Summer Internship Report 1
Summer Internship Report 1
Summer Internship Report 1
The report talks about reasons which attracted me to start this venture of my own and the large Vocational training space (with sectors such as IT & ITeS, Infrastructure, retail, BFSI, hospitality) is estimated to have a market size of $3.5B by 2012. The educated without any professional qualification constitute 69% of the total unemployed. As per NASSCOM the Indian IT industrys trade association reported that 75% of the fresh graduates are unemployable and of roughly 509 million workers currently employed in India, only 12% are skilled. The IT/BPO finishing school market is estimated to grow to $ 280 M by 2012(growing at a CAGR of 68%) The Domestic BPO industry has basic skill and competence requirements such as basic English language proficiency, soft skills and basic IT literacy, which can be developed by special training. Some of the major issues faced by the BPO industry , like estimate to require 1.4 M people in next 3-4 years, high attrition levels of 50- 60% per annum also BPO industry invest 4% of its size($ 560M annually) on training and skill enhance ment-pressure on margins make this unsuitable. This is where Orion Edutech comes into picture by providing the most apt training and skill development to the students and increasing their employability. Specific result oriented curriculum has been designed by Orion Edutech, keeping in mind the industry specific requirements and standards. This enables a student to effectively communicate with a global customer. Orion Edutechs curriculum provides easy to follow step by step programs to develop English speaking skills. The areas to focus are basic English and standard English and business communication skills, listening skills, fluency development, accent neutralization and reducing mother tongue influence. The program is not really a course in the conventional sense of the word, but a workshop where emphasis is on interaction and implementation.
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Description of My Business
ABOUT ORION EDUTECH Orion Edutech was established in the year 2005 with the sole aim of empowering the students with the knowledge which is relevant to BPO Industry. Orion Edutech is time tested and trusted pre-process training institute accepted & approved by whole IT Industry. It is an ISO 9001-2008 Certified with PAN India presence. Our training program is Customized in such a way that the market value of the trainee enhances in terms of quality, stability, competency and hence employability. Unparallel Quality, Flexibility and Values are hallmarks of Orion Edutech's Training Program. It is undoubtedly the only Center that gives Value for money to students. Our fees is affordable and that includes: a) Personalized Classroom Training; b) Exhaustive study materials; c) Placement Services; d) Certification. We provide Dual Certification which includes International Certification from BCI, USA. That gives Global exposure to our students accepted in more than 130 Countries. Our Certificate is widely accepted in BPO Industry.
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From
Desk of Directors
In this era of specialization, numerous fields are coming up with world class products and services. Management, information, supply in time - whatever is required for the betterment of life, is getting full attention and students are groomed to cater to the needs of professionals at home and abroad. We, at Orion Edutech equip the students taking up BPO training with relevant skills to achieve their potential, by developing world class programs, delivery mechanisms and consistent focus on the process. We believe in walking that extra mile to meet and exceed the students expectations - both expressed and implied. The globalization and opening up of the economy has ushered in a paradigm shift in the industrial and service sectors. This calls for a simultaneous change in academics, especially in technical education. This changing scenario in turn, poses new challenges for the students. To cope with this environment, they need to be strongly committed, focused in their approach and ever quick to assimilate and adopt new ideas, new skills. We at Orion Edutech address this changing ground reality. Our courses have been designed and structured in tune with the present and future market needs. Our multi-disciplinary approach, constant interface with the industry and networking to instantly access the latest changes contribute to the overall development of students. All the State, Central & Local Govt. bodies are supporting us a lot, to achieve the target.
Whatever can withstand the upsurge of the troubled waters of time can actually call itself unshakable. And frankly, the BPO industry can apply the unshakable tag to itself. Last year when the world was trapped in a deluge of recession, there were only a few industries that performed, BPO was one of them and to everybody's surprise had a 42% growth. We are happy to announce that we have been a part of the flourishing industry and have actively contributed to its growth. Orion Edutech, over the past few years has grown into an institution which has successfully guided, equipped and trained thousands of students all over the country across 175 centers which has helped the students to find jobs in multinational corporate houses. Orion has placed 50,000 candidates since its inception. We are successfully associated with both State & Central Govt. under various Skill Development Schemes, which provide subsidies to the unemployed youth / Job Seekers. Times change. So does technology. So does Orion Edutech. Here global demands are met with continuous up-gradation. The courses are customised so as to include all thats necessary to make the students successful in their field of work. Hence our students are always
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ready to face the global market with knowledge and confidence. So, we believe that anyone, who wants to sail into a world of success in the BPO sector, Orion Edutech is the best harbour.
MISSION______________________________________________________ To enhance employability of the students and profitability of our Business Partners. VISION_______________________________________________________ To be the most preferred and sought after provider of training and development services for business, soft skills and placement.
CORE VALUES_______________________________________________ We believe in building trust and meeting commitments. Undoubtedly the only training company who give value for money to students. Our fees is affordable and that includes Personalized class room training Exhaustive \study material Placement Services Dual Certification. Surprisingly, India has the second largest English speaking population, only next to the US. But still the fact remains that in spite of BPO being one of the fastest growing industries and hence requiring huge manpower resource, only 5% of the candidates interviewed are finally selected by the companies. The remaining 95% are rejected for not being at par with industry standards. This is where we, Orion Edutech, come into the picture to bridge the gap OUR COURSES Post the 12th standard, a student finds himself / herself at an important and confusing crossroad. There are countless number of educational courses and numerous public & private institutions offering them. So much so, that a student could get confused into making a wrong choice. So how should a student select an educational course? Asking oneself the following questions could be vital to make the right education / career decision:
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Which is the fastest growing industry in the country today? Is it large enough to be stable?; Does the industry offer the highest paying starting salary compared to others? Which educational course will prepare me for this industry? Which institute will impart skills that will make me the most attractive candidate for this industry? How soon will I finish this course and start earning and become an independent / a support for my family?
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Does this institute have a pan India presence, an international certification, government recognition and a 100% job guarantee?
If you find the right answers to all the above questions, you would have eliminated a lot of confusion on education / career options. You will also arrive at the right answer to the main question which is: Which is the best education option? Which institute offers this?
DIBM( Diploma in BPO Management) Communicative English IT Skills Voice Accent Hardware & Networking Human Resource Development (HRD) Customer Relationship Management (CRM)
Duration 40 weeks
CALLTECH FRESHER Basic English Advance English IT Skills Voice & Accent
Duration 18 Weeks
Duration 10 Weeks
PLACEMENT
RECRUITERS:-
Get fully prepared for your future. With extensive training, international certification and added advantage of Orions unique methodology, get ready for the best jobs in the industry! Our tie-ups with the ITes industry and the relentless efforts of our dedicated placement team has resulted in 100% PLACEMENT for our students. The Candidate need to be min. 10+2 passouts and age below 30 yrs. enrolled in 100% Placement Courses. The Placement team frequently invites organizations for campus interviews which help students to interact with prospective employers. Orion not only provides placement to its existing students, but also aims at providing better placements to its ex-students who want to upgrade their career prospects. The placement team matches the students skills with the requirements of the recruiters. Thus, for prospective employers, Orion Edutech is the one-stop final answer to the manpower search today. We understand their requirements and provide the right candidates, thus reducing their time and efforts which would otherwise have been wasted in tedious and expensive recruitment and training processes.
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THE BACKGROUND
Business process outsourcing (BPO) is a broad term referring to outsourcing in all fields. A BPO differentiates itself by either putting in new technology or applying existing technology in a new way to improve a process. Business Process Outsourcing (BPO) is the delegation of one or more IT-intensive business processes to an external provider that in turn owns, administers and manages the selected process based on defined and measurable performance criteria. Business Process Outsourcing (BPO) is one of the fastest growing segments of the Information Technology Enabled Services (ITES) industry. Few of the motivation factors as to why BPO is gaining ground are:
Factor Cost Advantage Economy of Scale Business Risk Mitigation Superior Competency Utilization Improvement
Generally outsourcing can be defined as - An organization entering into a contract with another organization to operate and manage one or more of its business processes. Different Types of Services Being Offered By BPO's 1. Customer Support Services Our customer service offerings create a virtual customer service center to manage customer concerns and queries through multiple channels including voice, e-mail and chat on a 24/7 and 365 days basis. Service Example: Customers calling to check on their order status, customers calling to check for information on products and services, customers calling to verify their account status, customers calling to check their reservation status etc. 2. Technical Support Services Our technical support offerings include round-the-clock technical support and problem resolution for OEM customers and computer hardware, software, peripherals and Internet infrastructure manufacturing companies. These include installation and product support, up & running support, troubleshooting and Usage support. Service Example: Customers calling to resolve a problem with their home PC, customers calling to understand how to dial up to their ISP, customers calling with a problem with their software or hardware. 3. Telemarketing Services Our telesales and telemarketing outsourcing services target interaction with potential customers for 'prospecting' like either for generating interest in products and services, or to up-sell / promte and cross sell to an existing customer base or to complete the sales process online.
