SIVA SIVANI INSTITUTE

OF MANAGEMENT

A REPORT ON

CRM STRATEGIES IN
ITES INDUSTRY

SUBMITTED TO,
SAI BABA Sir
SU
BMITTED BY

DI
WAKAR(17098)

SH
IVENDRA(17107)

SA
MEER(17103)
Information Technology Enabled
Services (ITES)

Definition:
ITES, Information Technology Enabled Service, is defined as
outsourcing of processes that can be enabled with information technology
and covers diverse areas like finance, HR, administration, health care,
telecommunication, manufacturing etc. Armed with technology and
manpower, these services are provided from e-enabled locations.
Objectives of ITES

ITES was formerly known as IndoNet.

The main objectives of ITES are:

• Enabling business strategy

• Achieving an organization's business goals

ITES Services
ITES offers different services integrated in a single delivery mechanism to
end users.
Some of the services offered include:

• Medical Transcription
• Document Processing
• Data Entry and Processing
• Data Warehousing
• IT Help Desk Services
• Application Development
• Enterprise Resource Planning
Business process outsourcing

Business process outsourcing (BPO) is a form of outsourcing that

involves the contracting of the operations and responsibilities of a specific
business functions (or processes) to a third-party service provider.
Originally, this was associated with manufacturing firms, such as Coca
Cola that outsourced large segments of its supply chain.[1]. In the
contemporary context, it is primarily used to refer to the outsourcing of
services.

BPO is typically categorized into back office outsourcing - which includes

internal business functions such as human resources or finance and
accounting, and front office outsourcing - which includes customer-related
services such as contact center services.

BPO that is contracted outside a company's country is called offshore

outsourcing. BPO that is contracted to a company's neighboring (or
nearby) country is called nearshore outsourcing.

Given the proximity of BPO to the information technology industry, it is

also categorized as an information technology enabled service or
ITES. Knowledge process outsourcing(KPO) and legal process outsourcing
(LPO) are some of the sub-segments of business process outsourcing
industry.

Knowledge process outsourcing

Knowledge process outsourcing (KPO) is a form of outsourcing, in which

knowledge-related and information-related work is carried out by workers in a
different company or by a subsidiary of the same organization, which may be in
the same country or in an offshore location to save cost. Unlike the outsourcing
of manufacturing, this typically involves high-value work carried out by highly
skilled staff. KPO firms, in addition to providing expertise in the processes
themselves, often make many low level business decisions—typically those that
are easily undone if they conflict with higher-level business plans.
Types of KPO services

KPO services include the following:

• Market research services

• Legal research services (also known as Legal Process Outsourcing)

• Patent research services

Challenges to providers

In addition to the challenges faced by clients, KPO companies themselves

have challenges:

• High staff turnover, especially where work is not challenging to the

employee's skills
• High cost of training and tendency to lose the most experienced
employees to the clients
• Ensuring the security and confidentiality of information, especially
when privacy laws vary from one country to another

Market researching

Leaders in the market research industry are slowly seeing the benefits
offered by KPO and have begun outsourcing.Comprehensive IT solutions
are offered by vendors who provide solutions covering the entire life cycle
of a market research project. Smaller firms can also benefit from these
solutions as they are cost effective and remain within the budget of
smaller organizations.

KPO is claimed to efficiently increase productivity and increase cost

savings in the area of market research.Advocates claim that the trend is
likely to prove increasingly popular in the global market research industry.
Literature Review (CRM Practices
in ITES)

The Indian Business Process Outsourcing Industry: An

Evaluation of Firm-Level customer Relation
Management - Arti Grover, Delhi School of Economics, University of
Delhi

Introduction
Companies in high wage nations are increasingly viewing offshoring of services
as a strategic and essential element of their business strategy. Offshoring
enhances the overall productivity of the sourcing firm by lowering its costs of
production, providing access to high quality resources not available internally
and releasing internal resources1. The impact of offshoring on the productivity of
the buyer has been widely researched2, however, little investigation has gone
into the factors that explain the productivity of the supplier in an outsourcing
relationship. A major stumbling block in such an evaluation is the complete
absence of any theory relating to the service provider firm. In this paper, we
borrow relevant features of a firm, which resembles that of a typical service
provider firm from different strands of literature. This helps us formulate an
econometric model of a representative Business Process Outsourcing3 (BPO) or
Information technology enabled services (ITES) firm to quantitatively evaluate
the factors that explains its performance in India.

The specification of our econometric model is based on the available literature

on the theory of a supplier and preliminary analysis of aggregate and firm level
data. Our estimation of BPO firm performance indicates that in the year 2002-03,
prior experience, number of locations, funding from venture capitalists and the
number of clients positively affects a firm’s performance while investment on
information security certification, which is a mandate from the client, does not
benefit the supplier firm, at least in the short run. Further, we find that our
empirical results are robust and invariant to the choice of estimation technique.

Predictions of the model for the BPO Industry

In the Indian BPO space, Venture Capitalist funds such as Oak Hill, General
Atlantic Partners, Westbridge Capital, Warburg Pincus, among others have been
very active and have invested more than US$ 300 million from 2001 to 2003. In
the first stage of BPO development in India, when competition was low, firms
backed by VC did not perform well. Examples include firms like Tracmail,
Epicenter Technologies and Infowavz which have now touched the stage of
insolvency while Transworks and FirstRing have already closed down. As is true
of the externally financed intermediate good suppliers in the Aghion et al model,
the initial development of the Indian BPO industry faced lower incentives for
technology adoption for firms funded by VC. This is obvious from their poor
performance. However, in the past decade, competition in the Indian BPO
industry.

Significance of CRM
Customer retention through better customer services is very significant for any
business enterprise. The slowdown in global economy and tough competition
among the enterprises made the companies to focus at cost containment and
growth in profitability. Managing the good relationship with the customers is the
only key to success and for the survival of the business. The concept customer
relationship management helps companies to not only to retain the existing
customers, but also widen the customer base. The cost of retaining a customer is
one-fifth in the cost of acquiring a new customer. CRM helps in tracking
marketing opportunities better and focus on those customers who not only
increase the sales/volume but also in terms of profitability. CRM is defined as
tracking customer behavior in order to develop marketing and maintaining
customer relationship to a brand often by a development of software system
provides one-on one contact between the marketing business and their
customer. CRM is a business strategy, which includes the people, processes, and
technology associated with a marketing and service. It provides information for
every corporate activity from marketing to fulfillment.
CRM embodies six key disciplines: Sales force Automation; Marketing
Automation; Help Desk, and call center. The CRM technology promise to retain
customers and boost the top line continues to resonate with companies
recovering from a tough economy. Apart from customer relationship
management, CRM also referred as customer relationship marketing and
continuous retention marketing.

CRM's largest vendors such as siebel, people soft, Oracle, and SAP will
continues to grow and expand their reach into newer application segments, such
as marketing automation, partner-relationship management and even employee-
relationship management. ICICI Bank, HDFC Standard Life, UTI and ABN-Amro are
now looking at business process management to increase returns on investment,
improve customer relationship management and employee productivity. The
worldwide CRM services market reached $22 billion in 2002-03, a 10.6 percent
increase from the prior year according to Gartner group. The group forecasts this
market to hit $25.3 billion in 2003-04, and $47 billion by 2006. The CRM market
in India has witnessed a healthy growth and expects the CRM software market to
grow at a CAGR of 40% to reach Rs 188 crores in 2006.

