Global
Service Delivery (GSD) Component
Global research indicates that 40 percent of ITO transactions
have an offshore or global service delivery (GSD) component,
while fully 76 percent of BPO transactions had GSD as
a component. Also, the GSD push shows no sign of abating
in the coming years – 80 percent of large enterprises
are focusing on getting up to 30 percent of their IT labor
force offshore in the next three years.
Traditionally, the GSD component was based on three typical global outsourcing
models – Captive Partnership, Third Party Services Provider
and Joint Venture. Over the years, global outsourcing
has become more critical to successful strategies. As
such, organizations are taking a longer-term, strategic
perspective. Organizations are employing hybrid models
(a mixture of do-it-yourself and outsourcing) and service
provider rationalization. Joint Venture, Build Operate
Transfer, Traditional Outsourcing, Co-managed Outsourcing,
Assisted Build Out, Reserved Capacity operating models
are also coming more into vogue.
Cres-Tech’s Value Proposition
Cres-Tech is a part of the Crescent Group which has
been in business for more than 50 years and has emerged
as the premier industrial and financial conglomerate
in Pakistan. The Group’s vision, professionalism and
sound business practices have enabled it to enter into
a number of joint venture, strategic alliance, equity
participation and debt financing agreements with leading
American and European companies.
In line with this proven business development strategy,
Cres-Tech is committed to develop partnerships based
on a longer-term strategic perspective. The aim being
to develop a state-of-the-art, full service BPO center
in Pakistan which would provide industry standard quality
of services to the partner organization while offering
33% to 50% cost savings. It is envisaged that the partner
organization will bring business and knowledge of the
involved functions while Cres-Tech would bring rich
BPO industry experience, a strong financial platform,
deep understanding of technology and a vast pool of
experienced and competent human resource.
The key success factors of the partnership would be:
-
Outsourcing readiness of both organizations
and the chemistry at the start
-
Developing close understanding between
the partners
-
Outsourcing relationship based on
transparency and responsiveness
-
Culture and capabilities fit between
the partners
-
Development of cultural compatibility
with the partner organization through customization
of processes in areas such as HR and Finance
-
Sharing of knowledge and expertise
by both partners to ensure smooth transition
-
Adoption by Cres-Tech of all the processes
and best practices of partner organization
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Informed Decision Making Process:
Cres-Tech firmly believes in complete sharing of its
knowledge base and expertise with the prospective customer
and partner organizations as part of informed decision-making
process. We strongly recommend that our prospective
customers and partner organizations go through the “Global
Outsourcing Models Analysis” and “Partnership
Options” to arrive at a sound decision with longer-term
strategic perspective.
Non-Disclosure Agreement: At Cres-Tech,
we value our customers and partners businesses and stress
strict confidentiality in all of our business dealings.
When we work with a customer or a partner, we are fully
bound by a Mutual Non-Disclosure Agreement (NDA). We
always respect and honor these agreements.
Partner With Us: If you are interested
in working with Cres-Tech as a partner organization,
please click on the link “Partner
With Us” fill up the details on the form and we
will revert back to you with more details.
Our Edge: Our prospective partners
can learn more about the strengths of Cres-Tech as an
offshore BPO services company in Pakistan by clicking
on the link “Our Edge”
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Global
Outsourcing Models Analysis
Cres-Tech undertook detailed analysis of the traditional
global outsourcing models based on the following objectives:
-
Why do buyers opt for a particular
model of offshore BPO?
-
Does the decision on the BPO model
differ for different categories of buyers (Outsourcers
vs. End users)?
-
Are there patterns across different
verticals?
-
What is the influence of buyer size
and management bandwidth on the model decision?
-
Is there a criteria set to decide
on the appropriate model for offshore BPO?
Study Findings: The JV/Partnership
model inculcates the best of the captive and third party
models and hence is appealing across buyer segments.
