IMB 343

Janat Shah, L S 0urty, Rakesh Kumar, Roshan Agarwal, and Tuhin Chatterjee prepared this case Ior class discussion. This case is not intended to
serve as an endorsement, source oI primary data, or to show eIIective or ineIIicient handling oI decision or business processes.

Copyright 2011 by the ,ndian ,nstitute oI 0anagement %angalore. No part oI the publication may be reproduced or transmitted in any Iorm or
by any means electronic, mechanical, photocopying, recording, or otherwise (including internet) without the permission oI ,ndian ,nstitute oI
0anagement %angalore.



JANAT SHAH, L S 0URTY, RAKESH KU0AR, ROSHAN AGARWAL AND TUH,N
CHATTERJEE

I1F26<6 BP2

On a bright 0onday morning in 0ay 2010, Kapil Jain (3ractice Head at ,nIosys %3O) was walking in the alley
leading to the oIIice oI his boss, D. Swaminathan (CEO and 0D oI ,nIosys %3O), to discuss the pricing and design
oI operations Ior their new engagement with Credit3lus.
1
Although, the engagement with Credit3lus was a long-
term relationship, the way ,nIosys %3O would design and operate the engagement and the kind oI resources it would
require in the engagement had given Kapil a Iew sleepless nights.

,n the earlier Iew weeks, an ,nIosys %3O top management team had been reviewing a transaction-based billing
model, a Iactor considered to play a signiIicant strategic role. This model allowed the vendor to bill the client on a
per transaction basis. Similar to the previous models used, this model too had its share oI advantages and
disadvantages. However, successIul usage oI this model Ior other clients had shown that to some extent, the
advantages outweighed the drawbacks. ,ncreased competition had Iorced the ,nIosys %3O to come up with
aggressive models where the company had to consider the entire liIe cycle value oI the contract. However, the
prerequisites oI the aggressive models were: (i) an excellent resource planning system and (ii) estimation oI likely
productivity improvement. Kapil remembered Swaminathan`s closing remark in the last meeting:

,I we take very conservative numbers, our prices are likely to be on higher side which might cause us
to lose the contract to other competitors. At the same time, iI we take too optimistic a view, we might
lose money in the contract.

Swaminathan in particular asked Kapil to consider a strategic Iramework while making these operational decisions
Ior this engagement.

7+( I1'I$1 BP2 I1'8675<

The business process outsourcing (%3O) industry had been an important contributor to ,ndia`s gross domestic
product (GD3). ,n 2008, the ,T%3O sector contributed about 5.8 oI ,ndia`s total GD3, while %3O alone
accounted Ior 1 oI the GD3.
2
,n the same year, the number oI people employed in the %3O industry was around
0.7 million.

The industry had grown by leaps and bounds (([KLELW ). Globally, the industry was expected to continue to grow at
a 10 compound annual growth rate CAGR) (20082012). The %3O industry catered to various industries such as
%)S,

, telecom, healthcare, retail, etc. The services oIIered included customer care support, payment services,
Iinance and accounting, administration, human resources, and content development.

,nitially, outsourcing was done in-house and some oI the Iirst companies to adopt this methodology oI operating
back oIIice work were American Express, General Electric, and %ritish Airways. ,n the late eighties, American
Express moved its Japan and Asia 3aciIic back-oIIice operations into New Delhi and the National Capital Region.
Next, the entrepreneurs started setting up their own oIIices to deliver back-end services to client companies in the

1
CamouIlaged name
2
NASSCO0, http://www.nasscom.org/Nasscom/templates/Normal3age.aspx?id56966

Financial Express, http://www.Iinancialexpress.com/news/indias-outsourcing-revenue-to-hit-50-bn/266661/

4
Banking, Iinancial services, and insurance

IN)OSYS BPO Page 2 oI 19

United States and Europe. By early 2000, BPO had gained recognition as a separate industry with the emergence oI
third-party providers.

)ollowing suit, and based on the synergies available, large IT companies which had come to prominence by then,
also began setting up BPO service arms. Although, pure play BPO companies such as WNS and Genpact still had a
strong Ioothold, the IT companies were starting to make their presence Ielt. Wipro was the Iirst among the large
players to Ioray into BPO with the acquisition oI Spectramind (Iounded by Ramon Roy) in 2002, and TCS and
InIosys BPO later did the same by starting their own BPO operations and growing them through mergers and
acquisitions. The rationale to acquire a Iirm was mainly to develop a global delivery platIorm besides assuring
steady revenues. Service arms oI organizations such as Accenture, IBM, Hewlett Packard, and Dell also set up shop
in India.

