ITES/BPO – Opportunity to move
up the value chain?
Presentation at iTECH 2004
January 13, 2004
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20030520DL-ZXE332(ITES, Board Pres.)(JS)-7
CONTEXT: BUSINESS PROCESS OFFSHORING HAS EXPLODED IN
THE LAST FEW YEARS…
Demand side forces
• Encouraging track
•
•
record of early movers
Demanding U.S market
environment
Successful track record
of I/T offshoring
BPO total revenues- India example*
$ billion
2.0
1.8
1.6
1.4
Supply-side enablers
1.2
• Telecom costs down by
1.0
•
90% in the last 3 years;
world-class reliability
Over 2.5 million low-cost
talented workers in
countries such as India
and Philippines
0.8
0.6
0.4
0.2
0.0
• Emergence of a credible
vendor community
Source: Gartner; Dataquest; Aberdeen group; McKinsey analysis
1
20030520DL-ZXE332(ITES, Board Pres.)(JS)-7
…BUT HAS ALSO CREATED GREAT ANXIETY IN PRIMARY
MARKETS
“Tech jobs leave U.S. for India,
Russia. Who’s to blame?”
– July 2003
“America’s pain, India’s gain”
– January 2003
“3.3 million U.S. service jobs
to go offshore by 2015”
– November 2002
“American legislators are
accusing India of stealing jobs”
– June 2003
U.S. House
Sub-business
Committee
“Can America Lose These
Jobs and Still Prosper?”
– July 2003
“Is your job next?”
– February 2003
2
20030520DL-ZXE332(ITES, Board Pres.)(JS)-7
IN THIS CONTEXT, SEVERAL DOUBTS HAVE ARISEN ABOUT THE
FUNDAMENTAL LONGEVITY AND EVOLUTION OF BPO AS AN
INDUSTRY
• Will the BPO
phenomenon plateau out
in the next few years?
• Even if it survives,
moving up the value
chain will be difficult and
will take several years?
• Value chain moves will be
the domain of captives
because the trust
required is too high?
3
20030520DL-ZXE332(ITES, Board Pres.)(JS)-7
IN THIS CONTEXT, SEVERAL DOUBTS HAVE ARISEN ABOUT THE
FUNDAMENTAL LONGEVITY AND EVOLUTION OF BPO AS AN
INDUSTRY
• Will the BPO
phenomenon plateau out
in the next few years?
• Even if it survives,
moving up the value
chain will be difficult and
will take several years?
• Value chain moves will be
the domain of captives
because the trust
required is too high?
4
20030520DL-ZXE332(ITES, Board Pres.)(JS)-7
1. OFFSHORING ACTUALLY GENERATES GREATER VALUE FOR
THE GLOBAL ECONOMY
1.45-1.47
0.45-0.47
$1.00
0.67
0.33
$1 previously
spent in U.S.,
now offshored
to India . . .
. . . delivers
value to
India . . .
• Taxes ($0.04)
• Revenues
. . . brings
returns
to U.S. . . .
• Cost
. . . creates
new value
from reemploying
U.S. labor*
...
savings
($0.20)
($0.58)
• Local suppliers • Goods sold
($0.09)
($0.05)
• Profits
from Indian
ventures
* Estimate based on historical U.S. reemployment trends
($0.04)
Source: McKinsey Global Institute
. . . and
makes
the
global
pie that
much
bigger
5
20030520DL-ZXE332(ITES, Board Pres.)(JS)-7
INDIA CAPTURES 33 CENTS FROM EACH DOLLAR
OF SPEND OFFSHORED BY THE U.S.