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Service Example: Outbound calling to sell wireless services for a telecom provider, outbound calling to retail households to sell leisure holidays, outbound calling to existing customers to sell a new rate card for a mobile service provider or outbound calling to sell credit or debit cards etc. 4. Employee IT Help-desk Services Our employee IT help-desk services provide technical problem resolution and support for corporate employees. Service Example: of this service include level 1 and 2 multi-channel support across a wide range of shrink wrapped and LOB applications, system problem resolutions related to desktop, notebooks, OS, connectivity etc., office productivity tools support including browsers and mail, new service requests, IT operational issues, product usage queries, routing specific requests to designated contacts and remote diagnostics etc. 5. Insurance Processing Our insurance processing services provide specialized solutions to the insurance sector and support critical business processes applicable to the industry right from new business acquisition to policy maintenance to claims processing. Service Example: New Business / Promotion: Inbound/outbound sales, Initial Setup, Case Management, Underwriting, Risk assessment, Policy issuance etc. Policy Maintenance / Management: Record Changes like Name, Beneficiary, Nominee, Address; Collateral verification, Surrender Audits Accounts Receivable, Accounting, Claim Overpayment, Customer care service via voice/email etc. 6. Data Entry Services / Data Processing Services Service Example:
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Data entry from Paper/Books with highest accuracy and fast turn around time (TAT) Data entry from Image file in any format Business Transaction Data entry like sales / purchase / payroll. Data entry of E-Books / Electronic Books Data Entry : Yellow Pages / White Pages Keying Data Entry and compilation from Web site Data Capture / Collection Business Card Data Entry into any Format Data Entry from hardcopy/Printed Material into text or required format Data Entry into Software Program and application Receipt and Bill Data Entry Catalog Data Entry. Data Entry for Mailing List/Mailing Label. Manuscripting typing in to word Taped Transcription in to word. Copy, Paste, Editing, Sorting, Indexing Data into required format etc.
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Data Conversion via Input / Output for various media. Data Conversion for databases, word processors, spreadsheets, and many other standard and custom-made software packages as per requirement. Conversion from Page maker to PDF format. Conversion from Ms-Word to HTML format Conversion from Text to Word Perfect. Conversion from Text to Word to HTML and Acrobat Convert Raw Data into required MS Office formats. Text to PDF and PDF to Word / Text / Doc Data Compilation in PDF from Several Sources. E-Book Conversion etc.
High speed Image-Scanning and Data capture services High speed large volume scanning OCR Data From Scanned page / image Scan & OCR paper Book in to CD. ADOBE PDF Conversion Services. Conversion from paper or e-file to various formats
General Ledger Accounts Receivables and Accounts Payable Financial Statements Bank Reconciliation Assets / Equipment Ledgers etc.
Insurance claim form Medical Form / Medical billing Online Form Processing Payrol Processing etc.
Internet Search, Product Research, Market Research, Survey, Analysis. Web and Mailing list research etc.
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The parameters for the survey was: Employee Size (Operation level executives), Percentage of last salary hike, Cost to company , Overall Satisfaction Score, Composite Satisfaction, Company Culture, Job Content / Growth, Training , Salary and Compensation , Appraisal System, People, Preferred Company: (Percentage of respondents of a company who named their own company as the preferred one), Dream Company: (Percentage of respondents in the total sample who preferred a particular company). Employee Benefits Provided By Majority Of the BPO Companies Provident Fund: As per the statutory guidelines, the employee is required to contribute a percentage of his basic salary and DA to a common fund. The employer for this fund contributes as well. The employee can use the amount deposited in this fund for various personal purposes such as purchase of a new house, marriage etc. Gratuity: Gratuity is one of the retrial benefits given to the employee in which the employer every year contributes a particular amount. The fund created can be used by the employee for the purpose of longterm investment in various things such as a house etc. Group Mediclaim Insurance Scheme: This insurance scheme is to provide adequate insurance coverage of employees for expenses related to hospitalization due to illness, disease or injury or pregnancy in case of female employees or spouse of male employees. All employees and their dependent family members are eligible. Dependent family members include spouse, non-earning parents and children above three months Personal Accident Insurance Scheme: This scheme is to provide adequate insurance coverage for Hospitalization expenses arising out of injuries sustained in an accident. It is applicable to all the employees of JFWTC and covers total / partial disablement / death due to accident and due to accidents. Subsidized Food and Transportation: The organizations provides transportation facility to all the employees from home till office at subsidized rates. The lunch provided is also subsidized. Company Leased Accommodation: Some of the companies provides shared accommodation for all the out station employees, in fact some of the BPO companies also undertakes to pay electricity/water bills as well as the Society charges for the shared accommodation. The purpose is to provide to the employees to lead a more comfortable work life balance. Recreation, Cafeteria, ATM and Concierge facilities: The recreation facilities include pool tables, chess tables and coffee bars. Companies also have well equipped gyms, personal trainers and showers at facilities. Corporate Credit Card: The main purpose of the corporate credit card is enable the timely and efficient payment of official expenses which the employees undertake for purposes such as travel related expenses like Hotel bills, Air tickets etc Cellular Phone / Laptop: Cellular phone and / or Laptop is provided to the employees on the basis of business need. The employee is responsible for the maintenance and safeguarding of the asset. Personal Health Care (Regular medical check-ups): Some of the BPO'S provides the facility for extensive health check-up. For employees with above 40 years of age, the medical check-up can be done once a year. Loans: Many BPO companies provides loan facility on three different occasions: Employees are provided with financial assistance in case of a medical emergency. Employees are also provided with financial assistance at the time of their wedding. And, The new recruits are provided with interest free loans to assist them in their initial settlement at the work location. Educational Benefits: Many BPO companies have this policy to develop the personality and knowledge level of their employees and hence reimburses the expenses incurred towards tuition fees, examination fees, and purchase of books subject, for pursuing MBA, and/or other management qualification at India's top most Business Schools.
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Performance based incentives: In many BPO companies they have plans for , performance based incentive scheme. The parameters for calculation are process performance i.e. speed, accuracy and productivity of each process. The Pay for Performance can be as much as 22% of the salary. Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with flexible work schedules and set out conditions for availing this provision. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee personal life needs .The factors on which Flexi time is allowed to an employee include: Child or Parent care, Health situation, Maternity, Formal education program Flexible Salary Benefits: Its main objective is to provide flexibility to the employees to plan a taxeffective compensation structure by balancing the monthly net income, yearly benefits and income tax payable. It is applicable of all the employees of the organization. The Salary consists of Basic, DA and Conveyance Allowance. The Flexible Benefit Plan consists of: House Rent Allowance, Leave Travel Assistance, Medical Reimbursement, Special Allowance Regular Get together and other cultural programs: The companies organizes cultural program as and when possible but most of the times, once in a quarter, in which all the employees are given an opportunity to display their talents in dramatics, singing, acting, dancing etc. Apart from that the organizations also conduct various sports programs such as Cricket, football, etc and regularly play matches with the teams of other organizations and colleges. Wedding Day Gift: Employee is given a gift voucher of Rs. 2000/- to Rs. 7000/- based on their level in the organization. Employee Referral Scheme: In several companies employee referral scheme is implemented to encourage employees to refer friends and relatives for employment in the organization. Paid Days Off Maternity Leave Employee Stock Option Plan
Inspite of all these benefits, the attrition rate in BPO industry is very high, why?. What is the reason for an employee to leave? These and many more are the questions that need immediate attention from the industrial gurus. Why people prefer to join BPO's? In general a person with any graduation can join any of the BPO. Some BPO's like to take people with MBA but then again the specialization are of an individual hardly makes any difference. Again, this is the industry, where there is no reference checks and very often people don't even specify there exact age. Lets me share with you some of the reasons as why people prefer to join a BPO: 1. 2. 3. 4. 5. 6. 7. 8. Did not get a better job. Find nothing better to do. Education level doesn't matter Good work environment Good Benefits Flexibility of time Attractive life style Transport facility
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Why people leave the BPO's? When there are so many benefits associated with BPO industry.when there are so many privileges for the BPO employees than what makes them to change the company/industry?? Is it only MONEY that matters or anything else as well?? Here are some of the reasons for a BPO professional to change his/her job. 1. 2. 3. 4. 5. 6. 7. 8. No growth opportunity/lack of promotion For higher Salary For Higher education Misguidance by the company Policies and procedures are not conducive No personal life Physical strains Uneasy relationship with peers or managers
What they have to say? With so much of uncertainty in the market, people are trying their best to stop or to at least have a control on the attrition rate let me share with you the opinion of the real gurus of the industry. "Training is a very important aspect of the ITES-BPO industry"- Mr. Arjun Vaznaik, COO, Tracmail " Career growth in the industry is robust and there is a long-term opportunity. The great growth momentum that the industry is witnessing is creating both vertical and lateral career opportunities. There also exists enough growth opportunities in the middle-management and supervisory level within the industry". - Aadesh Goyal, Executive Vice President & GM, Hughes BPO Services "It will not be possible for the industry to arrive at a blanket agreement on poaching but bilateral agreements between companies are being signed. Basic norms are being put in place and code of ethics is being stressed upon by industry players within the sector with respect to HR practices. We are encouraging companies to adopt responsible behavior in order to ensure that the industry does not become a victim of its own actions. Industry needs to go aggressive but not cannibalistic." - Mr. Suren Singh Rasaily, Senior Vice President, NIIT Ltd. and Head Plantworkz
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RANKING OF THE TOP 20 COUNTRIES INCLUDED ON THE BASIS OF GSLI (Global service location Index) IN THE YEAR 2007 AND 2009
INDIA CHINA MALAYSIA THAILAND BRAZIL INDONESIA CHILE PHILLIPPINES BULGARIA MEXICO SINGAPORE SLOVAKIA EGYPT JORDAN
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ARGENTINA
India is ranked number 1. In fact Indias position has been the same since 2005 when GSLI was first worked out.
