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www.sistec-sbsol.ro Academy of Economic Studies 11 October 200 The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing? BPO challenges and opportunities for Romania and your career. The World Is Flat: A Brief History of the Twenty-first Century is a best-selling book by Thomas L. Friedman analyzing the progress of globalization with an emphasis on the early 21st century.

The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

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Page 1: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

The World is Flat

Is business process outsourcing (BPO) more than just low-cost resourcing

BPO challenges and opportunities for Romania and your career

The World Is Flat A Brief History of the Twenty-first Century is a best-selling book by Thomas L Friedman analyzing the progress of globalization with an emphasis on the early 21st century

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Introduction into BPObull Economic forces behind BPObull Global forces behind BPObull Market forces behind BPObull Sourcing considerationsbull BPO development from low-end to high-end servicesbull BPO marketbull BPO countries and their skillsbull Romaniarsquos value proposition for BPObull SBsol BPO vision and strategy for market penetrationbull Career opportunities for students and graduates

OverviewOverview

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Introduction into BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO

ITES

ITO

KPO

Outsourcing ASP

Offshore

Nearshore

Onshore

Global sourcing

Global delivery

Supply chain

Value chain

Vertical industries

LPO

Insourcing

SSC

What about youWhat about you

FPO

MPO

Captives

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Outsourcing

Outsourcing became part of the business lexicon during the 1980s and refers to the delegation of non-core operations from internal production to an external entity specializing in the management of that operation Outsourcing is utilizing experts from outside the entity to perform specific tasks that the entity once performed itself

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Business Process Outsourcing

The transfer of management and execution of an entire business process to an external service provider including technology people and process In engaging BPO services clients are buying access to executed business processes and business outcomes from their BPO providers (IDC)

The delegation of one or more IT-intensive business processes to an external provider that owns administrates and manages the selected processes that are based on defined and measurable performance metrics (Gartner)

The transfer of a function previously performed (or considered to be performed) in-house to an outside provider

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Information technology enabled services (ITES)

BPO is a part of the Outsourcing Industry It is dependent on Information Technology hence it is also referred to as Information Technology EnabledServices or ITES

a form of outsourced service which has emerged due to involvement of IT in various fields such as banking and finance telecommunication insurance etc Some of the examples of ITES are medical transcription back-office accounting insurance claim credit card processing and many more

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO is often divided into two categories

back office outsourcing which includes internal business functions such as billing or purchasing and

front office outsourcing which includes customer-related services such as marketing or tech support The most common examples of BPO are call centers human resources accounting and payroll outsourcing

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO includes the software the process management and the people to operate the service

ASP includes only the provision of access to functionalities and features provided or served up through the use of software usually via web browser to the customer

DefinitionsDefinitions

Use of a BPO as opposed to an application service provider (ASP) usually also means that a certain amount of risk is transferred to the company that is running the process elements on behalf of the outsourcer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Knowledge Process Outsourcing

Knowledge Process Outsourcing is a sub set of Business Process Outsourcing

Legal Process Outsourcing Financial Process Outsourcing Medical Process Outsourcing

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

hellipshore Outsourcing

BPO that is contracted outside a companys own country is sometimes called offshore outsourcing BPO that is contracted to a companys neighboring country is sometimes called nearshore outsourcing and BPO that is contracted within the companys own country is sometimes called onshore outsourcing (also called domestic outsourcing)

Offshore simply means any country other than your own The Internet and high-speed Internet connections make it possible for outsourcing to be carried out anywhere in the world a business trend economists call globalisation (also termed global sourcing or global delivery)

Global sourcing a corporate sourcing strategy that identifies and leverages those human resources and assets regardless of geographic location most appropriate for meeting the organizationrsquos needs often coming from both nearshore and offshore locations

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Captive centre Shared Services centre

Captives (centres) also known as offshore insourcing or offshore shared services centres help organisations lower operating cost and improve overall performance

Shared Service Centres shared services pull together scattered autonomously run internal services operations of an organisation into mega-service centres which are structured as independent business with their own budgets and bottom-line accountability

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Supply Chain

A supply chain logistics network or supply network is a coordinated system of organizations people activities information and resources involved in moving a product or service in physical or virtual manner from supplier to customer

Supply chain activities (value chains or life cycle processes) transform raw materials and components into a finished product that is delivered to the end customer Supply chains link value chains

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

How much should we do ourselves and how much should we

buy from others

Ronald Coase1991 Nobel Laureate Economics

Where should we focus our resources

David Ricardo19th Century Economist

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Efficiency

bull Ronald Coase asked ldquohellipwhy is there any organisationrdquo in other words why do firms exist

- Firms exist because the cost of a central authority organising transactions internally costs less than organising them externally in the marketplace

bull Ronald Coase also asked ldquoWhy is not all production carried on by one big firmrdquo

- Because at some point the cost of organising the next transaction internally will be greater than the cost of organising that same transaction in the marketplace

bull Thus Ronald Coase defined the limit of the size of the firm using the concepts of transaction or interaction costs Coase Ronald The Nature of the Firm Economica 1937

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Specialisation

bull Adam Smith stated ldquoIf a foreign country can supply us with a commodity cheaper than we ourselves can make it better buy it of themhelliprdquo (The Theory of Absolute Advantage)

bull David Ricardo replied that itrsquos more than absolute advantage itrsquos the comparative advantage of focusing on the commodity in which a nation has a differential advantage and relying upon trade to obtain other goods Even if a nation has an absolute advantage in commodities that it

acquires through tradeItrsquos a trade-off of opportunity costs focusing on what you do best

bull Thus David Ricardo defined the benefits of specialization and the need to focus on core competencies

Ricardo David On the Principles of Political Economy and Taxation 1817

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sawhney Mohanbir Kellogg School of Management 2001

2020thth century century

Machine Bureaucracybull Integratedbull Diversified

21st century21st century

Networked Organizationbull Disaggregatedbull Specialized

Expanding the Boundaries of Business

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

033

$1 previouslySpent in US now offshoredto Indiahellip

hellipdelivers value toIndia

hellipbringssavings andreturns toUShellip

hellipcreatesnew valuefromreemployingUs Labor

andmakes theglobal pie that muchbigger

$100

067

047

045-

$145-147

The real economics of offshoring

The McKinsey Global Institute finds that off shoring not only produces value for the countries that gain the jobs but also frees up capital in the United States for more productive uses Most displaced workers find new positions within six monthsmdashpossibly even in new ventures financed with money saved by off shoring work to cheaper labour markets

Economic factorsEconomic factors

bull Cost savings($058)bull Goodsservices soldto India ($005)bull Profits from India Ventures($004)

bull Taxes($004)bull Revenues($020)bull Local suppliers($009)

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Prorsquos

The arguments in most of such studies follow the logic of mainstream economics and are quite straightforward

1 By moving work offshore firms are able to lower their production costs

2 Some domestic workers will be displaced but the benefits from lowering production costs captured by the firms and customers far outweigh any costs to displaced workers

3 Many of the displaced workers will actually be net beneficiaries because they will be ldquofreed uprdquo to do more interesting and lucrative work

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Contrarsquos

While these studies have some merit they are incomplete in some respects

1 they assume a very optimistic re-employment scenario for ldquofreed uprdquo workers predicting short durations of unemployment and higher wages in their new positions

2 most do not account for the lost wages due to unemployment in their models

3 the studies do not capture difficult to measure effects such as the impact on future innovation and security (For instance evidence is already surfacing that many of our best and brightest college students are avoiding technology majors because of outsourcing)

4 they ignore the downward pressure on domestic wages for jobs that are competed across borders

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forcesGlobal forces

Trends that are changing the rules in todayrsquos business environment

1 The shift from domestic to global economy

2 The shift from manpower to technopower

3 The shift from company-led to consumer-driven market forces

4 The shift from an industrial economy to a knowledge economy

5 The transformation of the employeremployee relationship

6 New relationships and governance structures concerning vendors and supplier

7 Shortage of skilled labour in development nations

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Drivers of Outsourcin

g

Access to High Quality Resources

Focus on Core

Competencies

Technology Expertise

Higher productivity

amp Better service levels

Cost Effectiveness

Domain Expertise

Why do companies outsource

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Reduce costs through simplification and standardization 93

Increase productivity and service excellence to customers 63

Enhance focus on business unit operations vs back office processing

58

Support new business process capabilities 37

Reduce costs through wage and labour arbitrage 31

Improve capability to integrate new business 26

Other 5

Source SBPOA online survey 77 respondents 2005

Main reasons for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Lower cost 75

Improve service quality 64

Greater business flexibility 54

Lower capital investments 70

Fewer people in function 45

Predictable outcome 42

Increased accountability 32

Source SBPOA online survey 172 respondents 2005

Perceived benefits of BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO development

From low-end to high-end services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO developmentBPO development

bull Manufacturing operations have been relocating to reduce costs for over 50 years

bull Improvements in telecoms IT and reductions in the cost of computing enabled the service sector to develop new operational models

bull Customer focus and direct channel acceptance fuelled the growth of call centres

bull Cost reduction was the primary driver predominantly through relocation and better wage deals in country

bull BPO goes beyond technology and applications -delivering integrated processes and outcomes

Phase I

1980s

Evo

luti

on

of

the

BP

O m

arke

t

Advanced financial

analysis and accountancy

processes

Call centres and data

processingIT jobs

and functions

Phase II

1990s

Phase III

current

A trend with a long history

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increasing complexity of legal and regulatory environment

Mainframecomputing allows

for timesharing

Banking ampbrokerageoutsourcing

Intense competition fromforeign automakers

Automanufacturing

outsourcing

Need to installERP systems on

timeand within budget

IToutsourcing

Competition drivescompanies to seekmore cost effective

ways to performinternal process wo

sacrificing quality

Customer CareHuman Resources

Supply Chainoutsourcing

1960 s 1970 s1980 s 1990 s 2000 s

Pay roll outsourcing

BPO developmentBPO development

Outsourcing historical context BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 2: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Introduction into BPObull Economic forces behind BPObull Global forces behind BPObull Market forces behind BPObull Sourcing considerationsbull BPO development from low-end to high-end servicesbull BPO marketbull BPO countries and their skillsbull Romaniarsquos value proposition for BPObull SBsol BPO vision and strategy for market penetrationbull Career opportunities for students and graduates

OverviewOverview

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Introduction into BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO

ITES

ITO

KPO

Outsourcing ASP

Offshore

Nearshore

Onshore

Global sourcing

Global delivery

Supply chain

Value chain

Vertical industries

LPO

Insourcing

SSC

What about youWhat about you

FPO

MPO

Captives

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Outsourcing

Outsourcing became part of the business lexicon during the 1980s and refers to the delegation of non-core operations from internal production to an external entity specializing in the management of that operation Outsourcing is utilizing experts from outside the entity to perform specific tasks that the entity once performed itself

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Business Process Outsourcing

The transfer of management and execution of an entire business process to an external service provider including technology people and process In engaging BPO services clients are buying access to executed business processes and business outcomes from their BPO providers (IDC)

The delegation of one or more IT-intensive business processes to an external provider that owns administrates and manages the selected processes that are based on defined and measurable performance metrics (Gartner)

The transfer of a function previously performed (or considered to be performed) in-house to an outside provider

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Information technology enabled services (ITES)

BPO is a part of the Outsourcing Industry It is dependent on Information Technology hence it is also referred to as Information Technology EnabledServices or ITES

a form of outsourced service which has emerged due to involvement of IT in various fields such as banking and finance telecommunication insurance etc Some of the examples of ITES are medical transcription back-office accounting insurance claim credit card processing and many more

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO is often divided into two categories

back office outsourcing which includes internal business functions such as billing or purchasing and

front office outsourcing which includes customer-related services such as marketing or tech support The most common examples of BPO are call centers human resources accounting and payroll outsourcing

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO includes the software the process management and the people to operate the service

ASP includes only the provision of access to functionalities and features provided or served up through the use of software usually via web browser to the customer

DefinitionsDefinitions

Use of a BPO as opposed to an application service provider (ASP) usually also means that a certain amount of risk is transferred to the company that is running the process elements on behalf of the outsourcer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Knowledge Process Outsourcing

Knowledge Process Outsourcing is a sub set of Business Process Outsourcing

Legal Process Outsourcing Financial Process Outsourcing Medical Process Outsourcing

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

hellipshore Outsourcing

BPO that is contracted outside a companys own country is sometimes called offshore outsourcing BPO that is contracted to a companys neighboring country is sometimes called nearshore outsourcing and BPO that is contracted within the companys own country is sometimes called onshore outsourcing (also called domestic outsourcing)

Offshore simply means any country other than your own The Internet and high-speed Internet connections make it possible for outsourcing to be carried out anywhere in the world a business trend economists call globalisation (also termed global sourcing or global delivery)

Global sourcing a corporate sourcing strategy that identifies and leverages those human resources and assets regardless of geographic location most appropriate for meeting the organizationrsquos needs often coming from both nearshore and offshore locations

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Captive centre Shared Services centre

Captives (centres) also known as offshore insourcing or offshore shared services centres help organisations lower operating cost and improve overall performance

Shared Service Centres shared services pull together scattered autonomously run internal services operations of an organisation into mega-service centres which are structured as independent business with their own budgets and bottom-line accountability

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Supply Chain

A supply chain logistics network or supply network is a coordinated system of organizations people activities information and resources involved in moving a product or service in physical or virtual manner from supplier to customer

Supply chain activities (value chains or life cycle processes) transform raw materials and components into a finished product that is delivered to the end customer Supply chains link value chains

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

How much should we do ourselves and how much should we

buy from others

Ronald Coase1991 Nobel Laureate Economics

Where should we focus our resources

David Ricardo19th Century Economist

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Efficiency

bull Ronald Coase asked ldquohellipwhy is there any organisationrdquo in other words why do firms exist

- Firms exist because the cost of a central authority organising transactions internally costs less than organising them externally in the marketplace

bull Ronald Coase also asked ldquoWhy is not all production carried on by one big firmrdquo

- Because at some point the cost of organising the next transaction internally will be greater than the cost of organising that same transaction in the marketplace

bull Thus Ronald Coase defined the limit of the size of the firm using the concepts of transaction or interaction costs Coase Ronald The Nature of the Firm Economica 1937

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Specialisation

bull Adam Smith stated ldquoIf a foreign country can supply us with a commodity cheaper than we ourselves can make it better buy it of themhelliprdquo (The Theory of Absolute Advantage)

bull David Ricardo replied that itrsquos more than absolute advantage itrsquos the comparative advantage of focusing on the commodity in which a nation has a differential advantage and relying upon trade to obtain other goods Even if a nation has an absolute advantage in commodities that it

acquires through tradeItrsquos a trade-off of opportunity costs focusing on what you do best

bull Thus David Ricardo defined the benefits of specialization and the need to focus on core competencies

Ricardo David On the Principles of Political Economy and Taxation 1817

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sawhney Mohanbir Kellogg School of Management 2001

2020thth century century

Machine Bureaucracybull Integratedbull Diversified

21st century21st century

Networked Organizationbull Disaggregatedbull Specialized

Expanding the Boundaries of Business

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

033

$1 previouslySpent in US now offshoredto Indiahellip

hellipdelivers value toIndia

hellipbringssavings andreturns toUShellip

hellipcreatesnew valuefromreemployingUs Labor

andmakes theglobal pie that muchbigger

$100

067

047

045-

$145-147

The real economics of offshoring

The McKinsey Global Institute finds that off shoring not only produces value for the countries that gain the jobs but also frees up capital in the United States for more productive uses Most displaced workers find new positions within six monthsmdashpossibly even in new ventures financed with money saved by off shoring work to cheaper labour markets

Economic factorsEconomic factors

bull Cost savings($058)bull Goodsservices soldto India ($005)bull Profits from India Ventures($004)

bull Taxes($004)bull Revenues($020)bull Local suppliers($009)

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Prorsquos

The arguments in most of such studies follow the logic of mainstream economics and are quite straightforward

1 By moving work offshore firms are able to lower their production costs

2 Some domestic workers will be displaced but the benefits from lowering production costs captured by the firms and customers far outweigh any costs to displaced workers

3 Many of the displaced workers will actually be net beneficiaries because they will be ldquofreed uprdquo to do more interesting and lucrative work

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Contrarsquos

While these studies have some merit they are incomplete in some respects

1 they assume a very optimistic re-employment scenario for ldquofreed uprdquo workers predicting short durations of unemployment and higher wages in their new positions

2 most do not account for the lost wages due to unemployment in their models

3 the studies do not capture difficult to measure effects such as the impact on future innovation and security (For instance evidence is already surfacing that many of our best and brightest college students are avoiding technology majors because of outsourcing)

4 they ignore the downward pressure on domestic wages for jobs that are competed across borders

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forcesGlobal forces

Trends that are changing the rules in todayrsquos business environment

1 The shift from domestic to global economy

2 The shift from manpower to technopower

3 The shift from company-led to consumer-driven market forces

4 The shift from an industrial economy to a knowledge economy

5 The transformation of the employeremployee relationship

6 New relationships and governance structures concerning vendors and supplier

7 Shortage of skilled labour in development nations

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Drivers of Outsourcin

g

Access to High Quality Resources

Focus on Core

Competencies

Technology Expertise

Higher productivity

amp Better service levels

Cost Effectiveness

Domain Expertise

Why do companies outsource

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Reduce costs through simplification and standardization 93

Increase productivity and service excellence to customers 63

Enhance focus on business unit operations vs back office processing

58

Support new business process capabilities 37

Reduce costs through wage and labour arbitrage 31

Improve capability to integrate new business 26

Other 5

Source SBPOA online survey 77 respondents 2005

Main reasons for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Lower cost 75

Improve service quality 64

Greater business flexibility 54

Lower capital investments 70

Fewer people in function 45

Predictable outcome 42

Increased accountability 32

Source SBPOA online survey 172 respondents 2005

Perceived benefits of BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO development

From low-end to high-end services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO developmentBPO development

bull Manufacturing operations have been relocating to reduce costs for over 50 years

bull Improvements in telecoms IT and reductions in the cost of computing enabled the service sector to develop new operational models

bull Customer focus and direct channel acceptance fuelled the growth of call centres

bull Cost reduction was the primary driver predominantly through relocation and better wage deals in country

bull BPO goes beyond technology and applications -delivering integrated processes and outcomes

Phase I

1980s

Evo

luti

on

of

the

BP

O m

arke

t

Advanced financial

analysis and accountancy

processes

Call centres and data

processingIT jobs

and functions

Phase II

1990s

Phase III

current

A trend with a long history

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increasing complexity of legal and regulatory environment

Mainframecomputing allows

for timesharing

Banking ampbrokerageoutsourcing

Intense competition fromforeign automakers

Automanufacturing

outsourcing

Need to installERP systems on

timeand within budget

IToutsourcing

Competition drivescompanies to seekmore cost effective

ways to performinternal process wo

sacrificing quality

Customer CareHuman Resources

Supply Chainoutsourcing

1960 s 1970 s1980 s 1990 s 2000 s

Pay roll outsourcing

BPO developmentBPO development

Outsourcing historical context BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 3: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Introduction into BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO

ITES

ITO

KPO

Outsourcing ASP

Offshore

Nearshore

Onshore

Global sourcing

Global delivery

Supply chain

Value chain

Vertical industries

LPO

Insourcing

SSC

What about youWhat about you

FPO

MPO

Captives

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Outsourcing

Outsourcing became part of the business lexicon during the 1980s and refers to the delegation of non-core operations from internal production to an external entity specializing in the management of that operation Outsourcing is utilizing experts from outside the entity to perform specific tasks that the entity once performed itself

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Business Process Outsourcing

The transfer of management and execution of an entire business process to an external service provider including technology people and process In engaging BPO services clients are buying access to executed business processes and business outcomes from their BPO providers (IDC)

The delegation of one or more IT-intensive business processes to an external provider that owns administrates and manages the selected processes that are based on defined and measurable performance metrics (Gartner)

The transfer of a function previously performed (or considered to be performed) in-house to an outside provider

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Information technology enabled services (ITES)

BPO is a part of the Outsourcing Industry It is dependent on Information Technology hence it is also referred to as Information Technology EnabledServices or ITES

a form of outsourced service which has emerged due to involvement of IT in various fields such as banking and finance telecommunication insurance etc Some of the examples of ITES are medical transcription back-office accounting insurance claim credit card processing and many more

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO is often divided into two categories

back office outsourcing which includes internal business functions such as billing or purchasing and

front office outsourcing which includes customer-related services such as marketing or tech support The most common examples of BPO are call centers human resources accounting and payroll outsourcing

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO includes the software the process management and the people to operate the service

ASP includes only the provision of access to functionalities and features provided or served up through the use of software usually via web browser to the customer