By 2008, the BPOs in the IT service Iirms had started to pay dividends (([hLbLt 2). However, the industry was
starting to look much diIIerent than what it was in 2000. Companies were Iocusing on moving up the value chain
and oIIering more than just low-involvement non-core services. SigniIicant investments were being made in
developing technology platIorms by both pure play and IT services vendors. With increasing conIidence oI the client
companies in the capabilities oI Indian operations, higher value-added activities such as accounting and other non-
core Iunctions began reaching the Indian shores. BPO companies became increasingly more eIIicient and Iirms
outside realized that Indian BPOs, in particular, were maturing with greater delivery eIIiciency and productivity.
5


Size and reputation were becoming increasingly important. As the engagements were moving up the value chain,
outsourcing was becoming more and more important strategically. Hence, companies used a rigorous process oI
evaluating the BPO provider. Some oI the key attributes that the client looked Ior were:

1. Reputation and industry leadership;
2. Demonstrated ability to execute diverse range oI mission-critical and complex processes;
3. Capability to scale employees and inIrastructure;
4. Ability to innovate and operational expertise to drive down costs.

As the industry would mature Iurther; scale, reputation, and innovation would become increasingly signiIicant in the
choice oI a business partner. BPO industry required more than just pure operational eIIiciency. The BPO industry
had moved Irom cost arbitrage to a source oI value addition Ior the clients. So, the clients were always on the
lookout Ior BPO companies that added value to the internal processes and had a positive impact on the bottom line.

ABOUT INFOSYS BPO

InIosys BPO Ltd., the business process outsourcing subsidiary oI InIosys Technologies, was set up in April 2002.
Since then, it had grown consistently, at about 70 over the years, to close )Y 20092010 with revenues oI $352.1
million (see ([hLbLt 4). The company`s perIormance had consistently been above the industry average. The
company had centers in India, the Czech Republic, China, the Philippines, Poland, Mexico, the United States, and
Brazil (see ([hLbLt 3), and employed over 19,300 people. InIosys BPO had over 87 clients, spread across several
industry verticals and horizontal services. Since 6 years, it had transitioned more than 1000 processes with 95
transitions, on-time and on-budget.

It has been consistently ranked among the leading BPO companies by key industry bodies such as the International
Association oI Outsourcing ProIessionals, )AO Today, and NelsonHall, among others. It also had very robust
people practices, as substantiated by the various HR-speciIic awards it had won over the years. The company had
consistently been ranked among the top employers oI choice, besides pioneering eIIorts in diversity hiring and other
industry best practices.

InIosys BPO had earned the highest rating, Level 5, Ior the e-sourcing capability model by Carnegie Mellon
University`s IT Services QualiIication Center. It was the second company globally to be certiIied a Level 5 eSCM-
SP provider.


5
Business Line, http://www.thehindubusinessline.com/ew/2009/10/05/stories/2009100550010100.htm

IN)OSYS BPO Page 3 oI 19

Domain/subject expertise was housed in horizontals and they Iocused on business platIorms, customer service
outsourcing, Iinance and accounting, human resource outsourcing, knowledge services, and sales and IulIillment
(see ([hLbLt 5 Ior detailed description). Experts (subject matter experts) would be housed in these horizontals.
Typically, a horizontal employed 3080 experts. Besides taking care oI domain training; horizontals resulted in big
perIormance/productivity improvements through benchmarking, learning across Iirms, and handling crises or change
in the regulatory environment. Verticals were responsible Ior actual operations and delivery to customers. They were
organized on the lines oI industries (see ([hLbLt 6 Ior details). Although a customer belonged to a vertical on the
lines oI industry, the services delivered to the customer would be along the lines oI horizontals. )or instance,
American Network Company (described later) depended on M)G (manuIacturing) vertical Ior services such as
customer service, Iinance and accounting, and human resources outsourcing that may span across multiple
geographies. Bulk oI the workIorce was housed in verticals with about 50100 staII members in each delivery team
depending on the work load. Delivery team lead was responsible Ior the delivery oI the service and reports to the
vertical lead. However, typically delivery team leads had a dotted line reporting relationship with the respective
horizontals Ior issues such as productivity and process and domain/subject expertise. About 30 oI the revenue was
obtained Irom industry-speciIic solutions (such as insurance and telecom) Ior which the entire workIorce (including
the experts) was housed in verticals, and the delivery teams in this type oI verticals did not have the dotted line
relationship with horizontals. Delivery teams outside India reported to their respective Location Heads to Iacilitate
customer interIace. ReIer to ([hLbLt 7 Ior an overall organization chart oI InIosys BPO. Besides horizontals and
verticals, another group that had signiIicant customer Iacing role was the strategic solution group. StaIIed with about
300 proIessionals, the services this group provided include technology enablement, technology-led optimization and
solutions, embedding best practices on tools that run on partner soItware systems such as PeopleSoIt and Oracle, and
development oI platIorms such as accounts payable based on the expertise developed over several client
engagements. They also provided consulting to the clients who were new to outsourcing. The responsibility Ior
annual top-line and bottom-line (as in proIit-and-loss statements) was spread across horizontals and verticals,
whereas strategic solutions group had project-based revenues. A client engagement manager, liaising with
horizontals, verticals, and strategic solution group, was responsible Ior the engagement with the client.

