sh it bpo overview

8/4/2019 sh IT BPO Overview

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IT/BPO Market Expansion &

Investment Promotion

Page 1

October 2010

by

Dr. P.K.Mukherji


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Background

Back round

Page 2

Current State of Bangladesh Industry

Investment Promotion Roadmap

Conclusion & Summary


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Industry Promotion requires complete appreciation of theopportunity by the various stakeholders.

It requires a wholistic and integrated approach with afocussed marketing strategy

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s a so mpera ve o ave consensus e ween var ousbodies, associations and government on the opportunity

and way forward

In addition, patience and perseverance of variousstakeholders over a extended period of time is required to

achieve the desired results.


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Global IT and BPO outsourcing markets have been growing at ahealthy rate

Worldwide Technology Related Spends Global Sourcing Market and Potential

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Worldwide IT Services SpendsWorldwide BPO Spends

Source: NASSCOM

IT and BPO offshoring will continue to grow at a significantly high rate in the next 5 years


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India Philippines Russia IrelandChina IsraelEasternEurope

LatinAmerica

Regulatory Environment

Labor Pool

Education

Cost Advantage

Quality Programs

Experience

Cultural Compatibility

India Philippines Russia IrelandChina IsraelEasternEurope

LatinAmerica

Regulatory Environment

Labor Pool

Education

Cost Advantage

Quality Programs

Experience

Cultural Compatibility

Key Evaluation Factors

Regulatory Environment &

Incentives

.. As a result, the offshoring landscape is an increasingly complexweb of service providers and global service delivery locations

Per our analysis, more than 80 countries are actively trying to position themselves asdestinations of choice in the Global Outsourcing Arena ..

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Canada Ireland

Mexico Bermuda

Russia

India

Israel China

Philippines

Malaysia

Brazil

Costa Rica

Chez RepublicHungary

Baltic Republics

Korea

Vietnam

Singapore

Argentina

Canada Ireland

Mexico Bermuda

Russia

India

Israel China

Philippines

Malaysia

Brazil

Costa Rica

Chez RepublicHungary

Baltic Republics

Korea

Vietnam

Singapore

Argentina

South Africa

Mauritius

Language Proficiency

Infrastructure

Overall Climate

Language Proficiency

Infrastructure

Overall Climate

Talent Pool

Culture

Geopolitical risks

Industry Best Practice

deployment

Local marketplace


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This pushes countries to pursue unique competitive strategiesto attract IT and BPO business

Country Attributes Focus

Mauritius

Open economy environment

State of art infrastructure

Convenient time zone

Bilingual workforce

Shared Services

Disaster Recovery

Bilingual Help Desk French

&English

PhilippinesConcentrated government push to promote the industry

Large English speaking population with affinity to US culture

Emphasis on Skill and talent development initiatives

Contact Centers

BPO Services

Animation

Botswana Innovation Hub offers high quality premises, telecommunications,business support and business development services to its tenants as well as

Technology companies in Mining ,sustainable energy and

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o swana suppor o en repreneurs o eve op an compe e n e g o a mar e .

Objective is to create an innovative and synergetic, growth and developmentoriented community with a drive for new business

o ec no ogy

Research and PG Institutes Inmining and energy sectors

Kenya

Plans to launch Kenya Transparency and Communication Infrastructure Project(KTCIP) to be implemented by the Kenya ICT Board.The overall objective of theKTCIP is to create an enabling legal, regulatory, connectivity and transparencyenvironment which will lead to broader access to ICTs and better service deliveryin the country.

Focus on education. Evolved as a good financial hub

English language call centre for UKand US

Data entry activities

Egypt

Large multilingual workforce. Low labor cost

Strong governmental support. Set up Smart Village a 600 acre ICT Park

Large domestic market

Proximity to Europe and Middle East

MNC Captive Centers with domesticmarket as carrot

Islamic accounting services

South AfricaEconomic powerhouse in Africa. Good Infrastructure

High R&D spend. Good Industry- Academia relationship

Large domestic market

Attract MNC captive centers

Transaction BPO


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A number of countries and trade bodies are actively working topromote IT-BPO industry

Government of Ghanas Ministry of Communications (MOC) is working topromote the IT Enabled Services (ITES) sector in the country.

The multi-year engagement is part of a World Bank funded initiative to supporteconomic growth in the region.

Working closely with the MOC and Ghanas burgeoning private-sector todevelop and implement strategies to grow and enhance Ghanas ITES industry.

Supporting ITES Secretariat in marketing, branding and investment promotionactivities including organizing inbound and outbound investment promotionevents

ITES Secretariat,Ministry of

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ECDC is the official economic development and investment agency for theEastern Cape province of South Africa. ECDC is wholly-owned by the EasternCape Government.

Conducted review of the current South African BPO strategies in terms ofsustainable marketing, enhancement of competitive advantages as well as aleveraging of investment opportunities.

Performed broad review of the BPO&O sector in the Eastern Cape in terms of itsability to significantly contribute towards GDP as well as its ability to createdirect and indirect employment opportunities.

Formulated a clearly identifiable Positioning Strategy and Value Proposition forthe Provincial BPO sector

Eastern CapeDevelopmentCorporation,South Africa

,

Ghana


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Leading countries and trade bodies have worked with externaladvisors to develop the IT-BPO industry

Government ofChina

Government ofPhilippines

Provided guidance in Strategy, Policy and Incentives for development of theBPO industry

Helped bring a Fortune 50 client to Manila Advised on organizing industry forums which could facilitate IT/BPO industry Advised the Secretary of Trade and Industry of the Government of the

Philippines

Advised various nodal agencies in the IT sector on creating global visibility andincreasing competency of Chinese IT industry

Developed evolving Go-to-Market strategy, particularly to address US andEuropean markets (IT/BPO)

Identified sectors to leverage Telecom, Manufacturing Advised on artnershi s with Indian firms to hel Chinese IT Industr

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Advisor to IT secretary in developing IT/ITeS Policy Charting out roadmap for implementation of IT/ITeS policy Conducted road show for Karnataka Government in key client markets in Japan,

US and UK Put together a long term vision and plan in place to make Karnataka as a

preferred destination from infrastructure and security perspective Brought many prestigious fortune 100 clients to Karnataka state

Ongoing advice in enhancing Karnatakas positioning in the IT/ITeS sector andsupporting greater traction with client organizations.