Predictions of the model for the BPO Industry

In the Indian BPO space, Venture Capitalist funds such as Oak Hill, General
Atlantic Partners, Westbridge Capital, Warburg Pincus, among others have been
very active and have invested more than US$ 300 million from 2001 to 2003. In
the first stage of BPO development in India, when competition was low, firms
backed by VC did not perform well. Examples include firms like Tracmail,
Epicenter Technologies and Infowavz which have now touched the stage of
insolvency while Transworks and FirstRing have already closed down. As is true
of the externally financed intermediate good suppliers in the Aghion et al model,
the initial development of the Indian BPO industry faced lower incentives for
technology adoption for firms funded by VC. This is obvious from their poor
performance. However, in the past decade, competition in the Indian BPO
industryhas grown tremendously and therefore by the Aghion et al model we
would expect higher pace of technology adoption and performance for VC
backed BPO firms8. We will test this in the empirical section of the paper.

In the Aghion et al model, it is easy to see that a high fixed (and variable) cost of
operation9 decreases the pace of technology adoption and hence firm
performance. This is primarily the reason to expect low performance in firms
with high proportion of voice based process. On the cost side, firms with a high
proportion of voice processes have high fixed costs of operation (like dialer
running and maintenance, bandwidth costs) as well as high employee wages 10
and related expenses, while on the revenue side, voice processes are among the
ones with lowest billing rates. Voice processes typically require low entry-level
skill which induces higher competition and thus drives down prices 11. For
instance, Wipro BPO, Spectramind blames its poor performance in the past to a
high proportion of voice processes and there had been a clear mandate to
reduce this proportion from 84% in 2005 to 60% in a span of 18 months for
improving its margins.
Aghion et al model also implies that high (variable) labor cost, lowers the pace of
technology adoption and hence firm performance. This is intuitive because
increasing labor cost lowers not only the expected profit from adopting a new
technology, but it also increases the cost of adopting the technology. In the
Indian BPO industry, high employee attrition12 rates averaging about 40%, (In
2002, the attrition rate in Wipro BPO was 120%) are additional costs, over and
above the wage inflation of 15-20% per annum. Attrition 13,14 is a big drain on the
revenues of BPO firms. It costs a company $1000 to train an agent. GENPACT,
the largest Indian third party vendor, spends about

$10 million and over 1.5 million man hours per annum on training and it
takes at least three months for a new employee to reach an optimum
productivity level. To combat high attrition, GENPACT maintains a buffer of 15%
employees on bench which further increases labor costs and lowers firm
performance15. High bonuses, salary hike, incentives, door-to-door transportation
services and offsite team events are some of the strategies to fight attrition
which have additionally pushed up the average labor cost of the industry and
pulled down the margins. It is worth noticing that voice-based processes, which
are characterized by high levels of stress and odd working hours16, are again at a
disadvantage due to high attrition rate. Attrition in voice based processes
averages between 50-55% as against an average of 30-35% for non-voice work.
As cost of labor rises in India, voice-based BPO firms may be unsustainable in
future if higher rates of attrition persist.
To combat the problem arising from high labor and operational costs, firms try to
maximize “shift utilization” (that is, 3 eight hour shifts) from their fixed
investment of $ 10,000-$ 15,000 per seat in office space. However, reality is far
from ideal. Shift utilization of Indian call centers is about 1.5-2 shifts principally
because 80% of the call center business in India comes from the US, which
implies that most of these seats are vacant for 16 hours. To increase seat
utilization, BPO firms actively look for clients across the US, that is, from the east
coast to the west coast, as well as in UK and Australia. To increase seat
utilization, call centers handle their voice-based services during business hours
and use non-business hours to answer queries through e-mail. This may also
enable a healthy balance of voice and non-voice processes and thereby help
evade the problems typical of a voice based process.

Indian Offshore Suppliers: The Market

Leaders
Understanding the Market Leads to Better Vendor Relationship.
by Stephanie Moore and William Martorelli with Adam Brown

EXECUTIVE SUMMARY
Large suppliers continue to dominate the market for Indian software and
services exports. This is due to the preference of North American
customers for large, seemingly stable partners. Indeed, these Indian
industry leaders remain ideal vendor partners for large customers seeking
significant scale in their offshore operations. The leading Indian suppliers
will continue to pace the market, but cracks are beginning to appear.
Obliged to continue their rapid growth by seeking the largest
opportunities, their customer responsiveness and recruitment/retention
policies are being tested. Smaller Indian suppliers are emerging as viable
alternatives. While customers struggle to differentiate the leading Indian
suppliers, which all seem to have the same breadth of capabilities,
important differences exist. One of the most significant differences is the
relationship management philosophy by which they engage with their
customers.
Large suppliers continue to dominate the market for Indian software and
services exports. This is due to the preference of North American
customers for large, seemingly stable partners. Indeed, these Indian
industry leaders remain ideal vendor partners for large customers seeking
significant scale in their offshore operations. The leading Indian suppliers
will continue to pace the market, but cracks are beginning to appear.
Obliged to continue their rapid growth by seeking the largest
opportunities, their customer responsiveness and recruitment/retention
policies are being tested. Smaller Indian suppliers are emerging as viable
alternatives. While customers struggle to differentiate the leading Indian
suppliers, which all seem to have the same breadth of capabilities,
important differences exist. One of the most significant differences is the
relationship management philosophy by which they engage with their
customers.

Rapid Growth Challenges Vendors And Adds Risk To Client

Engagements

To make matters worse, Indian vendors need to increase headcount

rapidly to accommodate new business. Infosys, for example, grew from
about 15,000 employees last year to about 25,000 employees this year.
Today, Wipro brings in about 200 recruits every Monday. In addition to
finding the qualified resources to hire — a Herculean task in itself — the
vendors have to assimilate and train this new staff quickly. Each recruit
has to learn the vendor’s culture and processes required to deliver quality
results. Even if we assume that every vendor can train and assimilate staff
quickly, most clients are going to find themselves with a preponderance of
unseasoned junior staff on projects.

Client Relationship Management Emerges As the Key

Differentiator

All of the leading Indian suppliers possess mature infrastructure, robust

development processes, and typically very broad capabilities. In fact,
these capabilities are so broad that it can be difficult for many customers
to tell the leading vendors apart. Because significant differences exist,
customers should evaluate these capabilities carefully. One of the most
important areas of differentiation lies in the vendor’s engagement and
relationship management philosophy and overall relationship
management skills. Some Indian suppliers are easier to work with than
others. By providing the kind of engagement style that customers are
used to from domestic suppliers, these suppliers provide transparency
in relationship management. The level of relationship transparency
required by any customer will vary depending on the offshore outsourcing
maturity of that customer. Early adopters with significant experience in
managing offshore suppliers, for example, will not need these skills as
much as beginners. Moreover, these competencies will not be as
important in a relationship based on staff augmentation as they are with
project based engagements, where a close, flexible, and transparent
relationship with suppliers is essential. One of the principal reasons
Cognizant has been included in the leader category
is its mature relationship management skills.