CLI(NTS

Clients oI InIosys BPO ranged Irom huge conglomerates to small start-ups. In 2003, InIosys BPO had only Iour
clients. American Network Company
6
was one oI the very Iirst and still among their largest clients in terms oI the
Iull-time-equivalents ()TEs) employed. However, this number had increased to 87 by 2010. With each engagement,
InIosys BPO gained more experience and also added capabilities to their portIolio. While talking about evolution oI
InIosys BPO in one oI the internal training programs, Kapil observed:

American Network & Global Mortgage
7
engagements represent typical successIul engagements where
relationships have matured, both sides (vendor and client) have evolved, learned Irom each other and
the outcome has been mutually beneIicial Ior both sides.

1he American Aetwork Company Engagement: American Network was one oI the Iirst clients oI the InIosys BPO.
The relationship was initiated in 2002 when American Network outsourced a small order management process Ior
which InIosys BPO engaged 14 people. The outsourced operations were perIormed in American Network`s own
centers. This was the semi-outsourced model that was being Iollowed in the beginning. The InIosys BPO looked into
orders that had some errors and Iell out oI the online automated engine. They manually corrected such errors and Ied
the orders back into the system so that they could be approved. This was continued Ior a while Ior about 30 diIIerent
processes (add product, change quantity, etc.)

Eventually, American Network wanted to shiIt to a model where the vendors became responsible Ior managing the
complete operation. In 2007, InIosys BPO started penetrating into complex operations within American Network
where processes outsourced to BPO were not the basic transactional level activities. For example, in Worldwide
Reverse Logistics, InIosys BPO provided support to customers who wanted to return equipment to American
Network.

6
Disguised name
7
Disguised name

INFOSYS BPO Page 4 oI 19

When InIosys BPO started engagements with other business units oI American Network, they realized that within
American Network, diIIerent businesses existed at diIIerent maturity levels. This became a challenge Ior the vendors
as they had to modiIy their approach accordingly.

To take care oI this issue, American Network set up a diIIerent oIIice Ior all kinds oI outsourcing activities and tried
to consolidate all the contact centers. This oIIice had a repository Ior all the contact centers available Irom diIIerent
preIerred vendors such as InIosys BPO, Convergys, Genpact, etc. Any department within American Network that
wanted to outsource a Iunction had to go through this oIIice. This oIIice was called CCUF Contact Centre
UniIication Framework.

The American Network engagement also had a good review system in place that monitored the Iunctioning oI the
processes. Program managers Irom InIosys BPO connected with program managers oI American Network and
conducted a monthly review. People at the delivery head`s level conducted quarterly reviews, while the CEO
conducted annual reviews. Also, parameters such as handle time, queue time, and the organizational structure were
given to the client on a regular basis.

The metrics Ior perIormance measurements evolved Irom basic level transaction metrics to how the customer
business was impacted. The InIosys BPO held meetings on a semi-annual basis where it sat with the customer and
decided what other services could be provided over and above what they were already delivering.

1he Clobal Mortgage Company Engagement: In 2002, InIosys BPO had a mid-tier mortgage lender in the United
States as their client. By 2004, InIosys BPO used to handle the 'origination (customer acquisition) and 'servicing
Iunctions Ior this Iirm.

In 2008, Global Mortgage, USA acquired the mid-tier mortgage lending Iirm which led to the closure oI the latter`s
account with InIosys BPO. However, by that time, InIosys BPO had already started relations with Global Mortgage,
UK. This account was opened in 2007 and the transition was completed between September and November 2007.
There were 330 FTEs assigned to the project.

The Global Mortgage, UK account started with the outsourcing oI the 'customer acquisition Iunction and
'exception handling was added to the portIolio later. In August 2008, the team got the document management
business, which was related to handling customer correspondence. This was a signiIicant step in the engagement
because it gave InIosys BPO insights into the business and thereby the ability to inIluence the business directly.

PROC(SS MIGRATION

Process migration was the most crucial part oI the engagement as it was the Iirst stage oI the engagement. Problems
at process migration stage would mean Ioreseeable problems in meeting service level agreements (SLAs) and even
loss oI business. Typically, all over the industry, the practice was to replicate the process, as being Iollowed by the
client and try to improve the operations by better resource utilization and getting eIIiciencies as they became more
acclimatized to handle the process. Process migration Irom the client site to oIIsite was the key value proposition.

Migration time varied depending on the process transIer oI bank account queries and customer relationship
management could take 6 to 12 months, while account payable process could take only 3 to 4 weeks. This also
depended on the prior expertise oI the team in similar processes in the same geography and required understanding
the requirements oI the client. One also had to take signiIicant decisions about the recruitment, training, Iacilities,
technology, and operations that would be required as the engagement matured.

