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Pakistan’s Irresistible Value Proposition. IT-Enabled Remote Services : Altaf H. Khan. Overview. IT-Enabled Remote Services The Offshore Model Survey results Opportunities & Challenges Which ITES is right for you? Wrap-up. The SW Export Hype.
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Pakistan’s IrresistibleValue Proposition IT-Enabled Remote Services:Altaf H. Khan
Overview • IT-Enabled Remote Services • The Offshore Model • Survey results • Opportunities & Challenges • Which ITES is right for you? • Wrap-up
The SW Export Hype • Excitement related to SW export is not justified • Show stopper: • Our inability to produce trained workers in rapidly increasing numbers • Is this the end of the Pakistan’s IT revolution that never was?
Long Live the IT Revolution! • But how? • We should try to leverage what we have, and not what we currently don’t! • We have been unable to produce quality SW developers in increasing numbers, but …
We Have … • Doctors • Dentists • Pharmacists • Nurses • Lawyers • Engineers • Architects
We Have … • Doctors • Dentists • Pharmacists • Nurses • Lawyers • Engineers • Architects • Draftsmen • Accountants • MBAs • Artists • English speakers • Clerical staff • ???
Extending the Offshore Model • The offshore SW services model has worked profitably for many Pakistani companies • Can we use the same model for other professions as well?
SW’s Offshore Model Client Onshore Center Offshore Center
IT-Enabled Services’ Model Client Onshore Center Offshore Center
Top Three … • Strategic benefits • Outsourcing users • Industry sectors • Barriers to success • Selection criteria
Top Three … • Strategic benefits • Outsourcing users • Industry sectors • Barriers to success • Selection criteria • Achieve cost reductions • Focus on company’s core businesses • Improve service quality
Top Three … • Strategic benefits • Outsourcing users • Industry sectors • Barriers to success • Selection criteria • Canada • Australia • USA
Top Three … • Strategic benefits • Outsourcingusers • Industry sectors • Barriers to success • Selection criteria • Energy • Financial services • Technology
Top Three … • Strategic benefits • Outsourcingusers • Industry sectors • Barriers to success • Selection criteria • Organizational resistance • Unclear performance metrics • Loss of control of process
Top Three … • Strategic benefits • Outsourcingusers • Industry sectors • Barriers to success • Selection criteria • Guaranteed service levels in the contract • Proven track record in outsourcing • Specializes in the particular outsourcing sector
IT Enabled Remote Services • Contact Centers • Accounting & Financial Services • Transcription • Advice Over the Web • HR Services • Animation Development • Insurance Claims Processing • GIS & CAD
IT Enabled Remote Services • Contact Centers • Accounting & Financial Services • Transcription • Advice Over the Web • HR Services • Animation Development • Insurance Claims Processing • GIS & CAD • Call Center • Email/Chat • Telemarketing
IT Enabled Remote Services • Contact Centers • Accounting & Financial Services • Transcription • Advice Over the Web • HR Services • Animation Development • Insurance Claims Processing • GIS & CAD • Remote Accounting • M & A Support • Financial Analysis & Forecasting
IT Enabled Remote Services • Contact Centers • Accounting & Financial Services • Transcription • Advice Over the Web • HR Services • Animation Development • Insurance Claims Processing • GIS & CAD • Legal • Medical • Dental
IT Enabled Remote Services • Contact Centers • Accounting & Financial Services • Transcription • Advice Over the Web • HR Services • Animation Development • Insurance Claims Processing • GIS & CAD • Medical • Legal • Financial
IT Enabled Remote Services • Contact Centers • Accounting & Financial Services • Transcription • Advice Over the Web • HR Services • Animation Development • Insurance Claims Processing • GIS & CAD
IT Enabled Remote Services • Contact Centers • Accounting & Financial Services • Transcription • Advice Over the Web • HR Services • Animation Development • Insurance Claims Processing • GIS & CAD
IT Enabled Remote Services • Contact Centers • Accounting & Financial Services • Transcription • Advice Over the Web • HR Services • Animation Development • Insurance Claims Processing • GIS & CAD
IT Enabled Remote Services • Contact Centers • Accounting & Financial Services • Transcription • Advice Over the Web • HR Services • Animation Development • Insurance Claims Processing • GIS & CAD • Scanning • Raster Vector • Dumb Smart
Pakistan’s Key Advantages • Cost of labor • Tax benefit • Time zone difference • Telecom rates • Cost of infrastructure • ???
Key Challenges • Marketing • Security & confidentiality • Culture of quality • Training • Managers • Telecom quality
Competition Competition comes in several forms: • No competition at all: • In-house service • Most significant • Disadvantages: Higher cost; Inefficiency; HR turnover • Our advantages: Fixed, lower cost
Competition (2) • US-based outsourcing companies: • Disadvantages: Higher cost; High employee turn-over • Our advantages: Lower cost
Competition (3) • Offshore service providers: • Ireland – Call Centers • Philippines – Animation; Remote Data Entry • India – Accounting; Animation; Call Centers • Many more • Disadvantages: None • Our advantages: None, but demand exceeds supply
ITES in Pakistan • CAD • Accounting • Medical transcription • Call center • ???
Which ITES is Right for You? • Determine your own profile • Determine the profile for various ITESes • Select the ITES whose profile matches best with your own
Dimensions of the Profile • Finances • Initial investment • Returns • Payback period • Ease of exit • Growth • Scalability • Diversification opportunities • Sustainability Marketing • Market size • Competitive advantage Human Resource • Leadership • Availability of: • Experienced pros • Junior pros • Training Infrastructure • Telecom • Distribution channels • Buildings
Which ITES is Right for You? • Determine your own profile • Determine the profile for various ITESes • Select the ITES whose profile matches best with your own
Summary • ITES is Pakistan’s irresistible value proposition and an ideal opportunity for entrepreneurs • Keys to success: • Form value-adding partnerships • Focus on operational excellence & customer satisfaction
Final Thoughts • Concentrate on HR-intensive businesses • Look for the widest wage differences • Build on your strengths • Leverage Pakistani expats for business development
Contact • This presentation is available online at: • www.kasbtv.com • My email address: • altaf@kasbtv.com