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Exhibit 1.2
Exhibit 1.3
A very typical trend seen with reference to employee distribution is that , most of the BPO Companies have concentrated predominantly in the metros in India . As seen above in the figure, seven cities i.e. Bangalore, National Capital Region ( Noida ,Delhi, Gurgaon), Mumbai, Pune, Chennai, Hyderabad and Kolkata alone constitute more than 90% of the employees. This only means that the BPO companies have been concentrating mainly on the bigger cities, called Tier 1 and Tier 2 cities. This is the result of: 2012. Availability of better infrastructure
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ii) Availability of English speaking work force. However, in recent times several efforts from the Central and State Governments to attract investments by Captives and Third Parties have been realizing some benefit . We see that a number of Service providers have grown out of Tier 2 /3 cities like Chandigarh, Jaipur, Ahmedabad, Trivandrum, Mysore etc . These cities offer immense savings on infrastructure costs, particularly due to lower real estate values. However, we must note that though they have the potential for far more penetration into the market, the availability of readily Employable talent pool does pose a bottleneck. Several efforts are on from all quarters
Government, industry and educational institutions to work towards solving this problem. Despite that, it is estimated by the Nasscom-Everest India BPO Study that there is likely to be shortfall of more than 2 lakh employees for the BPO sector alone by 2012. This gap is estimated for the entry level jobs which are usually taken up by graduates. India produces more than 2.5 million graduates per year but only 10-15% are employable in the BPO sector. There are other estimates which mention a shortfall of almost 5 lakhs across all levels by 2012. The parallel growth of domestic sectors like insurance, hospitality, retail etc. will lead to further competition for the same talent pool. A recent combined study by Nasscom and AT Kearney Location Roadmap for IT-BPO Growth has categorized 50 cities in India about their position with respect to the future of IT-BPO growth. These findings are based on the following parameters: Knowledge pool availability and skill sets assessment Infrastructure and social environment Government support and enabling business environment Cost structure
Based on their suitability, these cities have been called Leader locations Challenger locations Follower locations Aspirant locations Nevertheless, the entire service sector faces certain challenges. These are mainly: Talent shortage Attrition Infrastructure related issues Data security Unless dealt with at the appropriate platform, these issues could pose as bottlenecks for the future of these services.
BPOS TAKE ON NEWER MARKETS Currently, BPOs earn a large chunk of their revenues from the US market. Fifty-two percent of all deals recorded in 2008 originated from the US, according to ValueNotes Outsourcing DealTracker. While there has been a reduction in the number of deals, the deals have been largely awarded by US-based companies. Further, three of the five largest deals in 18 | P a g e
2008 were awarded by US-based companies and the remainder was awarded by the UK telecom and insurance companies. The exhibit below provides the geography wise break-up of the BPO contracts in 2008. However, BPOs are now paying more attention to geographies like Europe, Australia and Asia Pacific. In 2008, 7% of the deals were awarded by companies in Asia which includes India, Japan, Middle East, Malaysia and Philippines. Oceania representing Australia, New Zealand contributed 4%. The focus on the US market is already reducing. We believe that this will reduce further in 2009 for several reasons. The slowdown in the US is making vendors aggressively de-risk their sources of business. Service providers such as TCS, Genpact, Wipro, FirstSource, and Intelenet among others are making aggressive efforts to de-risk their business and diversify their client base. Further, several large service providers have matured rapidly and have acquired the financial, managerial and operational capabilities to build and run centers at multiple locations around the world. At the same time, the growing maturity of buyers in Europe, Middle East and Asia is opening up these lesser explored markets. For instance, with the (relatively) rapid economic growth, proliferation of technology in various sectors and an increasing number of companies going global, Asia is witnessing a marked rise in IT spend. Although Asia-Pacific constituted only a 6% share of the total global IT services market in 2006, IT spend in the region is growing at a much faster rate compared to the mature markets. IT spending is a precursor to outsourcing (of both IT and BPO) and Asia-Pac (especially India and China) will attract increased competition. Several domestic companies in these geographies are realizing the benefits of outsourcing to a third-party service provider. Going forward, we believe that there will be greater adoption of outsourcing across geographies, which will drive the future growth.
Exhibit 1.4
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COUNTING ON THE DOMESTIC BPO MARKET While the offshore (international) BPO market faces pressures with economy-wide slowdown in developed markets, the domestic BPO market is getting ready to take off. The total market being catered to by third-party players is estimated at Rs. 18 b for FY08 and is expected to reach Rs. 77 b by FY12. Several service providers including Aegis BPO, Intelenet, etc are aggressively ramping up their headcount. While the existing vendors have aggressive growth plans, several large international BPOs have forayed into the domestic market. Currently, the international BPOs earn a large share of their revenues from the US market. However, with the slowdown in the US economy, BPOs are looking at alternate geographies like Europe, Australia and Asia Pacific (specifically India). Some of the recent entrants in the domestic BPO market are listed in the exhibit below.
Genpact plans to enter the domestic outsourcing market through the inorganic route by acquiring niche BPO companies in the domestic market. Infosys BPO is targeting government, banking and global Indian companies in the Infosys domestic market. In banking, Infosys already serves some Indian clients through BPO its core banking solution, Finacle and plans to leverage it to penetrate into the banking sector. Nasdaq-listed EXLService intends to offer domestic BPO services to its EXLService international insurance clients. FirstSource Solutions entered the domestic market with telecom operator Hutch as FirstSource its first client. Convergys has forayed into the domestic telecom market and has acquired a large Convergys contract from BSNL. Exhibit 1.5 Over time, we expect several other international BPOs to enter and capture a larger share of the domestic BPO market. This is a positive trend for the domestic BPO industry which will see not only growth in manpower numbers but also increase in the number of contracts (and larger deals) from clients. Build scale through acquisitions Serco group plans to acquire InfoVision for Rs 2,500 m. UK-based Serco Group is in discussions to acquire InfoVision, which offers customer care and finance and accounting services to the domestic BPO market in India. The deal is expected to lie in the range of Rs 2,000 m- Rs 2,500 m. With this acquisition, Serco plans to build a stronger position in the domestic market in India.