Typically, there were three stages to the migration process: planning, execution, and stabilization.

Planning: This required that the engagement manager made sure that he and the client were on the same wavelength
in terms oI deIining project goals and its greater business needed. It also required him to start with a ball park
estimate oI the resources, employees, time, and the cost required Ior the shiIt. The shiIt could be all at one go which
meant that all the volumes were directed to the oIIshore site. It could also be gradual where both the client and the
service provider started by sharing volumes to test the waters. The resource estimation while necessary was not very
rigid and there are iterations in the execution stage to determine what worked best.

INFOSYS BPO Page 5 oI 19

Execution: This was the phase when on-ground activities took place. The decided-upon process matrices were
validated and the required buIIer was Iinalized. The setting up oI the inIrastructure, recruitment oI employees,
documentations, and training started at a pilot level. Once the pilot was approved by the client, the process stabilized
and was ready Ior a rollout.

Steady state: Finally as steady-state operations were reached, internally the service provider incrementally tried and
implemented deIect reduction plan, audit, analysis, and share best practices. This was also the stage where customer
satisIaction scores were monitored and other avenues Ior new business opportunities could be discussed.

S(RVIC(-L(V(L AGR((M(NTS AND TURNAROUND TIM(

Typically, any process quality was governed by two major requirements: (a) SLA and (b) turnaround time (TAT).

SLA was a negotiated agreement between a client and a vendor, where both the parties agreed upon various
services, priorities, time Irames, etc., Ior a particular engagement. For example, SLA could state that 98 oI all
credit card applications sent by customers had to be processed within one week by the BPO Iirm accurately. SLAs
deIined the tolerable error in handling oI widgets (part oI processes such as servicing a customer query). Thus, a
98 SLA would mean that a minimum oI 98 oI all the processes needed to be accurately handled within the
speciIied TAT. SLAs could range Irom 95 Ior a less-critical process to as high as 100 Ior critical processes.
Penalties could be agreed upon by the parties involved in case oI non-compliance oI the SLA terms by the vendor.
In case oI non-compliance, penalty as a percentage oI the revenue could be imposed on the BPO Iirm. Typically,
such penalties could go up to 10 oI the revenues generated by the concerned transactions.

TAT reIers to the time required to complete the transaction Ior any given widget. In 'recoveries Irom the deceased
part oI the business, it was required that a phone call be served within one day and a mail within 4 days. Similarly,
any adhoc process had to be completed in 4 days, while any systemic process had to be completed in one day.

PRICING MOD(LS

Typically, the industry worked with three types oI billing contracts FTE-based, transaction-based, and outcome-
based. Over the years, InIosys BPO had been pushing Irom FTE-based to transaction-based billing. However, most
oI its earlier clients continued with FTE-based billing. The pricing models
8
are described below.

1. Full-time-equivalent -based billing involved billing the client based on the number oI employees or
equivalents deployed in the outsourced operation. This model was easy to understand and simple to
implement, but did not create incentives Ior the service provider to improve its eIIiciency. It helped in
engagements where transaction volumes were diIIicult to Iorecast.
2. 1ransaction-based billing involved billing the client based on the number oI transactions processed as part
oI the outsourced operation. A typical transaction could be the number oI grievances addressed, number oI
complaints closed successIully, etc. Typically, Ior a speciIied volume band, a base price was Iixed with a
negotiated increase/decrease in price as the volume Iluctuated around this band. This model was closely
tied to the client`s business cycle and enhanced visibility oI the billing pattern. It also encouraged
productivity in the vendor`s operations. However, such billing was not tied to the client`s business
outcome.
3. Outcome-based billing involved billing the client on the basis oI business results achieved by the client
through the vendor`s contribution such as percentage oI increased proIits or reduced operating expenses.
This model closely tied the billing to the client`s business outcome and also encouraged eIIiciency in the
vendor`s operations. However, innovation was the key here Ior vendors and at times it might have been
tough to isolate their contribution and its impact on the client`s business outcome.

A typical contract had a term ranging Irom three to Iive years. Contracts could also be oI rolling type with no end
dates. However such contracts could be terminated by the client with a notice period (duration depended on the type
and size oI the engagement typically 3 to 6 months).


8
Source: Form 20F WNS Holdings Ltd. WNS, Iiled May 29, 2009 (period March 31, 2009)

INFOSYS BPO Page 6 oI 19

The contracts were draIted individually Ior each client and depended on the nature and volume oI outsourced work
and also on the requirements oI the client. SigniIicant costs could be incurred by the BPO Iirms in the initial stages
oI the agreement which were recovered during the liIe oI the engagement. The contracts also deIined the operational
metrics based on which the eIIiciency oI the engagement would be measured. Some typical examples oI such
metrics were volumes oI cases closed, Iirst touch cycle time, average case resolution cycle time, customer
satisIaction, etc.

