation Levers Leadership Processes & Tools People Culture
  8. 8. Confidential & Proprietary 8 NASSCOM BPO Strategy Summit People Transformation > 5,000 employees (net addition of ~4000) 20% outside India (from 0% in 2002) 37 nationalities, 36 years age (1,43 in 2002) 80% less than 5 years (< 20% in 2002) > 30% are customer facing (from < 1% in 2002)
  9. 9. Confidential & Proprietary 9 NASSCOM BPO Strategy Summit Transformation Journey Summarized Global Challenger Competitive Private Sector Monopoly Public Sector International Expansion 2002 2003 2004-06 2007- ILD Leadership Enterprise Services NLD Tyco Global Network Teleglobe South Africa Mobile VAS Global Enterprise IP Transit Global Voice Global Connectivity Managed Services Emerging Markets
  10. 10. Confidential & Proprietary 10 NASSCOM BPO Strategy Summit Transformation into a New Outsourcing Model Tata Communications Experience  Transformation incl. integration of 6 acquisitions in 3 yrs, including TGN and Teleglobe  Off-shoring of 400 jobs from Canada & USA to India  Creation of Global Delivery Centers in Pune and Chennai  TL9001 Quality and BS7799 Information Security certifications Tata Communications Transformation Services The Global Telco Challenges  Increased competition and tariff pressures  Increased costs & insufficient ops support  Delayed / poor customer service processes  Wholly owned subsidiary of Tata Comms  Focused on outsourcing services to other carriers (including “competitors”)  Major Service Areas:  Network Engineering (Planning & Design)  Service Fulfilment  Network Operations  Customer Benefits:  Productivity improvements (zero backlogs, quick turnaround)  New business  Higher accuracy levels in SLAs  From Zero to 650 employees in 18 mos; planned addition in FY09: >1500
  11. 11. Confidential & Proprietary 11 NASSCOM BPO Strategy Summit Audio Web Conferencing Audio Web Conferencing The Next World for the BPO Industry Cost Arbitrage Value- added services Business Knowledge Process improvement Business Transformation Processes & Tools – Full services
  12. 12. Confidential & Proprietary 12 NASSCOM BPO Strategy Summit What is our role as a Service Provider ? Offshoring Multi-Channel Multimedia IP Migration Speech Recognition Globalization Remote Agents Out-Tasking Competitive Requirements VcIPLC mVoIP SIP Trunking Hosted PBX Touch Tone IVR Speech Recognition / Text to Speech IVR Enhanced Call Routing Hosted Contact Center
  13. 13. ©2008 Tata Communications, Ltd. All Rights Reserved. Confidential & Proprietary NASSCOM BPO Strategy Summit Thank you
  14. 14. Confidential & Proprietary 14 NASSCOM BPO Strategy Summit