InfoVision was one of the early pioneers in the domestic BPO market. Other early entrants in the market were Andromeda, Magus, Kankei and Customer First (later acquired by Aegis BPO). These companies have built their businesses gradually over the past three years. Today, the maturity of existing vendors has increased significantly and new, international BPOs have entered the domestic market. We believe this will facilitate more outsourcing. Many domestic focused players are dependent on a few large clients or an industry vertical. Further, these have been 20 | P a g e
developed over a fairly long time and have strong embedded client relationships. Moreover, additional business is expected from similar clients. As a result, we believe that acquisitions will be the most desired option for quick entry and scale. The number of prospective acquirees is also expected to stay buoyant with numerous mid-sized BPOs that may be unable to scale on their own. Small BPOs having centers in Tier II or Tier III cities with vertical specific products and strong client base will further increase the acquirers options. We believe that the domestic BPO vendor segment is ripe for consolidation, which will play out over the next 3-5 years.
The sub-prime crisis in the United States had been simmering for quite some time. However, its effects are now evident with the collapse of some of the leading financial institutions. With a global recession looming, the BPO industry will not remain unaffected. Already the crisis in the financial markets is acting as a dampener for deals in the BPO sector. The number of BPO deals has dropped from 109 in the first quarter of 2007 to 78 in the first quarter of the current year. The second quarter of this year saw about 58 deals compared to 101 in the same period last year.
Exhibit 1.6 With over 60% of the BPO revenues from the Banking and Financial sector, the industry fears a slowdown and likely nonrenewal of existing contracts. Amid all this turmoil and pessimism, companies need to take a positive stance and tighten processes and reduce inefficiencies. To remain profitable, companies will have to rein in costs, make their business processes more efficient and re-look their strategy. Quality standards like ISO 9001: 2000 have been adopted by many in the BPO industry. While the standards certify that the companies have processes in place that meet certain quality standards, it does not dictate how these quality standards should be maintained. Ensuring regular compliance will help sustain value. Further, several BPOs claim to follow six sigma methodology. This primarily helps reduce the cause of defects (events that cause customer dissatisfaction). In such turbulent times, it is easy for middle management to de-prioritize process compliance. However, they should ensure that these processes are followed religiously. Additional cost savings along with value addition can be provided through continuous process improvement, process re-engineering and change management. The compliance and control procedures in place should be followed to the letter. 21 | P a g e
Aggressive hiring over the last three to four years, has added to the baggage of un-productive manpower to a certain extent. Given the current scenario, it is a good opportunity to trim the flab of inefficient workforce. This is not to suggest that companies should adopt hiring and firing as a solution to cut costs. These volatile economic conditions do call for discretion on the part of BPOs. However, arguably this is an opportunity for BPOs to get fit and lean. DOMESTIC MARKET: A PERSPECTIVE ON OUTSOURCING DRIVERS
Indian domestic BPO opportunity is estimated to be over INR 200 b for 2007, but very little of this has been actualized. This gap can be largely attributed to the diverse yet largely diffused range of business needs for outsourcing across various industry verticals. Differing maturity levels of individual companies within each industry vertical makes it further difficult to realize the huge outsourcing opportunity. Indian companies are increasingly leveraging outsourcing to focus on core competencies, enhance productivity and reduce time to market. However, outsourcing drivers for individual buyer groups vary substantially.
Sectors Banking
Industry Drivers for outsourcing Implementation of the third phase of reforms Increasing competition from private banks Increasing centralization/ computerization Escalating subscriber numbers Enhancing customer satisfaction by providing value added services Entry of new players e-governance Emergence of new services Success stories Government Railways, etc Asset management companies growing at rate of 100% Consolidation in financial services Increasing competition Reduced time to market Huge investments envisaged Growth of the organized market Rise in passenger volumes Entry of new airlines
Opportunity areas (FY08-FY12) Customer support (inbound, outbound) Collections Analytics Customer support Customer analytics Data services Digitization Voice based services Customer support (inbound, outbound) Collections Customer support (inbound, outbound) Customer support (inbound, outbound) Loyalty programs Bookings reconciliation Revenue accounting Customer support (inbound, outbound) Data entry Invoice processing CRM voice and non- voice Accounts reconciliation CRM voice and non- voice Support services Exhibit 1.7
Telecom
Insurance Retail
Airlines
Logistics
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For example in banking, entry of private and foreign banks has elevated the benchmarks for service quality and delivery. Therefore, 24/7 customer support and aggressive marketing are a given. But traditionally, several of the Public Sector Banks (PSBs), have not focused on building a marketing function. Today, these banks are increasingly using outsourcing to quickly scale up their marketing function to match that of foreign and private players. Over Rs. 1200 b ($30 b) worth investments are planned in the retail sector over the next five to seven years. As several of the large players like Reliance Retail, Bharti-Walmart, Mahindra & Mahindra, Parsvnath, DLF, Jubilant group and foreign retailers like Marks & Spencer roll out their retail plans, they remain focused on maintaining a lean back end to maintain lower operational costs. Focusing on the core has been a prime driver for outsourcing initiative of these companies. With increasing crude prices, aviation companies are under tremendous pressure to cut costs and not increase the price. Airlines thus have no option but to enhance productivity and platform based BPOs like Kale consultants have come to aid. Insurance companies, which are expanding aggressively in new cities and launching new products - time to market is ever more critical. Outsourcing in the marketing and pre-sales activities has helped insurance companies roll out business across multiple locations within a short time frame.
While the opportunity is huge, growth in outsourcing from domestic market will be driven by ability of the vendors to address "pain areas" of these companies. A "one size fits all" approach cannot be applied, as all industry verticals are experiencing rapid growth and are at different phases of maturity with their unique business needs.
WNS completely understands the working culture and requirements of Aviva and the learning curve will be much shorter if at all needed Improves scalability of offshore operations as WNS is already a well established service provider Ability to build up further on an existing relationship with WNS Hedging against inflation and exchange rate changes With the master service contract, Aviva does not have to deal with multiple vendors Reduced center management costs Can avail of the benefits of third party offshoring such as cutting down on fixed costs and other issues such as attrition, training, etc. With Aviva cutting down on its operations in India and still maintaining its presence, it is hoping for a win-win solution.
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Leveraging existing capabilities and experience Expansion of market share in target industries Expansion in target services Further consolidation of scale and expertise with new service centers Assured client over the specified period due to the master service contract While the centers in Bangalore and Colombo were earlier managed by WNS, it also acquired two other centers in Pune and Chennai that were managed by other service providers.
OUTSOURCING CENTERS OF EXCELLENCE - THE VALUE PROPOSITION The concept of a Center of Excellence is not new to global businesses. The CoE strategy has been utilized over the last few decades for a variety of objectives, primarily to create hubs for knowledge sharing and capability building in areas such as pharmaceuticals, automobile, telecom or for specific functions like innovation, technology, R&D, testing, etc. In the outsourcing industry, its application has been both fast and extensive, and is offering the much-needed flexibility, productivity, cost and resource efficiency to companies in managing their increasingly global businesses. Excellence centers in the era of Global Sourcing and Multi-Shoring In the early stages of outsourcing, contracts were either handled within captive centers or given out to isolated third party vendors mandated to deliver cost reduction based on scale and labour arbitrage. With rising maturity, outsourcing has moved to a "value generation" exercise, where buyers are willing to experiment with a variety of operating arrangements (such as captive, third party, shared services, build-operate-transfer, managed build-out, etc). The scope of outsourcing and offshoring has also extended globally as a large number of offshore destinations are now emerging, providing the buyer a range of competitive option.