InIosys BPO was planning to change the pricing model to transaction-based billing Irom FTE-based billing. The
previous usage oI this model in other client engagements had shown that it could be a win-win situation Ior both the
parties, provided the Iorecast was accurate. It provided Ilexibility to BPOs to manage resources better and clients
paid Ior what they used.

TRAINING AND QUALITY

Focusing on training and quality was extremely important in transaction-based assignments to achieve greater
eIIiciencies. Every 'team lead (see (xhLbLt 8 Ior Global Mortgage`s organization structure) periodically sent a
number oI people Ior training in what were known as training weeks where associates underwent process-related
training programs. There were quality managers Ior the engagement who tracked the perIormance at an individual
level, the current level oI certiIication and the productivity and quality ((xhLbLt 10). Meanwhile, the team lead
managed the process with a Iewer number oI people. The quality managers also published quality calendars Ior each
assignment. A quality calendar was produced every 6 months where the audit, governance, and Six Sigma were
addressed.

There were concrete suggestions on how quality tools might be implemented and internal governance structures
could be improved. Focus was also on the individual to enable the individual to make decisions and become process-
oriented (Six Sigma training). These trainings were at an individual level and in two levels Level 0 and Level 1.
Training was initially given to handle diIIerent parts oI a single process and then expanded such that an associate
could handle more than one process.

There was a quality Iunction in the InIosys BPO that looked aIter the quality oI each engagement and provided the
ratings and certiIications. This brought together all the engagements to a common platIorm. There were InIosys
BPO-speciIic initiatives that ran in parallel.

PRODUCTIVITY IMPROV(M(NTS

Typically, the productivity improvements took place in Iive stages.

1. Do it cheaper: Leverage cost arbitrage and productivity gains
2. Do it better: Improve resource eIIiciency by better Iorecasting and use oI multi-skill resources
3. Do it differently: TransIormation and automation oI basic activities and usage oI platIorms
4. Eliminate non-value-added activities: Reengineer activities so as to eliminate non-value-added activities
5. Enhance value addition: Focus on service dimension oI business leading to value addition to clients
impacting their business metrics

These phases were not mentioned in the contract. The InIosys BPO promised these value-additions to the client and
delivered them as it moved ahead in the engagement.

InIosys BPO had taken various steps to ensure continuous productivity improvement. It had a proper workIlow
management system and a command center that deIined what the workIorce should be on any given day. Given
below are some instances oI such productivity improvements.

1. Forecasting accurately was the key to the transactions type oI business. Both overcapacity and
undercapacity led to higher costs. Hence, BPO Iirms constantly endeavored to improve the Iorecast
accuracy. For instance, in case oI an engagement, InIosys BPO had been able to improve the initial +40
Iorecast accuracy to 8.


INFOSYS BPO Page 7 oI 19

2. Standardization also helped in reducing TAT. The variances in the multiple tasks were handled by
separating them into diIIerent queues or by clubbing similar tasks together. For instance, 'deIault
management had two diIIerent activities 'retail processing and 'consulting. It was then realized that
clubbing oI activities and Iorming queues would reduce a lot oI double working.
3. For an onsite transaction at American Network, the TAT was 8 days. Once InIosys BPO took over and
started the 24-hour model the TAT was reduced Irom 8 to 5 days. The 3-day improvement increased the
speed oI movement oI products Irom the warehouse and enabled the client to negotiate a better price Ior its
warehousing operations. These inputs added direct value to the client`s revenues and proIits.
4. Development oI a platIorm Ior an account-payable process: Based on their experience oI working with
several clients on their account-payable process, InIosys BPO had developed the IMAP (InIosys Modular
AP) solution platIorm to automate invoice-to-pay cycle by leveraging technology and world-class alliance
partner across geographies to receive and scan invoices. The solution was easily deployable and had in-
built integration with leading enterprise resource planning soItware`s such as SAP`s R/3, and Oracle`s
eBusiness suites to ensure simpliIication oI key invoice processing steps such as data entry, coding,
approval and document retention, and non-duplication data entry. The solution also leveraged optical
character recognition to automate the data entry and workIlow solution to deIine invoice approval
mechanism, real-time tracking and monitoring oI invoices movement through various stages, i.e., data
entry, coding, approval, etc. ensuring compliance with various statutory regulations Usage oI IMAP
platIorm had been beneIicial to InIosys BPO and client organizations in terms oI streamlining oI processes
leading to signiIicant productivity improvements.

Many oI these productivity improvements depended on the maturity level oI the client. This is why InIosys BPO had
been attempting to predict client readiness Irom day zero to analyze what could be put Iorth in Iront oI the client and
what could wait; how much would the client consider appropriate and how much would be considered as being
pushy.