New CRM Solution Specifically for

Companies on IBM System Platforms

Tue Aug 4, 2009 Featured Broker sponsored link

Infor today announced the availability of Infor CRM, a new solution that
provides enhanced customer relationship management (CRM) capabilities
to customers with Infor enterprise resource planning (ERP) solutions on
IBM System platforms. The new solution can help Infor's more than 14,000
System customers create growth and loyalty through heightened
customer dialogue, increased revenue, reduced costs, and enhanced
customer service. CRM linked with Infor's ERP products, provides Infor
customers a single, integrated view of customer-related information such
as credit limits, financial transactions, orders, quotes, shipments, and
more. End users can access the solution via their Internet browser,
ensuring data availability anywhere, anytime. The solution further
simplifies use by providing CRM data to users through a single access
point. CRM has robust capabilities for campaign management, opportunity
management, sales process management, and quotation and order
management.
CRM helps customers leverage their ERP data with new capabilities that
will help them increase sales revenue, reduce sales costs, expand data
visibility, enhance forecast accuracy, and improve customer service," said
Kevin Piotrowski, director of System solution marketing, Infor. "Providing
innovation and support to our large installed base of System i customers
is an important priority and commitment for Infor and a major factor
behind our recent establishment of a business unit dedicated to our
worldwide base of customers who use IBM System i."
CRM i Edition enables companies to manage campaigns using CRM and
ERP data
to easily target subsets of their customers with offers tailored to specific
wants and needs. Using e-mail, call lists for telesales and the mail merge
function, the solution enables companies to better define and execute
campaigns. Additionally, the solution provides the ability to manage
marketing events, such as invitations, response tracking and post-event
surveys, and also measure a campaign's success.

With the solution's sales process management functionality, companies

can use multiple sales practices as part of an overall CRM program. User-
defined sales processes include additional sales to an existing customer,
service without a contract, maintenance renewal, sales to a prospect,
sales through a partner or reseller, and major account sales. In each
instance, a record is created for every opportunity, enabling usersto
review status using various parameters such as deal value, predicted
close date and others.

Additional functionality in Infor CRM i Edition enables users to manage

quotations and orders by taking advantage of the abundant information
contained in the company's existing ERP system. This data includes
pricing, discounting, promotions, sourcing, and more. Using this data, the
solution simplifies the prospect-to-customer and quote-to-order
conversion processes, enabling users to increase the number of inquiries
that become orders. This conversion rate is also boosted by the solution's
opportunity management capabilities, which helps improve close rates
and shorten sales cycles.

IT enabled Services (ITeS) INDIA

Sector structure

India is referred to as the back office of the world owing mainly to the
Information Technology-enabled Services (ITeS) sector. According to the
National Association of Software and Service Companies (NASSCOM), the
apex body for software services in India, the revenue of the information
technology sector has grown from 1.2 per cent of the gross domestic
product (GDP) in 1997-98 to an estimated 5.8 per cent in 2008-09.

Indian IT-BPO grew by 12 per cent in 2008-09 to reach US$ 71.7 billion in
aggregate revenue. Software and services exports (includes exports of IT
services, BPO, Engineering Services and R&D and Software products)
reached US$ 47 billion, contributing nearly 66 per cent to the overall IT-
BPO revenue aggregate.

ITeS, which started with basic data entry tasks over a decade ago, is
witnessing an expansion in its scope of services to include increasingly
complex processes involving rule-based decision making and even
research services requiring informed individual judgment. It now offers
services such as knowledge process outsourcing (KPO), legal process
outsourcing (LPO), games process outsourcing (GPO) and design
outsourcing among others.
India continues to capture a large share of new offshore centers being
established in Asia. According to a new report by the Everest Research
Institute, a leading research agency on the IT, ITES and BPO sector, more
delivery centers have been set-up in tier-I and tier-II locations during the
second quarter of 2009 as compared to the first quarter.

Moreover, according to AT Kearney, India continues to be the most

preferred destination for companies looking to offshore their IT and back-
office functions. It also retains its low-cost advantage and is among the
most financially attractive locations when viewed in combination with the
business environment it offers and the availability of skilled people.

India has retained its numero uno position even as some other well-
established outsourcing hubs dropped in their attractiveness to be
replaced by new emerging destinations in AT Kearney’s latest ranking of
the top outsourcing destinations across the globe. The top three countries
in the 2009 Global Services Location Index (GSLI) remain the same —
India, China and Malaysia.

Moving up the value-chain

India with its natural competitive advantage is likely to play a huge role in
various segments of the ITeS industry.

• The Indian animation industry is rapidly growing as a major

outsourcing hub with a growth rate of 30 per cent.
• The Indian KPO sector is estimated to become a US$ 10 billion
industry by 2012, from the current size of US$ 4 billion.
• India is fast becoming a hot destination for outsourced e-publishing
work. As per a Confederation of Indian Industry (CII) report, the
industry is growing at an annual rate of 35 per cent and India's
outsourcing opportunities in the value-added and core services will
help make the publishing BPO industry worth US$ 1.46 billion by
2010.
• As per a CRISIL study, engineering services outsourcing (ESO) is
poised to be the next big opportunity in the Indian outsourcing
 services industry. The ESO sector is likely to grow at a compounded
rate of 26 per cent and post revenues aggregating around US$ 7.5
billion by 2012.

Deals

The cross-border merger and acquisition (M&A) involving Indian IT and IT-
enabled companies increased by nearly 12 per cent between January 1
and December 15, 2008 to US$ 3.22 billion (in 98 deals) compared with
US$ 2.88 billion (in 159 deals) in 2007. The average deal size in 2008
increased to US$ 32.86 million (as compared to US$ 18.15 million),
according to Grant Thornton India.

Some recent deals include:

• Essar Group's business process outsourcing and technology arm,

Aegis Ltd, has acquired CCN Group PTY Ltd, a South Africa-based
BPO firm, for around US$30 million.
• Nasdaq-listed EXL Service has acquired the operations of European
logistics provider Schneider Logistics in the Czech Republic. Analysts
peg the transaction value at about US$3 million to US$5 million.
• Infosys BPO, the BPO arm of Infosys Technologies, has secured a
five-year contract with T-Mobile UK. Infosys BPO has been engaged
by T-Mobile UK to support several core processes for their finance
directorate which cover customer finance, commercial finance and
accounting (F&A), and procurement operations.

Growth

A study by NASSCOM and Everest India on the Indian BPO sector states
that India is at the forefront of the rapidly evolving BPO market, having
established itself as a "destination of choice."

According to the study, the Indian BPO sector, at its current momentum,
can reach around US$ 30 billion in export revenues by 2012. Furthermore,
the domestic BPO market (in verticals such as, banking, retail, insurance,
media, telecom and government) provides an additional US$ 15-US$ 20
billion opportunity for the sector. According to the study, the Indian BPO
sector has been growing at more than 35 per cent over the past three
years.