Advising in defining network and infrastructure required for setting upIT/ITeS industry

Revised STPIs customer facing marketing programs Assisting with interactions between visiting customers and STPI

Joint participation in various events

Govt. of

Karnataka, India

Software

Technology Parksof India


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India has gone through a long journey to reach success and hashad significant milestones

1958 Indian Statistical Institute Kolkata gets India's first computer Ural, from Russia

1968TCS established. Back then, it was known as Tata Computer Centre and provided computer services tothe Tata group companies.

1976-1981 Establishment of companies such as HCL, Wipro, Infosys and NIIT

1978 IBM asked to leave India, under Foreign Exchange Regulation Act

1984 Indian government announced the New Computer Policy

1988 NASSCOM is set up as the apex body for the IT-BPO sector in India

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1991 India announces New Economic Policy

1994 New Telecom Policy announced; allows Foreign Direct Investment in telecom

1997 Creation of Telecom Regulatory Authority of India

1998Government ends monopoly of VSNL. India opens up Internet sector to private Internet serviceproviders.

1999 Infosys becomes first Indian company to be listed on NASDAQ

2002 VSNL sold to Tatas; voice over IP is legalized; international long distance market is deregulated

2008 India's software exports cross US$40 billion mark

other developing nations can learn a lot based on Indian experience


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Based on intervention in last two decades, Indian economy hastransformed itself based on strong IT-BPO growth

0%

20%

40%

60%

80%

100%

FY80 FY90 FY02 FY08

Agriculture Industry Services

18%

19%

63%

The Indian economy has experiencedrapid growth buoyed by a shift from anagriculture to a services-led economy

BPO industry alone provides direct

employment to close to 800,000 people

IT/BPO Direct employment to reachnearly 2.2 million in 2009; indirect jobcreation estimated at ~8 million

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13.418.2

24.2

31.8

40.9

47.3

8.2 9.913.2

16.2

23.1 24.3

3.6%4.1%

4.6%5.2%

5.5% 5.8%

-1%

0%

1%

2%

3%

4%

5%

6%

0

10

20

30

40

50

60

FY2004 FY2005 FY2006 FY2007 FY2008 FY2009E

Exports Domestic Percentage of GDP

(USD billion)

Indian IT-BPO Sector: Revenue

Aggregate and Share of GDP

IT-BPO Sector has continuedto grow in last 5 yearscontributing significantly to

Indian GDP

Steady growth of 16 17%expected in future withbackdrop of economicdownturn and larger base


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Andhra Pradesh Shining Example in India

Strong leadership, participation and empowerment from Government

Substantial investment in infrastructure and talent pool

Created adequate built up space / infrastructure, through promotion of IT Parks/IT SEZs

Developed Incubation Centres in Hyderabad and Tier II Locations for SMEs/first

generation entrepreneurs.

Attracting marquee investors and then leveraging their story for marketing

Attracted new companies while providing scope and opportunities for existing investors

Investment Promotion Body was empowered to ensure speedy decision-making on behalf of

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t e government

Exports from Andhra Pradesh (Rs crores)


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Jaipur Emerging Tier II destination in India

~1.7x

Software exports grew at a CAGR of 32%, higher than the

national average of 18%IT- BPO Companies and Employees 1.2 times growth over past 2 years

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~7.1x~14.1x

Engineering Colleges in Jaipur Graduates in Jaipur (in 000) Over 400 institutions providing higher

education with 77% literacy rate in the state

7 times growth in FDI between 2007 and

2009 and 1.7 times in export revenues

14 times growth in graduated between 2005

and 2009

Growing investment of the government in

healthcare, capacity building, office space

and transportation


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Back round

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World Banks report outlines the key perceived Strengths andWeaknesses for Bangladeshs IT/ITES sector

STRENGTHS WEAKNESSESS

Abundant, young, trainable labor

Among the lowest IT/ITES labor costs in

comparison to India, China and Pakistan

Apparently supportive government and active

industry associations

Quantity, quality and relevance of skilled workforce is

inadequate

Weak and uncoordinated industry promotion despite a

generally negative country image and lack of visibility as

a potential IT/ITES destination Weak, unreliable and inconsistent infrastructure overall

Poor business environment in terms of corruption, time

to set up business, and recent security challenge

No cohesive workforce development initiatives targeting

youth or females

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OPPORTUNITIES THREATS

Global financial crisis means companies are

looking for places to cut additional costs, a

possible opportunity for Bangladesh, with lowlabor costs, to enter the market

IT Park-type activity to define a manageable space

within which the larger issues of infrastructure,

policy and image can be more successfully

addressed

Resource crunch as skilled labor is taken by other

business sectors

Declining number of enrollments in IT courses Insufficient English proficiency to capture ITES related

business opportunities including call centers

Lack of action in addressing infrastructure issues, policy

and regulatory framework to improve business

environment

Potential for strikes (hartals) and shutdowns that could

paralyze commercial activity


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IT Market in Bangladesh is in nascent stages but evolving

Total size of the IT market, excluding telecom, wasestimated to be US$300 million (2006), with IT/ITESindustry contributing 39% or US$117 mn.

More than 400 IT/ITES companies are registered inBangladesh and employ over 12,000 ICT professionals.