The productivity improvements also changed the Iocus Irom deskilling to increasing domain competence oI
employees. In the past when Iaced with attrition problem, InIosys BPO had Iocused signiIicant energy on the
deskilling oI jobs. This ensured that it could manage operations successIully even iI it could not retain people. Soon
it realized that limitation oI the approach as real productivity improved would come Irom associates who had a
better understanding oI the client business and domain knowledge. As domain competence came directly Irom
retention oI employees, several measures had been taken by InIosys BPO to decrease attrition. The management had
been proactive in showing their employees a path oI growth and evolution. SigniIicant contributions were promptly
recognized and rewarded.

One important trend that had been seen in the industry was the merger oI technology and BPO and leveraging this
merger to the client`s as well as the BPO`s beneIit. Several service providers added knowledge component
(analytics/consulting) to the service mix to give greater value to the customer and to ensure that they were capable oI
bagging large end-to-end contracts.

ABOUT CR(DITPLUS (NGAG(M(NT

CreditPlus was a credit card company headquartered in the United Kingdom. It was an old client oI InIosys BPO. It
outsourced its 'recoveries operations with the Iollowing processes: 'hardship, 'insolvency and 'deceased.
"Recoveries reIers to the collection oI outstanding debts/bill amounts Irom customers. CreditPlus wanted to
outsource its IDM (independent debt management) process as well. (xhLbLt 9 shows the process Ilow diagram Ior
IDM. Once outsourced, IDM would account Ior the largest volume oI work under 'recoveries operation. IDM
would cover roughly 70 oI the volume oI transactions whereas 'insolvency, 'hardship and 'deceased Iormed
the remaining 30. Clearly because oI the sheer volumes IDM was one oI the most important processes.
Moreover, it was also the most susceptible to Iluctuations. The downturn in 2010 also had an impact on the volumes
oI IDM.

IDM dealt with management oI debt servicing by deIaulting individuals or companies. II an individual had taken up
too much debt in terms oI mortgages, etc. and was unable to service the debt, the individual could approach speciIic
Iirms to manage the debt. Such a Iirm was called an IDM agency. II an individual Iaced a debt servicing crisis and
approached an IDM, the latter would Iirst assess the individual`s cash Ilows. This included the customer`s sources oI

INFOSYS BPO Page 8 oI 19

income and debt obligations. A Iinal call on how much oI debt could be serviced was made and then there was a
Iinal call made on how this had to be divided between various debtors. The assessment was made public with the
debtors who could be various credit card companies or other commercial banks. Once an agreement had been
reached, the debt continued to be serviced and the IDM took over the excess cash and debt service obligation Irom
the individuals and interacted with the creditors.

The input Ior this transaction was typically obtained Irom the bank or the third party debt management company
about taking over oI debt obligations oI an individual. This was Iollowed by a notiIication Irom the IDM with all the
necessary documentation. The associates at the BPO service provider obtained and reviewed the documents and
provided inIormation back to the IDM. This was when an agreement was reached and the associate sent outbound
letters to the customers approving the payment plan.

For the purpose oI resource planning, one could assume that the debt settlement Ior any deIaulter (will be reIerred to
as widget) would go through the Iollowing three stages: review, process and settle. AIter review``, a typical widget
would come back Ior 'process aIter 4 to 8 months and aIter 'process, the widget would come back Ior 'settle
aIter 3 to 6 months.

ARRIVAL PATT(RN OF WIDG(TS

A sample arrival pattern oI the widgets is given in (xhLbLt 11. The queues in the exhibit reIer to sub-processes
within the three main processes: (i) review, (ii) process, and (iii) settlement oI case. The weekly Iorecast provided by
CreditPlus had an error oI about 10 to 15. ClassiIication oI widget as simple or complex was done at each stage
when the widget was received by the client using pre-speciIied rules. The same debt recovery widget could be
simple in one stage while it could be complex in other stages. The ratio oI simple to complex widgets was 95:5 Ior
the 'review stage, 60:40 Ior the 'process stage and 40: 60 Ior the 'settle stage. A simple widget took shorter
processing time while a complex process took longer processing time. Agreed upon TAT Ior a simple process was
lower (1 day) compared to TAT Ior a complex process (4 days).

InIosys BPO had to decide upon the number oI FTEs required Ior the process and also determine how to allocate the
work, that is, whether it should dedicate resource Ior each oI the six queues or should it use the common pool oI
resources (resources could be pooled in many diIIerent ways: (a) stage-wise, (b) category-wise, or (c) common pool
oI resources Ior all six queues). An important aspect to note here is the training provided to the employees Ior the
recovery process.

An employee was Iirst trained in all the activities Ior one oI the processes and then trained across processes. In due
course oI time, an employee could perIorm all activities under all processes. This gave a lot oI Ilexibility Ior the
supervisor to allocate work.