DefinitionsDefinitions

Use of a BPO as opposed to an application service provider (ASP) usually also means that a certain amount of risk is transferred to the company that is running the process elements on behalf of the outsourcer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Knowledge Process Outsourcing

Knowledge Process Outsourcing is a sub set of Business Process Outsourcing

Legal Process Outsourcing Financial Process Outsourcing Medical Process Outsourcing

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

hellipshore Outsourcing

BPO that is contracted outside a companys own country is sometimes called offshore outsourcing BPO that is contracted to a companys neighboring country is sometimes called nearshore outsourcing and BPO that is contracted within the companys own country is sometimes called onshore outsourcing (also called domestic outsourcing)

Offshore simply means any country other than your own The Internet and high-speed Internet connections make it possible for outsourcing to be carried out anywhere in the world a business trend economists call globalisation (also termed global sourcing or global delivery)

Global sourcing a corporate sourcing strategy that identifies and leverages those human resources and assets regardless of geographic location most appropriate for meeting the organizationrsquos needs often coming from both nearshore and offshore locations

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Captive centre Shared Services centre

Captives (centres) also known as offshore insourcing or offshore shared services centres help organisations lower operating cost and improve overall performance

Shared Service Centres shared services pull together scattered autonomously run internal services operations of an organisation into mega-service centres which are structured as independent business with their own budgets and bottom-line accountability

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Supply Chain

A supply chain logistics network or supply network is a coordinated system of organizations people activities information and resources involved in moving a product or service in physical or virtual manner from supplier to customer

Supply chain activities (value chains or life cycle processes) transform raw materials and components into a finished product that is delivered to the end customer Supply chains link value chains

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

How much should we do ourselves and how much should we

buy from others

Ronald Coase1991 Nobel Laureate Economics

Where should we focus our resources

David Ricardo19th Century Economist

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Efficiency

bull Ronald Coase asked ldquohellipwhy is there any organisationrdquo in other words why do firms exist

- Firms exist because the cost of a central authority organising transactions internally costs less than organising them externally in the marketplace

bull Ronald Coase also asked ldquoWhy is not all production carried on by one big firmrdquo

- Because at some point the cost of organising the next transaction internally will be greater than the cost of organising that same transaction in the marketplace

bull Thus Ronald Coase defined the limit of the size of the firm using the concepts of transaction or interaction costs Coase Ronald The Nature of the Firm Economica 1937

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Specialisation

bull Adam Smith stated ldquoIf a foreign country can supply us with a commodity cheaper than we ourselves can make it better buy it of themhelliprdquo (The Theory of Absolute Advantage)

bull David Ricardo replied that itrsquos more than absolute advantage itrsquos the comparative advantage of focusing on the commodity in which a nation has a differential advantage and relying upon trade to obtain other goods Even if a nation has an absolute advantage in commodities that it

acquires through tradeItrsquos a trade-off of opportunity costs focusing on what you do best

bull Thus David Ricardo defined the benefits of specialization and the need to focus on core competencies

Ricardo David On the Principles of Political Economy and Taxation 1817

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sawhney Mohanbir Kellogg School of Management 2001

2020thth century century

Machine Bureaucracybull Integratedbull Diversified

21st century21st century

Networked Organizationbull Disaggregatedbull Specialized

Expanding the Boundaries of Business

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

033

$1 previouslySpent in US now offshoredto Indiahellip

hellipdelivers value toIndia

hellipbringssavings andreturns toUShellip

hellipcreatesnew valuefromreemployingUs Labor

andmakes theglobal pie that muchbigger

$100

067

047

045-

$145-147

The real economics of offshoring

The McKinsey Global Institute finds that off shoring not only produces value for the countries that gain the jobs but also frees up capital in the United States for more productive uses Most displaced workers find new positions within six monthsmdashpossibly even in new ventures financed with money saved by off shoring work to cheaper labour markets

Economic factorsEconomic factors

bull Cost savings($058)bull Goodsservices soldto India ($005)bull Profits from India Ventures($004)

bull Taxes($004)bull Revenues($020)bull Local suppliers($009)

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Prorsquos

The arguments in most of such studies follow the logic of mainstream economics and are quite straightforward

1 By moving work offshore firms are able to lower their production costs

2 Some domestic workers will be displaced but the benefits from lowering production costs captured by the firms and customers far outweigh any costs to displaced workers

3 Many of the displaced workers will actually be net beneficiaries because they will be ldquofreed uprdquo to do more interesting and lucrative work

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Contrarsquos

While these studies have some merit they are incomplete in some respects

1 they assume a very optimistic re-employment scenario for ldquofreed uprdquo workers predicting short durations of unemployment and higher wages in their new positions

2 most do not account for the lost wages due to unemployment in their models

3 the studies do not capture difficult to measure effects such as the impact on future innovation and security (For instance evidence is already surfacing that many of our best and brightest college students are avoiding technology majors because of outsourcing)

4 they ignore the downward pressure on domestic wages for jobs that are competed across borders

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forcesGlobal forces

Trends that are changing the rules in todayrsquos business environment

1 The shift from domestic to global economy

2 The shift from manpower to technopower

3 The shift from company-led to consumer-driven market forces

4 The shift from an industrial economy to a knowledge economy

5 The transformation of the employeremployee relationship

6 New relationships and governance structures concerning vendors and supplier

7 Shortage of skilled labour in development nations

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Drivers of Outsourcin

g

Access to High Quality Resources

Focus on Core

Competencies

Technology Expertise

Higher productivity

amp Better service levels

Cost Effectiveness

Domain Expertise

Why do companies outsource

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Reduce costs through simplification and standardization 93

Increase productivity and service excellence to customers 63

Enhance focus on business unit operations vs back office processing

58

Support new business process capabilities 37

Reduce costs through wage and labour arbitrage 31

Improve capability to integrate new business 26

Other 5

Source SBPOA online survey 77 respondents 2005

Main reasons for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Lower cost 75

Improve service quality 64

Greater business flexibility 54

Lower capital investments 70

Fewer people in function 45

Predictable outcome 42

Increased accountability 32

Source SBPOA online survey 172 respondents 2005

Perceived benefits of BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO development

From low-end to high-end services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO developmentBPO development

bull Manufacturing operations have been relocating to reduce costs for over 50 years

bull Improvements in telecoms IT and reductions in the cost of computing enabled the service sector to develop new operational models

bull Customer focus and direct channel acceptance fuelled the growth of call centres

bull Cost reduction was the primary driver predominantly through relocation and better wage deals in country

bull BPO goes beyond technology and applications -delivering integrated processes and outcomes

Phase I

1980s

Evo

luti

on

of

the

BP

O m

arke

t

Advanced financial

analysis and accountancy

processes

Call centres and data

processingIT jobs

and functions

Phase II

1990s

Phase III

current

A trend with a long history

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increasing complexity of legal and regulatory environment

Mainframecomputing allows

for timesharing

Banking ampbrokerageoutsourcing

Intense competition fromforeign automakers

Automanufacturing

outsourcing

Need to installERP systems on

timeand within budget

IToutsourcing

Competition drivescompanies to seekmore cost effective

ways to performinternal process wo

sacrificing quality

Customer CareHuman Resources

Supply Chainoutsourcing

1960 s 1970 s1980 s 1990 s 2000 s

Pay roll outsourcing

BPO developmentBPO development

Outsourcing historical context BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 4: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO

ITES

ITO

KPO

Outsourcing ASP

Offshore

Nearshore

Onshore

Global sourcing

Global delivery

Supply chain

Value chain

Vertical industries

LPO

Insourcing

SSC

What about youWhat about you

FPO

MPO

Captives

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Outsourcing

Outsourcing became part of the business lexicon during the 1980s and refers to the delegation of non-core operations from internal production to an external entity specializing in the management of that operation Outsourcing is utilizing experts from outside the entity to perform specific tasks that the entity once performed itself

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Business Process Outsourcing

The transfer of management and execution of an entire business process to an external service provider including technology people and process In engaging BPO services clients are buying access to executed business processes and business outcomes from their BPO providers (IDC)

The delegation of one or more IT-intensive business processes to an external provider that owns administrates and manages the selected processes that are based on defined and measurable performance metrics (Gartner)

The transfer of a function previously performed (or considered to be performed) in-house to an outside provider

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Information technology enabled services (ITES)

BPO is a part of the Outsourcing Industry It is dependent on Information Technology hence it is also referred to as Information Technology EnabledServices or ITES

a form of outsourced service which has emerged due to involvement of IT in various fields such as banking and finance telecommunication insurance etc Some of the examples of ITES are medical transcription back-office accounting insurance claim credit card processing and many more

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO is often divided into two categories

back office outsourcing which includes internal business functions such as billing or purchasing and

front office outsourcing which includes customer-related services such as marketing or tech support The most common examples of BPO are call centers human resources accounting and payroll outsourcing

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO includes the software the process management and the people to operate the service

ASP includes only the provision of access to functionalities and features provided or served up through the use of software usually via web browser to the customer

DefinitionsDefinitions

Use of a BPO as opposed to an application service provider (ASP) usually also means that a certain amount of risk is transferred to the company that is running the process elements on behalf of the outsourcer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Knowledge Process Outsourcing

Knowledge Process Outsourcing is a sub set of Business Process Outsourcing

Legal Process Outsourcing Financial Process Outsourcing Medical Process Outsourcing

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

hellipshore Outsourcing

BPO that is contracted outside a companys own country is sometimes called offshore outsourcing BPO that is contracted to a companys neighboring country is sometimes called nearshore outsourcing and BPO that is contracted within the companys own country is sometimes called onshore outsourcing (also called domestic outsourcing)

Offshore simply means any country other than your own The Internet and high-speed Internet connections make it possible for outsourcing to be carried out anywhere in the world a business trend economists call globalisation (also termed global sourcing or global delivery)

Global sourcing a corporate sourcing strategy that identifies and leverages those human resources and assets regardless of geographic location most appropriate for meeting the organizationrsquos needs often coming from both nearshore and offshore locations

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Captive centre Shared Services centre

Captives (centres) also known as offshore insourcing or offshore shared services centres help organisations lower operating cost and improve overall performance

Shared Service Centres shared services pull together scattered autonomously run internal services operations of an organisation into mega-service centres which are structured as independent business with their own budgets and bottom-line accountability

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Supply Chain

A supply chain logistics network or supply network is a coordinated system of organizations people activities information and resources involved in moving a product or service in physical or virtual manner from supplier to customer

Supply chain activities (value chains or life cycle processes) transform raw materials and components into a finished product that is delivered to the end customer Supply chains link value chains

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

How much should we do ourselves and how much should we

buy from others

Ronald Coase1991 Nobel Laureate Economics

Where should we focus our resources

David Ricardo19th Century Economist

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Efficiency

bull Ronald Coase asked ldquohellipwhy is there any organisationrdquo in other words why do firms exist

- Firms exist because the cost of a central authority organising transactions internally costs less than organising them externally in the marketplace

bull Ronald Coase also asked ldquoWhy is not all production carried on by one big firmrdquo

- Because at some point the cost of organising the next transaction internally will be greater than the cost of organising that same transaction in the marketplace

bull Thus Ronald Coase defined the limit of the size of the firm using the concepts of transaction or interaction costs Coase Ronald The Nature of the Firm Economica 1937

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Specialisation

bull Adam Smith stated ldquoIf a foreign country can supply us with a commodity cheaper than we ourselves can make it better buy it of themhelliprdquo (The Theory of Absolute Advantage)

bull David Ricardo replied that itrsquos more than absolute advantage itrsquos the comparative advantage of focusing on the commodity in which a nation has a differential advantage and relying upon trade to obtain other goods Even if a nation has an absolute advantage in commodities that it

acquires through tradeItrsquos a trade-off of opportunity costs focusing on what you do best

bull Thus David Ricardo defined the benefits of specialization and the need to focus on core competencies

Ricardo David On the Principles of Political Economy and Taxation 1817

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sawhney Mohanbir Kellogg School of Management 2001

2020thth century century

Machine Bureaucracybull Integratedbull Diversified

21st century21st century

Networked Organizationbull Disaggregatedbull Specialized

Expanding the Boundaries of Business

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

033

$1 previouslySpent in US now offshoredto Indiahellip

hellipdelivers value toIndia

hellipbringssavings andreturns toUShellip

hellipcreatesnew valuefromreemployingUs Labor

andmakes theglobal pie that muchbigger

$100

067

047

045-

$145-147

The real economics of offshoring

The McKinsey Global Institute finds that off shoring not only produces value for the countries that gain the jobs but also frees up capital in the United States for more productive uses Most displaced workers find new positions within six monthsmdashpossibly even in new ventures financed with money saved by off shoring work to cheaper labour markets

Economic factorsEconomic factors

bull Cost savings($058)bull Goodsservices soldto India ($005)bull Profits from India Ventures($004)

bull Taxes($004)bull Revenues($020)bull Local suppliers($009)

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Prorsquos

The arguments in most of such studies follow the logic of mainstream economics and are quite straightforward

1 By moving work offshore firms are able to lower their production costs

2 Some domestic workers will be displaced but the benefits from lowering production costs captured by the firms and customers far outweigh any costs to displaced workers

3 Many of the displaced workers will actually be net beneficiaries because they will be ldquofreed uprdquo to do more interesting and lucrative work

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Contrarsquos

While these studies have some merit they are incomplete in some respects

1 they assume a very optimistic re-employment scenario for ldquofreed uprdquo workers predicting short durations of unemployment and higher wages in their new positions

2 most do not account for the lost wages due to unemployment in their models

3 the studies do not capture difficult to measure effects such as the impact on future innovation and security (For instance evidence is already surfacing that many of our best and brightest college students are avoiding technology majors because of outsourcing)

4 they ignore the downward pressure on domestic wages for jobs that are competed across borders

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forcesGlobal forces

Trends that are changing the rules in todayrsquos business environment

1 The shift from domestic to global economy

2 The shift from manpower to technopower

3 The shift from company-led to consumer-driven market forces

4 The shift from an industrial economy to a knowledge economy

5 The transformation of the employeremployee relationship

6 New relationships and governance structures concerning vendors and supplier

7 Shortage of skilled labour in development nations

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Drivers of Outsourcin

g

Access to High Quality Resources

Focus on Core

Competencies

Technology Expertise

Higher productivity

amp Better service levels

Cost Effectiveness

Domain Expertise

Why do companies outsource

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Reduce costs through simplification and standardization 93

Increase productivity and service excellence to customers 63

Enhance focus on business unit operations vs back office processing

58

Support new business process capabilities 37

Reduce costs through wage and labour arbitrage 31

Improve capability to integrate new business 26

Other 5

Source SBPOA online survey 77 respondents 2005

Main reasons for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Lower cost 75

Improve service quality 64

Greater business flexibility 54

Lower capital investments 70

Fewer people in function 45

Predictable outcome 42

Increased accountability 32

Source SBPOA online survey 172 respondents 2005

Perceived benefits of BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO development

From low-end to high-end services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO developmentBPO development

bull Manufacturing operations have been relocating to reduce costs for over 50 years

bull Improvements in telecoms IT and reductions in the cost of computing enabled the service sector to develop new operational models

bull Customer focus and direct channel acceptance fuelled the growth of call centres

bull Cost reduction was the primary driver predominantly through relocation and better wage deals in country

bull BPO goes beyond technology and applications -delivering integrated processes and outcomes

Phase I

1980s

Evo

luti

on

of

the

BP

O m

arke

t

Advanced financial

analysis and accountancy

processes

Call centres and data

processingIT jobs

and functions

Phase II

1990s

Phase III

current

A trend with a long history

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increasing complexity of legal and regulatory environment

Mainframecomputing allows

for timesharing

Banking ampbrokerageoutsourcing

Intense competition fromforeign automakers

Automanufacturing

outsourcing

Need to installERP systems on

timeand within budget

IToutsourcing

Competition drivescompanies to seekmore cost effective

ways to performinternal process wo

sacrificing quality

Customer CareHuman Resources

Supply Chainoutsourcing

1960 s 1970 s1980 s 1990 s 2000 s

Pay roll outsourcing

BPO developmentBPO development

Outsourcing historical context BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 5: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Outsourcing

Outsourcing became part of the business lexicon during the 1980s and refers to the delegation of non-core operations from internal production to an external entity specializing in the management of that operation Outsourcing is utilizing experts from outside the entity to perform specific tasks that the entity once performed itself

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Business Process Outsourcing

The transfer of management and execution of an entire business process to an external service provider including technology people and process In engaging BPO services clients are buying access to executed business processes and business outcomes from their BPO providers (IDC)

The delegation of one or more IT-intensive business processes to an external provider that owns administrates and manages the selected processes that are based on defined and measurable performance metrics (Gartner)

The transfer of a function previously performed (or considered to be performed) in-house to an outside provider

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Information technology enabled services (ITES)

BPO is a part of the Outsourcing Industry It is dependent on Information Technology hence it is also referred to as Information Technology EnabledServices or ITES

a form of outsourced service which has emerged due to involvement of IT in various fields such as banking and finance telecommunication insurance etc Some of the examples of ITES are medical transcription back-office accounting insurance claim credit card processing and many more

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO is often divided into two categories

back office outsourcing which includes internal business functions such as billing or purchasing and

front office outsourcing which includes customer-related services such as marketing or tech support The most common examples of BPO are call centers human resources accounting and payroll outsourcing

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO includes the software the process management and the people to operate the service

ASP includes only the provision of access to functionalities and features provided or served up through the use of software usually via web browser to the customer

DefinitionsDefinitions

Use of a BPO as opposed to an application service provider (ASP) usually also means that a certain amount of risk is transferred to the company that is running the process elements on behalf of the outsourcer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Knowledge Process Outsourcing

Knowledge Process Outsourcing is a sub set of Business Process Outsourcing

Legal Process Outsourcing Financial Process Outsourcing Medical Process Outsourcing

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

hellipshore Outsourcing

BPO that is contracted outside a companys own country is sometimes called offshore outsourcing BPO that is contracted to a companys neighboring country is sometimes called nearshore outsourcing and BPO that is contracted within the companys own country is sometimes called onshore outsourcing (also called domestic outsourcing)

Offshore simply means any country other than your own The Internet and high-speed Internet connections make it possible for outsourcing to be carried out anywhere in the world a business trend economists call globalisation (also termed global sourcing or global delivery)

Global sourcing a corporate sourcing strategy that identifies and leverages those human resources and assets regardless of geographic location most appropriate for meeting the organizationrsquos needs often coming from both nearshore and offshore locations

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Captive centre Shared Services centre

Captives (centres) also known as offshore insourcing or offshore shared services centres help organisations lower operating cost and improve overall performance

Shared Service Centres shared services pull together scattered autonomously run internal services operations of an organisation into mega-service centres which are structured as independent business with their own budgets and bottom-line accountability

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Supply Chain

A supply chain logistics network or supply network is a coordinated system of organizations people activities information and resources involved in moving a product or service in physical or virtual manner from supplier to customer

Supply chain activities (value chains or life cycle processes) transform raw materials and components into a finished product that is delivered to the end customer Supply chains link value chains

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

How much should we do ourselves and how much should we

buy from others

Ronald Coase1991 Nobel Laureate Economics

Where should we focus our resources

David Ricardo19th Century Economist

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Efficiency

bull Ronald Coase asked ldquohellipwhy is there any organisationrdquo in other words why do firms exist

- Firms exist because the cost of a central authority organising transactions internally costs less than organising them externally in the marketplace

bull Ronald Coase also asked ldquoWhy is not all production carried on by one big firmrdquo

- Because at some point the cost of organising the next transaction internally will be greater than the cost of organising that same transaction in the marketplace

bull Thus Ronald Coase defined the limit of the size of the firm using the concepts of transaction or interaction costs Coase Ronald The Nature of the Firm Economica 1937

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Specialisation

bull Adam Smith stated ldquoIf a foreign country can supply us with a commodity cheaper than we ourselves can make it better buy it of themhelliprdquo (The Theory of Absolute Advantage)

bull David Ricardo replied that itrsquos more than absolute advantage itrsquos the comparative advantage of focusing on the commodity in which a nation has a differential advantage and relying upon trade to obtain other goods Even if a nation has an absolute advantage in commodities that it

acquires through tradeItrsquos a trade-off of opportunity costs focusing on what you do best

bull Thus David Ricardo defined the benefits of specialization and the need to focus on core competencies

Ricardo David On the Principles of Political Economy and Taxation 1817

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sawhney Mohanbir Kellogg School of Management 2001