Value accrued from $1 of U.S. spend offshored1
Dollars; 2002
0.33
0.03
0.01
0.09
0.10
Labor
0.10
Profits
retained
in India
Suppliers2
Central
government3
State
government4
Total value
accrued to
India
Offshoring sector
1 Estimated using the India offshored services industry case
2 Includes revenue accrued to the supplier industries less sales taxes, income taxes to employees and corporate taxes
3 Includes income tax from labor employed in the offshored services sector and the supplier industries and corporate
tax on the supplier industries
4 Includes sales tax on the supplier industries and revenue from the sale of power to offshored service providers
Source: McKinsey Global Institute
6
20030520DL-ZXE332(ITES, Board Pres.)(JS)-7
JOBS OFFSHORED WILL BE A SMALL FRACTION OF THE
SHORTAGE IN ELIGIBLE WORKERS
Number of workers
Millions, 2000-2015
15.6
3.3
Jobs
projected to
go offshore
Source: U.S. Census; McKinsey Global Institute
Decline in
working
population
due to aging
7
20030520DL-ZXE332(ITES, Board Pres.)(JS)-7
JOBS OFFSHORED ARE A FRACTION OF ALL MASS LAYOFFS
Average annual mass layoffs1
Millions
1.17
0.27
All mass
layoffs2
Traderelated
layoffs3
0.21
Offshoring
projection4
1 Bureau of labor statistics defines mass layoffs as job loss actions leading to the displacement of 50 or more
workers by a given establishment during a 5-week period
2 Average 1996-99
3 Average 1989-2000
4 Average 2003-13
Source: NBER; BLS; Kletzer; McKinsey Global Institute
8
20030520DL-ZXE332(ITES, Board Pres.)(JS)-7
THEREFORE, BUSINESS LOGIC WOULD INDICATE THAT BPO
HERE TO STAY … BUT WILL REQUIRE HANDLING CUSTOMER
CONCERNS WITH COMPASSION
Economic value of off-shoring real
• Off-shoring creates 40-50%
greater value for the global
economy
• India captures 33% of every offshored dollar while the US retains
67% and the incremental 40-50%
value creation
• Off-shored jobs small fraction of
expected retirements/lay-offs
Negative emotional impact at the
customer equally real
• Real people and communities are
effected
• Re-training takes time
• Manufacturing hang-over still felt
9
20030520DL-ZXE332(ITES, Board Pres.)(JS)-7
IN THIS CONTEXT, SEVERAL DOUBTS HAVE ARISEN ABOUT THE
FUNDAMENTAL LONGEVITY AND EVOLUTION OF BPO AS AN
INDUSTRY
• Will the BPO
phenomenon plateau out
in the next few years?
• Even if it survives,
moving up the value
chain will be difficult and
will take several years?
• Value chain moves will be
the domain of captives
because the trust
required is too high?
10
20030520DL-ZXE332(ITES, Board Pres.)(JS)-7
FOUR POSSIBLE VALUE CHAIN MOVES POSSIBLE
C: “Externalize”
Base
Completed the
first round of
off-shoring
successfully
• Built
substantial
scale in
operations in
India
• Penetrated 12 businesses
in depth
• Started
capturing
labour cost
savings
A: “Accelerate,
extend breadth
and depth”
• Increase breadth
and depth of
services
• Strengthen and
stabilize
architecture
– Insourceoutsource,
onshoreoffshore
architecture
– Global hub
architecture
– Strategic
outsourcing
B: “Re-engineer”
• Drive towards
operational
improvement
–Task level and
process level
reengineering
–Consolidation and
aggregation of
functions
• Leverage low cost
position to start
offering new services
to customers and
improve competitive
position in home
markets
• Take robust platforms
external and create
value out of the shared
services utility
–Specialized service
bureau
–Generic third party
BPO provider
11
20030520DL-ZXE332(ITES, Board Pres.)(JS)-7
A. MOVES UP THE VALUE CHAIN ALREADY
HAPPENING IN TERMS OF BREADTH AND DEPTH
OF PROCESSES OFF-SHORED
Advanced
Simple, standardized
activities
Examples of
sector-specific
(“vertical”)
processes
Examples of
corporate center
(“horizontal”)
processes
technical skill and
some judgment
required
HSBC
• Inbound customer service
AXA
center for mortgage
• Insurance claims processing Citibank
Citibank
• Credit card processing,
• Check processing, account
collection calls, inbound and
application processing, loan
outbound service centers
processing by a subsidiary
Capital One
(e-Serve)
• Inbound customer service
GE
center, outbound telemarketing
• UK auto applications data entry (MSourcE)
HSBC
• Account opening and closing, GE Capital
• Insurance claims processing
retail loan processing,
• Outbound telemarketing,
mortgage processing
inbound customer service
MBNA
• Processing of online
applications (TransWorks)
GE Capital
Citibank
• Payroll accounting
• Finance and accounting
• Invoice and payment processing
Extensive
judgment and analytical
skill required
American Express
• Live brokerage advice from
qualified agents through a
vendor in the Philippines
(eTelecare)
• Extensive offshoring of credit
card services (including risk
modeling and credit
evaluation)
• Extensive financial analyses
GE Capital Business Solutions
• Risk modeling, actuarial
services, underwriting
McKinsey & Company
• Research and knowledge
management for world-wide
offices in Gurgaon
GE Capital
• Risk analysis, strategic planning
and forecasting
• Financial statement analysis
12
20030520DL-ZXE332(ITES, Board Pres.)(JS)-7
IN FIs, VENDORS AT POINT OF SERVICING THE WHOLE RANGE
OF CORE BANKING AND SUPPORT PROCESSES
Sample processes
Core
business
Consumer
banking
• Retail banking (account
Wholesale
banking
• Fund administration
• Reference data management
Insurance
Back
office
Business
process
off-shoring
services
Support
Illustrative vendors
maintenance, opening, check
processing)
• Claims processing
HR/ Admin
• Benefits administration
• Payroll processing
Finance &
Acctg.