PROBL(M AT HAND

As Kapil was walking through the corridor, he wondered about the challenges resource estimation Iaced given that
the SLA requirements were so stringent and Iorecasting was client dependent. He also had to ensure that the best-
billing model was chosen Ior the engagement. He wanted to win this engagement and be proIitable too! Further, a
wry smile appeared on his Iace as he just realized that he has to make all these decisions within a strategic
Iramework as Swaminathan suggested. Furthermore, he began to think oI the other important Iactors that he had to
consider, such as the emerging customers` demands, talent building, organizational roles and responsibilities Ior
productivity improvement, and so on.










INFOSYS BPO Page 9 oI 19


Exhibit 1
GUowth of thH BPO LQdustUy



Source: NASSCOM

OvHUDOO BPO RHvHQuH (BLOOLoQ USD)
C u

INFOSYS BPO Page 10 oI 19


Exhibit 2
PHUfoUmDQFH of vDULous BPO SODyHUs




Source: Companies` websites

8K k I1 S I US M
dC^ W /

INFOSYS BPO Page 11 oI 19

Exhibit 3
GOobDO footSULQt foU dHOLvHUy DFUoss gHogUDShLHs












Worldwide Iootprint: Bangalore (HQ), Chennai, Gurgaon, Jaipur, Pune (India), Monterrey (Mexico), Lod (Poland), Brno (Czech Republic),
Bangkok (Thailand), Hangzhou (China), Manila (Philippines)











INFOSYS BPO Page 12 oI 19

Exhibit 4
GUowth LQ UHvHQuH, FOLHQts DQd QumbHU of HmSOoyHHs foU IQfosys BPO

N
o

o
f

I
m

I
o
y
e
e
s
R
e
v
e
n
u
e

i
n

U
S
D

M
i
I
I
i
o
n
Revenue No of CIienls No of ImIoyees

INFOSYS BPO Page 13 oI 19

Exhibit 5
OffHULQgs of IQfosys BPO - hoULzoQtDO sHUvLFHs

BusLQHss PODtfoUms. Through these oIIerings, InIosys BPO provided a technical platIorm to manage the client`s
indirect spends and also managed the HR and payroll Iunctions. The platIorms were hosted, managed, and
maintained by the InIosys BPO.

CustomHU SHUvLFH OutsouUFLQg. They provided services across industries such as banking and Iinancial services,
insurance, telecom, technology products and services and manuIacturing addressing customer through voice and
non-voice channels. This practice resulted in an exponential growth rate oI about 70.

FLQDQFH DQd AFFouQtLQg. The technological suite used by InIosys BPO in this vertical helped in eliminating
manual work and enhancing controls in the client`s various Iinancial and accounting processes.

HumDQ RHsouUFH OutsouUFLQg. This vertical integrated consulting, technology and BPO Ior its clients. They
leveraged global sourcing across process deIinition, process standardization, consolidation, and re-engineering. This
vertical implemented more than 210 HR IT projects Ior over 65 clients.

KQowOHdgH SHUvLFHs. This vertical undertook the Iollowing Iunctions.

Research: They delivered high quality and customized research by combining deep domain expertise with
exhaustive secondary research.
Analytics: They provided services and point solutions Iocused on delivering measurable business value by
leveraging data, reporting/analytics tools.
Legal: They employed lawyers, paralegals, and engineers to support both corporate law departments and law
Iirms.

SDOHs DQd FuOfLOOmHQt This vertical oIIered suite tools and enablers to enhance process eIIiciency and reliability
through business metrics such as sales Iorce productivity, working capital eIIicacy, revenue assurance and customer
satisIaction, in addition to operational metrics such as order TAT, yield and accuracy to support client`s core sales
and IulIillment processes.

SouUFLQg DQd PUoFuUHmHQt OutsouUFLQg This vertical provided transIormational beneIits to its clients across the
entire source-to-procure and payment value cycle. This vertical had more than 500 proIessionals managing over US
$17 billion in expenditure Ior its clients.











INFOSYS BPO Page 14 oI 19

Exhibit 6
OffHULQgs of IQfosys BPO - vHUtLFDO LQdustULHs

Banking
Retail banking, mortgages and consumer Iinance, credit cards, cash management and treasury,
trade, credit administration

Capital markets
Broker-dealers, transIer agency, Iund administration, custodian services, asset management

Communication
service providers
Service assurance, service/order IulIillment, billing and revenue assurance, data cleansing and
validation, content development and review

ManuIacturing
Quoting and demand IulIillment, material planning and sourcing, master data management,
product data management, mid-oIIice support, customer operations, supply chain and logistics
support

Insurance
Assurance, liIe and pensions, general, property and casualty, liIe and health, revenue cycle
management, underwriting, billing, denial management, claims adjudication, customer service

Healthcare and liIe
sciences
Scheduling, registration, charge capture and coding, billing, Iollow up, customer service
operations, enrolment, policy maintenance, claims administration, customer service, collections

Automotive and
aerospace
Finance and accounting, analytics, expense management retail services (auto Iinance, aItermarket
sales), services (warranty management, aIter sales service), indirect procurement (T&E, spend
analytics), order management (quote to cash), HR services and CRM.

