1. kasbtv.com IT-Enabled Remote Services: Altaf H. Khan Pakistan’s Irresistible Value Proposition

2. kasbtv.com 2 Overview IT-Enabled Remote Services The Offshore Model Survey results Opportunities & Challenges Which ITES is right for you? Wrap-up

3. kasbtv.com 3 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?

4. kasbtv.com 4 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 …

5. kasbtv.com 5 We Have … Doctors Dentists Pharmacists Nurses Lawyers Engineers Architects

6. kasbtv.com 6 We Have … Doctors Dentists Pharmacists Nurses Lawyers Engineers Architects Draftsmen Accountants MBAs Artists English speakers Clerical staff ???

7. kasbtv.com 7 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?

8. kasbtv.com 8 SW’s Offshore Model Offshore Center Onshore Center Client

9. kasbtv.com 9 IT-Enabled Services’ Model Offshore Center Onshore Center Client

10. kasbtv.com 10 Top Three … Strategic benefits Outsourcing users Industry sectors Barriers to success Selection criteria

11. kasbtv.com 11 Top Three … Strategic benefits Outsourcing users Industry sectors Barriers to success Selection criteria 1.Achieve cost reductions 2.Focus on company’s core businesses 3.Improve service quality

12. kasbtv.com 12 Top Three … Strategic benefits Outsourcing users Industry sectors Barriers to success Selection criteria 1.Canada 2.Australia 3.USA

13. kasbtv.com 13 Top Three … Strategic benefits Outsourcing users Industry sectors Barriers to success Selection criteria 1.Energy 2.Financial services 3.Technology

14. kasbtv.com 14 Top Three … Strategic benefits Outsourcing users Industry sectors Barriers to success Selection criteria 1.Organizational resistance 2.Unclear performance metrics 3.Loss of control of process

15. kasbtv.com 15 Top Three … Strategic benefits Outsourcing users Industry sectors Barriers to success Selection criteria 1.Guaranteed service levels in the contract 2.Proven track record in outsourcing 3.Specializes in the particular outsourcing sector

16. kasbtv.com 16 IT Enabled Remote Services Contact Centers Accounting & Financial Services Transcription Advice Over the Web HR Services Animation Development Insurance Claims Processing GIS & CAD

17. kasbtv.com 17 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

18. kasbtv.com 18 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

19. kasbtv.com 19 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

20. kasbtv.com 20 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

21. kasbtv.com 21 IT Enabled Remote Services Contact Centers Accounting & Financial Services Transcription Advice Over the Web HR Services Animation Development Insurance Claims Processing GIS & CAD

22. kasbtv.com 22 IT Enabled Remote Services Contact Centers Accounting & Financial Services Transcription Advice Over the Web HR Services Animation Development Insurance Claims Processing GIS & CAD

23. kasbtv.com 23 IT Enabled Remote Services Contact Centers Accounting & Financial Services Transcription Advice Over the Web HR Services Animation Development Insurance Claims Processing GIS & CAD

24. kasbtv.com 24 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

25. kasbtv.com 25 Pakistan’s Key Advantages Cost of labor Tax benefit Time zone difference Telecom rates Cost of infrastructure ???

26. kasbtv.com 26 Key Challenges Marketing Security & confidentiality Culture of quality Training Managers Telecom quality

27. kasbtv.com 27 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

28. kasbtv.com 28 Competition (2) US-based outsourcing companies: –Disadvantages: Higher cost; High employee turn-over –Our advantages: Lower cost

29. kasbtv.com 29 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

30. kasbtv.com 30 ITES in Pakistan CAD Accounting Medical transcription Call center ???

31. kasbtv.com 31 Which ITES is Right for You? 1.Determine your own profile 2.Determine the profile for various ITESes 3.Select the ITES whose profile matches best with your own

32. kasbtv.com 32 Dimensions of the Profile Marketing –Market size –Competitive advantage Human Resource –Leadership –Availability of: Experienced pros Junior pros –Training Infrastructure –Telecom –Distribution channels –Buildings Finances –Initial investment –Returns –Payback period –Ease of exit Growth –Scalability –Diversification opportunities –Sustainability

33. kasbtv.com 33 The Rating Scale ■■■■■ Very Unattractive UnattractiveModerateAttractiveHighly Attractive

34. kasbtv.com 34 The Rating Scale ■■■■■ Very Unattractive UnattractiveModerateAttractiveHighly Attractive

35. kasbtv.com 35 The Rating Scale ■■■■■ Very Unattractive UnattractiveModerateAttractiveHighly Attractive

36. kasbtv.com 36 The Rating Scale ■■■■■ Very Unattractive UnattractiveModerateAttractiveHighly Attractive

37. kasbtv.com 37 The Rating Scale ■■■■■ Very Unattractive UnattractiveModerateAttractiveHighly Attractive