• A/R and A/P management
• Reconciliation
• Database integration &
Research
analytical services
• Secondary research
Outbound
Voice
Inbound
Customer
facing
Non-voice
•
•
•
•
•
Telemarketing
Collections (bucket one)
Telesales
Customer service
Technical support help desk
• E-mail support
• Fax responses
• Live interaction (chat
room customer service)
Source: Vendor interviews, literature searches, vendor websites, McKinsey analysis
13
20030520DL-ZXE332(ITES, Board Pres.)(JS)-7
B. REENGINEERING AND PROCESS IMPROVEMENT CAN PROVIDE
ADDITIONAL GAINS OF 30-40%
Factor cost benefits
(45-55% savings)
100
Additional benefits
(30-40% savings)
Does not
include gains from revenue
enhancement
60-65
10-15
45-55
8-13
5-7
Original
cost
base
Factor
cost
savings
Additional
telecom
& management
costs
Task migration
Off-shore
location
cost
Consolidation,
standardization &
superior
skills
Task level
improvement
Task
reengineering
3-5
Economies of
scale
15
Process
reengineering
30-35
New cost
base
Task aggregation and
process level
improvement
14
20030520DL-ZXE332(ITES, Board Pres.)(JS)-7
IN FACT, OVER TIME COMPANIES HAVE CAPTURED ADDITIONAL
PRODUCTIVITY GAINS
Productivity and process re-engineering
Efficiency
Efficiency
Economies of
scale
• Increased first time
• Reduced average call
• Aggregated cheque
resolution rates from US
benchmark of 59% to 74%
resulting in reduction in
repeat support calls and onsite dispatch calls leading to
savings of ~$2 million per
annum
centre talk time from
180 to 100 seconds
through use of more
qualified agents
order processing tasks
and bought-in crosstrained agents, which
has significantly
increased staff
utilisation
Better talent and
training
Technology
application
Re-engineering
(end-to-end)
• Improved total
• Reduced 40 FTEs by
• Decreased time
customer satisfaction
score from 85% to 92%
after offshoring call
centre services to India
digitising the ‘back
lining’ process in the
contact centre
taken for monthend closing from 5
to 2 days by
modifying and
eliminating tasks
Source: Expert interviews; literature searches
15
20030520DL-ZXE332(ITES, Board Pres.)(JS)-7
C. F-1000 INSTITUTIONS HAVE INCREASINGLY BEGUN TO
REALISE OPPORTUNITIES FOR REVENUE ENHANCEMENT
Revenue opportunities created through offshoring
• Customised research for global
customers – potential to create
platform to service other banks
• Ability to price insurance policies at
significantly below competition leading
to 5-7% market share improvement
in home markets
• Live brokerage advice for mass affluent
customers from Series 7 qualified
agents through vendor in the
Philippines (eTelecare)
• £50 million/year gained through
revenue audits – interline, agent, and
used tickets
Potential ideas for F-1000
institutions
• Research platform to service
customers for a fee – offer
customized research for
strategic customers
• Develop modeling platform to
provide fee-based analytical
capabilities to SME financial
services customers– offer
customized services to large
financial institutions
• Offer trade finance services to
SME customers that are
otherwise uneconomical to
serve
• Offshore R&D (pharma,
chemicals) using collaborations
• Knowledge on call services for core
clients – customized research and
analytics
16
20030520DL-ZXE332(ITES, Board Pres.)(JS)-7
SIGNIFICANT VALUE CAN BE CAPTURED BY TRANSFORMING
INTERNAL CAPABILITIES INTO THIRD-PARTY BUSINESSES
Parent
Midland
Bank
New
business
Transition
• AmEx transitions internal
•
Value
creation
U.S.