Retail and CPG
Store solutions, master data management, supply chain solutions , content management, analytics
and knowledge solutions

Transportation and
services
Customer booking, documentation (bill oI lading, delivery order, arrival notices), tariII Iiling,
contract maintenance, claims handling, hazardous cargo approvals, business system
support/helpdesk, revenue accounting, reservation services, lost baggage handling, customized
procurement, direct marketing, and analytics.

Resources, energy,
and utilities
Mapping services, engineering services, expense management, industry-speciIic - Iinance and
accounting, order management, knowledge services and analytics, HR services, customer service










INFOSYS BPO Page 15 oI 19

Exhibit 7
IQfosys BPO oUgDQLzDtLoQ stUuFtuUH

























INFOSYS BPO Page 16 oI 19

Exhibit 8
TySLFDO tHDm dHsLgQ











INFOSYS BPO Page 17 oI 19

Exhibit 9
PUoFHss fOow - IDM SUoFHss
















INFOSYS BPO Page 18 oI 19

Exhibit 10
SDmSOH SUoduFtLvLty DQd quDOLty tUDFkHU


CDsHs WoUkHd
PhDsH AgHQt DDy 1 DDy 2 DDy 3 DDy 4 DDy 5 TotDO (UUoUs (duFDtLoQDOs AUHDs of CoQFHUQ
TUDLQLQg PhDsH
AgHQt 1 30 35 39 42 42 188 1 N/A None
AgHQt 2 2 44 51 57 42 196 0 N/A None
AgHQt 3 46 43 52 49 39 229 0 N/A None

CDsHs WoUkHd
PhDsH AgHQt DDy 1 DDy 2 DDy 3 DDy 4 DDy 5 TotDO (UUoUs (duFDtLoQDOs AUHDs of CoQFHUQ
WHHk 1 - O1T
AgHQt 1 64 45 50 35 60 253 0 N/A None
AgHQt 2 43 41 45 57 70 256 0 N/A None
AgHQt 3 45 41 44 56 0 187 1 N/A None

CDsHs WoUkHd
PhDsH AgHQt DDy 1 DDy 2 DDy 3 DDy 4 DDy 5 TotDO (UUoUs (duFDtLoQDOs AUHDs of CoQFHUQ
WHHk 2 - O1T
AgHQt 1 59 37 30 74 63 263 1 N/A None
AgHQt 2 58 20 34 80 0 192 0 N/A None
AgHQt 3 40 22 34 100 57 252 0 N/A None

CDsHs WoUkHd
PhDsH AgHQt DDy 1 DDy 2 DDy 3 DDy 4 DDy 5 TotDO (UUoUs (duFDtLoQDOs AUHDs of CoQFHUQ
WHHk 3 - O1T
AgHQt 1 34 0 63 64 79 239 1 N/A None
AgHQt 2 67 84 90 95 119 455 0 N/A None
AgHQt 3 62 83 91 140 107 483 1 N/A None

CDsHs WoUkHd
PhDsH AgHQt DDy 1 DDy 2 DDy 3 DDy 4 DDy 5 TotDO (UUoUs (duFDtLoQDOs AUHDs of CoQFHUQ
WHHk 4 - O1T
AgHQt 1 73 70 81 65 60 350 1 N/A None
AgHQt 2 91 110 80 118 136 535 0 N/A None
AgHQt 3 96 103 71 114 112 496 1 N/A None





INFOSYS BPO Page 19 oI 19

Exhibit 11
SDmSOH DUULvDO SDttHUQ of wLdgHts foU IDM SUoFHss


RHvLHw PUoFHss SHttOH
QuHuH QDmH Queue 1 Queue 2 Queue 3 Queue 4 Queue 5 Queue 6
AUULvDO SDttHUQ Daily Daily Daily Daily Daily Daily
TAT (dDys) 1 4 1 4 1 4
AHT (sHFoQds) 180 480 135 420 180 410
VoOumH DDy 1 3340 106 1569 306 868 545
VoOumH DDy 2 686 62 358 262 107 565
VoOumH DDy 3 367 60 368 446 258 897
VoOumH DDy 4 455 56 475 573 324 369
VoOumH DDy 5 788 48 4 428 256 511

x Queues 1, 3, and 5 reIer to simple widgets and Queues 2, 4, and 6 reIer to complex widgets.

Widgets typically arrive in batch Iorms at the beginning oI the day. While scheduling shiIt timing, InIosys BPO takes into account the time
diIIerence between the client country and India.