Ref: - ITES/ATN/2004-05/PK-01
Business Process Out-Source (BPO)
Kind Attn: ITES companies and other Prospective companies.
In today's fast changing IT scenario world wide, outsourcing is an escalating method of administering efficient business. The current IT outsourcing market is well over a billion and growing each day. The biggest reason for the BPO boom is because outsourcing reduces the total cost of ownership significantly. Outsourcing helps the businesses to focus on their core competencies. In the same league, we have been qualified to receive the outsourced projects from U.S.A. & U.K. to be executed in India from a few ompanies. The nature of the work includes payroll systems, accounting processes, data conversions, CAD/CAM processes etc. Being a big project it will be taxing to execute this project without the help of multiple executor companies. Executor companies are companies who posses the potential to execute the work and enter into an engagement agreement with us. The project billing is completely based on performance of the companies in terms of execution. The project will be allotted to qualified companies who satisfy the credibility check prescribed by our company. These projects will be designated to the executor company without any upfront amount. So the importance of the executor company to be strong in the documental and technical front increases. The following pages give you the format of the proposal, which you will have to send it to us for signing.
Proposal for Executor Companies
Business Process Outsourcing (BPO) is a buzzword among the corporate in the world today. Gone are the days when service functions were developed by the corporate in-house for captive use. Today, corporate benefit significantly from outsourcing of business processes almost everywhere on the planet. Looking to the growth and government's support to it, BPO is being recognized as a specialized sector in India. Over the last few years, outsourcing of business processes has been gaining popularity driven by the fact that US firms have been enjoying much success from adopting this business strategy. European organizations have increasingly been focusing on what they identify as their core competencies and have been looking to reduce costs while maintaining high levels of quality for non-core activities and processes. To this end, two broad approaches had developed. One, to centralize the non-core processes into an in-house shared service functions to derive benefits of centralization through an in-house process or through a wholly owned subsidiary. Two, to identify an acceptable third party service provider who will handle the processing work. The current economic climate has encouraged the latter trend as the organizations continue to look for more innovative ways to improve efficiency and cut costs in order to survive the turbulent marketplace. Hence, the business process outsourcing. More importantly, India has a pool of talent and has the second-largest English-speaking population with computer knowledge in the world after US. Also, costs are lower in India compared to other countries for outsourcing. The technology in India is state-of-the-art and the country is rightly located in terms of the geographical position, and the policies of Govt. of India are also favorable for software and BPO sector. Our Firm envisages all of the above and having a lessoning with a couple of ITES providing companies in India and abroad. The reason for which we are entering as a principal associate and business partner to companies is because of the organized approach, technical expertise and financial strength that it carries to carry out these projects. Our company wants service providers who would execute the back office work and data conversion work offloaded by UK and US based companies. Our proposal is based on the approval of the standards set by us and the information provided to us by the service providers. We believe that for proper execution financial capacity along with the criteria of executor company's core competence should be in scrutiny. Hence we are not charging any business procurement fees for the distribution and execution of the work. We would be going through a stepwise process for the execution.
Kind of work (any or all of the following)
1. Data Conversion
2. Form Filling
3. Man-Hour based work
- Data Conversion
The work offloaded in Data Conversion could be in terms of the image converted to the prerequisite output. Normally the images provided are scanned images at 200 DPI, including images, on A4 size page is normally the input given. The output required would have a designated specification sheet of work governance. Data would be transferred through FTP/CD depending upon the cost effectiveness and security of the data. Although the work is in GB, the payment will be done per 1000 characters of processed data. Quality being of prime importance would be either third party or in house depending on the proximity and cost-effectiveness.
I. Back-office Operations
ii. Data conversion, Processing and designing.
iii. Form filling
v. Revenue Accounting.
vi. CAD/CAM processes.
Although the output required could be of different formats, the input, quality, technical governance, payment mode and executability would be constant.
2. Form Filling
In this work, depending upon the type of work, location and type of business of the current company, the fields are suggestive. The software will be provided for which a professional training of team leaders for the operations would be executed at the request of the executor companies. Payment security of any kind of work in Form Filling or Data Conversion would be a Letter of Credit. All of the above approximations of data conversions go alongside the description stated in Form Filling. Fields could range between 15-45 per form; number of forms, per seat could range between 1000-1500 forms per month. Any of the above would be the work that would be executed.
3. Man-hour based work
These two processes is a kind of processes that is purely company defined and depends on which of the processes they want to outsource. It may contain the following sub-processes:
Monthly payroll management
Provident fund management
Attendance and leave management, etc.
