Creating the „NextGeneration‟ winning BPONASSCOM BPO Strategy Summit September 5, 2012CONFIDENTIAL AND PROPRIETARYAny use...
Please answer the following Difference in CAGR growth rates of 3 fastest growing BPOs and the next 7 ...
BPO growth rates are polarized - leaders are gaining market shareyear on year Growth rate : ...
ROI from sales and marketing spend varies significantly S&M spend, company C Return per do...
DISGUISEDCreating more practices and centres of excellence does CLIENT EX...
Sales time analysisSales teams are getting more fragmented; ~80% of the ...
Opportunities exist across 3 pillars of delivery excellence ▪ What are the best ways to systematica...
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NASSCOM BPO Summit 2012: Session 4: Alternate Models for a Winning BPO Noshir Kaka

Published on: Mar 3, 2016
Published in: Business      Technology      
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Transcripts - NASSCOM BPO Summit 2012: Session 4: Alternate Models for a Winning BPO Noshir Kaka

  • 1. Creating the „NextGeneration‟ winning BPONASSCOM BPO Strategy Summit September 5, 2012CONFIDENTIAL AND PROPRIETARYAny use of this material without specific permission of McKinsey & Company is strictly prohibited
  • 2. Please answer the following Difference in CAGR growth rates of 3 fastest growing BPOs and the next 7 18% points in the last 4 years in percent points Working Draft - Last Modified 05/09/2012 14:39:33 What is the correlation between sales and marketing spend and growth rate No correlation 20% Printed 05/09/2012 06:41:21 Proportion of cross-sell in key accounts Observed time spent by the sales team with clients <20%SOURCE: Process and commercial excellence benchmarking, team analysis McKinsey & Company | 1
  • 3. BPO growth rates are polarized - leaders are gaining market shareyear on year Growth rate : Growth rate : 3 fastest growing Differential next 7 providers providers Working Draft - Last Modified 05/09/2012 14:39:33 2009 29 28 1 2010 33 7 26 Printed 05/09/2012 06:41:21 2011 25 13 12 CAGR (2008 – 27 9 18 2011)SOURCE: Press search, team analysis McKinsey & Company | 2
  • 4. ROI from sales and marketing spend varies significantly S&M spend, company C Return per dollar indexed to 100 spent on sales Working Draft - Last Modified 05/09/2012 14:39:33 Company A 17 -0.4 Company B 42 0.6 Company C 1.4 Printed 05/09/2012 06:41:21 100 Company D 56 1.7 Company E 4 2.9SOURCE: Press search, team analysis McKinsey & Company | 3
  • 5. DISGUISEDCreating more practices and centres of excellence does CLIENT EXAMPLESnot result in higher growth or profitability Long tail of low growth and margin Wide range of skills and competencies accounts Center of # of sub- # of “emerging” Revenues excellence practices sub-practices Working Draft - Last Modified 05/09/2012 14:39:33 CoE 1 11 2 70% revenue CoE 2 4 4 from <10% of accounts CoE 3 2 2 <1% revenue CoE 4 2 2 from ~25% of CoE 5 12 1 accounts Printed 05/09/2012 06:41:21 CoE 6 3 3 CoE 7 9 1 CoE 8 3 1 Other CoEs 3 3 Accounts, # Total 49 19SOURCE: Process 360 and commercial excellence benchmarking, team analysis McKinsey & Company | 4
  • 6. Sales time analysisSales teams are getting more fragmented; ~80% of the DISGUISED CLIENT EXAMPLEStime is spent away from clients Number of accounts per front line sales Split of sales time team member Observations across 50+ sales team members Working Draft - Last Modified 05/09/2012 14:39:33 Direct client 2009 3.9 interaction 17 2.5X Internal prep for client 21 2010 meetings Printed 05/09/2012 06:41:21 5.7 Internal activities and 62 un-accounted 8.6 2011 100SOURCE: Process 360 and commercial excellence benchmarking, team analysis McKinsey & Company | 5
  • 7. Opportunities exist across 3 pillars of delivery excellence ▪ What are the best ways to systematically identify new growth slivers (e.g., Strategic consumer analytics in credit cards focus sales)? ▪ How can you develop a competitively Working Draft - Last Modified 05/09/2012 14:39:33 differentiated value proposition for the growth slivers? By driving initiatives ▪ How can BPO organisations Sales and across the three debottleneck frontline sales commercial dimensions, productivity? excellence companies can uplift ▪ What are the key shifts in account sales by 5-7% points Printed 05/09/2012 06:41:21 mining capabilities to have a greater and improve margins share of wallet? by 4-6% points Operations ▪ How can providers truly impact client’s excellence performance on business outcomes? McKinsey & Company | 6

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