$ billion
processing unit into thirdparty company (FDR) and
sells off majority ownership
stake (1992)
FDR merges with largest
competitor and grows to
become global leader in
transaction processing
• $8 billion in market cap*,
growing at 31% CAGR in
the last 5 years
* March 1, 2002
Sources: Hoovers; analyst reports; McKinsey analysis
• Columbia Bank & Trust
•
•
(later Synovus) transitions
internal credit-card
processing business into
third-party company (1982)
CB&T sells 19% of
company
in IPO (1983)
TSYS grows to become the
second largest processor
in
the world
• $5 billion in market cap*,
growing at 5% CAGR in
the last 5 years
• Management buyout of
•
•
Midland Bank processing
unit following merger with
First Bank System (1984)
IPO in 1986
Grown to become leading
provider of technology and
processing services for
financial institutions
• $17 billion in market
cap*, growing at 26%
CAGR in the last 5 years
17
20030520DL-ZXE332(ITES, Board Pres.)(JS)-7
D. NEW INDUSTRIES THAT HAVE PLAYED “WAIT AND WATCH”
GAME TRADITIONALLY NOW ACTIVELY EXPLORING AND
COMMENCING OFFSHORING – PHARMACEUTICAL EXAMPLE
Area
IT
offshoring
Support
functions
R&D
Attitude towards
outsourcing/offshoring
Key factors driving increasing momentum
• “Wait and watch” towards offshoring
• Mainstreaming of IT offshoring and
until late 2001
emergence of credible success stories on
• Significantly higher acceptance in 2002
cost and quality improvements
• “Triggers pulled” in 2003 by several
• Solid vendor base (e.g., Infosys, Satyam,
players including BMS, Novartis, Abbott
TCS) with proven track record
• Observed actions of competing players!
• “Wait and watch” towards outsourcing
• Increasing focus on rationalizing support
of business process through 2002 and
early 2003
• Numerous ongoing discussions in
2003 with vendors on finance &
accounting and HR offshoring
function costs
• Emergence of credible success stories and
vendors for F&A and HR
• Observed actions of competing players
• Many companies articulating “overall
aspiration” cutting across numerous
opportunities such as IT, BPO, R&D
• Concerns around IP and quality of
• Positive experience of first movers in
medical infrastructure
addressing concerns and benefiting
significantly e.g., AZ and BMS in R&D;
Pfizer & Eli Lily in clinical development;
Novartis & Pfizer in data management
• Improved medical infrastructure and
favorable regulatory environment
18
20030520DL-ZXE332(ITES, Board Pres.)(JS)-7
OPPORTUNITIES FOR OFFSHORING EXIST
ACROSS THE PHARMACEUTICAL VALUE CHAIN
R&D
• Target
Industrial
Operations
Commercial Operations
• New production • Strategic and commercial busi-
identification &
development
validation
• Procurement
• Lead generation • Planning and
& optimization
manufacturing
– Plant
• Preclinical/
maintenance
Toxicology
– Quality
• Clinical
management
Development &
– Process
Trials
control
• Supply chain
• Data
management
Management
• Performance
monitoring and
control
Focus of
document
Offshore
potential
Support Functions
•
ness planning (pre-launch)
•
• Product development and life cycle •
management
•
• Pricing and health economics
• Market a product (new and legacy)
• Customer relationship
•
•
•
•
management
Customer and consumer services
Sales management
Logistics & distribution
After sales services
Finance & Accounting
Information Technology
Human resources
Legal
– Legal counseling
advocacy and litigation
– Intellectual property
counseling
• Sales force support
Source: Interviews; McKinsey analysis
19
20030520DL-ZXE332(ITES, Board Pres.)(JS)-7
RECENT ACTIVITY POINTS TO GROWING INTEREST OF
PHARMACOS IN OFFSHORING – DATA MANAGEMENT EXAMPLE
NOVARTIS EXAMPLE
Global statistical operations
business system
Operations in India
• Started operations in 2001
Statistical study
design
Statistical
programming
Document
management
Database locking
• Approximately 30 statisticians
out of global team of 250
located in India
• Focus on standard safety
reporting for Phase II and III
trials
• Reports focused on US FDA
and EMEA
• Over 40 global trials supported
in first year of operation
• Supporting 2 mega trials of over
Report writing and filing to
medical authorities
10,000 patient records each