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Objectives of a CoE:
To create a pool of subject matter experts Reduce costs Create a platform for sharing best practices Standardize processes & policy design Streamline resources & remove redundancy Develop & monitor criteria for measurement of success. Establish a business focus for the enterprise
The early adopters are now setting the ground rules, moving towards a "Center of Excellence" approach, which has several advantages within the new "hybrid" or "global sourcing" framework. Companies choose the optimal location based on their risk-return appetite, taking into consideration factors like manpower availability, domain expertise, country risks and environmental issues. In 2004, insurance company Aviva initiated a build-operate-transfer (BOT) arrangement with three leading BPO vendors in India with proven expertise in financial services offshoring - 24/7 Customer, WNS Global Services and EXL Service. The three companies worked in partnership to set up, manage, and hand-over in 2007, a Finance and Accounting Center of Excellence (CoE) for Aviva's global insurance business units. The CoE served to centralize resources, standardize processes, share strategic knowledge and more importantly, put in place a roadmap to sustain and develop operational excellence. The choice of locations was strategic - India allowed rapid scalability from an abundant manpower pool (the CoE in India employs close to 8,000 people), while Sri Lanka was chosen for the large number of UK certified accounting professionals. Most leading vendors today follow a CoE approach, facilitating them to develop and leverage pockets of excellence within the organization, which also tends to find better acceptance among buyers. For instance, Accenture's innovation center is a cluster of CoEs built around key strategic functions like communications, electronics, high tech and media. The services of Infosys are similarly organized around CoEs for testing, technology, R&D, etc. In 2006, Infosys Technologies and Triumph Group, an aerospace systems company, signed a 3-year CoE agreement to utilize Infosys' aerospace engineering services capabilities and manage its engineering resources more effectively. CoEs of leading vendors - Some examples Vendor IBM CSC Infosys Wipro Some of the services offered through CoE Banking, Content management Aerospace, Security, Testing, Automation Testing, Technology, R&D Supply Chain Management, RFID, Retail Accenture Innovation, Internet strategy, Technology
Going Forward While the concept itself has found large-scale acceptance, skeptics question the capability of an excellence center to succeed in the absence of broader organizational maturity. Though it sounds like a win-win situation for the client and the vendor, there are several challenges in operating a successful center of excellence, mostly related to implementation and
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sustainability. Setting up a CoE can be highly cost-intensive and necessitates a comprehensive business plan for the longer term, to transform the CoE from a cost center to a profitable unit. While these are still early days for CoEs in outsourcing, the concept is likely to witness rapid growth over the next few years. A large number of buyers and suppliers will organize their activities around CoEs to gain from economies of scale and to leverage other strategic advantages. Industries at higher stages of evolution, such as automobile and electronics have set precedents as they globalized over the last few decades - large corporations sourcing from an evolved structure of specialized manufacturers across the world, each feeding into a larger integrator at the top. Every tier in this hierarchy, often with a very niche expertise, has now developed into a Center of Excellence by itself. In the outsourcing industry too, services globalization is setting in rapidly, and there is already evidence that the larger vendors are sub-contracting work, acting as "integrators" of services. Whether the industry follows the defined progression of its more mature counterparts, or reaches its unique state of balance is yet to be seen.
Accenture (NYSE:ACN) has a center of excellence (CoE) dedicated to Oracle in Bangalore, India. The center employs more than 2000 professionals and aims to be a powerhouse of Oracle skills and innovation globally. Accentures innovation center is a cluster of CoEs built around key strategic functions like communications, electronics, high tech and media. The services of Infosys (Nasdaq: INFY) are similarly organized around CoEs for testing, technology, R&D, etc while Wipro has a CoE for PeopleSoft. More and more outsourcing companies are aligning their delivery operations along centers of excellence - building and leveraging specialized skills within their organizations. The concept of a CoE came into focus as businesses started to get more and more global. The objective was primarily to facilitate knowledge sharing and capability building in niche areas such as pharmaceuticals, automobile, telecom or for specific functions like innovation, technology, R&D, testing, etc. The adoption of CoEs by outsourcing companies has been a recent phenomenon, but is rapidly gaining traction. The model is offering service providers much-needed flexibility, productivity, cost and resource efficiency in managing their increasingly global businesses. It is also finding better acceptance among buyers. For instance, Infosys Technologies and Triumph Group, an aerospace systems company, signed a 3-year CoE agreement to utilize Infosys aerospace engineering services capabilities and manage its engineering resources more effectively. Insurance company Aviva initiated a build-operate-transfer (BOT) arrangement with three leading BPO vendors in India with proven expertise in financial services offshoring 24/7 Customer, WNS Global Services and EXL Service. The three companies worked in partnership to set up, manage, and hand-over in 2007, a Finance and Accounting Center of Excellence (CoE) for Avivas global insurance business units. The CoE served to centralize resources, standardize processes, share strategic knowledge and more importantly, put in place a roadmap to sustain and develop operational excellence. The choice of locations was strategic - India allowed rapid scalability from an abundant manpower pool (the CoE in India employs close to 8,000 people), while Sri Lanka was chosen for the large number of UK certified accounting professionals. Changing roles in global sourcing The service provider is being increasingly seen in the role of a strategic partner, aligned with the buyers business objectives such as cost reduction, efficiency improvement, process re-engineering, innovation and business continuity. Contract sizes have been reducing and the large mega-deals of the past are getting restructured into smaller contracts to 26 | P a g e
multiple vendors, often to specialized service providers who are best-in-breed. Vendors are expected to be able to provide services from multiple locations around the world and at times, expected to partner with competitors, acting as active participants in the clients business, rather than mere executors of contracts. Going Forward While broadly, it sounds like a win-win situation for the client and the vendor, there are several challenges in operating a successful center of excellence, mostly related to implementation and sustainability. Setting up a CoE can be highly costintensive and necessitates a comprehensive business plan for the longer term, to transform the CoE from a cost center to a profitable unit. Consequently, skeptics question the capability of an excellence center to succeed in the absence of broader organizational maturity. For now at least, the large-scale acceptance suggests that the concept is likely to witness rapid growth over the next few years. A large number of buyers and suppliers will organize their activities around CoEs to gain from economies of scale and to leverage other strategic advantages.
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SECTION II VISION
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VISION
Orion Edutech has come in Lucknow with a sole aim of achieving the name value for training in the BPO sector for candidates as well as companies hiring the candidates from Orion Edutech. There will be continues endeavors to provide value for money to the candidates and the standards meeting international level, contributing in changing the face of BPO sector Quality training and Orion Edutech must become synonyms.
THE TEAM
1/a. Center Manager: Definition: The person who manages the Centers operation and put all the resources into work, both Human & marketing, to achieve the Centers Target i.e to maximize the Centers Profit. Recruitment Procedure: 1) Pre Inauguration: Give the requisition to the Zonal Manager at least 15 Days before Inauguration through a mail. If the Center Director has chosen somebody through his/her sources, the c\same to be approved by the Zonal Manager. 2) Post Inauguration: If the previous CM leaves the Job , CD need to put the requisition immediately through ERP. He/she should also inform the same and put the requisition through the mail to the HR & Zonal Manager of particular Zone . CD can also shortlist the potential candidate From Job Portals( Naukri, monster etc),Reference or Paper ad. Qualities: Leadership & Motivation are two most important quality of Center Manager. He/ she should be target driven and should understand the marketing, Good comm. Skills in English and vernacular, extrovert are other qualities required. M/F : there is no preference for any particular sex. He/she should be ready to move out. Means he/she will have to involve in outdoor activities also. If female candidate is recruited, she should be made clear of the same. Roles and Responsibilities Their Roles & Responsibilities:1) Increase The Collection of the Center; 2) Calculation Of Centers BEP; 3) Achieve the Centers Target (maximize the Profitability); 4) Taking Care of Centers Administration; 5) Maintaining Discipline in the Center; 6) Meeting the HODs of Education Institutes of the Area;
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7) Conducting Seminars; 8) Meeting the Guardians of existing students; 9) He/she should be Problem shooter; 10) Class Scheduling & Staff Attendance; 11) Guiding the Marketing Team; 12) Student Feedback; 13) Motivating the Team; 14) Communication with HO/ZO 15) Maintain the Infrastructure. 16) Counseling in the absence of counselor 17) Marketing Activities through ME 18) Collection (Old and New) 19) Petty cash 20) Staff Salary 1/b. Career Counsellor: Definition: The Person who takes care of Career Counseling and New collection. Recruitment Procedure: News paper ad or reference Qualities: Should be female, good looking, aggressive, good listener, fresher( preferable), good comm. Skill. Roles and Responsibilities: Telecalling the datas provided by BDM for making them to walk-in Counselling the enquiries with a target of converting them into admissions Achieving the target of new collection Rigorous follow-up of enquiries Handing over enquiries to BDM for house visits Taking care of old collection with the help of faculty members Sharing good rapport with students with a target to get reference admissions Taking care of telephonic enquiries and following them up to convert them into walk-ins 1/c. Marketing Manager/ BDM: Definition: The person who takes care of direct marketing to generate enquiries Recruitment procedure: ADM of the company has to recruit this profile from other centers in the vicinity. Qualities: Should be male, Aggressive, very hard working, good comm. Skill, ability to speak in seminars, local resident, minimum one year experience in education industry. Roles & Responsibilities: Taking Care of direct activities like road shows, news paper insert, arranging and conducting seminar Tie-up with Tutorials, local clubs etc. House visits of enquiries given by the career counselor to meet and convince parents. Taking care of visibility like poster checking, handbill distribution, wall painting, cloth banner, Flex Banner etc
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1/d. Marketing Executive: Definition: The person who generates enquiries and do direct marketing activities Recruitment Procedure: BDM recruits Marketing Executive Quality: Not very educated, very hard working, may be fresher or experienced.