Moreover, according to a latest Ernst & Young report, the domestic BPO
market is expected to reach US$6 billion by 2012, with a maximum
addressable opportunity of US$16-19 billion.

The study notes that domestic service providers would move to tier II and
III cities to tap additional resources at low cost to serve domestic clients.
The net margin in the domestic BPO market is predicted to increase
gradually from around 9 per cent in 2008 to 11-12 per cent in 2012.

Exports

According to NASSCOM, if India maintains its current share of the global

offshore IT-ITeS market, the IT-ITeS exports from India will exceed US$
330 billion by 2019-20 (nearly 14 per cent of the projected worldwide
spend). Currently the exports stand at US$ 47.3 billion.

The ITeS sector is working towards reducing its dependence on the US

market and is exploring new and emerging markets such as those in
Australia and the Middle East.

Government Initiative

Realising its potential, after IT Parks and IT special economic zone (SEZs),
the government has cleared a proposal for creating much larger
Information Technology Investment Regions (ITIRs) to give a fillip to the
country's growing IT and ITeS sector.

Road Ahead

According to a new Gartner report, the share of Indian BPO vendors will be
10 per cent of the total global market by 2010 from the current 5 per
cent. Moreover, the domestic market is developing, providing a huge
opportunity to the BPO sector. Infosys Technologies sees over US$ 1
billion worth of outsourcing contracts coming from the Indian market over
next few years, as the country’s government and state-owned
organisations seek to become more efficient by outsourcing their IT
needs.

BPO
About Wipro

Wipro has 2300 + person years of experience of delivering CRM solutions

in the past eight years. Wipro’s vast experience comes from our years of
experience implementing different suites like Siebel, Amdocs Clarify,
Peoplesoft CRM, SFDC and SAP CRM.

Wipro provides unmatched business value to customers through a

combination of process excellence, quality frameworks and a mature
Global Delivery Model which in turn helps in reducing the Total Cost of
Ownership (TCO).

Consider the following

• SFDC Implementation across SFA, Customer Support, Marketing

Automation and PRM
• SFDC Application Integration & Consolidation- using Middleware and
SAP XI
• SFDC Administration and Support (Functional & Technical)
• Propriety methodologies for rapid implementation and roll outs
• Deep industry specific vertical knowledge
• CSAT of 4.5 ( on a scale of 1 to 5 )
• On time. On Budget .Always

Delivering strategic solutions that match the high stakes

Wipro BPO Solutions is a leading provider of Business Process Outsourcing
(BPO) focusing on the complex, voice and non-voice based segment of
customer-care services. The integrated solution approach provides
enhanced value to the customers through process standardization,
process simplification and process optimization. Services are provided
from delivery centers in the North America, Central and Eastern Europe,
India, China and Latin America. Our services include,

Customer Service
Technical Help Desk
Finance and Accounts
Outsourcing
Human Resource Outsourcing
Procurement Outsourcing
Specialized Services
BASE)))™

Wipro BPO is about delivering long-term benefits & measurable value to

our customers through:

Business process re-engineering

Integrating technology with BPO

Knowledge services

Wipro BPO is uniquely positioned to service customer requirements by

leveraging its tenets of quality and innovation, the best people talent, self
sustaining process framework and domain knowledge. We offer customized
service offerings; translating into the most flexible and cost effective services of
the highest quality for our customers.
In 2002, Wipro took a quantum jump in the BPO services by acquiring the then
Spectramind. Wipro BPO Solutions, complements the services offered by Wipro
Technologies, making it one of the largest BPO service players.
With over 19,000 people, operating out of 9 different locations (India and Eastern
Europe), Wipro BPO has been a critical partner to all its customers in achieving
their business goals. Wipro BPO services customers in various industries
including Banking & Capital Markets, Insurance, Travel & Hospitality, Hi-Tech
Manufacturing, Telecom & Healthcare sectors. Wipro BPO also has deep
expertise in delivering process specific solutions in areas like Finance &
Accounting, Procurement, HR Services, Loyalty Services and Knowledge Services.

Wipro BPO Loyalty Services

In the current global business environment, a company’s survival and success

depends on how effectively it manages customers across the entire lifecycle. It is
essential that businesses have a single view of the customer across the
customer lifecycle, enabling them to uncover retention drivers and customize
marketing and operational enhancement efforts.

Wipro’s Loyalty Services provides an integrated approach to revenue

enhancement, productivity improvement and enhanced customer loyalty.

We follow a three-step program to manage your customers across the

life cycle:

• Understanding drivers of loyalty and defection

• Developing a loyalty strategy with a framework for measurement
and rewards
• Systematically delivering what your customers value

ENTERPRISE APPLICATIONS SERVICES (EAS)

Globalization and Technology innovation have presented new set of

challenges to the organizations like increased competition, shrinking
margins and customer’s increasing expectations .In the face of such
challenges, it is imperative for an organization to have a customer centric
business strategy .A CRM software facilitates improved customer relations
and thus has evolved as a competitive edge for organizations. The
challenge now has zeroed down to selecting right CRM product with
maximum ROI and flexibility. The mantra is to “Do more for less. “
Today some of the risks faced by clients while implementing traditional
CRM Solutions are:

• Long development life cycles and complex customizations taking

longer time-to- customer which further takes a toll on the IT
investments
• Under utilization of investment on huge CRM licenses and
Client/Server infrastructure
• Millions of dollars being spent on maintenance and upgrades
• Low user adoption and consequent failure of the CRM strategy

To help minimize the above risks, Wipro’s CRM practice brings you
Software as a service (SaaS) in collaboration with Salesforce.com(SFDC),
the market leader in On-Demand CRM Solutions

SFDC CRM

Salesforce.com is the worldwide leader in on-demand customer

relationship management (CRM) services. SFDC’s strong credentials in
Sales Force Automation, Customer Service, Marketing Automation and
Partner Channel Management helps customers of any size derive quick
time to value, usability and lower upfront cost.

Wipro’s Service Offerings

Wipro’s Global CRM Practice helps customers define & execute their CRM
Strategy which comes from the impeccable record of delivering CRM
implementations in multiple business processes across different industry
verticals.
Consulting

As radical changes that occur in the business environment, evolution

invariably becomes a necessity as customers world-wide expect and seek
innovation for both products and services. Successful CRM acts as a
differentiator in business, especially when product and price fail to
achieve this competitive advantage. Also the product and price
advantages being replicable, they fail to give you the necessary edge in
your industry. Hence CRM is emerging as a critical strategy as customer
relationships are coming to the forefront of the competitivebattleground.
At Wipro, we offer a range of CRM consulting services to help you enhance
the life-time value of your customers and increase customer satisfaction.
Some of the broad based offerings are as listed below :

CRM strategy definition

As the right CRM strategy will help you revolutionize your business
practices, our domain experts help you define an optimal CRM strategy,
formulate a plan for efficient execution, and establish milestones for your
CRM implementation.
Business process analysis and definition

For rapid deployment of the CRM solution across the organization, we

combine our traditional process improvement techniques with technology
to carry out business process analysis and definition. This enables keen
understanding of the uniqueness of your business processes, thereby
ensuring that the CRM solution implemented, meets your strategic
business objectives.