Per my analysis of these, about 2000 professionalswould be focused on exports

The major export market is North America, includingrecent activity to EU countries and East Asian countries,especially to Japan

BASIS Members Growth

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Scale of IT

Market inBangladesh

(USD 300mn

in Total)

Export Volume Software and ITES and Average Growth Rate

2003 2004 2005 2006 2007 2008 2009

Export Value (US$ mn) 4.2 7.19 12.68 27.01 26.08 24.82 32.91

Yearly Growth Rate 71% 76% 113% -3% -5% 33%

Source: Bangladesh Bank

Improsys and Southtech , and at least 30 of thosecompanies are established through joint-venture withan overseas company or as an offshore developmentcenter (ODC) with 100 percent foreign capital.

Export earnings from IT/ITES were USD 32.91 million inthe fiscal year 2008-09 registering a growth of 33%after two years of contraction (likely due to a change in

classification of IT/ITES revenue in the government).


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Back round

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Several key areas needs to be addressed before embarking on aneffective Investment Promotion

Sustained demographic advantage English and other language pool

Significant investments in capacity building, training and skill developmentTalent

Availability

Low cost structure People and Infrastructure

Tax Incentives and Other fiscal benefitsCost

Reliable and efficient infrastructure including world class real estate, telecom,Infrastructure

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Bangladesh has undertaken initiative to build on its strengths to attain

success in the emerging outsourcing sector

Stable political regime and geopolitical environment

Progressive free-market policy - Investor friendly policy formulation andinitiatives

Environment

Facilitation by the Industry and Trade Bodies Creation of a nodal agency tocoordinate efforts

Strong marketing and branding initiatives to promote the Industry

Industry

Support


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Investment Promotion requires an integrated approach to marketand position locations as destinations of choice

IT / BPO MarketExpansion

Help the Governments and/or trade bodies in developing acomprehensive strategy to make the country an attractive

destination for Outsourcing

Branding & Support in branding the countries outsourcing services offering soas to increase the level of positive perception in US and Europe and

IT / BPO MarketAssessment

Help the Governments and/or trade bodies in assessing thesuitability of their destinations as compared to other

emerging/emerged destinations

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os on ng

service provider geographies like India and China

CapabilityDevelopment

Assist service providers operating in country, to enhance theircapability, helping them develop a Go to Market Strategy and

introduce them to prospective clients

Investment

ManagementSupport the M&A and Private Equity activities of investors having an

interest in investing in the country.

Training &Coaching

Support Governments and/or trade bodies with ongoing research,training and coaching to keep them abreast of latest developments


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Market Assessment

Investment Promotion Roadma

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Market Assessment

Branding & Positioning

Business Linkage Events

Capability Development


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Market Assessment & Benchmarking requires a comprehensiveframework to assess National Competitiveness

Enabling

Industry

Inputs

Demand

Conditions

Public InfrastructurePhysical Facilities

TelecommunicationsWorkforce

Universit S stem

Tier 1&2 Service ProviderGrowth Projections

High Demand Niche AreasInvestor Value Proposition

MNCs Economic EnvironmentEnabling

Industry

Inputs

Industry

Inputs

Demand

Conditions

Demand

Conditions

Public InfrastructurePhysical Facilities


Universit S stem

Tier 1&2 Service ProviderGrowth Projections

High Demand Niche AreasInvestor Value Proposition

MNCs Economic Environment

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Systems

Niche AreasRegional Marketshare

Number of AgentsICT Industry Growth

Public

PolicyCompetition

Professional Education

ICT PolicyInfrastructure Policy

Data Privacy LegislationAntitrust Policy

Tax & Incentive Policy

Competitive DifferentiationGlobal Marketshare

Geographic BenchmarkingLocal/Regional Competition

ICT Industry AssociationsSystems



Public

Policy

Public

PolicyCompetitionCompetition

Professional Education


Data Privacy LegislationAntitrust Policy

Tax & Incentive Policy

Competitive DifferentiationGlobal Marketshare

Geographic BenchmarkingLocal/Regional Competition

ICT Industry Associations


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Government of Ghana outlined its Vision & Objectives for themulti-year eGhana initiative

MoCVision

Improving the enabling environment for the use and adoption of ICTsfor economic developmentGenerating increased employment in the IT and IT-Enabled ServicessectorEnhancing efficiency, transparency, and accountability to facilitategood governance and improve access to information and services forGhana citizens and businesses.

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EngagementObjectives

& Scope

Market Promotion and Business LinkagesMarket Promotion: Comprehensive BPO/ITES marketassessment, branding and market promotion to create additional4,000 direct jobs in BPO segments over next three yearsCatalyze business linkage initiative to enable growth of Ghana'sITES/BPO industry.

Relationship Building & Ongoing Support to MOCRelationship building with industryAssist MOC with cross cutting oversightProvide market intelligence


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ramework

RegionalC

Validation Of

Market

Opportunities

APPROACH & METHODOLOGY PROJECT OBJECTIVES

A structured Engagement Approach helps achieve the desiredresults

An industry leading best practice based phased approach will yield desiredresults for investment promotion

Creates Direct& Indirect

JobsCreatesService Supports Key

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Regio

nalCompetitivenes

sF

m

petitivenessFrame

work

BPO RelationshipBuilding &

Management

IT/ITES Industry

Promotion &Business Linkage

ITES

Secretariat

Global MarketIntelligence &MoC Support

CreatesIndustryDomain

Expertise

Expertise

Economies

AttractsGlobal

Investment

CreatesRegional HubLeadershipOpportunity

BPOMarket

Expansion


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Periodic and measurable deliverables enable to keep the initiativefocused