2020thth century century

Machine Bureaucracybull Integratedbull Diversified

21st century21st century

Networked Organizationbull Disaggregatedbull Specialized

Expanding the Boundaries of Business

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

033

$1 previouslySpent in US now offshoredto Indiahellip

hellipdelivers value toIndia

hellipbringssavings andreturns toUShellip

hellipcreatesnew valuefromreemployingUs Labor

andmakes theglobal pie that muchbigger

$100

067

047

045-

$145-147

The real economics of offshoring

The McKinsey Global Institute finds that off shoring not only produces value for the countries that gain the jobs but also frees up capital in the United States for more productive uses Most displaced workers find new positions within six monthsmdashpossibly even in new ventures financed with money saved by off shoring work to cheaper labour markets

Economic factorsEconomic factors

bull Cost savings($058)bull Goodsservices soldto India ($005)bull Profits from India Ventures($004)

bull Taxes($004)bull Revenues($020)bull Local suppliers($009)

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Prorsquos

The arguments in most of such studies follow the logic of mainstream economics and are quite straightforward

1 By moving work offshore firms are able to lower their production costs

2 Some domestic workers will be displaced but the benefits from lowering production costs captured by the firms and customers far outweigh any costs to displaced workers

3 Many of the displaced workers will actually be net beneficiaries because they will be ldquofreed uprdquo to do more interesting and lucrative work

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Contrarsquos

While these studies have some merit they are incomplete in some respects

1 they assume a very optimistic re-employment scenario for ldquofreed uprdquo workers predicting short durations of unemployment and higher wages in their new positions

2 most do not account for the lost wages due to unemployment in their models

3 the studies do not capture difficult to measure effects such as the impact on future innovation and security (For instance evidence is already surfacing that many of our best and brightest college students are avoiding technology majors because of outsourcing)

4 they ignore the downward pressure on domestic wages for jobs that are competed across borders

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forcesGlobal forces

Trends that are changing the rules in todayrsquos business environment

1 The shift from domestic to global economy

2 The shift from manpower to technopower

3 The shift from company-led to consumer-driven market forces

4 The shift from an industrial economy to a knowledge economy

5 The transformation of the employeremployee relationship

6 New relationships and governance structures concerning vendors and supplier

7 Shortage of skilled labour in development nations

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Drivers of Outsourcin

g

Access to High Quality Resources

Focus on Core

Competencies

Technology Expertise

Higher productivity

amp Better service levels

Cost Effectiveness

Domain Expertise

Why do companies outsource

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Reduce costs through simplification and standardization 93

Increase productivity and service excellence to customers 63

Enhance focus on business unit operations vs back office processing

58

Support new business process capabilities 37

Reduce costs through wage and labour arbitrage 31

Improve capability to integrate new business 26

Other 5

Source SBPOA online survey 77 respondents 2005

Main reasons for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Lower cost 75

Improve service quality 64

Greater business flexibility 54

Lower capital investments 70

Fewer people in function 45

Predictable outcome 42

Increased accountability 32

Source SBPOA online survey 172 respondents 2005

Perceived benefits of BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO development

From low-end to high-end services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO developmentBPO development

bull Manufacturing operations have been relocating to reduce costs for over 50 years

bull Improvements in telecoms IT and reductions in the cost of computing enabled the service sector to develop new operational models

bull Customer focus and direct channel acceptance fuelled the growth of call centres

bull Cost reduction was the primary driver predominantly through relocation and better wage deals in country

bull BPO goes beyond technology and applications -delivering integrated processes and outcomes

Phase I

1980s

Evo

luti

on

of

the

BP

O m

arke

t

Advanced financial

analysis and accountancy

processes

Call centres and data

processingIT jobs

and functions

Phase II

1990s

Phase III

current

A trend with a long history

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increasing complexity of legal and regulatory environment

Mainframecomputing allows

for timesharing

Banking ampbrokerageoutsourcing

Intense competition fromforeign automakers

Automanufacturing

outsourcing

Need to installERP systems on

timeand within budget

IToutsourcing

Competition drivescompanies to seekmore cost effective

ways to performinternal process wo

sacrificing quality

Customer CareHuman Resources

Supply Chainoutsourcing

1960 s 1970 s1980 s 1990 s 2000 s

Pay roll outsourcing

BPO developmentBPO development

Outsourcing historical context BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 6: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Business Process Outsourcing

The transfer of management and execution of an entire business process to an external service provider including technology people and process In engaging BPO services clients are buying access to executed business processes and business outcomes from their BPO providers (IDC)

The delegation of one or more IT-intensive business processes to an external provider that owns administrates and manages the selected processes that are based on defined and measurable performance metrics (Gartner)

The transfer of a function previously performed (or considered to be performed) in-house to an outside provider

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Information technology enabled services (ITES)

BPO is a part of the Outsourcing Industry It is dependent on Information Technology hence it is also referred to as Information Technology EnabledServices or ITES

a form of outsourced service which has emerged due to involvement of IT in various fields such as banking and finance telecommunication insurance etc Some of the examples of ITES are medical transcription back-office accounting insurance claim credit card processing and many more

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO is often divided into two categories

back office outsourcing which includes internal business functions such as billing or purchasing and

front office outsourcing which includes customer-related services such as marketing or tech support The most common examples of BPO are call centers human resources accounting and payroll outsourcing

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO includes the software the process management and the people to operate the service

ASP includes only the provision of access to functionalities and features provided or served up through the use of software usually via web browser to the customer

DefinitionsDefinitions

Use of a BPO as opposed to an application service provider (ASP) usually also means that a certain amount of risk is transferred to the company that is running the process elements on behalf of the outsourcer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Knowledge Process Outsourcing

Knowledge Process Outsourcing is a sub set of Business Process Outsourcing

Legal Process Outsourcing Financial Process Outsourcing Medical Process Outsourcing

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

hellipshore Outsourcing

BPO that is contracted outside a companys own country is sometimes called offshore outsourcing BPO that is contracted to a companys neighboring country is sometimes called nearshore outsourcing and BPO that is contracted within the companys own country is sometimes called onshore outsourcing (also called domestic outsourcing)

Offshore simply means any country other than your own The Internet and high-speed Internet connections make it possible for outsourcing to be carried out anywhere in the world a business trend economists call globalisation (also termed global sourcing or global delivery)

Global sourcing a corporate sourcing strategy that identifies and leverages those human resources and assets regardless of geographic location most appropriate for meeting the organizationrsquos needs often coming from both nearshore and offshore locations

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Captive centre Shared Services centre

Captives (centres) also known as offshore insourcing or offshore shared services centres help organisations lower operating cost and improve overall performance

Shared Service Centres shared services pull together scattered autonomously run internal services operations of an organisation into mega-service centres which are structured as independent business with their own budgets and bottom-line accountability

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Supply Chain

A supply chain logistics network or supply network is a coordinated system of organizations people activities information and resources involved in moving a product or service in physical or virtual manner from supplier to customer

Supply chain activities (value chains or life cycle processes) transform raw materials and components into a finished product that is delivered to the end customer Supply chains link value chains

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

How much should we do ourselves and how much should we

buy from others

Ronald Coase1991 Nobel Laureate Economics

Where should we focus our resources

David Ricardo19th Century Economist

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Efficiency

bull Ronald Coase asked ldquohellipwhy is there any organisationrdquo in other words why do firms exist

- Firms exist because the cost of a central authority organising transactions internally costs less than organising them externally in the marketplace

bull Ronald Coase also asked ldquoWhy is not all production carried on by one big firmrdquo

- Because at some point the cost of organising the next transaction internally will be greater than the cost of organising that same transaction in the marketplace

bull Thus Ronald Coase defined the limit of the size of the firm using the concepts of transaction or interaction costs Coase Ronald The Nature of the Firm Economica 1937

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Specialisation

bull Adam Smith stated ldquoIf a foreign country can supply us with a commodity cheaper than we ourselves can make it better buy it of themhelliprdquo (The Theory of Absolute Advantage)

bull David Ricardo replied that itrsquos more than absolute advantage itrsquos the comparative advantage of focusing on the commodity in which a nation has a differential advantage and relying upon trade to obtain other goods Even if a nation has an absolute advantage in commodities that it

acquires through tradeItrsquos a trade-off of opportunity costs focusing on what you do best

bull Thus David Ricardo defined the benefits of specialization and the need to focus on core competencies

Ricardo David On the Principles of Political Economy and Taxation 1817

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sawhney Mohanbir Kellogg School of Management 2001

2020thth century century

Machine Bureaucracybull Integratedbull Diversified

21st century21st century

Networked Organizationbull Disaggregatedbull Specialized

Expanding the Boundaries of Business

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

033

$1 previouslySpent in US now offshoredto Indiahellip

hellipdelivers value toIndia

hellipbringssavings andreturns toUShellip

hellipcreatesnew valuefromreemployingUs Labor

andmakes theglobal pie that muchbigger

$100

067

047

045-

$145-147

The real economics of offshoring

The McKinsey Global Institute finds that off shoring not only produces value for the countries that gain the jobs but also frees up capital in the United States for more productive uses Most displaced workers find new positions within six monthsmdashpossibly even in new ventures financed with money saved by off shoring work to cheaper labour markets

Economic factorsEconomic factors

bull Cost savings($058)bull Goodsservices soldto India ($005)bull Profits from India Ventures($004)

bull Taxes($004)bull Revenues($020)bull Local suppliers($009)

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Prorsquos

The arguments in most of such studies follow the logic of mainstream economics and are quite straightforward

1 By moving work offshore firms are able to lower their production costs

2 Some domestic workers will be displaced but the benefits from lowering production costs captured by the firms and customers far outweigh any costs to displaced workers

3 Many of the displaced workers will actually be net beneficiaries because they will be ldquofreed uprdquo to do more interesting and lucrative work

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Contrarsquos

While these studies have some merit they are incomplete in some respects

1 they assume a very optimistic re-employment scenario for ldquofreed uprdquo workers predicting short durations of unemployment and higher wages in their new positions

2 most do not account for the lost wages due to unemployment in their models

3 the studies do not capture difficult to measure effects such as the impact on future innovation and security (For instance evidence is already surfacing that many of our best and brightest college students are avoiding technology majors because of outsourcing)

4 they ignore the downward pressure on domestic wages for jobs that are competed across borders

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forcesGlobal forces

Trends that are changing the rules in todayrsquos business environment

1 The shift from domestic to global economy

2 The shift from manpower to technopower

3 The shift from company-led to consumer-driven market forces

4 The shift from an industrial economy to a knowledge economy

5 The transformation of the employeremployee relationship

6 New relationships and governance structures concerning vendors and supplier

7 Shortage of skilled labour in development nations

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Drivers of Outsourcin

g

Access to High Quality Resources

Focus on Core

Competencies

Technology Expertise

Higher productivity

amp Better service levels

Cost Effectiveness

Domain Expertise

Why do companies outsource

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Reduce costs through simplification and standardization 93

Increase productivity and service excellence to customers 63

Enhance focus on business unit operations vs back office processing

58

Support new business process capabilities 37

Reduce costs through wage and labour arbitrage 31

Improve capability to integrate new business 26

Other 5

Source SBPOA online survey 77 respondents 2005

Main reasons for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Lower cost 75

Improve service quality 64

Greater business flexibility 54

Lower capital investments 70

Fewer people in function 45

Predictable outcome 42

Increased accountability 32

Source SBPOA online survey 172 respondents 2005

Perceived benefits of BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO development

From low-end to high-end services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO developmentBPO development

bull Manufacturing operations have been relocating to reduce costs for over 50 years

bull Improvements in telecoms IT and reductions in the cost of computing enabled the service sector to develop new operational models

bull Customer focus and direct channel acceptance fuelled the growth of call centres

bull Cost reduction was the primary driver predominantly through relocation and better wage deals in country

bull BPO goes beyond technology and applications -delivering integrated processes and outcomes

Phase I

1980s

Evo

luti

on

of

the

BP

O m

arke

t

Advanced financial

analysis and accountancy

processes

Call centres and data

processingIT jobs

and functions

Phase II

1990s

Phase III

current

A trend with a long history

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increasing complexity of legal and regulatory environment

Mainframecomputing allows

for timesharing

Banking ampbrokerageoutsourcing

Intense competition fromforeign automakers

Automanufacturing

outsourcing

Need to installERP systems on

timeand within budget

IToutsourcing

Competition drivescompanies to seekmore cost effective

ways to performinternal process wo

sacrificing quality

Customer CareHuman Resources

Supply Chainoutsourcing

1960 s 1970 s1980 s 1990 s 2000 s

Pay roll outsourcing

BPO developmentBPO development

Outsourcing historical context BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 7: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Information technology enabled services (ITES)

BPO is a part of the Outsourcing Industry It is dependent on Information Technology hence it is also referred to as Information Technology EnabledServices or ITES

a form of outsourced service which has emerged due to involvement of IT in various fields such as banking and finance telecommunication insurance etc Some of the examples of ITES are medical transcription back-office accounting insurance claim credit card processing and many more

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO is often divided into two categories

back office outsourcing which includes internal business functions such as billing or purchasing and

front office outsourcing which includes customer-related services such as marketing or tech support The most common examples of BPO are call centers human resources accounting and payroll outsourcing

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO includes the software the process management and the people to operate the service

ASP includes only the provision of access to functionalities and features provided or served up through the use of software usually via web browser to the customer

DefinitionsDefinitions

Use of a BPO as opposed to an application service provider (ASP) usually also means that a certain amount of risk is transferred to the company that is running the process elements on behalf of the outsourcer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Knowledge Process Outsourcing

Knowledge Process Outsourcing is a sub set of Business Process Outsourcing

Legal Process Outsourcing Financial Process Outsourcing Medical Process Outsourcing

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

hellipshore Outsourcing

BPO that is contracted outside a companys own country is sometimes called offshore outsourcing BPO that is contracted to a companys neighboring country is sometimes called nearshore outsourcing and BPO that is contracted within the companys own country is sometimes called onshore outsourcing (also called domestic outsourcing)

Offshore simply means any country other than your own The Internet and high-speed Internet connections make it possible for outsourcing to be carried out anywhere in the world a business trend economists call globalisation (also termed global sourcing or global delivery)

Global sourcing a corporate sourcing strategy that identifies and leverages those human resources and assets regardless of geographic location most appropriate for meeting the organizationrsquos needs often coming from both nearshore and offshore locations

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Captive centre Shared Services centre

Captives (centres) also known as offshore insourcing or offshore shared services centres help organisations lower operating cost and improve overall performance

Shared Service Centres shared services pull together scattered autonomously run internal services operations of an organisation into mega-service centres which are structured as independent business with their own budgets and bottom-line accountability

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Supply Chain

A supply chain logistics network or supply network is a coordinated system of organizations people activities information and resources involved in moving a product or service in physical or virtual manner from supplier to customer

Supply chain activities (value chains or life cycle processes) transform raw materials and components into a finished product that is delivered to the end customer Supply chains link value chains

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

How much should we do ourselves and how much should we

buy from others

Ronald Coase1991 Nobel Laureate Economics

Where should we focus our resources

David Ricardo19th Century Economist

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Efficiency

bull Ronald Coase asked ldquohellipwhy is there any organisationrdquo in other words why do firms exist

- Firms exist because the cost of a central authority organising transactions internally costs less than organising them externally in the marketplace

bull Ronald Coase also asked ldquoWhy is not all production carried on by one big firmrdquo

- Because at some point the cost of organising the next transaction internally will be greater than the cost of organising that same transaction in the marketplace

bull Thus Ronald Coase defined the limit of the size of the firm using the concepts of transaction or interaction costs Coase Ronald The Nature of the Firm Economica 1937

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Specialisation

bull Adam Smith stated ldquoIf a foreign country can supply us with a commodity cheaper than we ourselves can make it better buy it of themhelliprdquo (The Theory of Absolute Advantage)

bull David Ricardo replied that itrsquos more than absolute advantage itrsquos the comparative advantage of focusing on the commodity in which a nation has a differential advantage and relying upon trade to obtain other goods Even if a nation has an absolute advantage in commodities that it

acquires through tradeItrsquos a trade-off of opportunity costs focusing on what you do best

bull Thus David Ricardo defined the benefits of specialization and the need to focus on core competencies

Ricardo David On the Principles of Political Economy and Taxation 1817

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sawhney Mohanbir Kellogg School of Management 2001

2020thth century century

Machine Bureaucracybull Integratedbull Diversified

21st century21st century

Networked Organizationbull Disaggregatedbull Specialized

Expanding the Boundaries of Business

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

033

$1 previouslySpent in US now offshoredto Indiahellip

hellipdelivers value toIndia

hellipbringssavings andreturns toUShellip

hellipcreatesnew valuefromreemployingUs Labor

andmakes theglobal pie that muchbigger

$100

067

047

045-

$145-147

The real economics of offshoring

The McKinsey Global Institute finds that off shoring not only produces value for the countries that gain the jobs but also frees up capital in the United States for more productive uses Most displaced workers find new positions within six monthsmdashpossibly even in new ventures financed with money saved by off shoring work to cheaper labour markets

Economic factorsEconomic factors

bull Cost savings($058)bull Goodsservices soldto India ($005)bull Profits from India Ventures($004)

bull Taxes($004)bull Revenues($020)bull Local suppliers($009)

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Prorsquos

The arguments in most of such studies follow the logic of mainstream economics and are quite straightforward

1 By moving work offshore firms are able to lower their production costs

2 Some domestic workers will be displaced but the benefits from lowering production costs captured by the firms and customers far outweigh any costs to displaced workers

3 Many of the displaced workers will actually be net beneficiaries because they will be ldquofreed uprdquo to do more interesting and lucrative work

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Contrarsquos

While these studies have some merit they are incomplete in some respects

1 they assume a very optimistic re-employment scenario for ldquofreed uprdquo workers predicting short durations of unemployment and higher wages in their new positions

2 most do not account for the lost wages due to unemployment in their models

3 the studies do not capture difficult to measure effects such as the impact on future innovation and security (For instance evidence is already surfacing that many of our best and brightest college students are avoiding technology majors because of outsourcing)

4 they ignore the downward pressure on domestic wages for jobs that are competed across borders

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forcesGlobal forces

Trends that are changing the rules in todayrsquos business environment

1 The shift from domestic to global economy

2 The shift from manpower to technopower

3 The shift from company-led to consumer-driven market forces

4 The shift from an industrial economy to a knowledge economy

5 The transformation of the employeremployee relationship

6 New relationships and governance structures concerning vendors and supplier

7 Shortage of skilled labour in development nations

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Drivers of Outsourcin

g

Access to High Quality Resources

Focus on Core

Competencies

Technology Expertise

Higher productivity

amp Better service levels

Cost Effectiveness

Domain Expertise

Why do companies outsource

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Reduce costs through simplification and standardization 93

Increase productivity and service excellence to customers 63

Enhance focus on business unit operations vs back office processing

58

Support new business process capabilities 37

Reduce costs through wage and labour arbitrage 31

Improve capability to integrate new business 26

Other 5

Source SBPOA online survey 77 respondents 2005

Main reasons for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Lower cost 75

Improve service quality 64

Greater business flexibility 54

Lower capital investments 70

Fewer people in function 45

Predictable outcome 42

Increased accountability 32

Source SBPOA online survey 172 respondents 2005

Perceived benefits of BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO development

From low-end to high-end services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO developmentBPO development

bull Manufacturing operations have been relocating to reduce costs for over 50 years

bull Improvements in telecoms IT and reductions in the cost of computing enabled the service sector to develop new operational models

bull Customer focus and direct channel acceptance fuelled the growth of call centres

bull Cost reduction was the primary driver predominantly through relocation and better wage deals in country

bull BPO goes beyond technology and applications -delivering integrated processes and outcomes

Phase I

1980s

Evo

luti

on

of

the

BP

O m

arke

t

Advanced financial

analysis and accountancy

processes

Call centres and data

processingIT jobs

and functions

Phase II

1990s

Phase III

current

A trend with a long history

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increasing complexity of legal and regulatory environment

Mainframecomputing allows

for timesharing

Banking ampbrokerageoutsourcing

Intense competition fromforeign automakers

Automanufacturing

outsourcing

Need to installERP systems on

timeand within budget

IToutsourcing

Competition drivescompanies to seekmore cost effective

ways to performinternal process wo

sacrificing quality

Customer CareHuman Resources

Supply Chainoutsourcing

1960 s 1970 s1980 s 1990 s 2000 s

Pay roll outsourcing

BPO developmentBPO development

Outsourcing historical context BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 8: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO is often divided into two categories

back office outsourcing which includes internal business functions such as billing or purchasing and

front office outsourcing which includes customer-related services such as marketing or tech support The most common examples of BPO are call centers human resources accounting and payroll outsourcing

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO includes the software the process management and the people to operate the service

ASP includes only the provision of access to functionalities and features provided or served up through the use of software usually via web browser to the customer

DefinitionsDefinitions

Use of a BPO as opposed to an application service provider (ASP) usually also means that a certain amount of risk is transferred to the company that is running the process elements on behalf of the outsourcer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Knowledge Process Outsourcing