Solution prototyping

To help our customers increase the familiarity with their CRM

environment, we design a solution prototype. This helps our customers
test the effectiveness of the CRM implementation in their organization.

Gap analysis

Any deficiencies (gaps) in your existing CRM products and processes

should be addressed to completely leverage your CRM solution. We
identify the business processes, which are not supported by the standard
application and suggest potential solutions for these gaps, revitalizing
your CRM system

Implementation

Increasing customer loyalty, sales, profitability and gaining a competitive

advantage are the key drivers to an organization’s success. An investment
in this respect is an investment into your future, the one that will repay
you with improved business processes and higher returns.

A CRM initiative which fails to fall in line with the organization’s stated
objectives to success, will not work as a differentiating business strategy.
Wipro ensures that your CRM project delivers rich short-term results and
also realizes the full strategic advantages of the implementation in the
long run.

We combine the best in processes, people, infrastructure, alliances and

our global delivery model to ensure that CRM works best for your
business. Our CRM offerings span across various business functions like
customer care, marketing, sales force automation, customer service,
order management and partner relationship management

Our project management ensures that, each critical success factor is

successfully incorporated during implementation, so that a complete end-
to-end solution is delivered. Our expertise in enterprise applications
deployment enables seamless integration with existing legacy or other
application systems.

Our analytics reporting services help in defining the right metrics for your
marketing campaigns and customer behavior analysis.

A successful CRM is possible only through the integration of the four key
components - process, technology, data and people. Therefore, the
ultimate success of a CRM project lies in the hands of the user. To make
your CRM program completely successful, we train future users to handle
the transition into a CRM driven enterprise

Upgrades

Organizations on a fast-track need to keep their processes geared up to

achieve accelerated growth. This coupled with an ever-changing customer
perception of value is a key driver for growth in any business. Customer
perception of value is an amalgamation of what the customer receives,
how much of it is sold, delivered and supported and the cost- the total
cost of ownership.

Every successful organization thus aims to minimize the total cost of

ownership for its customers. A customer-centric strategy will ensure that,
your organization is aligned with your augmenting business objectives. In
such a situation, your leap into the next level of technology has to ensure
minimal interference with your on-going processes.

Wipro’s migration assistance in Siebel CRM

Version upgrade: Upgrade from one version of Siebel to a higher

version, in a specific business environment

Re-implementation: Sometimes due to high customization in the

existing framework, a simple version upgrade might not be practical. In
order to, evade this situation and also, leverage new functionalities of a
higher version, Wipro offers re-implementation services for a successful
upgrade.

We conduct an impact analysis to conceptualize the impact of a new

version upgrade and setup the necessary infrastructure for the build. We
assure seamless data migration when a new functionality is implemented,
so that operational functions are undisturbed.

We employ a proprietary upgrade & re-implementation methodology for

better predictability & governance.

Our clients have benefited from an accelerated upgrade model which

ensures rapid upgrade processes and 100% on-time deliveries.

Center of Excellence

CRM process improvements and competency building to stay with cutting

edge technology has always been the agenda with Wipro. We develop
industry specific point solutions and participate in various forums. The
Center of Excellence (COE) complements the engagement to focus on
entire CRM application life cycle management than just implementation.

CoE has a well structured portal with:

• Completely threaded knowledge repository from requirements to

deployment
 • Sand box environment so that end users feel confident of the
application
• Seamless induction of new IT staff managing application

CoE also has standards based CRM pre-configured solutions to navigate

green-field CRM implementations and provides application roadmap
definition along with methodologies which have specific templates and
checklists to ensure consistency and quality of deliverables .We also do
customer specific feasibility assessments or proof of concepts to provide
solutions for complex requirements

Overview

Companies in virtually every industry face an almost insolvable problem:

how to reduce operating costs and maintain profitability in the face of
soaring customer expectations. According to IBM research, 79% of
business leaders have only a generalized or superficial/absent
understanding of their customers. As a result, they could interpret that
business leaders continue to act on an operational basis or “what can be
made faster or more efficient,” versus what the customer may value
most.

In an atmosphere of extreme price sensitivity, customers are demanding

more service, more convenience and more personalized communications.
Businesses must maximize every interaction with their customers to make
positive impressions and drive loyalty and preference.

At IBM Global Business Services, it regards CRM as a journey, not a

destination. It involves shifting the focus from products and channels to
customer. It means streamlining and integrating the sales, marketing and
customer service.
Done right, the results can be extremely powerful:

• Lower contact center costs

• Increased customer satisfaction and sales conversion rates
• Improved sales performance across all channels (direct, indirect and
partner)
• Reduced field service operations costs

Business challenge

What business challenges are today clients facing that might be

addressed by these offerings? One or two paragraphs - Consider pain
points.

• How can organization deliver competitively superior customer

experiences within a realistic, achievable operational model in a
cost effective manner?
• How can formalize and deploy the advocacy building, higher-order
emotive attributes, such as dignity or empathy, as promised by
brand?

Automotive customer relationship

management (CRM) analytics solutions

Automotive CRM analytics solutions from IBM employ technology for

greater customer insight. Target market for higher sales and return on
marketing expenditures. Use customer intelligence to personalise
messaging and offers across marketing channels. Help predict trends,
optimise customer relationships and uncover new sales opportunities.

The advantage Extensive industry experience

Our automotive CRM analytics solutions include:

• Extensive experience in successful CRM analytics implementations.

• Leadership in collaborative tools.
• Convenience of complete solutions including hardware, CRM
applications from leading software vendors and installation.
• One point of accountability to give you the results you need.

We can leverage our experience from our CRM implementations.

• We have automotive industry experience from engagements with

Volvo Truck, JCI, Renault, Peugeot, DCX and Jeep.
• We offer a long CRM consulting track record with customers across
the automotive industry.

The benefits Gain the power of information CRM analytics solutions

from IBM can help thecompany capitalise on customer intelligence to
gain substantial strategic advantages.

• Improve understanding of customers' needs.

• Identify and target customers with higher profit potential.
• Gain decision support from accurate, up-to-date customer
intelligence.
• Personalise offerings to individual customers for greater returns.
• Derive insights into customer purchasing patterns to identify
inhibitors to success, recognise new or up and coming trends and
possibly uncover hidden niches.
• Give customers a more positive contact experience to improve
customer satisfaction and loyalty.
 • Improve your overall reputation in the marketplace with targeted,
relevant marketing and excellent customer service from sales to
repair and service warranties.

The ROI Happier customers, more revenue Automotive CRM analytics

solutions from IBM can help to achieve the return on investment by
providing accurate customer data that enables to:

• Identify and target customers with higher profit potential.

• Increase the effectiveness of marketing programs by delivering
targeted, personalised messages to help increase revenue.
• Reduce cost of tracking leads through automation.
• Increase orders with relevant messaging that enhances customer
satisfaction.