MarketAssessment

StrategyDevelopment

IndustryPromotion

Training &Coaching

Review CurrentState of ITES/BPOIndustry

Industry Analysis

tivities

Recommendation fordifferentiating andpositioning thecountry

Governmental policyanalysis - industryincentives,

PromotionalMaterialsPreparation

Business LinkagesTrip

Industry PromotionEvents

Provide insights intothe latest industrydevelopments

Provide insights toInvestment trendsin ITES/BPO sector

International/nation

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Industry CurrentState &OpportunitiesPresentation

ExecutivePresentation onCurrent State,Future Opportunities& Success Factors

A

Deliverab

les

investments in

education andinfrastructure etc

Strategic roadmapreport with keyrecommendationsand implementation

plan (sample onnext slide)

Initiative Support

Tasks

Presentations andmarketingcollaterals

Industry promotion

events (Out-bounddelegations andInbound summits)

al events/clients

that afford a goodopportunity topresent

IT and BPO ServicesUpdate

ITES/BPOInvestment Update

Industry Report,Govt. Initiatives andLocationAttractivenessAssessment

Brand Visibility andConference Updates


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The objective of Phase I of the engagement was to create thebasis for a strategy and roadmap to be executed over the courseof the engagement

Refineevaluation Final

Interviews withStakeholders

Advisory team incorporated the insights from the stakeholdersinterviews, and evaluated it against the global best practices for a

clear assessment of country's current state and its capabilities

Review Current State

Analyze Strengths & Weakness

Identify Target Markets & Segments

Enabling

Systems

Industry

Inputs

Demand

Conditions

PublicInfrastructurePhysical Facilities


UniversitySystemProfessional Education

Tier1&2 Service ProviderGrowth Projections

HighDemand NicheAreasInvestor ValueProposition

MNCs Economic EnvironmentICT IndustryAssociations

Enabling

Systems

Industry

Inputs

Industry

Inputs

Demand

Conditions

Demand

Conditions

PublicInfrastructurePhysical Facilities


UniversitySystemProfessional Education

Tier1&2 Service ProviderGrowth Projections

HighDemand NicheAreasInvestor ValueProposition

MNCs Economic EnvironmentICT IndustryAssociations

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update

recommendations

Report

Review andAnalysis of

Existing Reportsand Studies

Consultant Methodologies

Extensive DataCollection

Industry BestPractices

Build Strategic Roadmap

Understand Success Factors



Public

PolicyCompetition


Data PrivacyLegislation

AntitrustPolicyTax & Incentive Policy

CompetitiveDifferentiationGlobal Marketshare

GeographicBenchmarkingLocal/Regional Competition



Public

Policy

Public

PolicyCompetitionCompetition


Data PrivacyLegislation

AntitrustPolicyTax & Incentive Policy

CompetitiveDifferentiationGlobal Marketshare

GeographicBenchmarkingLocal/Regional Competition

Kickoff October 12, 2009

Start End4 weeks


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Intensive discussions, review and analysis led to the developmentof a comprehensive Strategic Roadmap for Ghana

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A number of factors need to be covered in developing a StrategicRoadmap Report

What is the current state of BPO/ITES sector?

What are the Current/Emerging Trends in Global Outsourcing?

What are the current service offerings?

Which are the target markets where there is opportunity for marketing countrys services?

What are the size and growth trends in these markets? What are the gaps in countrys service

offerings compared to market demand?

What is the list of primary attributes that companies look for when deciding where to

outsource operations or to locate an offshore facility?

How do buyers perceive countrys efficacy as a service provider destination when compared to

other geographies? What is the SWOT compared to other countries? How should the services

Strategic Roadmap Report Key Contents

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be differentiated from other geographies?

What needs to be done to strengthen positive perceptions of country as a destination foroutsourced services?

What should government do to increase its supply of skills for the industry?

What should be done to improve its physical and telecom infrastructure required to support

the industry?

What should be done to improve the capability and maturity of the existing service providers

to compete more effectively? What should be their process development plan? What type of legal and regulatory environment should be put in place to enhance buyer

confidence?

What type of government incentives should be provided to attract investments and grow the

industry?


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Market Assessment





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A structured approach aids the development of a uniqueproposition for Brand enhancement & subsequent implementation

Strategy review (if

required) Identification of Niche /Positioning Statement(s)

Documentation review &AnalysisReview of all current

Developing messaging

and marketing collateralfor each of the targetedsegments

Brand refinement andleverage

Tar et lists

Targeting Potential

InvestorsPartnerships andAssociations

Road-shows / BusinessLinkage Trips

On oin PR activities

1. Existing StrategyReview & Analysis

2. Message &Promotional MaterialDevelopment

3. Ongoing Marketing,Branding & PR

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marketing collateral /marketing elements

Study of in-process orcontemplatedmarketing activities

Strategy Formulation &Implementation Plan

communication plans,and distribution planning

Event Identification &Planning

Web Presence,Communication,Delivery, Research

ReportsNewsletters / IndustryReviews

Media Planning

Managing Media andPress

Consistent Messagingacross Media

Measurement &Monitoring


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Articulation of key Brand Elements is essential to uniquelyposition a location amongst the potential investors & influencers

ApproachInnovative

RelationshipBusiness

Innovative Approach: Country should be

positioned for certain key target segments within

ITES-BPO industry to build a unique value

proposition

Relationship Building: Building relationships with

incumbents, potential investors and other

Consultant needs to work with Promotion Agency to clearly outline the branding and

promotion themes

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BuildingFriendly

Future

Sector of Service

Excellence

ITES-BPOBRAND

ITES-BPO sector. Service Excellence: Country should strive to build

a strong service culture for the ITES-BPO sector

with emphasis on continuous improvement

Sector of the Future: Needs to create significant

awareness around ITES-BPOs promising future

and role for all stakeholders involved.

Business Friendly: Country should be promoted

as a business and investor friendly destination

through best-in-class policies and supportive

Government.


