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Baelen Julien Baesen Cindy

V C U S T O M E R Establishing a Global Footprint. Baelen Julien Baesen Cindy. Baillie Camille Duquesne Stephanie. Overview. Criteria for Selection of potential Countries. Which countries should you consider?. Other areas to take into account. How will you succeed?.

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Baelen Julien Baesen Cindy

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  1. V C U S T O M E R Establishing a Global Footprint Baelen Julien Baesen Cindy Baillie Camille Duquesne Stephanie

  2. Overview Criteria for Selection of potential Countries Which countries should you consider? Other areas to take into account How will you succeed? vCustomer’s Challenges

  3. vCustomer’s Challenges Criteria for Selection of potential Countries Which countries should you consider? How will you succeed? Should we go forward?

  4. vCustomer’s Challenges Criteria for Selection of potential Countries Which countries should you consider? How will you succeed? Should we go forward? How to select potential countries? Which countries Recurent Countries Low Cost Fear of wages growth Wages Linked to wages growth Overheads Inflation Where will the demand emerge from How much and which growth Demand

  5. vCustomer’s Challenges Criteria for Selection of potential Countries Which countries should you consider? How will you succeed? Should we go forward? PEST - Weighted method Weight of 5 criteria based on different data Level in foreign languages skills Physically close to the clients Social - Cultural Economical stability Economical Technical - Logistics Reliable infrastructure Government stability Legal barriers Political - Legal Environmental Respect of the environment

  6. vCustomer’s Challenges Criteria for Selection of potential Countries Which countries should you consider? How will you succeed? Should we go forward? A world of possibilities ?

  7. vCustomer’s Challenges Criteria for Selection of potential Countries Which countries should you consider? How will you succeed? Should we go forward? AVERAGE MONTHLY WAGES JAN. 2007 (U.S $)

  8. vCustomer’s Challenges Criteria for Selection of potential Countries Which countries should you consider? How will you succeed? Should we go forward? Wages + Inflation

  9. vCustomer’s Challenges Criteria for Selection of potential Countries Which countries should you consider? How will you succeed? Should we go forward? BPO MARKET SIZE (Billion U.S $) & EVOLUTION China and Philippines have been eliminated because of main issues like : Rising costs, low English speaking population, recent entry into BPO, and cultural barrier with China. Terrorism, corruption, poverty, inequalities, poor infrastructure for Philippines.

  10. vCustomer’s Challenges Criteria for Selection of potential Countries Which countries should you consider? How will you succeed? Should we go forward? PEST Analysis - Weighted method

  11. 0 5 10 15 20 25 Social & Cultural (5) Economi-cal (4) Techno-logical / Logistics (3) Political & Legal (2) Environ-mental (1) Egypt Thailand Bulgaria AVERAGE vCustomer’s Challenges Criteria for Selection of potential Countries Which countries should you consider? How will you succeed? Should we go forward?

  12. 1 2 3 Thailand BULGARIA Egypt vCustomer’s Challenges Criteria for Selection of potential Countries Which countries should you consider? How will you succeed? Should we go forward? After this complete analysis, Bulgaria is the country cumulating the most weighted points.

  13. vCustomer’s Challenges Criteria for Selection of potential Countries Which countries should you consider? Howwill you succeed? Should we go forward? "Go East, and grow up with this country"

  14. vCustomer’s Challenges Criteria for Selection of potential Countries Which countries should you consider? How will you succeed? Should we go forward? Bulgaria SWOT Analysis Strengths Weaknesses Internal Opportunities Threats External

  15. vCustomer’s Challenges Criteria for Selection of potential Countries Which countries should you consider? How will you succeed? Should we go forward? The Entry Strategy • Barriers • Resources • Public Policy • Competition

  16. vCustomer’s Challenges Criteria for Selection of potential Countries Which countries should you consider? How will you succeed? Should we go forward? Focus on barriers Limited size market Close to Western Europe markets BUT The Bulgarian government’s willingness to solve the problem Established infrastructure in Sofia vCustomer’s activity requires low Infrastructure Poor infrastructures BUT Lack of management skills Training in the US Education programs Mixed team BUT

  17. vCustomer’s Challenges Criteria for Selection of potential Countries Which countries should you consider? How will you succeed? Should we go forward? Focus on resources Skilled labor force No need of hard & expensive trainings Good skills in languages Reduce recruiting problems & processes Efficient HR Management

  18. vCustomer’s Challenges Criteria for Selection of potential Countries Which countries should you consider? How will you succeed? Should we go forward? Focus on Public Policy Political corruption issues Internal transparency program Arcane administrative bureaucracy Increase controls & interviews

  19. vCustomer’s Challenges Criteria for Selection of potential Countries Which countries should you consider? How will you succeed? Should we go forward? Focus on competition Need to differentiate with added value transactions: The “One Stop Shop” The services provided The Indian competitors • Niche segments for you: • Retail • Health care • Manufacturing

  20. vCustomer’s Challenges Criteria for Selection of potential Countries Which countries should you consider? How will you succeed? Should we go forward? Should we go forward?

