Small & Medium Business (SMB): The Next Frontier: Playing the Long Tail - Talk By Raman Roy on 27...

Raman Roy Chairman & Managing Director

www.Quatrro.com

India is growing at decent space. Within IndiaIT–BPO industry continues to exhibit resilience

2

Indian IT-BPO Sector: Revenue Aggregate and Share of GDP

• Software and services revenues aggregated to about USD 60 billion; export growth of 16 – 17%

• In the current fiscal demand for ITO and BPO services has been weak due to declining discretionary spending, delayed decision making and vendor consolidation

• Growth levels have moderated -considering the global events which have unfolded in 2008, this growth is a significant achievement

• The slowdown is expected to accelerate the transformation of the industry, which would manifest itself in terms of cost savings, productivity enhancement, enhanced utilisation levels and greater customer interaction

• Domestic Market – healthy growth of 20% in IT Services above 40% in BPO

Source: NASSCOM

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Companies Stack Ranking

1,000

Company Revenue / # of Employees

# of Companies

Fortune 1000 Companies

3Quatrro Confidential

The Inverted Beer Glassand

The Frothy “Head”

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1,000


# of Companies


5,000

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1,000 10,000


# of Companies

Fortune 1000 Companies

Large Companies


5,000

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1,000 10,000 40,000


# of Companies

Fortune Companies

Large Companies

SME Companies

5,000 20,000


www.Quatrro.com


1,000 10,000 40,000


# of Companies

5,000 20,000


Serving the HEAD of the market isn’t a bad strategy and has build great businesses

Serving the TAIL efficiently can be even more compelling

Moving from

“Dozens of Markets of Millions”to

“Millions of Markets of Dozens”

Moving from

“Dozens of Markets of Millions”to

“Millions of Markets of Dozens”

www.Quatrro.com8Quatrro Confidential

Up to 80% of the Growth from Markets that are not Core Today

7.7X growth to $300B plus Industry

www.Quatrro.com9Company Confidential 9

Peep into the Future - Year 2020

A Dramatically Altered Landscape

Source : NASSCOM (Perspective 2020)


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Untapped Market Segments will drive 80% Incremental Growth by 2020

SMB’s represent a “Blue Ocean” for Indian IT & BPO companies

Source : NASSCOM (Perspective 2020)

* BFSI, telecom, retail, pharma, manufacturing, travel


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Blue Ocean

$ p

er

co

ntr

act

Fortune 500 Large

Enterprises

Small & Medium Enterprises

A B C

Red Ocean

“Blue Ocean”

Segments

Needs � Price

� Quality

� Well established players with good multi-country “show & tell” story & deep financial pockets

� Brand/ Reputation/ BOB-critical

� More likely to focus on TCO (right pricing ‘vs’ cost saving)� Look for trustworthy partner - prefer references as a common method of selection� Partner Flexibility is well appreciated - shy away from big players due to perceived lack of flexibility � The segment is amenable to adapting to platform based services�‘ C’ level is involved in most of the decisions – leads to shorter sales cycles� Need more focus on Biz values & not necessary that services should be driven by “state-of-the-art” technology� End to end solution is critical

• 51% of Workforce in US in

SME segment

• Larger manual content,

Less Automation

* US Census Report

Uncontested market

Strategy

Beyond the Existing

Workforce

Seg A

& BC

Workforce

Seg A

& BC

*

•Milestone Group LLC 2004•Blue Ocean Strategy

1,000

Blue Ocean Strategy ©

Kim & Mauborgne 2006


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“Beyond the existing”

Christensen’s model of Disruptive innovation

Product 1

Product 2

Product 3

Product 4

Performance

Time

NON CONSUMERS

CURRENT CONSUMERS

• What are we going to sell?• Who are we gong to sell to?• How are we going to sell - approach to Market ?