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During a Countrys Strategic Review, key areas and tasks forDevelopment of Promotional Material should be outlined

The objective should be to develop promotional material tailored to the action plan for increasing awareness

about countrys capabilities and value proposition in IT/ITES markets.

Consultant should support creation of specific marketing collateral and relevant fact sheets including

informational items designed to demonstrate value proposition of the countrys IT/ITES industry. The material

should be developed for differentiating and positioning countrys IT/ITES sectors

These promotional materials should be used selectively and distributed at key events worldwide, embassies,

trade shows, relevant online and offline media amon others

Development of Promotional Material

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Consultant should review the

existing collateral in detail and

provided inputs to create

additional marketing collateral

in terms of brochures, flyers,presentations, CDs/ DVDs etc.

Consultant should work closely

with Promotion Agency to

review the existing website.

It should provide

recommendations andmessaging material based on

promotion strategy and

benchmarking with other

competing nations.

Consultant should review the

need for a CRM system, by

understanding requirements

and should make

recommendations for suitableCRM applications for

monitoring and managing the

entire prospect lifecycle.

KeyTasks

Review and Creation of

Marketing Collateral

Review and support

Website CreationCRM System


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A number of promotional tools and channels should be used tocommunicate the marketing and branding messages

Promotional

Events

Promotional events should be the cornerstone of investment promotion

roadmap.

A number of in-bound and out-bound events should be organized and

participated in by countrys IT/ITES sector.

Website

Develop a website to act as the central repository of information and

should continually add more information and data to make it a rich source

of information for visitors.

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Brochures,

Flyers,

Leaflets

s recommen e o u arge e roc ures, yers an ea e s

providing detailed information for promoting the IT/ITES sector. Suchmaterial should be used in the conferences, workshops and other such

events.

Other possible channels & tools include:

Public Relations

Research Content

Industry Roundtables

Local Media

Non Resident Citizens

High Commissions &Embassies of other countries

MNC's expressing investmentinterest in other sectors forsymbiotic marketing

Industry Bodies

Internet / Electronic Media

Brand Ambassador / Face of the Industry

Industry Publications and Surveys

High Commissions

A b f l i f ll i di i i f h i


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A number of locations are following distinct strategies for theirmarketing and promotion Egypt Example

Investment Package for Investors Market positioning

Strong Infrastructure Development Strong Government Commitment along with

Incentives and Support for ITES/BPO sector

Scalable supply of highly educated skilled labor

force and multi-lingual capability

Primary destinations for Middle East Market and

Secondary destinations for Indian Service

Providers

Regional Software Development Center for MNCs

(e.g. Intel, IBM, Microsoft)

EGYPT

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Targeted Geography Activities Promotion

countries Call Center destinations for MNCs with multi-

lingual clients (French, Spanish, German and etc

Compiling a database of Egyptians working in

the IT industry in the US, Canada and the Middle

East Sponsor and attend events in the US, Canada

and the Middle East to inform the Egyptian

community (3-4 events yearly)

Organize events in Egypt for the Egyptian IT

community and investors abroad

Develop an information rich web portal to draw

audience

Establish a National Coordination Body (ITIDA)

Collaboration with India

Partnership with external consulting andadvisory firms

A b f l ti f ll i di ti t t t i f th i


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A number of locations are following distinct strategies for theirmarketing and promotion Philippines Example


Strong Infrastructure Development -Cyber

Corridor 5 mature sites, 21 locations with

existing ICT plans

Strong Government Incentives and Support for

English Call Center destination for Western

clients

F & A, Data Processing and other non-voice

based BPO for Western Clients

PHILIPPINES

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the ITES/BPO sector

One stop shop assistance for investors Highly educated skilled labor force and superior

English language capability compared to other

Asian countries

High end KPO based on its large supply in

Accountants, Animators, Electrical and Chemical

Engineers

Organize and subsidize outbound marketing and

investment promotion event in the targeted

markets

Host International Outsourcing Event and

Industry Affairs in Philippines

Develop an information rich portal and leverage

non-traditional channels for promotion

Establish a National Coordination Body (BPAP)

Collaboration with India

Partnership with professional marketing firms

for promotional activities

A number of locations are following distinct strategies for their


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A number of locations are following distinct strategies for theirmarketing and promotion South Africa Example


Nation wide incentive program for ITES/BPO

sector

Develop a talent development program

Develo ro rams to create and im rove BPO

Focus more on the value vs. cost

Leverage its domain knowledge in key verticals

such as financial services to offer back office

SOUTH AFRICA

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standards

Expand BPO destinations options in depressedareas

Effort in reducing telecommunication and

internet connectivity

Leverage its natural advantages in language,

time-zone and cultural affinity to offer contact

center services for MNCs

Focus on niche market (e.g. F&A, LPO)

Attend different outbound events in the

targeted market

Host international events in different South

African destinations

Developed a dynamic communication portal

Create a National Coordination Body (BPeSA)

Collaboration among Industry Associations,

Government Agencies and Private companies

Organize and support SA Service providers to

conduct outbound marketing activities

Partnership with other African countries


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Page 38

Market AssessmentBranding & Positioning



Business Linkage Events (Inbound & Outbound Events) play a


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Business Linkage Events (Inbound & Outbound Events) play acrucial role in branding, marketing and investment promotion

Several anticipated benefits are realized as a result of these trips:

Awareness & Brand Creation for ITES/BPO industry

Create a positive mindshare / perception as a Business destination

Attracting Potential Investors, Transnational Service Providers &Buyers

Great forums for learning, networking & exchanging ideas with Buyerand Su lier Communit Anal sts and Media

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It is important to set aside adequate budgets for organizing andparticipating in the events

Introduction and One-to-one meetings with decision makers of globalIT/BPO firms in attendance