38. kasbtv.com 38 Remote Accounting Services DimensionRating Market size■ ■ ■ ■ ■ Competitive advantage■ ■ ■ Leadership■ Experienced professionals■ Junior professionals■ ■ Training■ ■ ■ Telecom■ ■ ■ ■ ■ Distribution channels■ ■ ■ ■ ■ Buildings■ ■ ■ ■ ■ Initial investment■ ■ Returns■ ■ ■ ■ ■ Payback period■ ■ Ease of exit Scalability■ ■ Diversification opportunities■ ■ ■ ■ ■ Sustainability■ ■ ■ ■ ■

39. kasbtv.com 39 Call Center DimensionAccountsCC Market size■ ■ ■ ■ ■ Competitive advantage■ ■ ■ Leadership■■ Experienced professionals■ ■ Junior professionals■ ■ ■ ■ ■ ■ ■ Training■ ■ ■ Telecom■ ■ ■ ■ ■■ Distribution channels■ ■ ■ ■ ■■ Buildings■ ■ ■ ■ ■■ ■ ■ Initial investment■ ■ ■ Returns■ ■ ■ ■ ■■ ■ Payback period■ ■ ■ ■ ■ Ease of exit Scalability■ ■ ■ ■ ■ ■ ■ Diversification opportunities■ ■ ■ ■ ■ Sustainability■ ■ ■ ■ ■■ ■ ■

40. kasbtv.com 40 Insurance Claims Processing DimensionAccountsCCInsurance Market size■ ■ ■ ■ ■ Competitive advantage■ ■ ■ Leadership■■■ Experienced professionals■ ■ Junior professionals■ ■ ■ ■ ■ ■ ■ Training■ ■ ■ ■ ■ ■ ■ ■ Telecom■ ■ ■ ■ ■■ ■ ■ ■ ■ ■ Distribution channels■ ■ ■ ■ ■■ ■ ■ ■ ■ ■ Buildings■ ■ ■ ■ ■■ ■ ■■ ■ Initial investment■ ■ ■ ■ ■ Returns■ ■ ■ ■ ■■ ■ Payback period■ ■ ■ ■ ■■ ■ Ease of exit Scalability■ ■ ■ ■ ■ ■ ■ Diversification opportunities■ ■ ■ ■ ■ ■ ■ ■ Sustainability■ ■ ■ ■ ■■ ■ ■■ ■

41. kasbtv.com 41 Medical Transcription DimensionAccountsCCInsuranceTranscript Market size■ ■ ■ ■ ■ Competitive advantage■ ■ ■ Leadership■■■■ Experienced professionals■ ■ Junior professionals■ ■ ■ ■ ■ ■ ■ Training■ ■ ■ ■ ■ ■ ■ ■■ ■ ■ Telecom■ ■ ■ ■ ■■ ■ ■ ■ ■ ■ Distribution channels■ ■ ■ ■ ■■ ■ ■ ■ ■ ■ Buildings■ ■ ■ ■ ■■ ■ ■■ ■ Initial investment■ ■ ■ ■ ■ ■ ■ ■ Returns■ ■ ■ ■ ■■ ■ ■ ■ ■ Payback period■ ■ ■ ■ ■■ ■ Ease of exit Scalability■ ■ ■ ■ ■ ■ ■ Diversification opportunities■ ■ ■ ■ ■ ■ ■ ■ Sustainability■ ■ ■ ■ ■■ ■ ■■ ■ ■

42. kasbtv.com 42 Which ITES is Right for You? 1.Determine your own profile 2.Determine the profile for various ITESes 3.Select the ITES whose profile matches best with your own

43. kasbtv.com 43 Which ITES is Right for You? DimensionAccountsCCInsuranceTranscript Market size■ ■ ■ ■ ■ Competitive advantage■ ■ ■ Leadership■■■■ Experienced professionals■ ■ Junior professionals■ ■ ■ ■ ■ ■ ■ Training■ ■ ■ ■ ■ ■ ■ ■■ ■ ■ Telecom■ ■ ■ ■ ■■ ■ ■ ■ ■ ■ Distribution channels■ ■ ■ ■ ■■ ■ ■ ■ ■ ■ Buildings■ ■ ■ ■ ■■ ■ ■■ ■ Initial investment■ ■ ■ ■ ■ ■ ■ ■ Returns■ ■ ■ ■ ■■ ■ ■ ■ ■ Payback period■ ■ ■ ■ ■■ ■ Ease of exit Scalability■ ■ ■ ■ ■ ■ ■ Diversification opportunities■ ■ ■ ■ ■ ■ ■ ■ Sustainability■ ■ ■ ■ ■■ ■ ■■ ■ ■

44. kasbtv.com 44 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

45. kasbtv.com 45 Final Thoughts Concentrate on HR-intensive businesses Look for the widest wage differences Build on your strengths Leverage Pakistani expats for business development

46. kasbtv.com 46 Contact This presentation is available online at: –www.kasbtv.com My email address: –altaf@kasbtv.com