Roles & Responsibilities: Conducting Road show in crowded places, in front of colleges, Employment exchange , in front of center, generating pick up enquiry in front of center etc. Handbill distribution Canopy activities
1/d. FOC cum Career Counselor: Definition: The person who takes care of reception and counsels about course Recruitment Procedure: News paper ad, reference or student of any nearby center. Qualities: Female, Good looking, disciplined, have patience, fresher Roles & Responsibilities: Taking Care of enquiries Front office look (Every week New look, according to Festivals) To make sure, Inhouse posters, sent by H.O. are pasted in proper place To make sure that the photos and names of students getting placement are displayed properly in the reception To make sure any person do not get into the office without prior permission, she should ask name and purpose of visit of any person getting into the center and taking care accordingly Maintaining front office, Likepeon should not sit on sofa when enquiries are sitting there, Water Bottles should not be kept on front table or desk, Front office should be neat and clean Front office should be chilled always (in Summer Season), etc. 1/e. Faculty (English and V&A): Definition: The person who train the students for english and V&A Recruitment procedure: From Job Portals( naukri, monster etc),Reference or Paper ad Qualities: Undoubtedly good comm. Skill, must have work experience in BPO, Patience etc. Roles & Responsibilities: Taking classes Batch file maintenance Coordinating with H.O/ Z.O for EPA(Evaluation and Placement Audit) after every 5 weeks Helping career counselor in collecting old collection( installments) Coordinating with H.O/ Z.O for placement of students Generating reference enquiries from existing students for admissions
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Taking demo classes of prospective students, if arranged by career counselor 1/f. Computer & Hardware Networking Faculty: Definition: Faculty for taking computer & hardware networking classes Recruitment Procedure: News paper ad. Or from nearby computer center Roles & Responsibilities: Taking computer and Hardware Networking clases Increasing typing speed of students Taking care of drishti software Maintenance of computer 1/g. Office Boy (Peon): Definition: The person who serves all the other team members Recruitment Procedure: From Reference Roles & Responsibilities: Serve water to anybody who comes into the center (Enquiries must) Keeping the center neat and clean. Any other job as per requirement
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Work Experience Have 2 years of experience in the service industry. Worked with Oberoi Group of hotel, The Oberoi Amarvilas,Agra as and Trident Bandra Kurla,Mumbai; as a pre opening team in front office department. Work Profile:Was responsible for handling reservations mainly Groups and for the training of new members in the department. Coordinating with sales team and reservations team.
Education
Graduated in B.Sc. Biotechnology from All saints college of Science and Commerce, affiliated to Barakatullah University, Bhopal in year 2009. Did schooling from Army public School, Bikaner pass out in year 2006, with first division
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SECTION IV COMMUNICATION
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a)10 Computers in lab, one in reception and 1 in Counselor's Desk =12 computers b) head phones 10 pieces c)1 Scanner 1piece d) 1 Printer 1 piece e) One Land line number & One Mobile number f) Broadband connection g) Four Air conditioners h) Power back up i) Two set of speakers j) Tool kit for Hardware & Networking.
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SECTION V ORGANIZATION
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BUSINESS ORGANIZATION
3/a. Center Director ---Training to be provided by ZM i)Induction b) Mission c) Vision d) About us e) Our achievement f) About BPO g) About Courses h) Our USP ii) HR iii) Marketing iv) ERP v) Placement
3/b. Center Manager ---To be trained by RM/ZM i) Induction a) Mission b) Vision c) About Orion edutech d) Our achievements e) About BPO Industry f) About Courses g) Our USP ii) HR management iii) Marketing iv) ERP v) Placement
3/c. Counsellor ---Pre-Joining: ADMIN i) Induction: a) Mission b) Vision c) About Orion edutech d) Our achievements
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Post Joining: ADM (in their regular visit) RM/ZM (once in a month) Topics:About new policies How to increase Conversion ration How to improve counseling How to do need based counseling How to identify customer need How to sale high billing products How to do chain marketing
3/d. Trainer---Pre-Joining: Regional Trainer Day 1 : Induction Day 2 : Methodology Day 3 : Practical Training Post Joining In house (in CO/ZO/RO in every 5 to 6 weeks) Trainer Evaluation & Certification
3/e. BDM---Training to be provided by ADM Topics:ADM will show How to Organize direct marketing activities like road shows, paper insert, house visit, arranging seminar, Tutorial visit. ADM will show How to Take care of visibility like poster checking, handbill distribution, wall painting, cloth banner, Flex, Banner etc 3/f. ME---Training to be provided by ADM Topics:How to do road show. How to do Handbill distribution How to do Canopy activities
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PROFESSIONAL CONSULTANTS
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LICENSES
SERVICE TAX
As we are into providing service we need to pay service tax for which a proper registration needs to be done as per the section 69(1) Procedure for registration:The assessee shall make an application in form ST to the Superintendent of Central Excise in duplicate. The application shall be filed within 30 days from the date of providing taxable service and shall bear the address sought to be registered The application should be filled up carefully without errors and columns and boxes which are not applicable may contain NA stated across them.All the taxable services provided should be mentioned on the application and there would not be separate applications for each of such taxable services The Form should be signed by the director/partner/sole proprietor as the case may be or the authorized signatory. The application shall be accompanied by copies of the following documents
Self certified copy of PAN, (where allotment is pending, copy of the application for PAN may be given) Copy of MOA/AOA in case of Companies Copy of Board Resolution in case of Companies Copy of Lease deed/Rental agreement of the premises A brief technical write up on the services provided Registration certificate of Partnership firm Copy of a valid Power of Attorney where the owner/MD/Managing Partner does not file the application Once filed, the acknowledgement for having filed the application is to be obtained on the duplicate copy for ones own reference 7. If the Particulars stated in the Form are correct, then the registration certificate would be provided within a period of seven days. Where not so provided, the registration is deemed to have been granted.
posting the procedure the Provident Fund office would issue a Provident Fund account number which is passed down to the individual employee through the organization. All future reference and correspondences with the Provident Fund office related to the Provident Fund account of the employee would have to mention the Provident Fund account number while the Provident Fund Registration Process. It is the employers responsibility to ensure that the subscriptions from the employees salary, along with an equal subscription goes to the Provident Fund account of the employee every month. The Provident Fund office issues a statement of account every year for all the account holders to get an updated status of the funds. The Provident Fund account is distributed through the employer again to the account holders in the Provident Fund Registration Process. It is very much intentional that from the end of the government that very little has been left for the employee to do about the Provident Fund account as the government wants this savings to be there for every employee. Following documents will support the application. Some may not be applicable to the organization. 1. First Sales Bill/ Sales Invoice. 2. Nature of work carried out by the Organization. 3. Any Proof regarding trial production. 4. Articles and Memorandum of Association/ Partnership Deed.. 5. Lease Deed / Leave License Agreement of the place of business, Copy of Certificate under Mumbai Shops and Establishment Act. 6. If the Organization is registered under Contract Act, a copy of the Registration Certificate. 7. Copy of Telephone / Electricity Bill of the premises. 8. Statement showing month wise employee strength from date of incorporation. 9. Income Tax PAN Number. 10. List of Directors. 11. Copies of Balance Sheets for Last three years. 12. Name of the Bankers and Bank Account Number. 13. Covering Letter for registration under the PF act 14. Detail list of 20 or more employees working with the establishment as on date of application 15. Copy of VAT registration, if registered.
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SECTION IV PREMISES
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LOCATION CRITERIA
State - Income taxes and sales taxes vary greatly from state to state, as do regulatory requirements. Is the state you live in friendly to entrepreneurship? To the specific type of business you want to run? Now might be the time to consider a move if it isn't, or possibly to open your business in a nearby state if you live near a state line. City - Rent and other costs, availability of labor, taxes, regulations and government economic incentives can also vary greatly from city to city, even within the same state. Or maybe a small town is the perfect spot for your business.