Knowledge Process Outsourcing is a sub set of Business Process Outsourcing

Legal Process Outsourcing Financial Process Outsourcing Medical Process Outsourcing

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

hellipshore Outsourcing

BPO that is contracted outside a companys own country is sometimes called offshore outsourcing BPO that is contracted to a companys neighboring country is sometimes called nearshore outsourcing and BPO that is contracted within the companys own country is sometimes called onshore outsourcing (also called domestic outsourcing)

Offshore simply means any country other than your own The Internet and high-speed Internet connections make it possible for outsourcing to be carried out anywhere in the world a business trend economists call globalisation (also termed global sourcing or global delivery)

Global sourcing a corporate sourcing strategy that identifies and leverages those human resources and assets regardless of geographic location most appropriate for meeting the organizationrsquos needs often coming from both nearshore and offshore locations

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Captive centre Shared Services centre

Captives (centres) also known as offshore insourcing or offshore shared services centres help organisations lower operating cost and improve overall performance

Shared Service Centres shared services pull together scattered autonomously run internal services operations of an organisation into mega-service centres which are structured as independent business with their own budgets and bottom-line accountability

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Supply Chain

A supply chain logistics network or supply network is a coordinated system of organizations people activities information and resources involved in moving a product or service in physical or virtual manner from supplier to customer

Supply chain activities (value chains or life cycle processes) transform raw materials and components into a finished product that is delivered to the end customer Supply chains link value chains

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

How much should we do ourselves and how much should we

buy from others

Ronald Coase1991 Nobel Laureate Economics

Where should we focus our resources

David Ricardo19th Century Economist

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Efficiency

bull Ronald Coase asked ldquohellipwhy is there any organisationrdquo in other words why do firms exist

- Firms exist because the cost of a central authority organising transactions internally costs less than organising them externally in the marketplace

bull Ronald Coase also asked ldquoWhy is not all production carried on by one big firmrdquo

- Because at some point the cost of organising the next transaction internally will be greater than the cost of organising that same transaction in the marketplace

bull Thus Ronald Coase defined the limit of the size of the firm using the concepts of transaction or interaction costs Coase Ronald The Nature of the Firm Economica 1937

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Specialisation

bull Adam Smith stated ldquoIf a foreign country can supply us with a commodity cheaper than we ourselves can make it better buy it of themhelliprdquo (The Theory of Absolute Advantage)

bull David Ricardo replied that itrsquos more than absolute advantage itrsquos the comparative advantage of focusing on the commodity in which a nation has a differential advantage and relying upon trade to obtain other goods Even if a nation has an absolute advantage in commodities that it

acquires through tradeItrsquos a trade-off of opportunity costs focusing on what you do best

bull Thus David Ricardo defined the benefits of specialization and the need to focus on core competencies

Ricardo David On the Principles of Political Economy and Taxation 1817

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sawhney Mohanbir Kellogg School of Management 2001

2020thth century century

Machine Bureaucracybull Integratedbull Diversified

21st century21st century

Networked Organizationbull Disaggregatedbull Specialized

Expanding the Boundaries of Business

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

033

$1 previouslySpent in US now offshoredto Indiahellip

hellipdelivers value toIndia

hellipbringssavings andreturns toUShellip

hellipcreatesnew valuefromreemployingUs Labor

andmakes theglobal pie that muchbigger

$100

067

047

045-

$145-147

The real economics of offshoring

The McKinsey Global Institute finds that off shoring not only produces value for the countries that gain the jobs but also frees up capital in the United States for more productive uses Most displaced workers find new positions within six monthsmdashpossibly even in new ventures financed with money saved by off shoring work to cheaper labour markets

Economic factorsEconomic factors

bull Cost savings($058)bull Goodsservices soldto India ($005)bull Profits from India Ventures($004)

bull Taxes($004)bull Revenues($020)bull Local suppliers($009)

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Prorsquos

The arguments in most of such studies follow the logic of mainstream economics and are quite straightforward

1 By moving work offshore firms are able to lower their production costs

2 Some domestic workers will be displaced but the benefits from lowering production costs captured by the firms and customers far outweigh any costs to displaced workers

3 Many of the displaced workers will actually be net beneficiaries because they will be ldquofreed uprdquo to do more interesting and lucrative work

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Contrarsquos

While these studies have some merit they are incomplete in some respects

1 they assume a very optimistic re-employment scenario for ldquofreed uprdquo workers predicting short durations of unemployment and higher wages in their new positions

2 most do not account for the lost wages due to unemployment in their models

3 the studies do not capture difficult to measure effects such as the impact on future innovation and security (For instance evidence is already surfacing that many of our best and brightest college students are avoiding technology majors because of outsourcing)

4 they ignore the downward pressure on domestic wages for jobs that are competed across borders

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forcesGlobal forces

Trends that are changing the rules in todayrsquos business environment

1 The shift from domestic to global economy

2 The shift from manpower to technopower

3 The shift from company-led to consumer-driven market forces

4 The shift from an industrial economy to a knowledge economy

5 The transformation of the employeremployee relationship

6 New relationships and governance structures concerning vendors and supplier

7 Shortage of skilled labour in development nations

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Drivers of Outsourcin

g

Access to High Quality Resources

Focus on Core

Competencies

Technology Expertise

Higher productivity

amp Better service levels

Cost Effectiveness

Domain Expertise

Why do companies outsource

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Reduce costs through simplification and standardization 93

Increase productivity and service excellence to customers 63

Enhance focus on business unit operations vs back office processing

58

Support new business process capabilities 37

Reduce costs through wage and labour arbitrage 31

Improve capability to integrate new business 26

Other 5

Source SBPOA online survey 77 respondents 2005

Main reasons for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Lower cost 75

Improve service quality 64

Greater business flexibility 54

Lower capital investments 70

Fewer people in function 45

Predictable outcome 42

Increased accountability 32

Source SBPOA online survey 172 respondents 2005

Perceived benefits of BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO development

From low-end to high-end services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO developmentBPO development

bull Manufacturing operations have been relocating to reduce costs for over 50 years

bull Improvements in telecoms IT and reductions in the cost of computing enabled the service sector to develop new operational models

bull Customer focus and direct channel acceptance fuelled the growth of call centres

bull Cost reduction was the primary driver predominantly through relocation and better wage deals in country

bull BPO goes beyond technology and applications -delivering integrated processes and outcomes

Phase I

1980s

Evo

luti

on

of

the

BP

O m

arke

t

Advanced financial

analysis and accountancy

processes

Call centres and data

processingIT jobs

and functions

Phase II

1990s

Phase III

current

A trend with a long history

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increasing complexity of legal and regulatory environment

Mainframecomputing allows

for timesharing

Banking ampbrokerageoutsourcing

Intense competition fromforeign automakers

Automanufacturing

outsourcing

Need to installERP systems on

timeand within budget

IToutsourcing

Competition drivescompanies to seekmore cost effective

ways to performinternal process wo

sacrificing quality

Customer CareHuman Resources

Supply Chainoutsourcing

1960 s 1970 s1980 s 1990 s 2000 s

Pay roll outsourcing

BPO developmentBPO development

Outsourcing historical context BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 9: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO includes the software the process management and the people to operate the service

ASP includes only the provision of access to functionalities and features provided or served up through the use of software usually via web browser to the customer

DefinitionsDefinitions

Use of a BPO as opposed to an application service provider (ASP) usually also means that a certain amount of risk is transferred to the company that is running the process elements on behalf of the outsourcer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Knowledge Process Outsourcing

Knowledge Process Outsourcing is a sub set of Business Process Outsourcing

Legal Process Outsourcing Financial Process Outsourcing Medical Process Outsourcing

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

hellipshore Outsourcing

BPO that is contracted outside a companys own country is sometimes called offshore outsourcing BPO that is contracted to a companys neighboring country is sometimes called nearshore outsourcing and BPO that is contracted within the companys own country is sometimes called onshore outsourcing (also called domestic outsourcing)

Offshore simply means any country other than your own The Internet and high-speed Internet connections make it possible for outsourcing to be carried out anywhere in the world a business trend economists call globalisation (also termed global sourcing or global delivery)

Global sourcing a corporate sourcing strategy that identifies and leverages those human resources and assets regardless of geographic location most appropriate for meeting the organizationrsquos needs often coming from both nearshore and offshore locations

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Captive centre Shared Services centre

Captives (centres) also known as offshore insourcing or offshore shared services centres help organisations lower operating cost and improve overall performance

Shared Service Centres shared services pull together scattered autonomously run internal services operations of an organisation into mega-service centres which are structured as independent business with their own budgets and bottom-line accountability

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Supply Chain

A supply chain logistics network or supply network is a coordinated system of organizations people activities information and resources involved in moving a product or service in physical or virtual manner from supplier to customer

Supply chain activities (value chains or life cycle processes) transform raw materials and components into a finished product that is delivered to the end customer Supply chains link value chains

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

How much should we do ourselves and how much should we

buy from others

Ronald Coase1991 Nobel Laureate Economics

Where should we focus our resources

David Ricardo19th Century Economist

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Efficiency

bull Ronald Coase asked ldquohellipwhy is there any organisationrdquo in other words why do firms exist

- Firms exist because the cost of a central authority organising transactions internally costs less than organising them externally in the marketplace

bull Ronald Coase also asked ldquoWhy is not all production carried on by one big firmrdquo

- Because at some point the cost of organising the next transaction internally will be greater than the cost of organising that same transaction in the marketplace

bull Thus Ronald Coase defined the limit of the size of the firm using the concepts of transaction or interaction costs Coase Ronald The Nature of the Firm Economica 1937

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Specialisation

bull Adam Smith stated ldquoIf a foreign country can supply us with a commodity cheaper than we ourselves can make it better buy it of themhelliprdquo (The Theory of Absolute Advantage)

bull David Ricardo replied that itrsquos more than absolute advantage itrsquos the comparative advantage of focusing on the commodity in which a nation has a differential advantage and relying upon trade to obtain other goods Even if a nation has an absolute advantage in commodities that it

acquires through tradeItrsquos a trade-off of opportunity costs focusing on what you do best

bull Thus David Ricardo defined the benefits of specialization and the need to focus on core competencies

Ricardo David On the Principles of Political Economy and Taxation 1817

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sawhney Mohanbir Kellogg School of Management 2001

2020thth century century

Machine Bureaucracybull Integratedbull Diversified

21st century21st century

Networked Organizationbull Disaggregatedbull Specialized

Expanding the Boundaries of Business

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

033

$1 previouslySpent in US now offshoredto Indiahellip

hellipdelivers value toIndia

hellipbringssavings andreturns toUShellip

hellipcreatesnew valuefromreemployingUs Labor

andmakes theglobal pie that muchbigger

$100

067

047

045-

$145-147

The real economics of offshoring

The McKinsey Global Institute finds that off shoring not only produces value for the countries that gain the jobs but also frees up capital in the United States for more productive uses Most displaced workers find new positions within six monthsmdashpossibly even in new ventures financed with money saved by off shoring work to cheaper labour markets

Economic factorsEconomic factors

bull Cost savings($058)bull Goodsservices soldto India ($005)bull Profits from India Ventures($004)

bull Taxes($004)bull Revenues($020)bull Local suppliers($009)

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Prorsquos

The arguments in most of such studies follow the logic of mainstream economics and are quite straightforward

1 By moving work offshore firms are able to lower their production costs

2 Some domestic workers will be displaced but the benefits from lowering production costs captured by the firms and customers far outweigh any costs to displaced workers

3 Many of the displaced workers will actually be net beneficiaries because they will be ldquofreed uprdquo to do more interesting and lucrative work

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Contrarsquos

While these studies have some merit they are incomplete in some respects

1 they assume a very optimistic re-employment scenario for ldquofreed uprdquo workers predicting short durations of unemployment and higher wages in their new positions

2 most do not account for the lost wages due to unemployment in their models

3 the studies do not capture difficult to measure effects such as the impact on future innovation and security (For instance evidence is already surfacing that many of our best and brightest college students are avoiding technology majors because of outsourcing)

4 they ignore the downward pressure on domestic wages for jobs that are competed across borders

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forcesGlobal forces

Trends that are changing the rules in todayrsquos business environment

1 The shift from domestic to global economy

2 The shift from manpower to technopower

3 The shift from company-led to consumer-driven market forces

4 The shift from an industrial economy to a knowledge economy

5 The transformation of the employeremployee relationship

6 New relationships and governance structures concerning vendors and supplier

7 Shortage of skilled labour in development nations

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Drivers of Outsourcin

g

Access to High Quality Resources

Focus on Core

Competencies

Technology Expertise

Higher productivity

amp Better service levels

Cost Effectiveness

Domain Expertise

Why do companies outsource

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Reduce costs through simplification and standardization 93

Increase productivity and service excellence to customers 63

Enhance focus on business unit operations vs back office processing

58

Support new business process capabilities 37

Reduce costs through wage and labour arbitrage 31

Improve capability to integrate new business 26

Other 5

Source SBPOA online survey 77 respondents 2005

Main reasons for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Lower cost 75

Improve service quality 64

Greater business flexibility 54

Lower capital investments 70

Fewer people in function 45

Predictable outcome 42

Increased accountability 32

Source SBPOA online survey 172 respondents 2005

Perceived benefits of BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO development

From low-end to high-end services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO developmentBPO development

bull Manufacturing operations have been relocating to reduce costs for over 50 years

bull Improvements in telecoms IT and reductions in the cost of computing enabled the service sector to develop new operational models

bull Customer focus and direct channel acceptance fuelled the growth of call centres

bull Cost reduction was the primary driver predominantly through relocation and better wage deals in country

bull BPO goes beyond technology and applications -delivering integrated processes and outcomes

Phase I

1980s

Evo

luti

on

of

the

BP

O m

arke

t

Advanced financial

analysis and accountancy

processes

Call centres and data

processingIT jobs

and functions

Phase II

1990s

Phase III

current

A trend with a long history

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increasing complexity of legal and regulatory environment

Mainframecomputing allows

for timesharing

Banking ampbrokerageoutsourcing

Intense competition fromforeign automakers

Automanufacturing

outsourcing

Need to installERP systems on

timeand within budget

IToutsourcing

Competition drivescompanies to seekmore cost effective

ways to performinternal process wo

sacrificing quality

Customer CareHuman Resources

Supply Chainoutsourcing

1960 s 1970 s1980 s 1990 s 2000 s

Pay roll outsourcing

BPO developmentBPO development

Outsourcing historical context BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 10: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Knowledge Process Outsourcing

Knowledge Process Outsourcing is a sub set of Business Process Outsourcing

Legal Process Outsourcing Financial Process Outsourcing Medical Process Outsourcing

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

hellipshore Outsourcing

BPO that is contracted outside a companys own country is sometimes called offshore outsourcing BPO that is contracted to a companys neighboring country is sometimes called nearshore outsourcing and BPO that is contracted within the companys own country is sometimes called onshore outsourcing (also called domestic outsourcing)

Offshore simply means any country other than your own The Internet and high-speed Internet connections make it possible for outsourcing to be carried out anywhere in the world a business trend economists call globalisation (also termed global sourcing or global delivery)

Global sourcing a corporate sourcing strategy that identifies and leverages those human resources and assets regardless of geographic location most appropriate for meeting the organizationrsquos needs often coming from both nearshore and offshore locations

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Captive centre Shared Services centre

Captives (centres) also known as offshore insourcing or offshore shared services centres help organisations lower operating cost and improve overall performance

Shared Service Centres shared services pull together scattered autonomously run internal services operations of an organisation into mega-service centres which are structured as independent business with their own budgets and bottom-line accountability

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Supply Chain

A supply chain logistics network or supply network is a coordinated system of organizations people activities information and resources involved in moving a product or service in physical or virtual manner from supplier to customer

Supply chain activities (value chains or life cycle processes) transform raw materials and components into a finished product that is delivered to the end customer Supply chains link value chains

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

How much should we do ourselves and how much should we

buy from others

Ronald Coase1991 Nobel Laureate Economics

Where should we focus our resources

David Ricardo19th Century Economist

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Efficiency

bull Ronald Coase asked ldquohellipwhy is there any organisationrdquo in other words why do firms exist

- Firms exist because the cost of a central authority organising transactions internally costs less than organising them externally in the marketplace

bull Ronald Coase also asked ldquoWhy is not all production carried on by one big firmrdquo

- Because at some point the cost of organising the next transaction internally will be greater than the cost of organising that same transaction in the marketplace

bull Thus Ronald Coase defined the limit of the size of the firm using the concepts of transaction or interaction costs Coase Ronald The Nature of the Firm Economica 1937

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Specialisation

bull Adam Smith stated ldquoIf a foreign country can supply us with a commodity cheaper than we ourselves can make it better buy it of themhelliprdquo (The Theory of Absolute Advantage)

bull David Ricardo replied that itrsquos more than absolute advantage itrsquos the comparative advantage of focusing on the commodity in which a nation has a differential advantage and relying upon trade to obtain other goods Even if a nation has an absolute advantage in commodities that it

acquires through tradeItrsquos a trade-off of opportunity costs focusing on what you do best

bull Thus David Ricardo defined the benefits of specialization and the need to focus on core competencies

Ricardo David On the Principles of Political Economy and Taxation 1817

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sawhney Mohanbir Kellogg School of Management 2001

2020thth century century

Machine Bureaucracybull Integratedbull Diversified

21st century21st century

Networked Organizationbull Disaggregatedbull Specialized

Expanding the Boundaries of Business

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

033

$1 previouslySpent in US now offshoredto Indiahellip

hellipdelivers value toIndia

hellipbringssavings andreturns toUShellip

hellipcreatesnew valuefromreemployingUs Labor

andmakes theglobal pie that muchbigger

$100

067

047

045-

$145-147

The real economics of offshoring

The McKinsey Global Institute finds that off shoring not only produces value for the countries that gain the jobs but also frees up capital in the United States for more productive uses Most displaced workers find new positions within six monthsmdashpossibly even in new ventures financed with money saved by off shoring work to cheaper labour markets

Economic factorsEconomic factors

bull Cost savings($058)bull Goodsservices soldto India ($005)bull Profits from India Ventures($004)

bull Taxes($004)bull Revenues($020)bull Local suppliers($009)

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Prorsquos

The arguments in most of such studies follow the logic of mainstream economics and are quite straightforward

1 By moving work offshore firms are able to lower their production costs

2 Some domestic workers will be displaced but the benefits from lowering production costs captured by the firms and customers far outweigh any costs to displaced workers

3 Many of the displaced workers will actually be net beneficiaries because they will be ldquofreed uprdquo to do more interesting and lucrative work

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Contrarsquos

While these studies have some merit they are incomplete in some respects

1 they assume a very optimistic re-employment scenario for ldquofreed uprdquo workers predicting short durations of unemployment and higher wages in their new positions

2 most do not account for the lost wages due to unemployment in their models

3 the studies do not capture difficult to measure effects such as the impact on future innovation and security (For instance evidence is already surfacing that many of our best and brightest college students are avoiding technology majors because of outsourcing)

4 they ignore the downward pressure on domestic wages for jobs that are competed across borders

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forcesGlobal forces

Trends that are changing the rules in todayrsquos business environment

1 The shift from domestic to global economy

2 The shift from manpower to technopower

3 The shift from company-led to consumer-driven market forces

4 The shift from an industrial economy to a knowledge economy

5 The transformation of the employeremployee relationship

6 New relationships and governance structures concerning vendors and supplier

7 Shortage of skilled labour in development nations

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Drivers of Outsourcin

g

Access to High Quality Resources

Focus on Core

Competencies

Technology Expertise

Higher productivity

amp Better service levels

Cost Effectiveness

Domain Expertise

Why do companies outsource

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Reduce costs through simplification and standardization 93

Increase productivity and service excellence to customers 63

Enhance focus on business unit operations vs back office processing

58

Support new business process capabilities 37

Reduce costs through wage and labour arbitrage 31

Improve capability to integrate new business 26

Other 5

Source SBPOA online survey 77 respondents 2005

Main reasons for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Lower cost 75

Improve service quality 64

Greater business flexibility 54

Lower capital investments 70

Fewer people in function 45

Predictable outcome 42

Increased accountability 32

Source SBPOA online survey 172 respondents 2005

Perceived benefits of BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO development

From low-end to high-end services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO developmentBPO development

bull Manufacturing operations have been relocating to reduce costs for over 50 years

bull Improvements in telecoms IT and reductions in the cost of computing enabled the service sector to develop new operational models

bull Customer focus and direct channel acceptance fuelled the growth of call centres

bull Cost reduction was the primary driver predominantly through relocation and better wage deals in country

bull BPO goes beyond technology and applications -delivering integrated processes and outcomes