New Market Disruptive Innovation

Sustaining Strategy– bring better product into an established market

Low End – Disruptive Innovation

- Address overservedcustomers with a lower cost

business modelMinimum expectation level

• Differentiating Factors• SME segment• Platform based decisions• Leveraged buying acquisitions• Building BPO around core competencies• Direct to Customers (TSG)

• Differentiating Factors• SME segment• Platform based decisions• Leveraged buying acquisitions• Building BPO around core competencies• Direct to Customers (TSG)

Constrain

ts-

�W

ealth

�Skill

s

�Technolo

gy

�Access

�Tim

e

Low End –Disruptive Innovation

-Address over servedcustomers with a lower cost

business model

Beyond the existing ©

Quatrro SM


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What a SME wants

• Brands are least important factor for SME’s

• Big brands connote higher TCO• Young companies can collaborate

with large enterprises to jointly market to SME’s

• Viable and Stable solutions• Easily implemented• Require little support as they lack IT skills

& resources• Focus on SME IT buying priorities• Don’t provide customized solutions

• SME’s put lot of emphasis on TCO, not only on price. They will go for lower TCO’s

• TCO includes resources required to implement and maintain a solution, customer and technical support, unanticipated upgrade costs to maintain compatibility with new development, up and down scalability, and the cost of managing new vendor relationships.

• Easy to deploy integrated solutions• SME’s cant do integration

themselves• Easy to understand, deploy, manage

and support

• SME’s are focused on business value

• E.g. improved productivity, enhanced CRM, enhanced revenue, payback

• No technology marketing jargon

• SME’s would like to go with trusted long time vendors

• Cost of establishing a new vendor is high for a SME

• Focus on channels that sell to SME’s

Source : MileStone Group

SME private sector enterprises in the United States represent over 99% of US firms and employ 51% of the total workforce. SME private sector enterprises in the United States represent over 99% of US firms and employ 51% of the total workforce.

SME’s represent an underserved market for Technology and BPO companies. SME’s represent an underserved market for Technology and BPO companies.


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Costs

Buyer Value

Value

Innovation

Create uncontested market space

Make competition irrelevant.

Capture new demand

Align processes in pursuit of

differentiation and low cost

What Service Providers can do –Value Innovation

_____________________

Source: Blue Ocean Strategy.



Quatrro Team - Shaping the Business Processing Industry for 18 yrs

Complexity – Added Value

� Q team pioneered real

time processing and voice

� The team established

India’s largest multi

process captive unit

� Scaled beyond F&A

� Q team pioneered 3rd

Party operations

� Multi faceted services

� Acquired by Wipro in

July 2002

� Quatrro endeavors to

provide clients with

innovative solutions at

optimal costs through a

combination of tools,

platforms and business

processes

(1992-1996)

(1996-2000)

(2000-2005)

(2005 and beyond)

Recognized as “The Pioneers of the Indian BPO Industry” – Created over 35,000 new jobs

Indian BPO industry was in its

nascent stage (only sign of

BPO in India was data entry)

Formerly GECIS

India established as the premier

global offshoring destination for

call center and BPO

S P E C T R A M I N D

Started and led Spectramind

into India’s largest third party

BPO company

Targeting uncontested service

spaces and pioneering new

service lines

� Q team pioneered off-

shoring to India

� The team established

India’s first captive unit

for Finance/Accounting

Pioneering Business Processing Services

BUSINESS TRANSFORMATION

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Next-Generation Services required from Indian Companies

� This space is cluttered

� Margins are squeezed –purely a volume game

� Less customer stickiness

� Limited growth opportunities

Platform based

solutions

Expert Knowledge Services

1

6

4

3

2

5

1

6

4

3

2

5

Data Entry

Rule Set Processing

Call Centers

� Better margins

� Less competition

� Value to customersbeyond cost arbitrage

� Higher skill set makes a more engaged workforce

Decision Making / Problem Solving

Quatrro Foc

us


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Executing Our Strategy

A unique and differentiated BPO built over the last 36 months that services SME clients