• Conduct several short turnaround analyses for clinical
pharmacology studies
Source: Interviews
• Savings of around 4060% vis-à-vis global
CROs within first year
• Targeting 80-100 global
trials in 2003
• Plans to start related
areas of filing and report
writing, efficacy
reporting and statistical
design for Phase IV
studies
• Entering into Phase I
reporting for complex
oncology trials and
traditionally outsourced,
Phase IV trials
20
20030520DL-ZXE332(ITES, Board Pres.)(JS)-7
OFFSHORING CAN RAPIDLY MOVE UP THE PHARMA
VALUE CHAIN
Phase 3: High-end activities
Phase 2: Minimal risk move
Phase 1: “Early wins”
Opportunity
Rationale
Support functions
1• Finance and accounting
2• Information technology
3• Human resources
R&D
4• Clinical development
5• Data management,
including bio-stats
Contract manufacturing
• Drug manufacturing (TBD)
• Formulations development
• Custom chemical synthesis
R&D
• Bio-informatics
• Analog generation
Support functions
• Sales force support
Contract manufacturing
• New product
development
R&D
• Lead generation and
optimisation
• Significant experience
• Significant bottom line
• IPR issues need to be
across other industries
• Strong vendor base
• Pharmas already doing
it
impact potential visible
• Emerging vendor base
clarified
• Comfort around Asia
needs to be established
21
20030520DL-ZXE332(ITES, Board Pres.)(JS)-7
IN THIS CONTEXT, SEVERAL DOUBTS HAVE ARISEN ABOUT THE
FUNDAMENTAL LONGEVITY AND EVOLUTION OF BPO AS AN
INDUSTRY
• Will the BPO
phenomenon plateau out
in the next few years?
• Even if it survives,
moving up the value
chain will be difficult and
will take several years?
• Value chain moves will be
the domain of captives
because the trust
required is too high?
22
20030520DL-ZXE332(ITES, Board Pres.)(JS)-7
IN THE END STATE, LARGE INSTITUTIONS WILL USE A
COMBINATION OF CAPTIVE AND VENDOR FACILITIES
From primarily captive…
Feasibility
of
outsourcing the
process
Outsource
to Global
brand
JV/
Alliance
Delay
…to hybrid model
Indian
best-ofbreed
vendor
Captive
Outsource
to Global
brand
JV/
Alliance
Delay
Indian
best-ofbreed
vendor
Captive
Cross-border operation sophistication
Examples
• Started off handling all
processes in-house
• Started offshoring
operations by outsourcing
• Now outsources call centre
• In addition to outsourcing,
services to multiple third
party vendors
now also runs a captive
centre
23
20030520DL-ZXE332(ITES, Board Pres.)(JS)-7
IN FACT, MATURE OFFSHORERS HAVE DEVELOPED AN
INTEGRATED ARCHITECTURE OVER TIME
• Started with 150 person completely captive unit in 1994 primarily for back end processing
• Entry into knowledge intensive activities in 2000-01
• Significant expansion of head count and service line in 2001
• Geographical diversification into Philippines in 2001
Model
• Captive operations
% of total off
shored services
30%
– Leverages brand,
– Important for regulatory
issues
– Preserves proprietary
process knowledge
• Third party – India
– Reduces country risk
– Provides BCP
• Over 1600 FTEs
• Involved in high-end and low-medium-end,
proprietary/non proprietary services (e.g., A/C
reconciliation,A/C opening and closing, Ledger
activities for credit cards, A/C planning and
forecasting, Fraud and risk modeling)
50%
– Exclusive support to AMEX
– Creates scale with minimal
investment
– Diversifies risk
– Competes with captive and
provides BCP
• Third party – Philippines
Scale, scope and management model
• Over 2000 FTEs across vendors such as
Spectramind, Daksh, EFunds
• Voice based customer support for credit card
operations
20%
• 700 FTEs
• Voice based customer support for credit card
operations
24
20030520DL-ZXE332(ITES, Board Pres.)(JS)-7
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25
20030520DL-ZXE332(ITES, Board Pres.)(JS)-7
F-1000 PLAYERS HAVE ADOPTED THREE APPROACHES TO
SELECT PROCESSES FOR OFFSHORING
Rigorous analytic approach
Outside-in approach
Detailed analysis to identify high
potential processes, percent
Sponsor-led approach
• Identify processes for
Identify processes/
activities offshored
by existing players
offshoring based on simple
criteria
– Sponsorship from process
owner (e.g., inside Group
Ops. in LTSB)
– Least organizational