Part of town - What kind of commute is involved? Is the part of town consistent with the image for your business? Rent varies greatly according to location. Location relative to streets, parking, and other businesses - Do you need to be visible and/or easily accessible to pedestrian and automobile traffic? Will being close to businesses that draw a similar clientele help your business? For example, a sporting goods store or health food store might do very well next to a gym. Type of location - There are many factors to consider in choosing the location for your business. While cost is obviously a major consideration, you must also think about your various constituencies. Is your location important to... You? The space has to work for you, or it won't work. Remember, you're the one has to work there every day. Your customers? It also has to work for your customers, or it won't work. No customers = no business. Your employees? This issue may not be as critical at first, especially if you don't have any employees yet. But the ability to attract and keep good employees will be affected by your location. Strategic partners? While this may not seem like a big issue, the reality is that strategic partnerships happen more easily when the partners are local to each other. Why do you think that certain areas become hubs for certain types of business, such as Silicon Valley for the tech industry? Potential investors or buyers? You may not even be thinking about that yet, but potential investors looking at the long-term value of the business will see location as an important factor. Each of these groups has different concerns about the location. Cost - Most obviously, can you afford it? Also, though, consider whether your customers and employees can afford it. For example, is there free parking, or is it expensive? Will higher rent cause you to charge higher prices to your customers? That's not necessarily a bad thing, but a factor to consider. What about taxes? Income taxes and sales taxes vary greatly from state to state, and if you buy your own property, Convenience - Is it easy to find? Is parking close by? Consider your clients. If you're dealing with pregnant mothers and the elderly, they may have a different concept of "convenient". Safety - This is an increasingly important issue for both customers and employees. Is the parking close by? Well lit? Is there security on the premises?
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Prestige - Would a downtown address add credibility? Will wealthy clients favor a business in their own neighborhood? Some places even provide virtual offices with prestigious addresses, such as Beverly Hills, Silicon Valley, or Manhattan. Traffic - Retailers and restaurants love it, office workers don't. Facility requirements - Do you have any special needs, such as high power consumption or specialized wiring? Do you need meeting space, but only occasionally? You might consider a shared office suite (often called executive suites) in that case. Zoning The site is located in the center and hub of all coaching institute in Hazratganj, Lucknow. Foot fall The foot fall of prospectus clients i.e. students is maximum hazratganj, sapru marg area.
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(A) Non refundable license Fee Service Tax (10.3%) (B) Furniture & Fixture: Interior & Furniture Air Conditioner Electrical Fittings Chairs & Others (C) Computres,etc. (D) Refundable Security deposit (E) Signage for centre (F) Start up Kit (marketing material, courseware, library books, stationary etc.) (G) Working Capital
5,00,000 51,500 5,30,000 60,000 50.000 50,000 1,50,000 50,000 30,000 1,00,000
5,51,500
2,00,000 TOTAL
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PROJECTED MONTHLY OPERATING COST: Staff salary: Business development Manager Counselor Faculty-computer Faculty(Communicative Skills,V&A) Marketing executive Office Boy Admin. Exps Rent Electricity Telephone Charges Printing & stationary Local Marketing Misc. Expenses 15,000 10,000 10,000 15,000 6,000 3,000 40,000 8,000 5,000 2,000 30,000 2,000 Total
50,800
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P & L PROJECTED
MONTHLY ADMISSIONS
TOTAL REVENUE
COST OF KIT
OPERATING COST
NET PROFIT
10 15 25
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BALANCE SHEET
Assets Current Assets: Cash at bank Fixed Assets: Building Furniture & fixture Equipment Intangible Assets Goodwill Total Assets
Estimated Balance Sheet For six Months June-Dec 2011 Liabilities 1,00,000 Long term loan 14,50,000
Exhibit 7.4
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DIRECT MARKETING
Direct marketing is a staple for businesses - especially for nonprofits. If you have ever been called during the dinner hour by a telemarketer you have been the target of direct marketing. Directly reaching a market (customers and potential customers) on a personal (phone calls, private mailings) basis, or mass-media basis (infomercials, magazine ads, etc.). Direct marketing is often distinguished by aggressive tactics that attempt to reach new customers usually by means of unsolicited direct communications. But it can also reach out to existing or past customers. A key factor in direct marketing is a "call to action." That is, direct marketing campaigns should offer an incentive or enticing message to get consumers to respond (act).Direct marketing involves the business attempting to locate, contact, offer, and make incentive-based information available to consumers.
It is important to weigh the financial risks of direct mail marketing with the potential benefits. Obviously, direct mail marketing works better for certain types of businesses than for others. The following highlights some of the main benefits in successful direct mail marketing campaigns.
According to the Direct Marketing Association's yearly report, The Power of Direct Marketing, direct marketing is anticipating growth in all areas, including expenditures, return on investment (ROI), sales and employment this year. This is despite an economy that is lagging in most areas. "For the first time ever, direct marketing represents more than 50 percent of total advertising expenditures in the US, growing faster than total advertising spending and the US economy as a whole," said Dr. Peter Johnson, the Direct Marketing Association's research strategy and platforms vice president, and lead author of
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the report. "Marketers are moving dollars into direct marketing because of its higher ROI relative to other forms of advertising. This makes 'direct' a more reliable engine for sustaining sales, incomes, and jobs at a time when the mortgage and energy markets are heightening economic uncertainty.", as noted on the DMA website. "Overall," said Johnson, "business performance this year is likely to be measurably brighter than it would otherwise be, thanks to the effectiveness of direct marketing." The direct mail market predicts $173.2 billion in advertising expenditures' by the end of this year, showing a 4.4% increase over last year. The ROI for these expenditures is $11.69/dollar spent, when taking into consideration the $2 trillion dollars in subsequent sales this year. The final numbers for 2006 were affected by the steep decline in the housing market, increases in energy costs as well as a decrease in auto sales. Up to a 5.5% increase in response rates is expected in commercial email, Internet marketing and direct mail. The report also shows that direct marketers could realize up to a 5.2% increase in sales, which is 1.5% lower than the growth realized in 2006, due to the continuing economic slowdown. Direct sales could hit $2.025 trillion in 2008. The revenue forecast for next year in the report anticipates a 6.6% growth. To what is this continued growth attributed? It's felt that marketers continue to source money in to direct marketing due to its ROI when compared to other forms of advertising. With an economy that is continuing to lag, direct mail marketing allows companies to see hard results for their advertising dollar. While many industries continue to see a increase in their direct mail marketing investment, there are still some that are cutting back their direct mail advertising. According to the report, manufacturing, financial banks, and education services are among many industries that continue to dump significant money into direct marketing advertising. Lags are seen in areas like petroleum, real estate and furniture industries. Johnson notes that he feels that direct mail marketing will "continue to help sustain the overall US economy." This estimation is based on the fact that as much as 10.2% of the US GDP, or $1.41 trillion of demand is represented by direct marketing. Employment in direct marketing in 2007 is responsible for 10.6 million jobs. A prediction of a 2.2% increase is expected for next year. Internet marketing has predicted expenditures of $23.6 billion in 2008, which is almost a $4 billion increase from 2007. Despite this growth, many company's marketing departments are concerned about the state of the economy. If the housing market continues to stagnate and fuel costs keep climbing, it is possible that overall marketing expenditures could be adversely affected. Considering direct marketing's effect on our GDP this year, a decrease in its economic viability is something to be concerned about.
Considered a vital link in a show's promotional plan, direct marketing is vital only if it's done right. It's certainly not as simple as typing a letter, adding an address and stamp, and popping it in the mail. Direct marketing specialist Debbie Bermont, president of San Diego-based Source Communications, offers her golden rules for creating that vital, highly successful direct marketing campaign. There are some key golden rules to making your direct mailings work effectively. That doesn't mean that you have to spend more money in order to succeed. Far from it. In fact, you could find yourself spending less -- or at least spending more strategically -- than you may be doing at present. Here's how: Mail to Mr. Right There's a simple but very clear distinction between junk mail and direct mail. Junk mail is mail that isn't wanted. Direct mail is something that goes to the right person and is wanted. One major key to the success of your direct mailing is to find the right people to mail to. If you are working on a follow-up show, then targeting the people who signed up last year would be a good place to start. If it's a new show or a new list, your first job is to start with a research phone call to find out who that right person is. Even if you're using last year's list, it is still worth a telephone call to check that your information is up to date. Don't ever rely on anyone passing your mailer on -- it just won't happen. Boost Your Letter
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Once you've found out who to send your letter to, your next step is to make sure that your letter works to its maximum effect. Write it as a one-on-one dialogue. Beware of using industry lingo that your prospect may not understand. Keep your paragraphs short and sweet -- no more than seven lines. Break up your letter into clearly defined subheads. And keep it to two pages in length.