Build

Acquire

Align

Uncontested

New Business

Models

New

Geographies

New

Markets

New Service

Lines

Risk ManagementInteractive

Entertainment

Information

ServicesLegal

Technology SolutionsFinance &

Accounting Mortgage Services

Singapore, Sri Lanka,

China, UK, U.S., Canada

Small & Medium

Businesses

B to C – Business

to Consumer

Quatrro Confidential


Team Quatrro: Multi location - Multi cultural

Board of Directors

Raman RoyChairman & Managing Director

� 18+ years in the BPO Industry

� Pioneered Remote Processing in India

� Created 3 of the largest BPO’s in India

� Transitioned over 500 processes to India & created over 35,000 BPO jobs

Business Lines

Risk Management Finance & Accounting

Hari BaskaranPresident, Quatrro Risk

Management

17+ yrs Experience

Citi Group…

S VamanCEO, Quatrro Risk

Management

26+ yrs Experience

Amex, Citi Group…

Suresh SubramanianPresident and Director, Finance & Accounting

25+ yrs Experience

E&Y, KPMG…

Glen Ofenloch CFO,

Finance & Accounting

22+ yrs Experience

RSM McGladrey,

The Balcor Company…

V BalakrishnanPresident & Chief Executive,

Strategic Business Development

25+ yrs Experience

GE, Larsen & Tubro, Wipro…

Raja SVEVP and Chief,

Human Resources Officer

25+ yrs Experience

Amex, Tata, Wipro…

Sunil RawalEVP and Chief Quality, Risk and

Compliance Officer

25+ yrs Experience

GE, Wipro…

Sunil GujralEVP and Chief Technology Officer

20+ yrs Experience

Amex, Wipro…

Rakesh SharmaEVP, Infrastructure

Services

21+ yrs Experience

Oracle, Wipro…

Ed QuinteroEVP, Business

Development

25+ yrs Experience

Anderson, Wipro…

Srinivas PingaliEVP, New Product Development

17+ yrs Experience

Accenture, Wipro, Tata…

Mortgage Services

Gary BettinNon Executive Chairman,

Quatrro Mortgage Inc.

25+ yrs Experience Bank

of America

Shyam SundarCOO Quatrro Mortgage

Solutions

22+ yrs Experience

Motorola, GE, Equinox

Corporate Functions

Interactive Entertainment Legal Solutions Technical Solutions

Richard Leinfellner CEO, Babel Media

25+ yrs Experience

EA among others

Srinivas PingaliCEO, Technical Solutions

17+ yrs Experience

Accenture, Wipro, Tata…

Navdeep RajendraHead of Operations,

Quatrro Legal Solutions

20+ yrs Experience

TCS, American Express

Business Support Services

Sanjeeva FernandoPresident, Business Support

Services

20+ yrs Experience

John Keells Group…

Knowledge Services

R. SivadasManaging Director,

Scope eknowledge

24+ yrs Experience

Escorts, UB

Chandu NairDirector & President,

Scope eknowledge

24+ yrs Experience

Businessworld, Asian

PaintsVijayalakshmi RaoDirector & COO, Scope

eknowledge

23+ yrs Experience

TI Cycles, SAIL…

Daniel R. MintzFounding Managing Director, Olympus Capital

Holdings Asia

� 20+ years of private equity and mergers and acquisitions experience

� Worked with Morgan Stanley Capital Partners ("MSCP") and Morgan Stanley's Mergers and Acquisitions Department

Raj Dutta

Executive Director

� 23+ years of experience in handling diverse areas in Finance and General Management

� Worked with GE, WIPRO, HCL…


"As CEO of a consumer software company, in a very crowded space, I'm continually challenged to find new ways to bring value to

consumers. Quatrro has been responsive to our needs and is now our leading strategic partner. In short, Quatrro has been a game-

changer for CyberDefender“ – CEO, CyberDefender

“We were very pleased with the quality of your work and by your respect of the deadlines. We will not hesitate to use your services again

and we will also recommend you to our portfolio companies which from time to time require help in strengthening their IP portfolio”

– Partner, Emerald Technology Ventures

We help our clients improve Internal Productivity and Bottom Line Profitability

Risk & Fraud Management Finance & Accounting Mortgage Processing Services

Legal Support Services Knowledge Services Interactive Entertainment

www.Quatrro.com

The ingredients are there….

……It is up to us to Leverage!!!!!!!

The Potential is HUGE


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QuestionsQuestions

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[email protected]


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Thank YouThank You

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[email protected]


Small & Medium Business (SMB): The Next Frontier: Playing the Long Tail - Talk By Raman Roy on 27...

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Transcript of Small & Medium Business (SMB): The Next Frontier: Playing the Long Tail - Talk By Raman Roy on 27...