resistance (e.g., overflow
work)
– Low reputation/service
quality risk
Filter activities by offshorability
• Use external benchmarks
•
(activities and phasing) to
identify and prio-ritize the
corresponding candidate process
in your organization
Use benchmark information on
off-shore-onshore split and
internal FTE mapping (for
identified candidate processes)
to size the opportunity
• 'Build and they will come' – allow
other parts of the organization to
decide on offshoring at their own
pace
26
20030520DL-ZXE332(ITES, Board Pres.)(JS)-7
THIS HAS PRIMARILY BEEN DRIVEN BY THE SIGNIFICANT 35-50%
COST SAVINGS OPPORTUNITY
Financial services sectors with
high potential for offshoring*
Retail
banking
Per cent of cost
base offshorable
Per cent of total NIE***
• Retail banking
– Deposit products
15-20
7-11
– Consumer loans
• Credit cards
20-25
10-15
– Card issuance & servicing
25-30
8-15
– Merchant acquiring
20-25
7-12
• Mortgages
Wholesale
banking
Insurance
Potential institutionwide savings**
– Origination
10-15
– Servicing
30-40
• Investment banking
– Research
35-50%
savings
in offshored
activities
5-10
10-20
10-15
5-10
– Personal
20-30
5-12
– Group and health
20-25
5-12
25-30
8-15
• Life and health
• Property and
casualty
* Asset management module including retail brokerage to be completed
** Does not include potential cost savings from offshoring IT and corporate center processes
*** Non-interest expense - operating cost only, excluding interest expense, advertising, and corporate G&A where separable; assumes
institution is a “pure-player”
27
20030520DL-ZXE332(ITES, Board Pres.)(JS)-7
VENDOR LANDSCAPE IS CONSOLIDATING AND MATURING
Leading players Employees
Service line focus
• Call center, technical help desks and
3800
email based help desks
BPO start-ups
• Call center, Insurance claims processing,
3000
airline revenue accounting
• Call center, Techmail help desk
1500
BPO arms of
Indian IT
services players
6000
3000
• Call centers, technical help desks and email
based help desks – dedicated centers for
BankofAmerica, Amex
• Inbound call center and financial services
• Mortgage processing (Greenpoint) and
900
financial services
BPO arms of
large financial
institutions
3500
1400
• Call center and financial services
(payments, card processing)
• Call center, technical help desk, loan
processing
Global BPO
companies
2500
• Customer care, financial and accounting,
payments
2000
• Customer care (largely inbound)
28
20030520DL-ZXE332(ITES, Board Pres.)(JS)-7
SELL OUTS HAVE BEEN WITNESSED IN THE RECENT PAST
3rd party provider
3rd party provider
1996
BA set up captive
Key events • Set up captive center
in 1996 as wholly
owned subsidiary to
reduce the airline's
operating cost
• Processed about 80%
of BA’s backend
operations
• Largely focused on
airline clients
EXAMPLES
2002
BA sold captive to
Warbug Pincus
• In April 2002, Warburg
Pincus, leading private
equity investor acquired
70% majority stake
• Strategy requires
investment to fully exploit
growing third party client
base
• Allotted $3 million to set up
third business process
outsourcing (BPO) centre
by 2003
Rationale
for sellout
• BA sold out captive center to improve diversity of
Offshored
activities
• Customer complaints •
• Passenger/agent claims •
•
• Tracking cargo
•
Revenue
(USD mil.)
• 8.9 (FY1999)
Employees
• Unavailable
2001
Conseco acquired
EXL Services as
captive center
2002
Conseco sold
EXLServices to
Oakhill Partners
• Conseco acquired EXL • Conseco fully exited by
in 2001 for about $ 52.6
million
selling out stake to
Oakhill Partners by Nov
2002; however it has
continued outsourcing its
transaction processing
• EXL Services named
largest 3rd party ITenabled service company
in India in revenue terms
• Conseco was in financial distress due to
diminishing core business and sold out captive
center to raise funds
talent
Customer Care / CRM
Loyalty program support
Revenue Accounting
Marketing program development
and management
• 16.0 (FY2001)
• Internet and voice
customer services
• 25
• Critical Back Office
Operations
• Transaction processing
• Collections
• ~60
(FY2001)
• 1,700 (FY2001)
Source: McKinsey, Nasscom, press articles
• 300 (FY2000)
• 3,500 (FY2002)
29