The document contains notes related to a business plan for a KPO operation. It includes details such as:
1) Depreciation rates and assumptions for computers and peripherals as per SEZ guidelines.
2) Assumptions for the proportion of junior, middle, and senior billable resources based on management input and industry practices.
3) Exchange rate assumptions and projected quarterly depreciation of 1% for INR to USD conversion.
4) Assumptions for rental rates, hardware/software costs per seat, and electricity charges based on inputs from various divisions.
KPO Business Plan for M/s Arkhion Design Private Limited, Gurgaon
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Notes To KPO B-Plan
Depreciation for computers and computer peripherals is taken as per guidelines for Special Economic Zones
Proportion on junior, Middle & Senior in Billable resources has been assumed as per management input and regular industry
practices both for captive and non-captive business
INR to US$ exchange rate has been taken as INR 40 per $ during end of FY08 & has been depreciated by 1 % per quarter
considering the ongoing maroeconomic scenario
It is assumed that, 10 people would start working at CIG premises at Signature Towers and hence no rent and maintainace
would be charged for Feb-Mar 08. Starting FY09, KPO will shift to new SEZ office space. Rental rates assumptions have been
collected from the Commercial Sales Team
H/W & S/W cost per new seat is taken as INR 3.25 L for billable resources and INR 1.10 L for non-Billable resources using the
inputs from architectural division. Electricity charges assuimption has been taken based on industry no.
In a BPO/KPO setup, Net utilisation rate is a product of utilisation rate and billing efficiency. Utilisation rate typically gives the
effective utilisation of any resource considering the time usually spent on bench. Billing efficiency refers to the ability of a
company to convert utilised hours to revenue. Since it depends on the organizational structure and nature of services provided
by a KPO, it may vary from 60% to 90%.
Average billing rate for architectural outsourcing is found to be $ 20/hr according to our studies. As per Evalueserve study on
KPO, increase in hourly cost can be maintained at around 7% per annum by non-captive KPOs.
Initial Target Billable resources are aspirational figures as per management input. Target Non Billable resouces are calculated
using the ratio of nonbillable:billable in KPO setup from the Evalueserve report. As per the report, the ratio can range from 1:4-5
for small 40 employee captive KPOs to 1:8 for non-captive ones.