  21. vCustomer’s Challenges Criteria for Selection of potential Countries Which countries should you consider? How will you succeed? Should we go forward? New Opportunities

  22. vCustomer’s Challenges Criteria for Selection of potential Countries Which countries should you consider? How will you succeed? Should we go forward? Why you need SJCC Consulting... We know that… You should know… You are going to penetrate a new geographical arena Which opportunities should be grabbed There are new opportunities to seize Who are your main local competitors

  23. vCustomer’s Challenges Criteria for Selection of potential Countries Which countries should you consider? How will you succeed? Should we go forward? What you need... You are a challenger Customer satisfaction You want to differentiate You are a risk taker You want to develop into a “one stop shop” You are entrepreneurial & innovator You want to develop customer loyalty

  24. vCustomer’s Challenges Criteria for Selection of potential Countries Which countries should you consider? How will you succeed? Should we go forward? How to reach... New markets to develop

  25. vCustomer's Challenges Criteria for Selection of potential Countries Which countries should you consider? How will you succeed? Should we go forward? WHAT WE NEED TO EXPLORE FURTHER What are your investment forecasts? (short or long term) What is your financial situation? (Balance sheet & profit and loss account) A internal study of your weaknesses and strengths? (SWOT matrix) Market survey Who are your main clients Who are your main competitors in this new arena What is the potential demand composed of

  26. Thank you for your attention.

  27. Appendices Criteria for selection Wages in emerging countries Inflation in emerging countries BPO Geographic market PEST Data Bulgaria Eastern Europe and Bulgaria Bulgaria Sofia Go Forward Revenues from the BPO services

  28. Wages in emerging countries

  29. Inflation in emerging countries

  30. BPO Geographic market

  31. PEST Data

  32. Eastern Europe and Bulgaria

  33. Eastern Europe and Bulgaria

  34. SOFIA Demographics According to 1999 data,[3] the whole Capital Municipality, with a population of 1,326,377 as of June 2006, had a population density of 917.8, by far the highest in the country. The city itself has a population of 1,203,680.[1] The unemployment is significantly lower than in other parts of the country — 2.45% of the active population in 1999 and declining, compared to 8.97% for the whole of Bulgaria as of August 14, 2006 (also on the decrease).[4] The large share of unemployed people with higher education, 27% as compared to 7% for the whole country, is a characteristic feature of the capital. Economy Sofia is the major centre of Bulgaria's economic life. The manufacturing sector of the economy, represented by over 800 large manufacturing plants, includes metal products (75% of the total output in the country), textiles, rubber and leather goods, printing (50% of output) and electronics (15% of output). Sofia is also the country's financial hub, home to the Bulgarian National Bank, the Bulgarian Stock Exchange, as well as some of the country's largest commercial banks (such as HVB Bank Biochim, Bulbank, DSK Bank and United Bulgarian Bank). Construction, trade and transport are other important sectors of the local economy. Increasingly Sofia is attracting attention as an outsourcing location for Western European and American multinationals. Sofia is also the headquarters for major Bulgarian and international companies operating in Bulgaria and Eastern Europe. Transport and infrastructure With its well-developed infrastructure and strategic location, Sofia is an important centre for international railway and automobile routes. All major types of transport (except water transport) are represented in the city, which is home to 8 railway stations, the Centre for Flight Control and the Sofia Airport (hub for flag-carrier Bulgaria Air). Three Trans-European Transport Corridors cross the city: 4, 8 and 10. Public transit is well-developed, reliable and important to the city's economy; it is provided by means of underground trains (the Sofia Metro), buses, trams and trolleybuses. There are over 15,000 licensed taxi cabs operating in the city. The subway system became operational in the late 1990s but had limited extent. With the extensive growth of private automobile ownership in the 1990s the number of cars registered in Sofia has exceeded 500,000 in the past five years. Consequently the traffic (and air pollution) problems of the city have become more severe. Subway expansion plans are set to alleviate the situation when major routes are completed by 2008. Education There are 16 universities in Sofia. The Saint Clement of Ohrid University of Sofia is often regarded as the most prestigious university of Bulgaria, being founded in 1888 and having an incoming class of 14,000 students each year. Other important universities include the National Academy of Arts, the Technical University of Sofia, the University for National and World Economics, Sofia Medical University, the Krastyo Sarafov National Academy for Theatre and Film Arts and New Bulgarian University. Furthermore, institutions of national significance, such as the Bulgarian Academy of Sciences and the SS. Cyril and Methodius National Library are located in Sofia. The American College of Sofia, founded in 1860 and regarded as the oldest American academic institution outside the United States provides secondary education to some of Bulgaria's brightest students. The school was closed during the communist era and reopened in 1992. The first class of the reopened school graduated in 1997 and will celebrate their 10th year reunion in June 2007.

  35. Revenues from the new BPO services

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