Coordinating site visits to visit world-class delivery centers of severalGlobal IT/BPO firms

Developing closer relations with Tier 1 and Tier 2 global service

provider firms Best Practice sharing through organizing road-shows and workshops

Governments should follow a rigorous and iterative process to


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Governments should follow a rigorous and iterative process toincrease investment flow in the sector

Cycle 1 Cycle 2 Cycle 3

Typically to clientgeographies US, UK

Client geographies US, UK,Europe & Inbound

Service Provider Geographies &Inbound Summit

Market

Intelligence

Review

Delegation Messaging

& Communications


& CommunicationsOutbound

Business

Promotion

IV

III

V

III

V

Investor

Follow-Up Market

Intelligence

Review


& Communications


& Communications


& Communications


& CommunicationsOutbound

Business

Promotion

Investor

Follow-Up

Investor

Follow-Up

Page 40

Market

Expansion

Market

Expansion

Market

Expansion

Market

ExpansionDelegation

Messaging &

Comm.

Outbound

Business

Promotion

Text Text

Promotional

Strategy &

Material

Refinement

Outbound

Business

Promotion

Delegation

Messaging &

Communications

Outbound

Business

Promotion

Inbound

Business

Promotion

Inbound

Business

Promotion

I

II

III

IV

IV

III

IV

Market

Expansion

Market

Expansion

Market

Expansion

Market

ExpansionDelegation

Messaging &

Comm.

Outbound

Business

Promotion

Text Text

Promotional

Strategy &

Material

Refinement

Outbound

Business

Promotion

Delegation

Messaging &

Communications

Outbound

Business

Promotion

Inbound

Business

Promotion

Inbound

Business

Promotion

Inbound

Business

Promotion

Ongoing Support Services

Consultant should work closely work with Government to develop a customized eventcalendar. Typically each event cycle should be 4 to 6 months with an inbound event

following the outbound participation

Market

Expansion

O i i i f l d d il d l i


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Organizing events requires careful and detailed planning

An external advisor and coach needs to work closely with the investment promotionagency to meticulously plan, organize events and conduct post visit activities. Some ofthe detailed tasks and activities include:

Identification of appropriate events, topics and themes

Selection of right participants and delegates

Coaching of participants to align on common messaging

Event sponsorships assistance

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Event speaker slot and track selection Development of promotional material

Arranging One-to-One meetings prior to the event

Information sharing with potential contacts prior to event

Assisting in meetings and discussions Post event follow-ups including information dissemination, providing data,

responding to questionnaires, assisting in further visits

Assisting in conducting detailed due diligence, quality assessment

A number of Outbound Events were identified for Investment


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A number of Outbound Events were identified for InvestmentPromotion for the target client

February 15-17, 2010

IAOP Outsourcing

NASSCOM BPO

Strategy Summit

June, 2010

One of the premier BPO

Outsource World, New

York

October 2010*

Outsource World, New

Outsource World,

London

February, 2011*

Outsource World,

Event

Date

2010 Outsourcing

World Summit (IAOP),

Florida, USA

Page 42

the longest running and

highly acclaimedexecutive program on

outsourcing.

Prepare

budget for

participation

outsourcing calendar. It

has high profileparticipation from

leading BPOs & client

executives.

premier events in US

focusing on theoutsourcing industry.

premier events in UK

focusing on theoutsourcing industry.

Receive

budget

approval &

sanction

Prepare

speaker

and visitor

list

Develop

promotional

materials

Provide

participant

briefing

Overview

KeyTasks

* Tentative - Exact dates yet to be finalized

Inbound events were used in conjunction with the outbound trips


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j pto showcase the country

Outsourcing

Workshop # 1

Western Africa

Inbound Event # 1

Investor Summit

Inbound Event # 2

Investor Summit

Inbound Event # 3

Investor Summit

September, 2010

Workshop for

October, 2010*

A targeted delegation

May 2011*

The event will invite

August 2011*

The event will invite

Event

Date

Page 43

Western Africa region to

create awareness ofpotential benefits of

outsourcing

Prepare

agenda and

program

outline

.

delegation comprises of

18 20 CIO, CTO &CXOs from leading

Indian IT / ITeS

companies

outsourcing firms to visit

country and includefirms that have

expressed a compelling

desire to deploy

operations in the region

outsourcing firms to visit

country and includefirms that have

expressed a compelling

desire to deploy

operations in the region

Prepare

budget and

receive

approval

Develop

promotional

materials

Identify potential

speakers &

send invitations

Identify

participants

and send

invitations

Overview

KeyTasks

* Tentative - Exact dates yet to be finalized

Philippines has leveraged marketing events as the cornerstone of


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pp g gits investment promotion efforts...

# Date Event Location Event Type

1 February 11-12 NASSCOM Mumbai Trade Conference2 March 3-8 CEBIT Hannover, Germany Trade Conference

3 March Investment Mission Qatar, UAE, India Investment Mission

4 April Investment Mission Australia Investment Mission

BPAP has organized over a dozen outbound events in 2009 in key buyer geographies

Page 44

5 May 4-6 Gartner Summit Las Vegas, USA Trade Conference

6 July 27-28 Investment Mission Toronto, New York Investment Mission

7 July 29 Networking Dinner New York

8 July 30- 31 World BPO Forum Summit New Jersey Trade Conference

9 August Investment Mission Singapore Investment Mission

10 October 12-23 Investment MissionNew York, California,Florida

Investment Mission

11 November NOA Summit London Trade Conference

12 November Investment Mission London Investment Mission

Source: BPAP

South Africa has been very active in leveraging events toshowcase itself and has participated in a number of events over


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showcase itself and has participated in a number of events overthe last couple of years