Payroll and accounting processes in BPO mainly constitutes of different form filling and computations based on the guidelines prescribed by the parent company. These specifications normally vary from company to company depending on the number of employees working in the company, the location of the company, etc. All the necessary parameters that will be required for computations will be provided by the parent company along with the specifications for filling the forms. The knowledge of basic accounting procedures and systems will help the companies to execute this kind of a work. The payment in this type of work is in man-hours and hence a Quote would be asked from the executor companies for their work executed. Further, a chance to select the work as is already available in priorities; it is suggested to quote in the company profile itself.
Rates (not less than OR more than or equal too)
1. Work of Form filling: - Rs 6 - 7 Approx.
2. Work of data conversion: - Rs 6 - 7 Approx.
3. Work involving man-hour: - $ 3-4 Approx.
Payment security: -
Letter of credit on the executor company's name. Or payment by Cheque depending on the Nature of Work.
Tenure of work: -
Approximately one year
Procedure to get your company as an executor company for us: -
Stage 1: - Signing of Engagement agreement for the justation and competence check of the company. In this stage the company will come with their bank and other details. The company has to submit a security deposit in the form of a draft of Rs 1200 per system work, which will be refundable as per the norms and clauses of the memorandum of understanding. Kindly, note that this security deposit is applicable only till the completion of credibility check work. This amount will be refunded in all cases whether the company gets past the set standards requirement and the work is finally allotted or not. (A post dated company Cheque will be issued of the refund immediately as per the agreement.)
Stage 2: - After signing of the above a proposal will be handed over to you with a receipt of the money remitted to us. This will accompany with a checklist. Checklist has to be completed after the signing of the Engagement agreement.
Stage 3: - After the checklist is provided, and the study of the checklist, there would be a Technical Audit of the premises of work and a report will be generated.
Stage 4: - The signing of SLA with the Executor Company will depend on the report of the above three stages. In case the report is negative, the Memorandum of Understanding will stand null and void and the company, can encash the security deposit as per the terms and conditions. If the report is positive, then also the company will be entitled to receive the refund if the security deposit as specified in the norms and clauses of the MOU.
Stage 5: - After the SLA is signed in the set stages, our company will offer a training of the work on the cost of the executor company and trial work will be issued if required. After which, the LC will be issued and executor company will be asked to verify the LC transferred on their name following which, the work order as per the SLA will be issued with technical specifications and governance of the month's data. Kindly Take note that we are offering work of large financial involvement in no cost and hence all these stages. Some or all executor companies may be asked to raise a performance bank guarantee. No representative or any other body are permitted to charge any more values other that our company's charges.
Further only after the assessment of the company, the work will be allotted by us based on the expertise suggested by the checklist documents, also the executor company has the choice of giving the priority list as per their requirements of work in the specified domain earlier.
Format of ANNEXURE [A] as per the Engagement Agreement Documents Check-list
This checklist requirement of all executor companies, if any specifics are required then we would be intimating you for the same.
2. Company Profile
3. Project proposed analysis (Which may have the following details)
a. Proposed personal to be deployed and sub contractors employed (if any) please note that sub contractors are to be finally approved by the PRINCIPAL CONSULTANT'S authority and separate technical audit and other terms and condition shall be laid on sub contractors of the SERVICE PROVIDER by the authority of the PRINCIPAL CONSULTANT.
b. Project Management
c. Implementation of the proposed hardware infrastructure.
d. Professional services details in design or development.
e. Ensuring appropriate IT security and maintenance of the confidentiality of the projects and related details
f. All licensed soft wares and protocols and firewalls with the license copies duly notarized and endorsed by the software vendors with corresponding numbers.
g. Overall system Architecture
h. Proposed database and implementation
I. Proposed tools
j. System and network configuration
k. Security and quality assurance
l. Authentication mechanism
m. Integrity and confidentiality for data/information stored.
n. Proposed methodology for providing the security deliverables such as security plan detailed security design document, security-testing plan etc.
o. Proposal for contingency plan
p. Scope of maintenance scheme of SERVICE PROVIDER end.
4. Vendor should produce the following documents for initial vetting by us.
a. Letter addressed to us for procuring business to the extent of seats
b. Infrastructure details of the company
c. Memorandum and Articles of association of the company (partnership deed in case of partnership firm)
d. Registration certificate (if available) with
iii.Import - Export code
e. Audited financial statements of the company for the previous three years duly attested by the authorized signatories
f. Borrower's Bank Details including Bank name, address, contact person, phone numbers, and fax numbers, SWIFT Code.
g. Profile of the key personnel of the company
h. Current Account Number of the company and last three months bank statement duly certified by authorized signatory of company.
We hope to have a mutually benefiting situation from here on. We also hope that this alliance and the documents submitted for that purpose are to the best of your knowledge. Also on a personal note, we are not a company asking anything except your complete core competence for a common goal to be achieved. Therefore, we hope to seek your at most co-operation in achieving the goal.
Hopeful for a fruitful association.
ATN's BPO Outsourcing Team