CRM Practice

Integrate sales, marketing and customer service functions and improve

sales performance across all channels

IBM’s Customer Relationship Management (CRM) practice helps to

improve the efficiency and effectiveness of marketing, sales and customer
service, while also helps to improve customer loyalty, satisfaction and
profitability. They do this by understanding the evolving dynamics of
customer relationships, products and the sales and service channels then
synchronise the processes, competencies and systems that enables to:

• Help clients understand the "voice of the customer" and interpret

what it means.
• Link information and processes across the enterprise, to create
effective interaction and product affinity.
• Reengineer and integrate sales, service and customer contact
capabilities.
 CRM Strategy – to help clients achieve consensus around their
CRM strategy and identify the capabilities required to meet business
goals. They do this by creating a view of the end state from a
customer and company perspective and a benefits-driven blueprint
of the future platform. The work spans areas of CRM value
proposition, CRM blueprint and roadmap, and CRM transformation
program.
 Marketing and Sales Transformation - to focus on
strategies and solutions to improve sales and marketing
performance by driving effectiveness and efficiency through all
stages of the sales and marketing process. Thework spans areas of
marketing operations, marketing programs, and sales operations.
 Service Transformation – to help improve customer and
employee satisfaction, and dramatically drive down the “cost to
serve,” often resulting in improved revenue. Looking across the
entire field service lifecycle, they help to set competitive metrics,
simplify/standardise processes and leverage technology
aggressively but prudently. The work spans areas of service
transformation strategy, service transformation diagnostic, and
service transformation implementation.
 Contact Center Optimisation – to help clients improve
efficiency and effectiveness of contact centre operations by
designing consistent approaches to dealing with customers across
all channels (phone, web, IDTV/kiosk, mobile access, etc). The work
spans areas of contact centre strategy, contact centre consolidation
strategy, contact centre diagnostic, self service assessment, and
telephony integration assessment.
 Business Intelligence – to help focus the use of customer
insight to achieve business intelligence, better campaign
capabilities and deeper relationships between the customer and
provider. Some of the key BI applications and practices include
threat/fraud detection, risk/compliance, operational intelligence,
business performance management (BPM), and workforce
productivity.
  IT Services for CRM - to provide business and technology
services for CRM that will improve the ability to serve customers.
The key services offerings that align to CRM include Siebel CRM
OnDemand, Portals, content and e-Commerce Services, Network
Convergence Services, Infrastructure services readiness
engagements, and Customer experience, branding and usability
design services.

CRM solutions

Branch convergence from IBM and Avaya

The inability to reach the right expert at the right time. Inefficient use of
customer representatives. Inconsistent customer experiences. See how
IBM and Avaya can help eliminate these frustrations through the creation
of an enhanced branch communications network.

Customer relationship management from IBM and SAP

Sustaining customer relationships and identifying new markets is integral

to the success. How can they control costs and inspire customer loyalty?
IBM and SAP can provide the applications, best practices and industry
expertise need to provide personalized service, access to information and
integration across channels.

Customer service solutions from IBM and KANA

Increase the quality of the customer experience, turn service centers into
profit centers, and ensure processes are compliant with regulations. IBM
and KANA can help to organization deliver the experience customers want
over multiple channels while effectively balancing cost, compliance, and
revenue objectives to benefit their business.
Electronics sales and service from IBM and SAP

The electronics business must acquire and retain customers in a

competitive market. But loyalty is in short supply. IBM and SAP help to
compete with customer-focused strategies, processes and tools designed
to help increase loyalty, revenue and profit.

IBM and Oracle's Siebel solutions

The IBM and Oracle alliance unites the recognized market leader in CRM
with the largest Oracle integrator and implementer worldwide. Together,
we offer companies new opportunities to do CRM right.

CRM done right from IBM

The goal - Improve success by doing CRM right

According to a recent study by IBM's Institute for Business Value and The
Economist, 85 percent of companies do not feel they are fully optimizing
their CRM initiatives. How can it improve CRM operations? Can it mitigate
the risk that's inherent in new programs? What's the best way to secure
organizational commitment to these critical initiatives? IBM CRM done
right can guide to transformation.

The advantage - Adopt a pragmatic approach to CRM

initiatives

IBM has developed a pragmatic approach to planning and deploying CRM

initiatives—the IBM CRM done right framework. In applying the framework,
it can help to establish agreement within organization on how CRM can
create value for business and clients. It helps to shape a vision for the
capabilities that will deliver the value proposition. And finally, create and
execute an implementation roadmap that defines projects to build new
and improved CRM environment.
IBM CRM done right can guide its decision making, optimize practices and
alleviate the risk of transforming CRM capabilities into a strategic
differentiator for organization.

The benefits - Realize the true benefits of CRM

CRM programs must impact the bottom line and deliver a return on time,
effort and investment. Successful CRM can transform the company,
helping to grow more profitable by serving customers more intelligently.
Our CRM Strategy services are designed to improve the success of
initiatives. Potential benefits include:

• Management buy-in and sponsorship of the CRM vision and business

objectives.
• Alignment of the vision with shareholder and customer value.
• Alignment of the strategy with operations (marketing, sales and service)
by linking the value proposition with customer-facing processes or
channels.

IBM has worked with companies across many industries—financial

services, telecommunications, pharmaceuticals, manufacturing and more
—to build innovative CRM strategies and to implement solid, successful
initiatives. The strong relationships with leading CRM application providers
such as Siebel, PeopleSoft and SAP, enable to offer a complete solution
that delivers measurable benefits.

The customer experience planning and implementing own CRM

transformation at IBM—the largest Siebel implementation in the world—
contributes greatly to the expertise and can apply to the solutions build
for clients. They are integrating all the parts of the business that touch
clients and have already seen a 30 percent improvement in client
satisfaction ratings.
The goal - Conquer the challenges of CRM
transformation

Addressing CRM as a core operation can present many challenges.

Compelling company to change. Achieving consensus around CRM
strategy. Aligning teams to work toward one common goal. Sustaining
commitment and support. IBM CRM done right is designed to help conquer
these challenges by creating directed value cases and aligning priorities
with the appropriate resources and work efforts.

The advantage - Leverage CRM strategy capabilities

IBM has the capabilities to help and build an effective and successful CRM
strategy.

• IBM Global Business Services has CRM engagements with 74% of

the Fortune Global 100 and 45% of the Fortune Global 500.
• They have the largest global CRM practice with more than 5,500
experienced CRM practitioners who work with leading companies
across a broad set of industries, providing integrated, on demand
solutions that transform how clients interact with customers at
every point of contact.
• IBM has business relationships with several industry-leading CRM
application providers, including Siebel, PeopleSoft and SAP, which
help to build a complete solution for CRM operational
transformation.