# Date Event Location

1 18 20 Feb 2008 IAOP Outsourcing World Summit Florida USA2 2 4 Jun 2008 Gartner Outsourcing and IT Services Summit London

3 10 11 Jun 2008 NASSCOM ITES-BPO Summit Bangalore India

4 10 11 Jul 2008 SA BPO Policy Conference South Africa

Event Participation by South Africa

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5 15 16 Oct 2008 Outsource World Summit New York

6 11 13 Feb 2009 Nasscom Leadership Forum India

7 23 26 Feb 2009International Engineering and Technology Fair(IETF)

India

8 2 3 Mar 2009 Africa Outsourcing Summit London

9 15 16 Jul 2009 Gartner 6th

Annual Outsourcing Summit Sao Paulo

10 September 2009South African seminar on Legal and KnowledgeProcess Outsourcing

New York

11 16 22 Nov 2009 International BPO Policy Conference South Africa

Sources: BPeSA, www.southafrica.info

Mauritius has effectively organized In-bound events to attract key


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buyers

Board of Investment, Mauritius organized an invitation only

Inbound Event in October 2009. Two key tracks

Knowledge Sharing & Networking

Series of in-depth knowledge sharing presentations

delivered by independent industry specialist A number of case studies, shared by existing Mauritius-

based operators

Presence of the Mauritian Government to provide

Page 46

perspec ve on e curren an u ure ro e an prospec s

for outsourcing in the country Business Meetings

One-to-one meetings bringing together potential suppliers

and buyers of outsourcing services during the event

2 day event 2nd 3rd October 2009 held at Hilton Mauritius Resort

Hosted by Mauritius Board of Investment

145+ delegates from 40 companies spanning 10 countries attended the event

250 pre arranged One to one meetings between service providers and buyers


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Page 47

Market AssessmentBranding & Positioning



Training & Development requires multiple initiatives with varioust k h ld


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stakeholders

Training &Coaching ofInvestmentPromotion

Agency

Page 48

EnablingGovernment

with programsand inputs for

SkillsDevelopment

CapabilityDevelopmentof the Local

Industry

Ongoing Training & Coaching is crucial for success of investmentp omotion bodies and thei effo ts


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promotion bodies and their efforts

Ongoing Training and Coaching helps bodies be better prepared forany changes in the worldwide ITES/BPO market by:

Having the latest information to better facilitate the adoption to thechanged environment.

Help to evolve and then adopt Best Practices prevalent in the segment andsustenance of a more visible Brand

Page 49

Keeping abreast of latest Market developments

Proactively identifying potential Leads for investments

Understanding & analysing Investment trends in ITES/BPO sector

Policy initiatives launched by various governments at the national and sub-national level targeting investments in the IT/ITES sector

Market Scanning Identifying International/national events/clients thatafford a good opportunity to present

Key tasks in ongoing support include Relationship Building, CrossCutting Oversight and Market Intelligence


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Cutting Oversight and Market Intelligence

Put in place issue trackingand resolution process

Organize MonthlyRoundtable Meetin

Oversight Documentof Potential Investors

Support Ministry/Governmentand Others

RelationshipBuilding

Ongoing ResearchOf Industry

Cross CuttingOversight

Global Market

Intelligence

Advise on Policy,Investments, Branding etc

Page 50

Reporting and Follow-up Reporting & Follow-up

Status of ConsultantsDeliverables

Better Service Existing

and New Investors

Support to Ministry and

other Govt Departments

Ongoing Industry ResearchTo Assess and Realign

Strategies

A number of regular updates and market research enablessuitable policy intervention and course correction


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suitable policy intervention and course correction

Deliverable Frequency Objectives Key Outcomes

IT and BPO Services

UpdateMonthly

To better understand global scenario in terms of the

flow of outsourcing deals

To list the ITES/BPO deals and its movement

Analyze the trend in the industry

as a whole and the movement of

work among offshore, nearshore

and rightshore destinations and

also the core focus areas for the

government

ITES/BPO

Investment UpdateQuarterly

To track the latest information in teams of

investments by ITES/BPO companies and PE firms

in the business at a global level

To understand the investment trends in various BPO

sub-segments and geographies

To identify and facilitate potential

investments leads

Page 51

Industry Report,Govt. Initiatives and

Location

Attractiveness

Assessment

Half Yearly

o un ers an e c anges n e spaces

at a global, regional and local level

To study the various initiatives taken by differentcountries and regional governments for furthering the

space in their respective countries/ regions

To understand the change in country as a potential

outsourcing destinations after executing the results of

the study

Strengthen the current state of

the industry by adopting the latestand best suitable practices at the

earliest state

Steps to further Brand as a

positive outsourcing destinations

Brand Visibility and

Conference UpdatesQuarterly

To list all the prominent ITES/BPO conferencesaround the world. Understand the scope of each of

the conference and decide on a strategy to

represent, if required

Target all potential participants/ investors to organize

in-depth discussions as required

Creating Brand presence at

global events and therebyattracting potential investors

Have a multi-pronged strategy to

push country as a viable

destination against current market

leaders and emerging

destinations

To support Service Provider capability development acomprehensive enabling program needs to be undertaken


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comprehensive enabling program needs to be undertaken

OperationalExcellence

Process Excellence Certification Planning & Roadmap SEI/CMM Certifications

ISO Certifications COPC Standards Six Sigma Compliance Services Training & Development

Delivery Excellence Delivery Location Assessment Center Setup & Management

Cost Optimization & Benchmarking Delivery Best Practices Infrastructure Optimization Workforce Management Health Check & Ops Assessment Captive Center Management

Page 52

Go-to-MarketStrategy

Investment

Strategy

Market/Service Expansion New Market Entry Sales Strategy formulation Competitive Positioning Market Risks

Opportunity Management Customer Trends New Growth Opportunities Pricing Strategy Contract Management