Criterion
for Evaluation |
Captive
Model |
Third
Party Services Provider |
JVs/
Partnerships |
 |
| Process
Maturity |
Low |
High |
High |
| Initial set up costs
|
High |
Low |
Low |
| Operation
Mode |
Cost
centers |
Cost
centers |
Profit
center |
| Pay back period
|
4-5 Years |
6 months to one
year |
6 months to one
year |
| Exit
costs |
High |
Low |
Medium |
| Data security |
High |
Low |
High |
| Scale
required |
Large |
Low/Medium/Large |
Low-Medium |
| Lead time before
offshoring the process |
Long |
Short |
Short |
| Management
Control over Process |
High |
Low |
High |
Management buy-in
and commitment to
spend time
|
High |
Medium |
High |
| Flexibility
to source from multiple vendors |
Low |
High |
Low |
| Nature of processes
commonly outsourced |
Core and critical |
Non core and non
critical |
Non-core and critical |
| Destination
familiarity required |
Yes |
No |
No |
| Business Continuity
Risks Perceived |
Low |
High |
Medium |
| Operational
Efficiencies |
Low |
High |
High |
| Resource Flexibility
|
Low |
High |
Low |
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Partnership Options
Cres-Tech is desirous of developing
meaningful partnerships with renowned international
customer organizations based on longer-term, strategic
perspective. We are open to discuss and enter into one
of the following partnership options with prospective
customer organizations:
Joint Venture: Joint Venture arrangements
are being increasingly used in establishing offshore
centers, particularly in Pakistan, India and Philippines.
In this engagement model, the customer organization
and offshore supplier set up a joint venture entity
that will predominantly service the customer's business.
The offshore supplier brings the local expertise and
service skills while the customer brings its knowledge
of the existing business function while maintaining
greater management control. In the long-term, JV partnership
model is the most appropriate for all categories of
buyers excepting very large buyers. For mid-sized outsourcers,
the partnership model is ideal to kick off and grow
offshore operations. This proven service platform enables
the customer organization to achieve following advantages:
-
Process maturity level is high
-
Initial setup costs are low
-
Operation mode of business as a profit
center
-
Pay back period is 6 months to one
year
-
Exit costs are medium
-
Data security is high
-
Business start-up scale is low-medium
-
Lead time before offshoring the process
is short
-
Management control over process is
high
-
Management buy-in and commitment to
spend time is high
-
No destination familiarity is required
-
Business continuity risks perceived
are medium
Build Operate
Transfer: Through this model, the outsourcing
provider helps the client set up the contact center
from start to finish. The association covers establishment
of the operation, acquisition of facilities and staff
and extends to actually running the center for a defined
period. Once the center and services are well established,
management and ownership is transferred to the customer.
This proven service transfer platform is designed to
ensure process integrity and minimize inherent migration
risks.
Traditional
Outsourcing: In the traditional outsourcing
an entire business process is moved offshore in order
to leverage the expertise and cost benefits offered
by the outsourcing partner. This model works well for
routine, non-core business processes. The outsourcing
company takes complete responsibility for carrying out
the business process. The company makes quality measurements
on process outcomes, but does not directly manage the
process.
Co-Managed Outsourcing: Co-managed
outsourcing follows the traditional outsourcing model;
the only difference is that a manager from the customer
organization is located at the offshore center. This
approach provides an added level of confidence because
of the presence of an experienced company manager, while
it takes full advantage of the offshore partner's knowledge
of local laws and culture.
Assisted Build
Out: The Assisted Build Out model works
well for organizations that require assistance with
specific processes associated with captive operations.
Some of the processes include recruitment, training
or quality initiatives.
Reserved Capacity:
The reserved capacity model, primarily meant for captive
operations enables the purchase of enough outsourced
capability, in terms of staff and infrastructure, to
perform a certain amount of work. This capacity is kept
in place, regardless of the workload. When this option
is employed, the captive center does not have to adjust
staffing to meet workload demands - thus avoiding the
expenses associated with constant staffing readjustments.
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