The benefits - Improve the success of CRM efforts

From justifying business decisions to building and maintaining support for

CRM programs. They can help to develop:
 • Value case—fundamental analysis of the cost, feasibility, risks,
benefits and economic return of a CRM initiative with which
customers gain:
o Organization agreement on initiatives, goals and financial
expectations.
o Clear economic justification for CRM solutions.
o Documented proof of commitment.
o Confidence that business decisions are made on sound
analysis.
• Value propositions—definition of specific measurable objectives that
create the most value for all stakeholders, including customers,
employees, partners and the company as a whole.
• Operational blueprint—future end-state vision for the new CRM
operations that includes:
o Plan for deployment of new resources.
o Strategy for building new technologies and infrastructures.
o Design of new processes.
o Comprehensive strategy for managing change.
• Implementation roadmap—development of a planned sequence of
short CRM programs that work together to reach the main goal, with
each step contributing incremental results along the way.
• Sponsorship, governance and change management—process to
build support for the CRM transformation that helps ensure the
entire organization stays committed throughout the deployment
with:
o Sponsorship and agreement from all stakeholders.
o Development of an empowered governance structure.
o Plan for change management.

The approach - Learn from our CRM experiences

IBM worked with a U.S. retail bank to:

 • Identify and prioritize CRM strategic business objectives that
support the bank's business and financial goals.
• Identify capabilities required to realize the CRM strategy.
• Align processes, organization, application and data in an operating
model that delivers the required capabilities.
• Develop a financially justifiable roadmap for implementing the
redefined operating model.

As a result, key internal stakeholders were aligned to common objectives

and the transformation roadmap. The expected five-year benefit case was
forecast in excess of US$125 million.

The financial advantage - Achieve the ROI promised by CRM

IBM CRM done right can deliver great value by improving the success of
CRM efforts.

• Help secure investments in CRM initiatives—and enhance

shareholder value—by improving the likelihood that programs will
be successful with comprehensive planning.
• Boost revenue potential by focusing on a series of smaller programs
that can contribute value and ROI on their own while building
toward the long-term vision.
• Garner support and commitment to programs to help ensure
investments are not wasted on initiatives that will be abandoned in
the near future
Introduction

Winning in the market share through the world-class customer service is an

important method adopted by many companies. Customer relationship
management [CRM] is one of the customer care services and which provides the
opportunity for the companies to maintain customers intact and also attract new
market for their products.

Significance of CRM in GENPACT

Customer retention through better customer services is very significant for any
business enterprise. The slowdown in global economy and tough competition
among the enterprises made the companies to focus at cost containment and
growth in profitability. Managing the good relationship with the customers is the
only key to success and for the survival of the business. The concept customer
relationship management helps companies to not only to retain the existing
customers, but also widen the customer base. The cost of retaining a customer is
one-fifth in the cost of acquiring a new customer. CRM helps in tracking
marketing opportunities better and focus on those customers who not only
increase the sales/volume but also in terms of profitability. CRM is defined as
tracking customer behavior in order to develop marketing and maintaining
customer relationship to a brand often by a development of software system
provides one-on one contact between the marketing business and their
customer. CRM is a business strategy, which includes the people, processes, and
technology associated with a marketing and service. It provides information for
every corporate activity from marketing to fulfillment.

CRM embodies six key disciplines: Sales force Automation; Marketing

Automation; Help Desk, and call center. The CRM technology promise to retain
customers and boost the top line continues to resonate with companies
recovering from a tough economy. Apart from customer relationship
management, CRM also referred as customer relationship marketing and
continuous retention marketing.

CRM's largest vendors such as siebel, people soft, Oracle, and SAP will continues
to grow and expand their reach into newer application segments, such as
marketing automation, partner-relationship management and even employee-
relationship management.

ICICI Bank, HDFC Standard Life, UTI and ABN-Amro are now looking at business
process management to increase returns on investment, improve customer
relationship management and employee productivity.

The worldwide CRM services market reached $22 billion in 2002-03, a 10.6
percent increase from the prior year according to Gartner group. The group
forecasts this market to hit $25.3 billion in 2003-04, and $47 billion by 2006.

The CRM market in India has witnessed a healthy growth and expects the CRM
software market to grow at a CAGR of 40% to reach Rs 188 crores in 2006.

IBM's 2004 Global CRM Survey

According to 2004 Global CRM Study from IBM Business Consulting services, 85%
of companies in America, Europe and Asia large and small, across every industry
are not feeling fully successful with CRM. Fewer than 15% of global companies
believe they are fully succeeding with their CRM initiatives, and another 20%to
30%are having only some success. The survey was conducted in late 2003 and
early 2004 on 373 senior-level or above management decision makers or
influencers at a mix of small, medium and large enterprises, to understand how
companies attain CRM success and achieve significant return on investment.
More than half of respondents' companies had annual revenues exceeding
US$50 million; 30% of respondents reported annual revenues of US$ 1 billion to
more than US$50 billion.

Despite the dismal results, CRM continues to hold great promise for most
companies. Over 50% of the 373 companies surveyed believe CRM is relevant to
increasing performance from a shareholder value perspective.75% consider CRM
important in delivering revenue growth through improved customer experiences,
retaining and growing existing customer bases, increasing customer acquisition
rates and influencing the development of new product and services.
A successful CRM strategy should be at a heart of business model which focuses
on a virtue of flexibility, real time responsiveness, and a laser focus on the
customer.

Significant findings

Around 75% of companies manage CRM at the division level such as marketing,
sales, IT or Customer service. Only 25%of companies run CRM from corporate,
where a senior level team typically spans multiple divisions and business units.
Survey revealed that corporate units achieve a CRM success from 25% to 50%.

Senior management in over 35% of companies impede CRM success by

portraying CRM as useful, but not critical.

Over 75%of companies do not realize returns on CRM initiatives because they do
not fully use CRM once it is implemented. Only 21% of responding companies
view alignment as very important to CRM success.

Approaches to CRM success

The global research survey found that the two approaches most consistently
cited as requirements for CRM success were 'change management' such as
training employees to use CRM processes, tools and policies; and 'process
change' such as involving employees in the process of designing and changing
CRM activities. The right action taken drive commitment to CRM throughout the
company that in turn translates into sustained value.

The key faults which can cause CRM projects to fail or prevent delivery of
expected return –on –investment include too much dependence on technology
systems as a panacea or organizations down-play the importance of senior
management buy-in which in turn leads to lukewarm adoption by employees.

The IBM study reveals the great promise of CRM in driving customer value and
increasing organizational performance when it is done correctly. In the end,
making CRM effective comes down to culture and creating broad acceptance and
adoption. Successful CRM can transform a company, helping it to grow more
profitably by serving its customers more intelligently. At its best, CRM does more
than just automate a call center or improve a sales report; it can transform a
company –culturally, structurally and strategically.

P-factors in implementation
For implementing CRM, the company has to start with three P-factors namely
people, processes, and planning. The P factors affect sales, productivity, service,
and profitability. The well management of the organization and right mix of these
factors will lead the company to grow and prosper.

People factor

A positive interaction among employees, customers, and vendors will create a

successful enterprise. Contact with the customers and vendors will create a
successful enterprise. Contact with the customers and vendors are essential in
order to understand their likes and dislikes of a company's product and the way
for further improvement of company's business. The next people factor is
employees. If there are complaints from employees about the customers,
vendors, other departments as well as complaints about employees from the
side of customers and vendors, the gaps have to be bridged before starting a
CRM initiative.