Phase I

1980s

Evo

luti

on

of

the

BP

O m

arke

t

Advanced financial

analysis and accountancy

processes

Call centres and data

processingIT jobs

and functions

Phase II

1990s

Phase III

current

A trend with a long history

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increasing complexity of legal and regulatory environment

Mainframecomputing allows

for timesharing

Banking ampbrokerageoutsourcing

Intense competition fromforeign automakers

Automanufacturing

outsourcing

Need to installERP systems on

timeand within budget

IToutsourcing

Competition drivescompanies to seekmore cost effective

ways to performinternal process wo

sacrificing quality

Customer CareHuman Resources

Supply Chainoutsourcing

1960 s 1970 s1980 s 1990 s 2000 s

Pay roll outsourcing

BPO developmentBPO development

Outsourcing historical context BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 11: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

hellipshore Outsourcing

BPO that is contracted outside a companys own country is sometimes called offshore outsourcing BPO that is contracted to a companys neighboring country is sometimes called nearshore outsourcing and BPO that is contracted within the companys own country is sometimes called onshore outsourcing (also called domestic outsourcing)

Offshore simply means any country other than your own The Internet and high-speed Internet connections make it possible for outsourcing to be carried out anywhere in the world a business trend economists call globalisation (also termed global sourcing or global delivery)

Global sourcing a corporate sourcing strategy that identifies and leverages those human resources and assets regardless of geographic location most appropriate for meeting the organizationrsquos needs often coming from both nearshore and offshore locations

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Captive centre Shared Services centre

Captives (centres) also known as offshore insourcing or offshore shared services centres help organisations lower operating cost and improve overall performance

Shared Service Centres shared services pull together scattered autonomously run internal services operations of an organisation into mega-service centres which are structured as independent business with their own budgets and bottom-line accountability

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Supply Chain

A supply chain logistics network or supply network is a coordinated system of organizations people activities information and resources involved in moving a product or service in physical or virtual manner from supplier to customer

Supply chain activities (value chains or life cycle processes) transform raw materials and components into a finished product that is delivered to the end customer Supply chains link value chains

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

How much should we do ourselves and how much should we

buy from others

Ronald Coase1991 Nobel Laureate Economics

Where should we focus our resources

David Ricardo19th Century Economist

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Efficiency

bull Ronald Coase asked ldquohellipwhy is there any organisationrdquo in other words why do firms exist

- Firms exist because the cost of a central authority organising transactions internally costs less than organising them externally in the marketplace

bull Ronald Coase also asked ldquoWhy is not all production carried on by one big firmrdquo

- Because at some point the cost of organising the next transaction internally will be greater than the cost of organising that same transaction in the marketplace

bull Thus Ronald Coase defined the limit of the size of the firm using the concepts of transaction or interaction costs Coase Ronald The Nature of the Firm Economica 1937

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Specialisation

bull Adam Smith stated ldquoIf a foreign country can supply us with a commodity cheaper than we ourselves can make it better buy it of themhelliprdquo (The Theory of Absolute Advantage)

bull David Ricardo replied that itrsquos more than absolute advantage itrsquos the comparative advantage of focusing on the commodity in which a nation has a differential advantage and relying upon trade to obtain other goods Even if a nation has an absolute advantage in commodities that it

acquires through tradeItrsquos a trade-off of opportunity costs focusing on what you do best

bull Thus David Ricardo defined the benefits of specialization and the need to focus on core competencies

Ricardo David On the Principles of Political Economy and Taxation 1817

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sawhney Mohanbir Kellogg School of Management 2001

2020thth century century

Machine Bureaucracybull Integratedbull Diversified

21st century21st century

Networked Organizationbull Disaggregatedbull Specialized

Expanding the Boundaries of Business

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

033

$1 previouslySpent in US now offshoredto Indiahellip

hellipdelivers value toIndia

hellipbringssavings andreturns toUShellip

hellipcreatesnew valuefromreemployingUs Labor

andmakes theglobal pie that muchbigger

$100

067

047

045-

$145-147

The real economics of offshoring

The McKinsey Global Institute finds that off shoring not only produces value for the countries that gain the jobs but also frees up capital in the United States for more productive uses Most displaced workers find new positions within six monthsmdashpossibly even in new ventures financed with money saved by off shoring work to cheaper labour markets

Economic factorsEconomic factors

bull Cost savings($058)bull Goodsservices soldto India ($005)bull Profits from India Ventures($004)

bull Taxes($004)bull Revenues($020)bull Local suppliers($009)

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Prorsquos

The arguments in most of such studies follow the logic of mainstream economics and are quite straightforward

1 By moving work offshore firms are able to lower their production costs

2 Some domestic workers will be displaced but the benefits from lowering production costs captured by the firms and customers far outweigh any costs to displaced workers

3 Many of the displaced workers will actually be net beneficiaries because they will be ldquofreed uprdquo to do more interesting and lucrative work

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Contrarsquos

While these studies have some merit they are incomplete in some respects

1 they assume a very optimistic re-employment scenario for ldquofreed uprdquo workers predicting short durations of unemployment and higher wages in their new positions

2 most do not account for the lost wages due to unemployment in their models

3 the studies do not capture difficult to measure effects such as the impact on future innovation and security (For instance evidence is already surfacing that many of our best and brightest college students are avoiding technology majors because of outsourcing)

4 they ignore the downward pressure on domestic wages for jobs that are competed across borders

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forcesGlobal forces

Trends that are changing the rules in todayrsquos business environment

1 The shift from domestic to global economy

2 The shift from manpower to technopower

3 The shift from company-led to consumer-driven market forces

4 The shift from an industrial economy to a knowledge economy

5 The transformation of the employeremployee relationship

6 New relationships and governance structures concerning vendors and supplier

7 Shortage of skilled labour in development nations

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Drivers of Outsourcin

g

Access to High Quality Resources

Focus on Core

Competencies

Technology Expertise

Higher productivity

amp Better service levels

Cost Effectiveness

Domain Expertise

Why do companies outsource

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Reduce costs through simplification and standardization 93

Increase productivity and service excellence to customers 63

Enhance focus on business unit operations vs back office processing

58

Support new business process capabilities 37

Reduce costs through wage and labour arbitrage 31

Improve capability to integrate new business 26

Other 5

Source SBPOA online survey 77 respondents 2005

Main reasons for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Lower cost 75

Improve service quality 64

Greater business flexibility 54

Lower capital investments 70

Fewer people in function 45

Predictable outcome 42

Increased accountability 32

Source SBPOA online survey 172 respondents 2005

Perceived benefits of BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO development

From low-end to high-end services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO developmentBPO development

bull Manufacturing operations have been relocating to reduce costs for over 50 years

bull Improvements in telecoms IT and reductions in the cost of computing enabled the service sector to develop new operational models

bull Customer focus and direct channel acceptance fuelled the growth of call centres

bull Cost reduction was the primary driver predominantly through relocation and better wage deals in country

bull BPO goes beyond technology and applications -delivering integrated processes and outcomes

Phase I

1980s

Evo

luti

on

of

the

BP

O m

arke

t

Advanced financial

analysis and accountancy

processes

Call centres and data

processingIT jobs

and functions

Phase II

1990s

Phase III

current

A trend with a long history

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increasing complexity of legal and regulatory environment

Mainframecomputing allows

for timesharing

Banking ampbrokerageoutsourcing

Intense competition fromforeign automakers

Automanufacturing

outsourcing

Need to installERP systems on

timeand within budget

IToutsourcing

Competition drivescompanies to seekmore cost effective

ways to performinternal process wo

sacrificing quality

Customer CareHuman Resources

Supply Chainoutsourcing

1960 s 1970 s1980 s 1990 s 2000 s

Pay roll outsourcing

BPO developmentBPO development

Outsourcing historical context BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 12: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Captive centre Shared Services centre

Captives (centres) also known as offshore insourcing or offshore shared services centres help organisations lower operating cost and improve overall performance

Shared Service Centres shared services pull together scattered autonomously run internal services operations of an organisation into mega-service centres which are structured as independent business with their own budgets and bottom-line accountability

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Supply Chain

A supply chain logistics network or supply network is a coordinated system of organizations people activities information and resources involved in moving a product or service in physical or virtual manner from supplier to customer

Supply chain activities (value chains or life cycle processes) transform raw materials and components into a finished product that is delivered to the end customer Supply chains link value chains

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

How much should we do ourselves and how much should we

buy from others

Ronald Coase1991 Nobel Laureate Economics

Where should we focus our resources

David Ricardo19th Century Economist

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Efficiency

bull Ronald Coase asked ldquohellipwhy is there any organisationrdquo in other words why do firms exist

- Firms exist because the cost of a central authority organising transactions internally costs less than organising them externally in the marketplace

bull Ronald Coase also asked ldquoWhy is not all production carried on by one big firmrdquo

- Because at some point the cost of organising the next transaction internally will be greater than the cost of organising that same transaction in the marketplace

bull Thus Ronald Coase defined the limit of the size of the firm using the concepts of transaction or interaction costs Coase Ronald The Nature of the Firm Economica 1937

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Specialisation

bull Adam Smith stated ldquoIf a foreign country can supply us with a commodity cheaper than we ourselves can make it better buy it of themhelliprdquo (The Theory of Absolute Advantage)

bull David Ricardo replied that itrsquos more than absolute advantage itrsquos the comparative advantage of focusing on the commodity in which a nation has a differential advantage and relying upon trade to obtain other goods Even if a nation has an absolute advantage in commodities that it

acquires through tradeItrsquos a trade-off of opportunity costs focusing on what you do best

bull Thus David Ricardo defined the benefits of specialization and the need to focus on core competencies

Ricardo David On the Principles of Political Economy and Taxation 1817

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sawhney Mohanbir Kellogg School of Management 2001

2020thth century century

Machine Bureaucracybull Integratedbull Diversified

21st century21st century

Networked Organizationbull Disaggregatedbull Specialized

Expanding the Boundaries of Business

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

033

$1 previouslySpent in US now offshoredto Indiahellip

hellipdelivers value toIndia

hellipbringssavings andreturns toUShellip

hellipcreatesnew valuefromreemployingUs Labor

andmakes theglobal pie that muchbigger

$100

067

047

045-

$145-147

The real economics of offshoring

The McKinsey Global Institute finds that off shoring not only produces value for the countries that gain the jobs but also frees up capital in the United States for more productive uses Most displaced workers find new positions within six monthsmdashpossibly even in new ventures financed with money saved by off shoring work to cheaper labour markets

Economic factorsEconomic factors

bull Cost savings($058)bull Goodsservices soldto India ($005)bull Profits from India Ventures($004)

bull Taxes($004)bull Revenues($020)bull Local suppliers($009)

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Prorsquos

The arguments in most of such studies follow the logic of mainstream economics and are quite straightforward

1 By moving work offshore firms are able to lower their production costs

2 Some domestic workers will be displaced but the benefits from lowering production costs captured by the firms and customers far outweigh any costs to displaced workers

3 Many of the displaced workers will actually be net beneficiaries because they will be ldquofreed uprdquo to do more interesting and lucrative work

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Contrarsquos

While these studies have some merit they are incomplete in some respects

1 they assume a very optimistic re-employment scenario for ldquofreed uprdquo workers predicting short durations of unemployment and higher wages in their new positions

2 most do not account for the lost wages due to unemployment in their models

3 the studies do not capture difficult to measure effects such as the impact on future innovation and security (For instance evidence is already surfacing that many of our best and brightest college students are avoiding technology majors because of outsourcing)

4 they ignore the downward pressure on domestic wages for jobs that are competed across borders

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forcesGlobal forces

Trends that are changing the rules in todayrsquos business environment

1 The shift from domestic to global economy

2 The shift from manpower to technopower

3 The shift from company-led to consumer-driven market forces

4 The shift from an industrial economy to a knowledge economy

5 The transformation of the employeremployee relationship

6 New relationships and governance structures concerning vendors and supplier

7 Shortage of skilled labour in development nations

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Drivers of Outsourcin

g

Access to High Quality Resources

Focus on Core

Competencies

Technology Expertise

Higher productivity

amp Better service levels

Cost Effectiveness

Domain Expertise

Why do companies outsource

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Reduce costs through simplification and standardization 93

Increase productivity and service excellence to customers 63

Enhance focus on business unit operations vs back office processing

58

Support new business process capabilities 37

Reduce costs through wage and labour arbitrage 31

Improve capability to integrate new business 26

Other 5

Source SBPOA online survey 77 respondents 2005

Main reasons for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Lower cost 75

Improve service quality 64

Greater business flexibility 54

Lower capital investments 70

Fewer people in function 45

Predictable outcome 42

Increased accountability 32

Source SBPOA online survey 172 respondents 2005

Perceived benefits of BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO development

From low-end to high-end services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO developmentBPO development

bull Manufacturing operations have been relocating to reduce costs for over 50 years

bull Improvements in telecoms IT and reductions in the cost of computing enabled the service sector to develop new operational models

bull Customer focus and direct channel acceptance fuelled the growth of call centres

bull Cost reduction was the primary driver predominantly through relocation and better wage deals in country

bull BPO goes beyond technology and applications -delivering integrated processes and outcomes

Phase I

1980s

Evo

luti

on

of

the

BP

O m

arke

t

Advanced financial

analysis and accountancy

processes

Call centres and data

processingIT jobs

and functions

Phase II

1990s

Phase III

current

A trend with a long history

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increasing complexity of legal and regulatory environment

Mainframecomputing allows

for timesharing

Banking ampbrokerageoutsourcing

Intense competition fromforeign automakers

Automanufacturing

outsourcing

Need to installERP systems on

timeand within budget

IToutsourcing

Competition drivescompanies to seekmore cost effective

ways to performinternal process wo

sacrificing quality

Customer CareHuman Resources

Supply Chainoutsourcing

1960 s 1970 s1980 s 1990 s 2000 s

Pay roll outsourcing

BPO developmentBPO development

Outsourcing historical context BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 13: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Supply Chain

A supply chain logistics network or supply network is a coordinated system of organizations people activities information and resources involved in moving a product or service in physical or virtual manner from supplier to customer

Supply chain activities (value chains or life cycle processes) transform raw materials and components into a finished product that is delivered to the end customer Supply chains link value chains

DefinitionsDefinitions

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

How much should we do ourselves and how much should we

buy from others

Ronald Coase1991 Nobel Laureate Economics

Where should we focus our resources

David Ricardo19th Century Economist

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Efficiency

bull Ronald Coase asked ldquohellipwhy is there any organisationrdquo in other words why do firms exist

- Firms exist because the cost of a central authority organising transactions internally costs less than organising them externally in the marketplace

bull Ronald Coase also asked ldquoWhy is not all production carried on by one big firmrdquo

- Because at some point the cost of organising the next transaction internally will be greater than the cost of organising that same transaction in the marketplace

bull Thus Ronald Coase defined the limit of the size of the firm using the concepts of transaction or interaction costs Coase Ronald The Nature of the Firm Economica 1937

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Specialisation

bull Adam Smith stated ldquoIf a foreign country can supply us with a commodity cheaper than we ourselves can make it better buy it of themhelliprdquo (The Theory of Absolute Advantage)

bull David Ricardo replied that itrsquos more than absolute advantage itrsquos the comparative advantage of focusing on the commodity in which a nation has a differential advantage and relying upon trade to obtain other goods Even if a nation has an absolute advantage in commodities that it

acquires through tradeItrsquos a trade-off of opportunity costs focusing on what you do best

bull Thus David Ricardo defined the benefits of specialization and the need to focus on core competencies

Ricardo David On the Principles of Political Economy and Taxation 1817

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sawhney Mohanbir Kellogg School of Management 2001

2020thth century century

Machine Bureaucracybull Integratedbull Diversified

21st century21st century

Networked Organizationbull Disaggregatedbull Specialized

Expanding the Boundaries of Business

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

033

$1 previouslySpent in US now offshoredto Indiahellip

hellipdelivers value toIndia

hellipbringssavings andreturns toUShellip

hellipcreatesnew valuefromreemployingUs Labor

andmakes theglobal pie that muchbigger

$100

067

047

045-

$145-147

The real economics of offshoring

The McKinsey Global Institute finds that off shoring not only produces value for the countries that gain the jobs but also frees up capital in the United States for more productive uses Most displaced workers find new positions within six monthsmdashpossibly even in new ventures financed with money saved by off shoring work to cheaper labour markets

Economic factorsEconomic factors

bull Cost savings($058)bull Goodsservices soldto India ($005)bull Profits from India Ventures($004)

bull Taxes($004)bull Revenues($020)bull Local suppliers($009)

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Prorsquos

The arguments in most of such studies follow the logic of mainstream economics and are quite straightforward

1 By moving work offshore firms are able to lower their production costs

2 Some domestic workers will be displaced but the benefits from lowering production costs captured by the firms and customers far outweigh any costs to displaced workers

3 Many of the displaced workers will actually be net beneficiaries because they will be ldquofreed uprdquo to do more interesting and lucrative work

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Contrarsquos

While these studies have some merit they are incomplete in some respects

1 they assume a very optimistic re-employment scenario for ldquofreed uprdquo workers predicting short durations of unemployment and higher wages in their new positions

2 most do not account for the lost wages due to unemployment in their models

3 the studies do not capture difficult to measure effects such as the impact on future innovation and security (For instance evidence is already surfacing that many of our best and brightest college students are avoiding technology majors because of outsourcing)

4 they ignore the downward pressure on domestic wages for jobs that are competed across borders

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forcesGlobal forces

Trends that are changing the rules in todayrsquos business environment

1 The shift from domestic to global economy

2 The shift from manpower to technopower

3 The shift from company-led to consumer-driven market forces

4 The shift from an industrial economy to a knowledge economy

5 The transformation of the employeremployee relationship

6 New relationships and governance structures concerning vendors and supplier

7 Shortage of skilled labour in development nations

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Drivers of Outsourcin

g

Access to High Quality Resources

Focus on Core

Competencies

Technology Expertise

Higher productivity

amp Better service levels

Cost Effectiveness

Domain Expertise

Why do companies outsource

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Reduce costs through simplification and standardization 93

Increase productivity and service excellence to customers 63

Enhance focus on business unit operations vs back office processing

58

Support new business process capabilities 37

Reduce costs through wage and labour arbitrage 31

Improve capability to integrate new business 26

Other 5

Source SBPOA online survey 77 respondents 2005

Main reasons for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Lower cost 75

Improve service quality 64

Greater business flexibility 54

Lower capital investments 70

Fewer people in function 45

Predictable outcome 42

Increased accountability 32

Source SBPOA online survey 172 respondents 2005

Perceived benefits of BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO development

From low-end to high-end services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO developmentBPO development

bull Manufacturing operations have been relocating to reduce costs for over 50 years

bull Improvements in telecoms IT and reductions in the cost of computing enabled the service sector to develop new operational models

bull Customer focus and direct channel acceptance fuelled the growth of call centres

bull Cost reduction was the primary driver predominantly through relocation and better wage deals in country

bull BPO goes beyond technology and applications -delivering integrated processes and outcomes

Phase I

1980s

Evo

luti

on

of

the

BP

O m

arke

t

Advanced financial

analysis and accountancy

processes

Call centres and data

processingIT jobs

and functions

Phase II

1990s

Phase III

current

A trend with a long history

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increasing complexity of legal and regulatory environment

Mainframecomputing allows

for timesharing

Banking ampbrokerageoutsourcing

Intense competition fromforeign automakers

Automanufacturing

outsourcing

Need to installERP systems on

timeand within budget

IToutsourcing

Competition drivescompanies to seekmore cost effective

ways to performinternal process wo

sacrificing quality

Customer CareHuman Resources

Supply Chainoutsourcing

1960 s 1970 s1980 s 1990 s 2000 s

Pay roll outsourcing

BPO developmentBPO development

Outsourcing historical context BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 14: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

How much should we do ourselves and how much should we

buy from others

Ronald Coase1991 Nobel Laureate Economics

Where should we focus our resources

David Ricardo19th Century Economist

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Efficiency

bull Ronald Coase asked ldquohellipwhy is there any organisationrdquo in other words why do firms exist

- Firms exist because the cost of a central authority organising transactions internally costs less than organising them externally in the marketplace

bull Ronald Coase also asked ldquoWhy is not all production carried on by one big firmrdquo

- Because at some point the cost of organising the next transaction internally will be greater than the cost of organising that same transaction in the marketplace

bull Thus Ronald Coase defined the limit of the size of the firm using the concepts of transaction or interaction costs Coase Ronald The Nature of the Firm Economica 1937

