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E1-E2(CFA)/ Project Sanchay

Rev. date. 23-03-2011

Name of Course : E1-E2 CFA Chapter 13 Topic : Project Sanchay Date of Creation : 23.03.2011

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E1-E2(CFA)/ Project Sanchay

Rev. date. 23-03-2011

Project Sanchay
Introduction Project "Sanchay" is the cost rationalization initiative of Project "Shikhar". One of the key areas identified, as part of Sanchay is the rationalization of Security staff and appointment of outsourced infrastructure maintenance agencies. BSNL has a large variety of telecom installations such as Main Exchange Buildings, RSU Exchange Buildings, Transmission Centre Buildings, BTS sites, billing centers, customer care centers etc. The security needs and operational needs at these sites vary based on multiple factors. In the past, due to a shortage of internal BSNL operational staff, security guards have been hired at telecom installations even when the security risk at the particular site was not high. These guards were hired to primarily perform a set of routine maintenance activities. As per DGR guidelines, BSNL can hire security guards from only DGR approved security agencies, which tend to be typically more expensive than the outsourced infrastructure maintenance labour available in a particular location. As part of this initiative, BSNL is proposing to do two things: 1. Appoint outsourced infrastructure maintenance staff for carrying out routine maintenance activities. This staff shall be hired for locations; where the security risk is low and operational needs are high and where DGR approved security guards are already deployed. The outsourced infrastructure maintenance staff shall replace the DGR approved security guards. 2. Remove DGR approved security guards from telecom sites where security risks are low. Aim of Project Sanchay The aim of Project Sanchay is to reduce costs associated with deployment of DGR approved security guards. This will be done in two ways: 1. Replacing security guards with outsourced infrastructure maintenance staff (which is typically cheaper than DGR approved security guards) at sites where security risk is low and operational needs are high. These outsourced staff shall only be appointed where DGR approved security guards are already present and carrying out routing maintenance activities. In no situation shall the number of outsourced infrastructure maintenance staff appointed, exceed the present number of DGR approved security guards present at the site.

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E1-E2(CFA)/ Project Sanchay 2.

Rev. date. 23-03-2011

Removal of DGR approved security guards at sites where the security risk is low and operational needs are also low.

Process to be Followed To implement this initiative the following steps need to be followed by the SSA 1. Classification of telecom sites by assessing security needs and operational needs. 2. Determining the number of personnel (Security Guards and Outsourced infrastructure maintenance staff) required for each telecom site. 3. Floating of tender and signing contract with outsourced infrastructure maintenance agencies. Classification of Telecom Sites The classification of telecom site has to be done on two parameters 1. Operational need and 2. Security Need. Determining Number of Personnel Based on the classification done above, for sites with low security needs, the number of personnel required has to be assessed. The data request template provides columns for filling in this information. While doing this assessment, it has to be kept in mind that for any site, the total no. of personnel required post analysis (security guards plus outsourced infrastructure maintenance staff) should not exceed the current number of security guards deployed at the telecom site. Floating of Tender The EOI format approved by the Corporate office is given in the subsequent pages. The SSA needs to float this EOI at the earliest and select the outsourced infrastructure maintenance agencies. However, the actual date of starting work of these agencies will depend on the earliest date on which the DGR approved security agencies can be removed. Concluding Remarks on Project Sanchay The pilot of Project Sanchay has been taken up in 3 SSAs of Punjab Telecom Circle namely Hoshiarpur, Pathankot and Patiala. Based upon the response the next stage of roll out will be in all other SSAs of Punjab and a few SSAs of Tamil Nadu, UP (W), Haryana and Maharashtra Circles. While in the first phase stress is on optimizing security manpower, second phase will focus on reduction of power and fuel expenditure and third phase will deal with inventory management. As per BCG report, some drastic initiatives like installation of Intrusion Alarm, Mower fencing, CCTVs, Access Control etc have been suggested to automize the security aspects while at the same time reducing manpower. The key roles, responsibilities and naming of the BSNL internal circulation only Page 3

E1-E2(CFA)/ Project Sanchay

Rev. date. 23-03-2011

persons in the rollout process in three SSAs of Punjab have already been stated and pilot monitoring & control plan initiated. With such scientific approach and cost cutting measures, the Project Sanchay will definitely curb the unnecessary expenditure. The need of the hour is to shrug off our conservative approach, legacy past and open our minds to the requirements of changing times. The idea of "money saved is money earned" has to be appreciated. The success of Project Sanchay lies with each one of us. Only patience, passion and strong determination will enable us to realize the objectives and success matrix of Project Sanchay. *****

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