The importance of people's change favorable towards the work and interaction
with each other is a valuable contributor for the successful implementation with
each other is a valuable contributor for the successful implementation of the
CRM concept. Establishing a consistent process of reviewing and resolving the
issues will create a good image on the company's management. The perception
of employees, customers, and vendors on the company also reflect on a positive
mood.

Process factor

The CRM success is also influenced by the process factor. Before introducing a
new technology, the company management needs to review their business and
workflow processes. In reviewing the workflow, it is essential to look at the
natural flow of orders, product and information. It is also important to note at the
source of order namely internet, the mail or the call center and continues
through the shipment of product. This will facilitate to notice any bottlenecks,
employee conflicts and inter departmental issues. Once these are mitigated, the
next step is to document the procedures, policies and processes.

Planning Factor
Planning is a particular kind of decision-making that addresses the specific future
that managers desire for their organizations. A well-developed plan will give the
managers to stretch boundaries and achieve organization goals.

The primary features of a good plan are:

* Specific particulars: each goal and the step must be indicated. For example
increase customer retention by 20%

* Responsibility: the responsibility should be assigned to a team or person for

completion.
* Deadlines: Specific deadlines and contingencies need to be mentioned.
* Flexibility: Modifications are essential for the plan when necessary.
* Integration: the area affected by CRM must be integrated in to the plan.
* Metrics: Benchmarks are essential in order to measure the success or failure.

Addressing the P factors will reflect on small gains initially and latter there will be
tremendous growth in profitability. There will be a rise in sales, decline in cost,
satisfactory customers and motivating employees.

How do GENPACT succeed at CRM?

Across the world, there are some companies who are successful at customer
relationships and some are not. Numerous reasons are attributed for this.
George day, marketing professor at Wharton Business School provided the
answer after surveying 342 companies. He classified the companies that pursue
a CRM strategy in to three groups.

The first and the most successful are companies that have market driven
approaches. This approach makes CRM a core element of a strategy that aims to
deliver superior customer value through complete solutions, superior service and
a willingness to cater to individual requirements.

Technological support will then come in to speed up business processes which

will save the customer's time and effort.The second rungs are companies whose
CRM initiatives are related to inner-directed. These companies want to get a
better picture of their internal processes, with the intent of organizing data to cut
service costs and help improve marketing targets. However, these companies
assign operational tasks to the IT department, which does not have much to do
with the operational strategy.

Finally, there are companies that use a defensive approach to crm, by way of
using loyalty programs and reward. This is essentially a reactive strategy and, at
best, maintains status quo in the market.

Limitations of CRM

The business objectives in front of the CRM path are appearing more like distant
mirages when companies see the potholes/ traffic jams and road- raged drivers
that lie in between.

The software and systems cost hundreds of thousand of dollars to buy and
customize and it takes months, if not years to install, integrate and debug. The
process requires endless meetings with IT staff, which are in short supply,
command huge wages, and may not have all the skills to do it right.

Further, the business enterprises may not have the screening and training
modules, or have the time to develop and deploy them to sift out agents for
contacts.

CRM is essentially about value. But this is not achieved simply by putting more
people on the phones. The businesses have to offer a broad, integrated range of
services: live agents and technology, backed by market analytics and deployed
to each to their advantage.

CRM implementation is a challenge. Most managers are reluctant to measure

parameters to monitor progress before and after a CRM exercise. This is because
it could show how well or badly the manager has implemented the CRM
programme.

CRM has become a senior management issue because it consumes staggering

amounts of money and, notwithstanding the success stories, has mostly proved
a disappointment. Companies around the world spend has mostly proved a
disappointment. Companies around the world spend $3.5 billion a year on CRM
software and that is only a fraction of total expense. Implementation, training,
and integration outlays can be three to five times higher. Further, it takes three
years to complete the implementation.
Outsourcing the CRM

To overcome the limitations of CRM approach practiced by companies

themselves, the company's worldwide contact the outsourcing bureau or service
provider to find the solution. This will facilitate faster and less bumpy alternative
CRM route to reach the business destination.

The outsourcing provider or bureau provides a CRM platform that offer an

integrated blend of live agent and automated IVR, web and e-mail services,
connected with contact management and if needed, integration with the
business enterprise existing database.

Many service providers have entered the CRM game that companies have almost
too many choices. There are data base providers and call centers. There are
communications specialists. Most advertising agencies have their own direct
marketing arms. Further there are technolog6y vendors. With all these, getting
started on CRM should not be a problem.

Outsourcing the CRM can reduce customer retention costs, with out
compromising the responsiveness, accuracy, availability, and quality of customer
service. In addition, businesses should strive to increase both their efficiency and
quality and drive greater profits to their bottom lines.

By outsourcing CRM and intelligence, companies will have powerful analytics

with fewer payrolls overhead. Meanwhile suppliers are delivering greater
personnel accountability and ability to access software, technology and skill sets
otherwise4 not available to a single company. Suppliers promise greater revenue
reduced marketing costs and shortened cycle time.

Many companies have decided to outsource all or part of their CRM technology,
applications and /or business processes to achievable improved processes,
business improvement, more effective customer service, increased competitive
advantage and a demonstrated ROI.

According to a survey reported in tele Professional magazine, "Companies who

fully outsource CRM had the most favorable results. This is reflected in a greater
10-year average return to investors, a higher average 10 Year annual growth
rate and a larger average percentage change in annual earnings per share".

Off shoring CRM Locations

A large number of companies around the world have set up thousands of off
shoring call centers to provide integrated customer service solutions. Australia
has about 4000 call centers employing 225000 people with US$7 billion revenue.
Similarly India has nearly 1000 companies employing over 100,000 people with
revenues of US$1 billion. Philippines and Ireland has 70 and 500 companies
employing over 12000 and 40000 people respectively.

Elements of CRM outsourcing IN GENPACT

CRM outsourcing includes the following elements:

Customer support: this comprises value based phone support, e-mail

response, live chat and co-browsing and instant messaging.

Telemarketing and telesales: this covers outbound calling for lead

generation, campaign management and outbound calling for cross-sell and up-
sell to existing customers.

Employee IT Desk: this comprises level1 and 2 multi-channel support for internal
applications; system problem resolutions related to desktop; notebooks; shrink
wrapped products; connectivity; office productivity tools support including
browsers and mail; new service requests; IT operational issues; and remote
diagnostics.

Thames water is a good example for CRM outsourcing in the Utility industry.
Thames water has signed a business process outsourcing deal with Xansa to
offshore to India it's metered billing expenses and Customer correspondence
operations. The BPO service will handle over 700,000 transactions a year and in
one month it has already handled predicted volumes and cleared a backlog of an
extra 17 percent of transactions.

Limitations

Even though the outsourcing to CRM provides valuable benefits to a business

organization, but it still faces some problems. The business enterprises are losing
much of their control of customers and services to another party. Another
problem is technology implementation, database integration and agent selection
and training issues with the service provider. These issues are more complex.
Conclusion
For selecting the right outsource provider, the business enterprises should take
enough time, due diligence and clearly established and communicated goals and
objectives. A successful relationship will be one that lowers the business costs,
increase the company's revenue and retains profitable relationship a win-win
situation for the company's business and its most valuable assets, and business
customers.