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Specialisation

bull Adam Smith stated ldquoIf a foreign country can supply us with a commodity cheaper than we ourselves can make it better buy it of themhelliprdquo (The Theory of Absolute Advantage)

bull David Ricardo replied that itrsquos more than absolute advantage itrsquos the comparative advantage of focusing on the commodity in which a nation has a differential advantage and relying upon trade to obtain other goods Even if a nation has an absolute advantage in commodities that it

acquires through tradeItrsquos a trade-off of opportunity costs focusing on what you do best

bull Thus David Ricardo defined the benefits of specialization and the need to focus on core competencies

Ricardo David On the Principles of Political Economy and Taxation 1817

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sawhney Mohanbir Kellogg School of Management 2001

2020thth century century

Machine Bureaucracybull Integratedbull Diversified

21st century21st century

Networked Organizationbull Disaggregatedbull Specialized

Expanding the Boundaries of Business

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

033

$1 previouslySpent in US now offshoredto Indiahellip

hellipdelivers value toIndia

hellipbringssavings andreturns toUShellip

hellipcreatesnew valuefromreemployingUs Labor

andmakes theglobal pie that muchbigger

$100

067

047

045-

$145-147

The real economics of offshoring

The McKinsey Global Institute finds that off shoring not only produces value for the countries that gain the jobs but also frees up capital in the United States for more productive uses Most displaced workers find new positions within six monthsmdashpossibly even in new ventures financed with money saved by off shoring work to cheaper labour markets

Economic factorsEconomic factors

bull Cost savings($058)bull Goodsservices soldto India ($005)bull Profits from India Ventures($004)

bull Taxes($004)bull Revenues($020)bull Local suppliers($009)

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Prorsquos

The arguments in most of such studies follow the logic of mainstream economics and are quite straightforward

1 By moving work offshore firms are able to lower their production costs

2 Some domestic workers will be displaced but the benefits from lowering production costs captured by the firms and customers far outweigh any costs to displaced workers

3 Many of the displaced workers will actually be net beneficiaries because they will be ldquofreed uprdquo to do more interesting and lucrative work

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Contrarsquos

While these studies have some merit they are incomplete in some respects

1 they assume a very optimistic re-employment scenario for ldquofreed uprdquo workers predicting short durations of unemployment and higher wages in their new positions

2 most do not account for the lost wages due to unemployment in their models

3 the studies do not capture difficult to measure effects such as the impact on future innovation and security (For instance evidence is already surfacing that many of our best and brightest college students are avoiding technology majors because of outsourcing)

4 they ignore the downward pressure on domestic wages for jobs that are competed across borders

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forcesGlobal forces

Trends that are changing the rules in todayrsquos business environment

1 The shift from domestic to global economy

2 The shift from manpower to technopower

3 The shift from company-led to consumer-driven market forces

4 The shift from an industrial economy to a knowledge economy

5 The transformation of the employeremployee relationship

6 New relationships and governance structures concerning vendors and supplier

7 Shortage of skilled labour in development nations

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Drivers of Outsourcin

g

Access to High Quality Resources

Focus on Core

Competencies

Technology Expertise

Higher productivity

amp Better service levels

Cost Effectiveness

Domain Expertise

Why do companies outsource

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Reduce costs through simplification and standardization 93

Increase productivity and service excellence to customers 63

Enhance focus on business unit operations vs back office processing

58

Support new business process capabilities 37

Reduce costs through wage and labour arbitrage 31

Improve capability to integrate new business 26

Other 5

Source SBPOA online survey 77 respondents 2005

Main reasons for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Lower cost 75

Improve service quality 64

Greater business flexibility 54

Lower capital investments 70

Fewer people in function 45

Predictable outcome 42

Increased accountability 32

Source SBPOA online survey 172 respondents 2005

Perceived benefits of BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO development

From low-end to high-end services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO developmentBPO development

bull Manufacturing operations have been relocating to reduce costs for over 50 years

bull Improvements in telecoms IT and reductions in the cost of computing enabled the service sector to develop new operational models

bull Customer focus and direct channel acceptance fuelled the growth of call centres

bull Cost reduction was the primary driver predominantly through relocation and better wage deals in country

bull BPO goes beyond technology and applications -delivering integrated processes and outcomes

Phase I

1980s

Evo

luti

on

of

the

BP

O m

arke

t

Advanced financial

analysis and accountancy

processes

Call centres and data

processingIT jobs

and functions

Phase II

1990s

Phase III

current

A trend with a long history

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increasing complexity of legal and regulatory environment

Mainframecomputing allows

for timesharing

Banking ampbrokerageoutsourcing

Intense competition fromforeign automakers

Automanufacturing

outsourcing

Need to installERP systems on

timeand within budget

IToutsourcing

Competition drivescompanies to seekmore cost effective

ways to performinternal process wo

sacrificing quality

Customer CareHuman Resources

Supply Chainoutsourcing

1960 s 1970 s1980 s 1990 s 2000 s

Pay roll outsourcing

BPO developmentBPO development

Outsourcing historical context BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 15: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

How much should we do ourselves and how much should we

buy from others

Ronald Coase1991 Nobel Laureate Economics

Where should we focus our resources

David Ricardo19th Century Economist

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Efficiency

bull Ronald Coase asked ldquohellipwhy is there any organisationrdquo in other words why do firms exist

- Firms exist because the cost of a central authority organising transactions internally costs less than organising them externally in the marketplace

bull Ronald Coase also asked ldquoWhy is not all production carried on by one big firmrdquo

- Because at some point the cost of organising the next transaction internally will be greater than the cost of organising that same transaction in the marketplace

bull Thus Ronald Coase defined the limit of the size of the firm using the concepts of transaction or interaction costs Coase Ronald The Nature of the Firm Economica 1937

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Specialisation

bull Adam Smith stated ldquoIf a foreign country can supply us with a commodity cheaper than we ourselves can make it better buy it of themhelliprdquo (The Theory of Absolute Advantage)

bull David Ricardo replied that itrsquos more than absolute advantage itrsquos the comparative advantage of focusing on the commodity in which a nation has a differential advantage and relying upon trade to obtain other goods Even if a nation has an absolute advantage in commodities that it

acquires through tradeItrsquos a trade-off of opportunity costs focusing on what you do best

bull Thus David Ricardo defined the benefits of specialization and the need to focus on core competencies

Ricardo David On the Principles of Political Economy and Taxation 1817

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sawhney Mohanbir Kellogg School of Management 2001

2020thth century century

Machine Bureaucracybull Integratedbull Diversified

21st century21st century

Networked Organizationbull Disaggregatedbull Specialized

Expanding the Boundaries of Business

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

033

$1 previouslySpent in US now offshoredto Indiahellip

hellipdelivers value toIndia

hellipbringssavings andreturns toUShellip

hellipcreatesnew valuefromreemployingUs Labor

andmakes theglobal pie that muchbigger

$100

067

047

045-

$145-147

The real economics of offshoring

The McKinsey Global Institute finds that off shoring not only produces value for the countries that gain the jobs but also frees up capital in the United States for more productive uses Most displaced workers find new positions within six monthsmdashpossibly even in new ventures financed with money saved by off shoring work to cheaper labour markets

Economic factorsEconomic factors

bull Cost savings($058)bull Goodsservices soldto India ($005)bull Profits from India Ventures($004)

bull Taxes($004)bull Revenues($020)bull Local suppliers($009)

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Prorsquos

The arguments in most of such studies follow the logic of mainstream economics and are quite straightforward

1 By moving work offshore firms are able to lower their production costs

2 Some domestic workers will be displaced but the benefits from lowering production costs captured by the firms and customers far outweigh any costs to displaced workers

3 Many of the displaced workers will actually be net beneficiaries because they will be ldquofreed uprdquo to do more interesting and lucrative work

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Contrarsquos

While these studies have some merit they are incomplete in some respects

1 they assume a very optimistic re-employment scenario for ldquofreed uprdquo workers predicting short durations of unemployment and higher wages in their new positions

2 most do not account for the lost wages due to unemployment in their models

3 the studies do not capture difficult to measure effects such as the impact on future innovation and security (For instance evidence is already surfacing that many of our best and brightest college students are avoiding technology majors because of outsourcing)

4 they ignore the downward pressure on domestic wages for jobs that are competed across borders

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forcesGlobal forces

Trends that are changing the rules in todayrsquos business environment

1 The shift from domestic to global economy

2 The shift from manpower to technopower

3 The shift from company-led to consumer-driven market forces

4 The shift from an industrial economy to a knowledge economy

5 The transformation of the employeremployee relationship

6 New relationships and governance structures concerning vendors and supplier

7 Shortage of skilled labour in development nations

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Drivers of Outsourcin

g

Access to High Quality Resources

Focus on Core

Competencies

Technology Expertise

Higher productivity

amp Better service levels

Cost Effectiveness

Domain Expertise

Why do companies outsource

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Reduce costs through simplification and standardization 93

Increase productivity and service excellence to customers 63

Enhance focus on business unit operations vs back office processing

58

Support new business process capabilities 37

Reduce costs through wage and labour arbitrage 31

Improve capability to integrate new business 26

Other 5

Source SBPOA online survey 77 respondents 2005

Main reasons for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Lower cost 75

Improve service quality 64

Greater business flexibility 54

Lower capital investments 70

Fewer people in function 45

Predictable outcome 42

Increased accountability 32

Source SBPOA online survey 172 respondents 2005

Perceived benefits of BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO development

From low-end to high-end services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO developmentBPO development

bull Manufacturing operations have been relocating to reduce costs for over 50 years

bull Improvements in telecoms IT and reductions in the cost of computing enabled the service sector to develop new operational models

bull Customer focus and direct channel acceptance fuelled the growth of call centres

bull Cost reduction was the primary driver predominantly through relocation and better wage deals in country

bull BPO goes beyond technology and applications -delivering integrated processes and outcomes

Phase I

1980s

Evo

luti

on

of

the

BP

O m

arke

t

Advanced financial

analysis and accountancy

processes

Call centres and data

processingIT jobs

and functions

Phase II

1990s

Phase III

current

A trend with a long history

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increasing complexity of legal and regulatory environment

Mainframecomputing allows

for timesharing

Banking ampbrokerageoutsourcing

Intense competition fromforeign automakers

Automanufacturing

outsourcing

Need to installERP systems on

timeand within budget

IToutsourcing

Competition drivescompanies to seekmore cost effective

ways to performinternal process wo

sacrificing quality

Customer CareHuman Resources

Supply Chainoutsourcing

1960 s 1970 s1980 s 1990 s 2000 s

Pay roll outsourcing

BPO developmentBPO development

Outsourcing historical context BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 16: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Efficiency

bull Ronald Coase asked ldquohellipwhy is there any organisationrdquo in other words why do firms exist

- Firms exist because the cost of a central authority organising transactions internally costs less than organising them externally in the marketplace

bull Ronald Coase also asked ldquoWhy is not all production carried on by one big firmrdquo

- Because at some point the cost of organising the next transaction internally will be greater than the cost of organising that same transaction in the marketplace

bull Thus Ronald Coase defined the limit of the size of the firm using the concepts of transaction or interaction costs Coase Ronald The Nature of the Firm Economica 1937

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Specialisation

bull Adam Smith stated ldquoIf a foreign country can supply us with a commodity cheaper than we ourselves can make it better buy it of themhelliprdquo (The Theory of Absolute Advantage)

bull David Ricardo replied that itrsquos more than absolute advantage itrsquos the comparative advantage of focusing on the commodity in which a nation has a differential advantage and relying upon trade to obtain other goods Even if a nation has an absolute advantage in commodities that it

acquires through tradeItrsquos a trade-off of opportunity costs focusing on what you do best

bull Thus David Ricardo defined the benefits of specialization and the need to focus on core competencies

Ricardo David On the Principles of Political Economy and Taxation 1817

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sawhney Mohanbir Kellogg School of Management 2001

2020thth century century

Machine Bureaucracybull Integratedbull Diversified

21st century21st century

Networked Organizationbull Disaggregatedbull Specialized

Expanding the Boundaries of Business

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

033

$1 previouslySpent in US now offshoredto Indiahellip

hellipdelivers value toIndia

hellipbringssavings andreturns toUShellip

hellipcreatesnew valuefromreemployingUs Labor

andmakes theglobal pie that muchbigger

$100

067

047

045-

$145-147

The real economics of offshoring

The McKinsey Global Institute finds that off shoring not only produces value for the countries that gain the jobs but also frees up capital in the United States for more productive uses Most displaced workers find new positions within six monthsmdashpossibly even in new ventures financed with money saved by off shoring work to cheaper labour markets

Economic factorsEconomic factors

bull Cost savings($058)bull Goodsservices soldto India ($005)bull Profits from India Ventures($004)

bull Taxes($004)bull Revenues($020)bull Local suppliers($009)

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Prorsquos

The arguments in most of such studies follow the logic of mainstream economics and are quite straightforward

1 By moving work offshore firms are able to lower their production costs

2 Some domestic workers will be displaced but the benefits from lowering production costs captured by the firms and customers far outweigh any costs to displaced workers

3 Many of the displaced workers will actually be net beneficiaries because they will be ldquofreed uprdquo to do more interesting and lucrative work

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Contrarsquos

While these studies have some merit they are incomplete in some respects

1 they assume a very optimistic re-employment scenario for ldquofreed uprdquo workers predicting short durations of unemployment and higher wages in their new positions

2 most do not account for the lost wages due to unemployment in their models

3 the studies do not capture difficult to measure effects such as the impact on future innovation and security (For instance evidence is already surfacing that many of our best and brightest college students are avoiding technology majors because of outsourcing)

4 they ignore the downward pressure on domestic wages for jobs that are competed across borders

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forcesGlobal forces

Trends that are changing the rules in todayrsquos business environment

1 The shift from domestic to global economy

2 The shift from manpower to technopower

3 The shift from company-led to consumer-driven market forces

4 The shift from an industrial economy to a knowledge economy

5 The transformation of the employeremployee relationship

6 New relationships and governance structures concerning vendors and supplier

7 Shortage of skilled labour in development nations

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Drivers of Outsourcin

g

Access to High Quality Resources

Focus on Core

Competencies

Technology Expertise

Higher productivity

amp Better service levels

Cost Effectiveness

Domain Expertise

Why do companies outsource

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Reduce costs through simplification and standardization 93

Increase productivity and service excellence to customers 63

Enhance focus on business unit operations vs back office processing

58

Support new business process capabilities 37

Reduce costs through wage and labour arbitrage 31

Improve capability to integrate new business 26

Other 5

Source SBPOA online survey 77 respondents 2005

Main reasons for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Lower cost 75

Improve service quality 64

Greater business flexibility 54

Lower capital investments 70

Fewer people in function 45

Predictable outcome 42

Increased accountability 32

Source SBPOA online survey 172 respondents 2005

Perceived benefits of BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO development

From low-end to high-end services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO developmentBPO development

bull Manufacturing operations have been relocating to reduce costs for over 50 years

bull Improvements in telecoms IT and reductions in the cost of computing enabled the service sector to develop new operational models

bull Customer focus and direct channel acceptance fuelled the growth of call centres

bull Cost reduction was the primary driver predominantly through relocation and better wage deals in country

bull BPO goes beyond technology and applications -delivering integrated processes and outcomes

Phase I

1980s

Evo

luti

on

of

the

BP

O m

arke

t

Advanced financial

analysis and accountancy

processes

Call centres and data

processingIT jobs

and functions

Phase II

1990s

Phase III

current

A trend with a long history

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increasing complexity of legal and regulatory environment

Mainframecomputing allows

for timesharing

Banking ampbrokerageoutsourcing

Intense competition fromforeign automakers

Automanufacturing

outsourcing

Need to installERP systems on

timeand within budget

IToutsourcing

Competition drivescompanies to seekmore cost effective

ways to performinternal process wo

sacrificing quality

Customer CareHuman Resources

Supply Chainoutsourcing

1960 s 1970 s1980 s 1990 s 2000 s

Pay roll outsourcing

BPO developmentBPO development

Outsourcing historical context BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 17: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Organisational Boundaries and Specialisation

bull Adam Smith stated ldquoIf a foreign country can supply us with a commodity cheaper than we ourselves can make it better buy it of themhelliprdquo (The Theory of Absolute Advantage)

bull David Ricardo replied that itrsquos more than absolute advantage itrsquos the comparative advantage of focusing on the commodity in which a nation has a differential advantage and relying upon trade to obtain other goods Even if a nation has an absolute advantage in commodities that it

acquires through tradeItrsquos a trade-off of opportunity costs focusing on what you do best

bull Thus David Ricardo defined the benefits of specialization and the need to focus on core competencies

Ricardo David On the Principles of Political Economy and Taxation 1817

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sawhney Mohanbir Kellogg School of Management 2001

2020thth century century

Machine Bureaucracybull Integratedbull Diversified

21st century21st century

Networked Organizationbull Disaggregatedbull Specialized

Expanding the Boundaries of Business

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

033

$1 previouslySpent in US now offshoredto Indiahellip

hellipdelivers value toIndia

hellipbringssavings andreturns toUShellip

hellipcreatesnew valuefromreemployingUs Labor

andmakes theglobal pie that muchbigger

$100

067

047

045-

$145-147

The real economics of offshoring

The McKinsey Global Institute finds that off shoring not only produces value for the countries that gain the jobs but also frees up capital in the United States for more productive uses Most displaced workers find new positions within six monthsmdashpossibly even in new ventures financed with money saved by off shoring work to cheaper labour markets

Economic factorsEconomic factors

bull Cost savings($058)bull Goodsservices soldto India ($005)bull Profits from India Ventures($004)

bull Taxes($004)bull Revenues($020)bull Local suppliers($009)

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Prorsquos

The arguments in most of such studies follow the logic of mainstream economics and are quite straightforward

1 By moving work offshore firms are able to lower their production costs

2 Some domestic workers will be displaced but the benefits from lowering production costs captured by the firms and customers far outweigh any costs to displaced workers

3 Many of the displaced workers will actually be net beneficiaries because they will be ldquofreed uprdquo to do more interesting and lucrative work

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Contrarsquos

While these studies have some merit they are incomplete in some respects

1 they assume a very optimistic re-employment scenario for ldquofreed uprdquo workers predicting short durations of unemployment and higher wages in their new positions

2 most do not account for the lost wages due to unemployment in their models

3 the studies do not capture difficult to measure effects such as the impact on future innovation and security (For instance evidence is already surfacing that many of our best and brightest college students are avoiding technology majors because of outsourcing)

4 they ignore the downward pressure on domestic wages for jobs that are competed across borders

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forcesGlobal forces

Trends that are changing the rules in todayrsquos business environment

1 The shift from domestic to global economy

2 The shift from manpower to technopower

3 The shift from company-led to consumer-driven market forces

4 The shift from an industrial economy to a knowledge economy

5 The transformation of the employeremployee relationship

6 New relationships and governance structures concerning vendors and supplier

7 Shortage of skilled labour in development nations

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Drivers of Outsourcin

g

Access to High Quality Resources

Focus on Core

Competencies

Technology Expertise

Higher productivity

amp Better service levels

Cost Effectiveness

Domain Expertise

Why do companies outsource

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Reduce costs through simplification and standardization 93

Increase productivity and service excellence to customers 63

Enhance focus on business unit operations vs back office processing

58

Support new business process capabilities 37

Reduce costs through wage and labour arbitrage 31

Improve capability to integrate new business 26

Other 5

Source SBPOA online survey 77 respondents 2005

Main reasons for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Lower cost 75

Improve service quality 64

Greater business flexibility 54

Lower capital investments 70

Fewer people in function 45

Predictable outcome 42

Increased accountability 32

Source SBPOA online survey 172 respondents 2005

Perceived benefits of BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO development

From low-end to high-end services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO developmentBPO development

bull Manufacturing operations have been relocating to reduce costs for over 50 years

bull Improvements in telecoms IT and reductions in the cost of computing enabled the service sector to develop new operational models

bull Customer focus and direct channel acceptance fuelled the growth of call centres

bull Cost reduction was the primary driver predominantly through relocation and better wage deals in country

bull BPO goes beyond technology and applications -delivering integrated processes and outcomes

Phase I

1980s

Evo

luti

on

of

the

BP

O m

arke

t

Advanced financial

analysis and accountancy

processes

Call centres and data

processingIT jobs

and functions

Phase II

1990s

Phase III

current

A trend with a long history

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increasing complexity of legal and regulatory environment

Mainframecomputing allows

for timesharing

Banking ampbrokerageoutsourcing

Intense competition fromforeign automakers

Automanufacturing

outsourcing

Need to installERP systems on

timeand within budget

IToutsourcing

Competition drivescompanies to seekmore cost effective

ways to performinternal process wo

sacrificing quality

Customer CareHuman Resources

Supply Chainoutsourcing

1960 s 1970 s1980 s 1990 s 2000 s

Pay roll outsourcing

BPO developmentBPO development

Outsourcing historical context BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 18: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sawhney Mohanbir Kellogg School of Management 2001