Valuation

Fund Raising Mergers & Acquisitions Divestiture

Private Equity Investments

Joint Venture/Build OperateEquity PartnershipsBusiness Incubation

SAMPLE PROGRAM AGENDA CORE Program Modules


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Objective Broad Coverage

2. Effective Marketing Strategies

How do we ensure an

Analyzing and leveraging on internal strengths

Analyzing competition

Familiarize with today'smarketplace and key trends

Provide an introduction to The New Outsourcing Marketplace

The outsourcing ecosystem play

Understand emerging market business opportunities - key market trends

1. The Marketplace of Outsourcing

Page 53

effective Go-To Market New arenas for differentiation/growth

Make sure that you are in the right markets at right time

3. Supporting your Marketing Strategy

4. Driving your Sales Engine

Explore strategies andtechniques

Understand effective tools / techniques to achieve your marketing objectives

Using various channels for marketing and improving brand positioning

Improving sales conversionratios

Creating an Effective Sales function

Identifying various levers to differentiate

Ensure that your efforts realize in client wins

Understanding the changingoperational dynamics

Importance of a location to delivery

Measures/steps to reduce costs in operations

5. Building and Maintaining Efficient Operations

SAMPLE PROGRAM AGENDA OPTIONAL Program Modules


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Objective Broad Coverage

6. HR: The Art of Attracting and Retaining Talent

Overcome challenges in HR thatsmall and medium players face

HR Dynamics in the delivery engine

Strategies and tools to efficiently operate the HR function

7. Strengthening Risk Management including aspects of Risk, Compliance & Security

Understand how external andinternal threats can derail yourbusiness and reputation

Global best practices in Compliance and Security

Mitigating foreseeable risks

Page 54

.

Achieving continuousimprovements

Best Practices in Quality Management in delivery and establishing a qualitymanagement engine

Driving quality to satisfy client needs

Using quality as an effective marketing tool

9. Creating a Robust Governance Structure

Ensure that you dont drop theball in handling your clients and

critical business issues

Minimizing frictions and maximizing relationships using governance

Building Long Term Partnerships vs. Short Term Projects

10. Tools and Frameworks in Outsourcing

Steering outsourcing to asuccess

Various logistical tools and globally accepted frameworks in outsourcing

Adopting the right process to ensure success from outsourcing

A Comprehensive review of Skill Development is required togroom industry ready talent


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Skill Assessment & TrainingRequirements

Training & CurriculumDevelopment

g y y

EducationalInstitutions

Curriculum Sourcing Trainer Profiling

Service Providers Curriculum Creation Training Execution

Trainer Skill Development

Page 55

Government

Incentives Channel Development

Trainer, Facility &

Student Certification

Determination of

program objectives,

drivers and constraints

Development of specific

curriculum for all

program stakeholders

Training deployment

and development of

certification standards

Industry based training program for the talent pool is fundamental to success


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Back round

Page 56

Current State of Bangladesh IndustryInvestment Promotion Roadmap


Investment Promotion requires a long-term sustained effort todeliver desired results


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Page 57

Phase IFindings

(Nov 2009)

IAOPConference(Feb 2010)

Post development of promotional material, Consultant should engage in organizing business

linkage trips and providing Ongoing Support

NASSCOMBPO Summit,

June 2010

Client countrys sustained and focused efforts have startedyielding results within first 12 months


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Immediate Job creation of 1500 people in next threemonths from single investor

Page 58

Service Providers for another 8000 jobs in 12 months

Positive mindshare within Tier 1 and 2 outsourcing

firms, Global corporations, Analyst firms, Media andIndustry associations

Bangladesh should actively undertake steps to promote the IT-BPO industry


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Strong participation and leadership from theGovernment

Create and empower a nodal agency to coordinateefforts and ensure speedy decision making

Page 59

incentives and policies to cater to individual

requirements of investors

Invest in building infrastructure and enhancing skillbase

Work with International experts and thought leaders todevelop a unique differentiation for Bangladesh

Identifying and working with a right advisor enables effectiveprogram delivery, coordination and monitoring


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Deep relationships in buyer market such as US and UK and a strong

presence in leading service provider geographies like India, China, PhilippinesMexico and Latin America.

Should have a strong track record of helping similar clients with overallstrategy, conducting business linkage trips and performing investmentpromotion services

Should have a strong client base such as National and State Governments,public sector organizations, Multinational Corporations, Trade Associations

Page 60

and Government Entities.

Proven methodologies, tools and frameworks to deliver its services along withstrong research and Market Intelligence Capabilities

Multi-cultural team with extensive international consulting expertise andexposure

Experienced advisors with significant experience in Outsourcing and workedwith C Level Executives in Global 1000 organizations.

Recognized by industry and credible market publications.

To summarize, Bangladesh should leverage learning's from pastexperience of other nations


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It is very essential that there is one single body for overseeing and coordinatinginvestment promotion reason for success of India, Philippines and Egypt

Need to leverage and review all relevant work conducted in the past to develop awell defined market promotion strategy which identifies the key target markets and

services

Undertake a strong intervention to improve physical infrastructure and operatingenvironment through favorable policies and incentives

Page 61

Strong emphasis on highlighting crucial branding elements through development of

high quality promotional material including website and brochures etc.

Identification of potential events, relevant themes, finalizing budgets, ensuringparticipation, and finally contact and lead management

Ongoing programs and coaching to various stakeholders through structured

workshops and sessions

We believe that if all activities are undertaken in a diligent fashion with guidance fromexternal advisors, Bangladesh has the potential to generate up to

30,000 jobs in next 5 years and reach $500 million in export revenue in the next 5 years.


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Thank You

Page 62

Contact:

Dr. Pradeep MukherjiConsultant

+91-98210-80841

+1-646-403-9743

[email protected]

sh it bpo overview

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