2020thth century century

Machine Bureaucracybull Integratedbull Diversified

21st century21st century

Networked Organizationbull Disaggregatedbull Specialized

Expanding the Boundaries of Business

Economic factorsEconomic factors

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

033

$1 previouslySpent in US now offshoredto Indiahellip

hellipdelivers value toIndia

hellipbringssavings andreturns toUShellip

hellipcreatesnew valuefromreemployingUs Labor

andmakes theglobal pie that muchbigger

$100

067

047

045-

$145-147

The real economics of offshoring

The McKinsey Global Institute finds that off shoring not only produces value for the countries that gain the jobs but also frees up capital in the United States for more productive uses Most displaced workers find new positions within six monthsmdashpossibly even in new ventures financed with money saved by off shoring work to cheaper labour markets

Economic factorsEconomic factors

bull Cost savings($058)bull Goodsservices soldto India ($005)bull Profits from India Ventures($004)

bull Taxes($004)bull Revenues($020)bull Local suppliers($009)

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Prorsquos

The arguments in most of such studies follow the logic of mainstream economics and are quite straightforward

1 By moving work offshore firms are able to lower their production costs

2 Some domestic workers will be displaced but the benefits from lowering production costs captured by the firms and customers far outweigh any costs to displaced workers

3 Many of the displaced workers will actually be net beneficiaries because they will be ldquofreed uprdquo to do more interesting and lucrative work

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Contrarsquos

While these studies have some merit they are incomplete in some respects

1 they assume a very optimistic re-employment scenario for ldquofreed uprdquo workers predicting short durations of unemployment and higher wages in their new positions

2 most do not account for the lost wages due to unemployment in their models

3 the studies do not capture difficult to measure effects such as the impact on future innovation and security (For instance evidence is already surfacing that many of our best and brightest college students are avoiding technology majors because of outsourcing)

4 they ignore the downward pressure on domestic wages for jobs that are competed across borders

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forcesGlobal forces

Trends that are changing the rules in todayrsquos business environment

1 The shift from domestic to global economy

2 The shift from manpower to technopower

3 The shift from company-led to consumer-driven market forces

4 The shift from an industrial economy to a knowledge economy

5 The transformation of the employeremployee relationship

6 New relationships and governance structures concerning vendors and supplier

7 Shortage of skilled labour in development nations

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Drivers of Outsourcin

g

Access to High Quality Resources

Focus on Core

Competencies

Technology Expertise

Higher productivity

amp Better service levels

Cost Effectiveness

Domain Expertise

Why do companies outsource

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Reduce costs through simplification and standardization 93

Increase productivity and service excellence to customers 63

Enhance focus on business unit operations vs back office processing

58

Support new business process capabilities 37

Reduce costs through wage and labour arbitrage 31

Improve capability to integrate new business 26

Other 5

Source SBPOA online survey 77 respondents 2005

Main reasons for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Lower cost 75

Improve service quality 64

Greater business flexibility 54

Lower capital investments 70

Fewer people in function 45

Predictable outcome 42

Increased accountability 32

Source SBPOA online survey 172 respondents 2005

Perceived benefits of BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO development

From low-end to high-end services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO developmentBPO development

bull Manufacturing operations have been relocating to reduce costs for over 50 years

bull Improvements in telecoms IT and reductions in the cost of computing enabled the service sector to develop new operational models

bull Customer focus and direct channel acceptance fuelled the growth of call centres

bull Cost reduction was the primary driver predominantly through relocation and better wage deals in country

bull BPO goes beyond technology and applications -delivering integrated processes and outcomes

Phase I

1980s

Evo

luti

on

of

the

BP

O m

arke

t

Advanced financial

analysis and accountancy

processes

Call centres and data

processingIT jobs

and functions

Phase II

1990s

Phase III

current

A trend with a long history

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increasing complexity of legal and regulatory environment

Mainframecomputing allows

for timesharing

Banking ampbrokerageoutsourcing

Intense competition fromforeign automakers

Automanufacturing

outsourcing

Need to installERP systems on

timeand within budget

IToutsourcing

Competition drivescompanies to seekmore cost effective

ways to performinternal process wo

sacrificing quality

Customer CareHuman Resources

Supply Chainoutsourcing

1960 s 1970 s1980 s 1990 s 2000 s

Pay roll outsourcing

BPO developmentBPO development

Outsourcing historical context BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 19: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

033

$1 previouslySpent in US now offshoredto Indiahellip

hellipdelivers value toIndia

hellipbringssavings andreturns toUShellip

hellipcreatesnew valuefromreemployingUs Labor

andmakes theglobal pie that muchbigger

$100

067

047

045-

$145-147

The real economics of offshoring

The McKinsey Global Institute finds that off shoring not only produces value for the countries that gain the jobs but also frees up capital in the United States for more productive uses Most displaced workers find new positions within six monthsmdashpossibly even in new ventures financed with money saved by off shoring work to cheaper labour markets

Economic factorsEconomic factors

bull Cost savings($058)bull Goodsservices soldto India ($005)bull Profits from India Ventures($004)

bull Taxes($004)bull Revenues($020)bull Local suppliers($009)

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Prorsquos

The arguments in most of such studies follow the logic of mainstream economics and are quite straightforward

1 By moving work offshore firms are able to lower their production costs

2 Some domestic workers will be displaced but the benefits from lowering production costs captured by the firms and customers far outweigh any costs to displaced workers

3 Many of the displaced workers will actually be net beneficiaries because they will be ldquofreed uprdquo to do more interesting and lucrative work

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Contrarsquos

While these studies have some merit they are incomplete in some respects

1 they assume a very optimistic re-employment scenario for ldquofreed uprdquo workers predicting short durations of unemployment and higher wages in their new positions

2 most do not account for the lost wages due to unemployment in their models

3 the studies do not capture difficult to measure effects such as the impact on future innovation and security (For instance evidence is already surfacing that many of our best and brightest college students are avoiding technology majors because of outsourcing)

4 they ignore the downward pressure on domestic wages for jobs that are competed across borders

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forcesGlobal forces

Trends that are changing the rules in todayrsquos business environment

1 The shift from domestic to global economy

2 The shift from manpower to technopower

3 The shift from company-led to consumer-driven market forces

4 The shift from an industrial economy to a knowledge economy

5 The transformation of the employeremployee relationship

6 New relationships and governance structures concerning vendors and supplier

7 Shortage of skilled labour in development nations

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Drivers of Outsourcin

g

Access to High Quality Resources

Focus on Core

Competencies

Technology Expertise

Higher productivity

amp Better service levels

Cost Effectiveness

Domain Expertise

Why do companies outsource

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Reduce costs through simplification and standardization 93

Increase productivity and service excellence to customers 63

Enhance focus on business unit operations vs back office processing

58

Support new business process capabilities 37

Reduce costs through wage and labour arbitrage 31

Improve capability to integrate new business 26

Other 5

Source SBPOA online survey 77 respondents 2005

Main reasons for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Lower cost 75

Improve service quality 64

Greater business flexibility 54

Lower capital investments 70

Fewer people in function 45

Predictable outcome 42

Increased accountability 32

Source SBPOA online survey 172 respondents 2005

Perceived benefits of BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO development

From low-end to high-end services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO developmentBPO development

bull Manufacturing operations have been relocating to reduce costs for over 50 years

bull Improvements in telecoms IT and reductions in the cost of computing enabled the service sector to develop new operational models

bull Customer focus and direct channel acceptance fuelled the growth of call centres

bull Cost reduction was the primary driver predominantly through relocation and better wage deals in country

bull BPO goes beyond technology and applications -delivering integrated processes and outcomes

Phase I

1980s

Evo

luti

on

of

the

BP

O m

arke

t

Advanced financial

analysis and accountancy

processes

Call centres and data

processingIT jobs

and functions

Phase II

1990s

Phase III

current

A trend with a long history

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increasing complexity of legal and regulatory environment

Mainframecomputing allows

for timesharing

Banking ampbrokerageoutsourcing

Intense competition fromforeign automakers

Automanufacturing

outsourcing

Need to installERP systems on

timeand within budget

IToutsourcing

Competition drivescompanies to seekmore cost effective

ways to performinternal process wo

sacrificing quality

Customer CareHuman Resources

Supply Chainoutsourcing

1960 s 1970 s1980 s 1990 s 2000 s

Pay roll outsourcing

BPO developmentBPO development

Outsourcing historical context BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 20: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Prorsquos

The arguments in most of such studies follow the logic of mainstream economics and are quite straightforward

1 By moving work offshore firms are able to lower their production costs

2 Some domestic workers will be displaced but the benefits from lowering production costs captured by the firms and customers far outweigh any costs to displaced workers

3 Many of the displaced workers will actually be net beneficiaries because they will be ldquofreed uprdquo to do more interesting and lucrative work

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Contrarsquos

While these studies have some merit they are incomplete in some respects

1 they assume a very optimistic re-employment scenario for ldquofreed uprdquo workers predicting short durations of unemployment and higher wages in their new positions

2 most do not account for the lost wages due to unemployment in their models

3 the studies do not capture difficult to measure effects such as the impact on future innovation and security (For instance evidence is already surfacing that many of our best and brightest college students are avoiding technology majors because of outsourcing)

4 they ignore the downward pressure on domestic wages for jobs that are competed across borders

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forcesGlobal forces

Trends that are changing the rules in todayrsquos business environment

1 The shift from domestic to global economy

2 The shift from manpower to technopower

3 The shift from company-led to consumer-driven market forces

4 The shift from an industrial economy to a knowledge economy

5 The transformation of the employeremployee relationship

6 New relationships and governance structures concerning vendors and supplier

7 Shortage of skilled labour in development nations

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Drivers of Outsourcin

g

Access to High Quality Resources

Focus on Core

Competencies

Technology Expertise

Higher productivity

amp Better service levels

Cost Effectiveness

Domain Expertise

Why do companies outsource

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Reduce costs through simplification and standardization 93

Increase productivity and service excellence to customers 63

Enhance focus on business unit operations vs back office processing

58

Support new business process capabilities 37

Reduce costs through wage and labour arbitrage 31

Improve capability to integrate new business 26

Other 5

Source SBPOA online survey 77 respondents 2005

Main reasons for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Lower cost 75

Improve service quality 64

Greater business flexibility 54

Lower capital investments 70

Fewer people in function 45

Predictable outcome 42

Increased accountability 32

Source SBPOA online survey 172 respondents 2005

Perceived benefits of BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO development

From low-end to high-end services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO developmentBPO development

bull Manufacturing operations have been relocating to reduce costs for over 50 years

bull Improvements in telecoms IT and reductions in the cost of computing enabled the service sector to develop new operational models

bull Customer focus and direct channel acceptance fuelled the growth of call centres

bull Cost reduction was the primary driver predominantly through relocation and better wage deals in country

bull BPO goes beyond technology and applications -delivering integrated processes and outcomes

Phase I

1980s

Evo

luti

on

of

the

BP

O m

arke

t

Advanced financial

analysis and accountancy

processes

Call centres and data

processingIT jobs

and functions

Phase II

1990s

Phase III

current

A trend with a long history

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increasing complexity of legal and regulatory environment

Mainframecomputing allows

for timesharing

Banking ampbrokerageoutsourcing

Intense competition fromforeign automakers

Automanufacturing

outsourcing

Need to installERP systems on

timeand within budget

IToutsourcing

Competition drivescompanies to seekmore cost effective

ways to performinternal process wo

sacrificing quality

Customer CareHuman Resources

Supply Chainoutsourcing

1960 s 1970 s1980 s 1990 s 2000 s

Pay roll outsourcing

BPO developmentBPO development

Outsourcing historical context BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 21: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Economic factorsEconomic factors

Policy dialogue Contrarsquos

While these studies have some merit they are incomplete in some respects

1 they assume a very optimistic re-employment scenario for ldquofreed uprdquo workers predicting short durations of unemployment and higher wages in their new positions

2 most do not account for the lost wages due to unemployment in their models

3 the studies do not capture difficult to measure effects such as the impact on future innovation and security (For instance evidence is already surfacing that many of our best and brightest college students are avoiding technology majors because of outsourcing)

4 they ignore the downward pressure on domestic wages for jobs that are competed across borders

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forcesGlobal forces

Trends that are changing the rules in todayrsquos business environment

1 The shift from domestic to global economy

2 The shift from manpower to technopower

3 The shift from company-led to consumer-driven market forces

4 The shift from an industrial economy to a knowledge economy

5 The transformation of the employeremployee relationship

6 New relationships and governance structures concerning vendors and supplier

7 Shortage of skilled labour in development nations

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Drivers of Outsourcin

g

Access to High Quality Resources

Focus on Core

Competencies

Technology Expertise

Higher productivity

amp Better service levels

Cost Effectiveness

Domain Expertise

Why do companies outsource

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Reduce costs through simplification and standardization 93

Increase productivity and service excellence to customers 63

Enhance focus on business unit operations vs back office processing

58

Support new business process capabilities 37

Reduce costs through wage and labour arbitrage 31

Improve capability to integrate new business 26

Other 5

Source SBPOA online survey 77 respondents 2005

Main reasons for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Lower cost 75

Improve service quality 64

Greater business flexibility 54

Lower capital investments 70

Fewer people in function 45

Predictable outcome 42

Increased accountability 32

Source SBPOA online survey 172 respondents 2005

Perceived benefits of BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO development

From low-end to high-end services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO developmentBPO development

bull Manufacturing operations have been relocating to reduce costs for over 50 years

bull Improvements in telecoms IT and reductions in the cost of computing enabled the service sector to develop new operational models

bull Customer focus and direct channel acceptance fuelled the growth of call centres

bull Cost reduction was the primary driver predominantly through relocation and better wage deals in country

bull BPO goes beyond technology and applications -delivering integrated processes and outcomes

Phase I

1980s

Evo

luti

on

of

the

BP

O m

arke

t

Advanced financial

analysis and accountancy

processes

Call centres and data

processingIT jobs

and functions

Phase II

1990s

Phase III

current

A trend with a long history

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increasing complexity of legal and regulatory environment

Mainframecomputing allows

for timesharing

Banking ampbrokerageoutsourcing

Intense competition fromforeign automakers

Automanufacturing

outsourcing

Need to installERP systems on

timeand within budget

IToutsourcing

Competition drivescompanies to seekmore cost effective

ways to performinternal process wo

sacrificing quality

Customer CareHuman Resources

Supply Chainoutsourcing

1960 s 1970 s1980 s 1990 s 2000 s

Pay roll outsourcing

BPO developmentBPO development

Outsourcing historical context BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 22: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forcesGlobal forces

Trends that are changing the rules in todayrsquos business environment

1 The shift from domestic to global economy

2 The shift from manpower to technopower

3 The shift from company-led to consumer-driven market forces

4 The shift from an industrial economy to a knowledge economy

5 The transformation of the employeremployee relationship

6 New relationships and governance structures concerning vendors and supplier

7 Shortage of skilled labour in development nations

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Drivers of Outsourcin

g

Access to High Quality Resources

Focus on Core

Competencies

Technology Expertise

Higher productivity

amp Better service levels

Cost Effectiveness

Domain Expertise

Why do companies outsource

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Reduce costs through simplification and standardization 93

Increase productivity and service excellence to customers 63

Enhance focus on business unit operations vs back office processing

58

Support new business process capabilities 37

Reduce costs through wage and labour arbitrage 31

Improve capability to integrate new business 26

Other 5

Source SBPOA online survey 77 respondents 2005

Main reasons for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Lower cost 75

Improve service quality 64

Greater business flexibility 54

Lower capital investments 70

Fewer people in function 45

Predictable outcome 42

Increased accountability 32

Source SBPOA online survey 172 respondents 2005

Perceived benefits of BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO development

From low-end to high-end services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO developmentBPO development

bull Manufacturing operations have been relocating to reduce costs for over 50 years

bull Improvements in telecoms IT and reductions in the cost of computing enabled the service sector to develop new operational models

bull Customer focus and direct channel acceptance fuelled the growth of call centres

bull Cost reduction was the primary driver predominantly through relocation and better wage deals in country

bull BPO goes beyond technology and applications -delivering integrated processes and outcomes

Phase I

1980s

Evo

luti

on

of

the

BP

O m

arke

t

Advanced financial

analysis and accountancy

processes

Call centres and data

processingIT jobs

and functions

Phase II

1990s

Phase III

current

A trend with a long history

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increasing complexity of legal and regulatory environment

Mainframecomputing allows

for timesharing

Banking ampbrokerageoutsourcing

Intense competition fromforeign automakers

Automanufacturing

outsourcing

Need to installERP systems on

timeand within budget

IToutsourcing

Competition drivescompanies to seekmore cost effective

ways to performinternal process wo

sacrificing quality

Customer CareHuman Resources

Supply Chainoutsourcing

1960 s 1970 s1980 s 1990 s 2000 s

Pay roll outsourcing

BPO developmentBPO development

Outsourcing historical context BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 23: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Global forcesGlobal forces

Trends that are changing the rules in todayrsquos business environment

1 The shift from domestic to global economy

2 The shift from manpower to technopower

3 The shift from company-led to consumer-driven market forces

4 The shift from an industrial economy to a knowledge economy

5 The transformation of the employeremployee relationship

6 New relationships and governance structures concerning vendors and supplier

7 Shortage of skilled labour in development nations

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Drivers of Outsourcin

g

Access to High Quality Resources

Focus on Core

Competencies

Technology Expertise

Higher productivity

amp Better service levels

Cost Effectiveness

Domain Expertise

Why do companies outsource

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Reduce costs through simplification and standardization 93

Increase productivity and service excellence to customers 63

Enhance focus on business unit operations vs back office processing

58

Support new business process capabilities 37

Reduce costs through wage and labour arbitrage 31

Improve capability to integrate new business 26

Other 5

Source SBPOA online survey 77 respondents 2005

Main reasons for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Lower cost 75

Improve service quality 64

Greater business flexibility 54

Lower capital investments 70

Fewer people in function 45

Predictable outcome 42

Increased accountability 32

Source SBPOA online survey 172 respondents 2005

Perceived benefits of BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO development

From low-end to high-end services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO developmentBPO development

bull Manufacturing operations have been relocating to reduce costs for over 50 years

bull Improvements in telecoms IT and reductions in the cost of computing enabled the service sector to develop new operational models

bull Customer focus and direct channel acceptance fuelled the growth of call centres

bull Cost reduction was the primary driver predominantly through relocation and better wage deals in country

bull BPO goes beyond technology and applications -delivering integrated processes and outcomes

Phase I

1980s

Evo

luti

on

of

the

BP

O m

arke

t

Advanced financial

analysis and accountancy

processes

Call centres and data

processingIT jobs

and functions

Phase II

1990s

Phase III

current

A trend with a long history

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increasing complexity of legal and regulatory environment

Mainframecomputing allows

for timesharing

Banking ampbrokerageoutsourcing

Intense competition fromforeign automakers

Automanufacturing

outsourcing

Need to installERP systems on

timeand within budget

IToutsourcing

Competition drivescompanies to seekmore cost effective

ways to performinternal process wo

sacrificing quality

Customer CareHuman Resources

Supply Chainoutsourcing

1960 s 1970 s1980 s 1990 s 2000 s

Pay roll outsourcing

BPO developmentBPO development

Outsourcing historical context BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 24: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forces behind BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Drivers of Outsourcin

g

Access to High Quality Resources

Focus on Core

Competencies

Technology Expertise

Higher productivity

amp Better service levels

Cost Effectiveness

Domain Expertise

Why do companies outsource

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Reduce costs through simplification and standardization 93

Increase productivity and service excellence to customers 63

Enhance focus on business unit operations vs back office processing

58

Support new business process capabilities 37

Reduce costs through wage and labour arbitrage 31

Improve capability to integrate new business 26

Other 5

Source SBPOA online survey 77 respondents 2005

Main reasons for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Lower cost 75

Improve service quality 64

Greater business flexibility 54

Lower capital investments 70

Fewer people in function 45

Predictable outcome 42

Increased accountability 32

Source SBPOA online survey 172 respondents 2005

Perceived benefits of BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO development

From low-end to high-end services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO developmentBPO development

bull Manufacturing operations have been relocating to reduce costs for over 50 years

bull Improvements in telecoms IT and reductions in the cost of computing enabled the service sector to develop new operational models

bull Customer focus and direct channel acceptance fuelled the growth of call centres

bull Cost reduction was the primary driver predominantly through relocation and better wage deals in country

bull BPO goes beyond technology and applications -delivering integrated processes and outcomes

Phase I

1980s

Evo

luti

on

of

the

BP

O m

arke

t

Advanced financial

analysis and accountancy

processes

Call centres and data

processingIT jobs

and functions

Phase II

1990s

Phase III

current

A trend with a long history

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increasing complexity of legal and regulatory environment

Mainframecomputing allows

for timesharing

Banking ampbrokerageoutsourcing

Intense competition fromforeign automakers

Automanufacturing

outsourcing

Need to installERP systems on

timeand within budget

IToutsourcing

Competition drivescompanies to seekmore cost effective

ways to performinternal process wo

sacrificing quality

Customer CareHuman Resources

Supply Chainoutsourcing

1960 s 1970 s1980 s 1990 s 2000 s

Pay roll outsourcing

BPO developmentBPO development

Outsourcing historical context BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 25: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Drivers of Outsourcin

g

Access to High Quality Resources

Focus on Core

Competencies

Technology Expertise

Higher productivity

amp Better service levels

Cost Effectiveness

Domain Expertise

Why do companies outsource

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Reduce costs through simplification and standardization 93

Increase productivity and service excellence to customers 63

Enhance focus on business unit operations vs back office processing

58

Support new business process capabilities 37

Reduce costs through wage and labour arbitrage 31

Improve capability to integrate new business 26

Other 5

Source SBPOA online survey 77 respondents 2005

Main reasons for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Lower cost 75

Improve service quality 64

Greater business flexibility 54

Lower capital investments 70

Fewer people in function 45

Predictable outcome 42

Increased accountability 32

Source SBPOA online survey 172 respondents 2005

Perceived benefits of BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO development

From low-end to high-end services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO developmentBPO development

bull Manufacturing operations have been relocating to reduce costs for over 50 years

bull Improvements in telecoms IT and reductions in the cost of computing enabled the service sector to develop new operational models

bull Customer focus and direct channel acceptance fuelled the growth of call centres

bull Cost reduction was the primary driver predominantly through relocation and better wage deals in country

bull BPO goes beyond technology and applications -delivering integrated processes and outcomes

Phase I

1980s

Evo

luti

on

of

the

BP

O m

arke

t

Advanced financial

analysis and accountancy

processes

Call centres and data

processingIT jobs

and functions

Phase II

1990s

Phase III

current

A trend with a long history

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increasing complexity of legal and regulatory environment

Mainframecomputing allows

for timesharing

Banking ampbrokerageoutsourcing

Intense competition fromforeign automakers

Automanufacturing

outsourcing

Need to installERP systems on

timeand within budget

IToutsourcing

Competition drivescompanies to seekmore cost effective

ways to performinternal process wo

sacrificing quality

Customer CareHuman Resources

Supply Chainoutsourcing

1960 s 1970 s1980 s 1990 s 2000 s

Pay roll outsourcing

BPO developmentBPO development

Outsourcing historical context BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 26: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Reduce costs through simplification and standardization 93

Increase productivity and service excellence to customers 63

Enhance focus on business unit operations vs back office processing

58

Support new business process capabilities 37

Reduce costs through wage and labour arbitrage 31

Improve capability to integrate new business 26

Other 5

Source SBPOA online survey 77 respondents 2005

Main reasons for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Lower cost 75

Improve service quality 64

Greater business flexibility 54

Lower capital investments 70

Fewer people in function 45

Predictable outcome 42

Increased accountability 32

Source SBPOA online survey 172 respondents 2005

Perceived benefits of BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO development

From low-end to high-end services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO developmentBPO development

bull Manufacturing operations have been relocating to reduce costs for over 50 years

bull Improvements in telecoms IT and reductions in the cost of computing enabled the service sector to develop new operational models

bull Customer focus and direct channel acceptance fuelled the growth of call centres

bull Cost reduction was the primary driver predominantly through relocation and better wage deals in country

bull BPO goes beyond technology and applications -delivering integrated processes and outcomes

Phase I

1980s

Evo

luti

on

of

the

BP

O m

arke

t

Advanced financial

analysis and accountancy

processes

Call centres and data

processingIT jobs

and functions

Phase II

1990s

Phase III

current

A trend with a long history

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increasing complexity of legal and regulatory environment

Mainframecomputing allows

for timesharing

Banking ampbrokerageoutsourcing

Intense competition fromforeign automakers

Automanufacturing

outsourcing

Need to installERP systems on

timeand within budget

IToutsourcing

Competition drivescompanies to seekmore cost effective

ways to performinternal process wo

sacrificing quality

Customer CareHuman Resources

Supply Chainoutsourcing

1960 s 1970 s1980 s 1990 s 2000 s

Pay roll outsourcing

BPO developmentBPO development

Outsourcing historical context BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 27: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Market forcesMarket forces

Lower cost 75

Improve service quality 64

Greater business flexibility 54

Lower capital investments 70

Fewer people in function 45

Predictable outcome 42

Increased accountability 32

Source SBPOA online survey 172 respondents 2005

Perceived benefits of BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO development

From low-end to high-end services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO developmentBPO development

bull Manufacturing operations have been relocating to reduce costs for over 50 years

bull Improvements in telecoms IT and reductions in the cost of computing enabled the service sector to develop new operational models

bull Customer focus and direct channel acceptance fuelled the growth of call centres

bull Cost reduction was the primary driver predominantly through relocation and better wage deals in country

bull BPO goes beyond technology and applications -delivering integrated processes and outcomes

Phase I

1980s

Evo

luti

on

of

the

BP

O m

arke

t

Advanced financial

analysis and accountancy

processes

Call centres and data

processingIT jobs

and functions

Phase II

1990s

Phase III

current

A trend with a long history

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increasing complexity of legal and regulatory environment

Mainframecomputing allows

for timesharing

Banking ampbrokerageoutsourcing

Intense competition fromforeign automakers

Automanufacturing

outsourcing

Need to installERP systems on

timeand within budget

IToutsourcing

Competition drivescompanies to seekmore cost effective

ways to performinternal process wo

sacrificing quality

Customer CareHuman Resources

Supply Chainoutsourcing

1960 s 1970 s1980 s 1990 s 2000 s

Pay roll outsourcing

BPO developmentBPO development

Outsourcing historical context BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 28: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO development

From low-end to high-end services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO developmentBPO development

bull Manufacturing operations have been relocating to reduce costs for over 50 years

bull Improvements in telecoms IT and reductions in the cost of computing enabled the service sector to develop new operational models

bull Customer focus and direct channel acceptance fuelled the growth of call centres

bull Cost reduction was the primary driver predominantly through relocation and better wage deals in country

bull BPO goes beyond technology and applications -delivering integrated processes and outcomes

Phase I

1980s

Evo

luti

on

of

the

BP

O m

arke

t

Advanced financial

analysis and accountancy

processes

Call centres and data

processingIT jobs

and functions

Phase II

1990s

Phase III

current

A trend with a long history

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increasing complexity of legal and regulatory environment

Mainframecomputing allows

for timesharing

Banking ampbrokerageoutsourcing

Intense competition fromforeign automakers

Automanufacturing

outsourcing

Need to installERP systems on

timeand within budget

IToutsourcing

Competition drivescompanies to seekmore cost effective

ways to performinternal process wo

sacrificing quality

Customer CareHuman Resources

Supply Chainoutsourcing

1960 s 1970 s1980 s 1990 s 2000 s

Pay roll outsourcing

BPO developmentBPO development

Outsourcing historical context BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 29: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO developmentBPO development

bull Manufacturing operations have been relocating to reduce costs for over 50 years

bull Improvements in telecoms IT and reductions in the cost of computing enabled the service sector to develop new operational models

bull Customer focus and direct channel acceptance fuelled the growth of call centres

bull Cost reduction was the primary driver predominantly through relocation and better wage deals in country

bull BPO goes beyond technology and applications -delivering integrated processes and outcomes

Phase I

1980s

Evo

luti

on

of

the

BP

O m

arke

t

Advanced financial

analysis and accountancy

processes

Call centres and data

processingIT jobs

and functions

Phase II

1990s

Phase III

current

A trend with a long history

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increasing complexity of legal and regulatory environment

Mainframecomputing allows

for timesharing

Banking ampbrokerageoutsourcing

Intense competition fromforeign automakers

Automanufacturing

outsourcing

Need to installERP systems on

timeand within budget

IToutsourcing

Competition drivescompanies to seekmore cost effective

ways to performinternal process wo

sacrificing quality

Customer CareHuman Resources

Supply Chainoutsourcing

1960 s 1970 s1980 s 1990 s 2000 s

Pay roll outsourcing

BPO developmentBPO development

Outsourcing historical context BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 30: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increasing complexity of legal and regulatory environment

Mainframecomputing allows

for timesharing

Banking ampbrokerageoutsourcing

Intense competition fromforeign automakers

Automanufacturing

outsourcing

Need to installERP systems on

timeand within budget

IToutsourcing

Competition drivescompanies to seekmore cost effective

ways to performinternal process wo

sacrificing quality

Customer CareHuman Resources

Supply Chainoutsourcing

1960 s 1970 s1980 s 1990 s 2000 s

Pay roll outsourcing

BPO developmentBPO development

Outsourcing historical context BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 31: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Past Current amp Near Future

IT bull Application Development amp Maintenancebull Simple coding and porting from one language to anotherbull Fixing the Y2K problem

bull IT Consultingbull Product Developmentbull R amp Dbull Engineering Design Services

Non -IT

bull Customer Contact Servicesbull Transaction Servicesbull HR Data Processingbull Medical Transcription

bull Insurance underwriting risk assessment and equity researchbull Intellectual Property Researchbull Data cleaning Financial Analyticsbull Business and Market research

BPO developmentBPO development

Offshoring opportunities across the organisation

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 32: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Corporate Strategy

HR Information Mgmt Performance Mgnt Employee Administration

FampA Regulatory amp Compliance Tax Mngt

Customer Care Customer extension selection

HR Payroll Processing Benefits Processing Recruiting Education ampTraining

FampA Billing Accounts Receivable Accounts PayableCustomer Care Helpdesk Customer RetentionAcquisition

Information Technology

Transformational BPO

Transactional BPO

Stragegy

Core Process

Non-core Process

The offshore ITESBPO marketplace can be segmented into two distinct pieces transactional and full servicetransformational relationships

BPO developmentBPO development

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 33: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Contact Centers amp Customer Support

Claims Analysis

Underwriting amp Asset

Management

Insurance

Contact Centers amp Customer Support

Analytics

Strategy

Research

TelecomFSRetail

BPO for

clients

Global

Research

Synthesized

Reports

Consulting

Settlement

Financial

Analytics

Equities

Research

I-Banking

Patent

Design

IP Portfolio

Analytics

Industry

KPOSM

Contact Centers amp Customer Support

BPO

KPO offers unlimited services

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 34: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 35: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

46

26

26IT

BPO

KPO

CAGR

Market Size(2010)

USD 17 billion

USD 40 billion

USD 57 billion

Global offshoring of services is growing rapidly

BPO marketBPO market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 36: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

($ in billions)

2005-2009 CAGR61

$ 64$ 126

$ 201

$ 302

$ 429

Romaniarsquos Value Proposition

- Competitive labour cost- Valuable human capital- Multilingual- Reliable Infrastructure- Low risk- Solid economic fundamentals- Competitive taxation

In 2005 Offshore BPO represented 5 of the total global BPO market but is expected to represent 25 by 2009

BPO marketBPO market

Offshore BPO service market

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 37: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO marketBPO market

Sales amp marketing is the smallest BPO market segment

The growth of call centre outsourcing has attracted most of the attention because it involves significant numbers of jobs from the source countries

BPO market size

Supply chain management

20

Sales and marketing11

Business administration

69

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 38: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 39: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

BPO amp Outsourcing destinations worldwide

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 40: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Pakistan

South Korea

Bulgaria

Romania

CanadaMexicoJamaicaBrazil

Chile

Venezuela

China

Philippines

Malaysia

Thailand

Vietnam

Australia

India

Singapore

Russia

Ukraine

Czech Republic

Hungary

Poland

South Africa

Ireland

Israel

UK

Infancy Emerging Escalating Established

Europe Middle East and Africa (EMEA)

Americas

Asia Pacific

BPO countriesBPO countries

BPO locations by stage of growth

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 41: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Singapore

Hong Kong

Holland

Ireland

UK

Australia

China

Philippines

Mexico

Size of circle corresponds to number of qualified workers

Location attractivenessbull Infrastructure

- Communication- Basic infrastructure

bull Country risksFDI incentives- Attractive incentives- Political environment

bull Time zone attractiveness

Low

Low

High

High

India

BPO countriesBPO countries

Capabilities of workersbull Qualificationscapabilitiesbull Foreign languages (primarily English)bull Quality of workwork ethicbull Cost differential

Competing countries

Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 42: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

IrelandbullPackaged ApplicationsbullLocalizationbullProduct Development

RussiabullHigh-End Software Engineering

RussiabullHigh-End Software Engineering

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

ChinabullEmbedded SoftwarebullHardware ServicesbullLocalizationbullApplication Development

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IndiabullApplication OutsourcingbullITObullBPObullProduct DevelopmentbullContact Centers

IsraelbullHigh-End SoftwarebullLearning Systems

IsraelbullHigh-End SoftwarebullLearning Systems

CanadabullApplication DevelopmentbullBPObullContact Centers

PhilippinesbullBPObullContact CentersbullAnimationbullApplication Development

RomaniabullApplication DevelopmentbullContact CentersbullBPO

BPO countriesBPO countries

Country specialisation by niche

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 43: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

EDS

Accenture

IBM

HP

Pure Play Indian BPO companies

WNS

EXL Service

ICICI One Source

247

Companies with Captive Facilities

AMEX

Fidelity

DELL

Microsoft

Indian Integrated IT-BPO providers

Infosys BPO

Wipro BPO

HCL

Nipuna (Satyam)

Indian BPO Industry Segments

BPO landscape in IndiaBPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 44: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

bull Highly talented pool of engineers and scientists

bull Robust education system with ample supply of professionals for analytical work

bull Moderate but increasing labor costs

bull Non-English languages

bull Proximity to European markets

Eastern Europe focusing on Near-Shore Off-shoringhellip

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 45: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Large Multinational Corporations

Pure Play BPO companies

Conectys

EasyCall

Wipro

Genpact

ContactLine

Companies with Captive Facilities

Microsoft

Romanian Integrated IT-BPO providers

Romanian BPO Industry Segments

BPO (incl RampD) landscape in Romania

Accenture HP

Siemens Alcatel Intel Infineon Oracle Freescale ACI

TechteamSistec-SBsol

XL World

SivecoSoftwinIntraromRomsysiQuest

BPO countriesBPO countries

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 46: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romaniarsquos value proposition for BPO

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 47: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Romania has a long history of education and research in all fields of

engineering and software 116 universities 36 have a computer science

related faculty

Romanian graduates are multi-lingual (1st place in the Certificate of Proficiency in English exam at Cambridge University)

and world class concerning their competencies

Romaniarsquos legal system and culture - similar to

those in Europe and US

Romaniarsquos locationlocation is an advantage in itself - major multinational IT

companies are present in Romania

Romaniarsquos density of software graduates per thousand inhabitants is significantly

higher than in USA five times higher than in Russia and nearly seven times bigger than in

India

The cost of a skilled professional = 13 in US and

Europe

Made in Made in RomaniaRomania

Romanian competitiveness on the global ITO amp BPO market

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 48: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Engineering21

Law12

Education32

Arts2

Economy27

Medicine6

Total number of University graduates

in 20032004 110533

University graduates in Romania (by education field)

high performances in international competitions

high percentage of economic amp technically competent professionals

strong language skills English French German Italian Spanish Russian etc

highest growth rate of IT specialists in the region

large skilled labor force at comparatively low wage rates

Arts

2Engineerin

g

21

Medicine

6

Economy

27

Law

12

Education

32

Source National Institute of Statistics

BPO value proposition RomaniaBPO value proposition Romania

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 49: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 50: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Vision

ldquoOur Business Is To Improve Other Peoplersquos BusinessrdquoSistec-SBsol

Constantly tailor our services to the

needs of our clients

Provide high quality services using latest

technology

Assure the right people at the

right place

Market leader provider of BPO services in

Central and Eastern Europe

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 51: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

SBsolrsquos Value Proposition

SBsolrsquos Value Proposition

Proven business knowledge and capability to implement

successful business solutions

Proven business knowledge and capability to implement

successful business solutions

Organized according to international standards of

methodology and procedures

Organized according to international standards of

methodology and procedures

Stable technology infrastructure

Stable technology infrastructure

Access to a low cost large and high quality labor market

Access to a low cost large and high quality labor market

SBsolrsquos value proposition goes beyond costs

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 52: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Strategy

Our potential Our goals

Experience in retail amp logistics business ( B2B B2C) member of

RTC Holding

Build customer awareness abroad

Focus on markets in which we are successful

Grow

Focus on adding competitive value for companies who expect

high quality services

Add new features to our services tailored to

clientsrsquo ever-changing needs

Specialize our offer and

concentrate sales efforts

Expand

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 53: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Increase business development momentum

ndash Recruit local professionalsndash Target at decision making levelndash Tailored value propositions ndash Invest in marketing growth strategyndash Strong growth of outsourcing marketndash Promote our competitive edge

ndash Increase visibility on the marketndash Focused reputation buildingndash Create consistency in delivering servicesndash Networking via eventsforums ndash Build customer loyalty (action) existing

customers (Romanian market)

Step up marketing and brand building efforts

ndash High potential due to a thorough IT background (sales amp distribution on Romanian market)

ndash Easy to access low-cost and multilingual services

ndash Meaningful top management involvement ndash Quality reviews

Penetrate a new market

SBsol BPO vision amp strategySBsol BPO vision amp strategy

Growth and development opportunities

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 54: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Industry (Vertical) SolutionsRetail amp Distribution Transportation amp Storage

Telecommunication Travel amp Accommodation

Banking Insurance

Healthcare amp Pharmaceuticals

Our focus

Functional (Horizontal) SolutionsCustomer Interaction Services

Order Management

Knowledge Services

Finance amp Accounting

HR Outsourcing

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 55: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

INDUSTRY SPECIFIC KNOWLEDGE PROCESS EXPERTISE HIGH PERFORMANCE

1048708Travel planning 1048708Reservations1048708Airline schedule changes1048708Air ticket exchanges1048708Frequent flyer benefits amp promotions1048708Car rental1048708Hotel reservations1048708Limousine reservations1048708Order processing1048708Product inquiries1048708Account billing1048708Technical support

Travel amp Consumer

1048708 Application processing1048708Balance transfers1048708Credit verification1048708Fund transfers1048708Identity verification1048708Loan origination1048708Loan maintenance1048708Check ordering1048708Customer retention1048708Credit scoring

1048708Insurance transcription1048708Back office processing1048708Change management

Financial Services amp Insurance Consumer Technology amp Telecommunication1048708Tech support

1048708Account activation1048708Remote PC troubleshooting1048708Web domain maintenance1048708Retention

1048708Customer service1048708Sales1048708Account activation1048708Cross-selling1048708Conference calling1048708B2B service1048708Back office services1048708Provisioning1048708Low and High-delinquency collections

SBsol BPO vision amp strategySBsol BPO vision amp strategy

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 56: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Sistec-SBsolrsquos career opportunities for students and graduates

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 57: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Junior business development managers (marketing amp sales)

bull Account managers

bull Sales managers

bull Customer service representatives

bull Customer sales representatives

bull Team leaders

bull Operational managers

Start your career here

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 58: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

bull Competitive salary

bull Personal development plan

bull Coaching on the job

bull CRM training

bull Sales training

bull Customer contact training

bull Job rotation

bull Inspiring management team

bull Encouraging of self development

bull 300 professional colleagues with IT amp business competencies

bull International work environment

What we offer

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 59: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success

Traineeship Program

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 60: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

If you helliphellip are dynamic determined and flexiblehellip communicate and socialize easilyhellip have positive attitude and result-orientation

START now your career in IT solutions business development

Join now the Start for Success Traineeship Program and yoursquoll get professional training in IT solutions sales membership in a team of over 300 specialists work experience in an important IT company

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 61: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Career opportunitiesCareer opportunities

Start for Success Traineeship Program

Apply nowSend your CV at traineeshipsistec-sbsolro

Or leave your CV at our stand to Angajatori de Top job fare (Palace Hall 26-27102007)

Every CV received till 27th of October will participate to a tombola You can win

Ist prize HP Notebook Dual CoreIInd prize PC Desktop with TFT monitorIIIrd prize Fujitsu Siemens PDA

Details on wwwsistec-sbsolro

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 62: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future

Page 63: The World is Flat: Is business process outsourcing (BPO) more than just low-cost resourcing?

wwwsistec-sbsolroAcademy of Economic Studies 11 October 2007

Thank you for your attention

Looking forward to meeting you in the near future