Make All Your Copy Benefit-Oriented List the benefits so they are easy to understand. And remember that a benefit is a lot different than a feature. Features do not have the clout that benefits do. For example, stating that "10,000 people attended our show last year" is merely a feature. Write it in the context of a benefit: "You can have the opportunity of making 10,000 qualified contacts in three days," and you'll start making the impact that you want. Repeat your offer at least three times throughout your letter: in your headline, within the first two paragraphs, and again in your closing paragraph. You can also include it in a "p.s." Last, but not least, tell your prospects what the next step is and tell them to do it today. Also include details of where to go for more information. Your goal should be for the recipients to immediately respond to your letter in a positive way. Make an Impact Your mail piece must stick out from all the rest. Yours will not be the only piece of direct mail that lands on your prospects' desks today. The more you can do to catch their attention, peak their curiosity, and urge them to open the packet, the better.
One particularly effective way of doing this is to make your packet lumpy. For example, you can include Post-it notes or candy (but never candy that could melt!). Make it even more appealing by relating your insert to your offer or your message. For example, insert a bite-sized Pay Day candy bar along with the message, "Every day's a Pay Day when you exhibit at the ABC Show!" Another idea is to affix large plastic aspirin capsules to your mailer with the message "Don't let this be another headache for you!" Or include a card with a telephone ringing along with the note "Give us a call today!" Whatever your insert, make your message clear, make it novel, make it fun, make it useful, and make it one that leaves a warm fuzzy feeling -- not confetti. All that does is leave a mess! Too Good to Miss Create an offer that can't be refused. This may be a limited time offer (the expiration should never be longer than 60 days), or an offer that sets you apart from your competition, such as a better location or a bigger booth size with early sign up. Whatever the offer, the incentive has to be sufficiently appealing to inspire immediate action. Remember that there's no point in offering an outstanding incentive if no one knows about it. So in your direct mail piece, make this offer clear, easy to understand, easy to respond to, and relevant for your audience. Easy Does It Make it as simple as possible for your prospect to respond to you. The most effective option is a fax-back form with quick and easy response sections. Other possibilities are a toll-free telephone number, a postage-paid reply card, or a Web site. The Web site might not necessarily be your direct response tool, but it is certainly very effective as an additional interactive vehicle for obtaining more information about the show. Follow up by Phone 53 | P a g e
Whatever you send out, make sure you follow it up with a telephone call to close the sale. You'll see single digit response rates quickly turn into double digits as a result. Whoever makes those phone calls must be professional, courteous, and well-informed of the details of the show and the benefits of exhibiting. Printing Essentials There are plenty of ways to save money, time, and mistakes when it comes to your direct mail bottom line -- and all without compromising quality or quantity. Here are a few ideas to consider:
Save money with a printer. Pick a printer that will work with you -- not necessarily the one that offers the lowest bid. If you don't, you could end up sacrificing both quality and money. Get at least three estimates from three different reputable printers. Ask to see samples of their printing quality. Remember that you can always negotiate a price (typically between 10 percent and 20 percent off of the price they first quote you). For small print jobs buy your paper at a discount paper warehouse and avoid the printer's markup. Always supply a very detailed purchase order that includes all the details that could be problems: price quoted, ink colors, paper specs, space requirements, quantity, etc. Make sure that you see a final proof before the job is printed. When possible, supply the printer with a sample of your final art as a guideline.
Mailing Tips
Not only does a little know-how help with your printing procedures, but in your mailing too. If you want to save dollars, use third-class or bulk rate. You can save more than 70 percent of your postage cost if you can afford the slight time delay that bulk rate demands. Deliverability of bulk rate mail is between three and 10 days, but depending on the city, it can be just as fast as first-class. Make up a sample package in the early stages of your preparation and take it down to your post office to check that it will go through the mail system without any problems. You don't want to find this out after you have printed 30,000 pieces! Consider using a mail house to handle and sort your volume work. It can save an enormous amount of your time for a relatively low fee. Concerned about the image of mailing bulk rate? You can buy third-class stamps, which make a much better impact than a metered bulk rate mark.
What's the key to your direct mail? It's the synergistic effect of multiple hits -- whether that's by mail, telephone, e-mail, broadcast fax, or an inexpensive postcard reminder -- which will ultimately make the impact and make the sale.
Strategic messaging should be a routine exercise for any home business. If customers prefer convenience, then focus on language that will best elevate the need (i.e. hassle-free or user-friendly). If they prefer variety, then consider terms such as choice and flexibility in your materials. These seemingly simple techniques can make a huge difference in whether you resonate with your target audience(s). In order to differentiate your business from the litany of competing materials, you need to give customers a reason to trust your brand. Your marketing materials only represent the beginning of a much larger dialogue with your customers. Here are a few tips for initiating and growing this relationship.
Needs before Leads. Any marketing piece can have a call to action, reaping short-term benefits. Its just a matter of dangling the right incentive. But the best organic sales growth comes from the quality of your leads, not the quantity. Keep your messages connected to the fundamental needs of your customers. Education over Assumption. Put yourself in the customers shoes. They probably require more information to truly appreciate the merits of your products and services, even if they appear ready to sign the dotted line. Whether its having a comprehensive website or a friendly voice answering the telephone, you should always promote ways to create a more informed customer. Be honest and set realistic expectations. Theres nothing more off-putting to customers than seeing unsubstantiated claims in a promotional piece. Even if you think the tactic will raise revenues, consider the cost of losing trust and credibility. Customers need to know what your products and services can and cannot do because, in the end, they will discover the truth. Initiate the Commitment. You may be seeking a commitment from the customer, but its the commitment you make to them that matters most. Customers want to see that you can fulfill your own promises whether its promising to respond to a sales lead within a precise time frame, demonstrating an genuine interest to listen to the customers needs, or offering a quick turnaround time on work quoted.
Successful football coaches always come prepared with a playbook helping them know which tactics to employ in any given situation. Your next direct marketing campaign should be approached with similar precision specifically, determining which messages to convey to the appropriate audience. Those strategic messages will define both the integrity you bring to your profession and the confidence you instill among your customers.
situation. Radio has a number of characteristics that makes it an ideal vehicle for numerous advertisers as either a primary or secondary medium. Also, there are certain disadvantages of this media which need to be considered.
Advantages of Radio
1. Largest Reach and Frequency Radio offers an excellent combination of reach and frequency. The average adult listens more than 3 hours a day, radio builds a large audience quickly and a normal advertising schedule easily allows repeated impact on listener. 90% of India has access to radio which is unmatched by any other media. Radio is not only the medium of hearing news but also is a source of entertainment and advertising for the rural masses. Radio also reaches to uneducated village folk who do not read print publications. At the places where the literacy rates are low where people hardly read newspapers and radio is the only medium that they can understand. They cant afford a TV set. Therefore radio is more popular. 2. Broadly Selectivity Specialized radio formats with prescribed audiences and coverage areas enable advertisers to select the market they want to reach. From a marketing perspective, radio has the ability to reach prospects by sex, age group, ethnic or religious background, income group, employment category, educational level or special interest with a format that adds even greater dimensions to its already strong personal communication environment. 5. Proximity to Purchase The mobility of radio and its huge out - of - home audience gives the medium an advantage enjoyed by few other advertising vehicles. In the competitive environment facing most companies, it is imperative that brands achieve consumer reinforcement as near as possible to the purchase decision. Radios daily frequency offers scope for continued messages and hence the consumers are more likely to remember that product and consumer lend up buying that product. 6. As a Complement to Another Media In some cases, radio is the primary medium for local advertisers. However for national advertisers and most large local and regional firms, radio is most often used as complementary medium to extend the reach and frequency of primary vehicles in their advertising schedule. A fundamental marketing strategy for radio has been its ability to successfully work with other media to increase reach and frequency or to reach non-users and light users of other media. The radio industry realizes that the bulk of its revenue comes from advertisers who use radio as a secondary medium. 7. A personal medium The human voice is the most personal means of communication. Radio gives the advertisers the opportunity to take advantage of the right combination of words, voices, music, and sound effects to establish a unique one-on-one connection with prospects that lets you grab their attention, evoke their emotions, and persuade them to respond. Radio can be targeted by lifestyle formats and is more efficient than other media from a cost and production standpoint. As a result many advertising agencies will move their budgets into radio.
Disadvantages of Radio
1. Misunderstanding Sometimes there might be a misconception regarding the radio ad as it is only heard. In television the chances of such misconception is less, as it is audio as well as visual.
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2. Poor Radio Attentiveness Just because radio reaches audiences almost everywhere does not mean that everyone is paying attention. When a consumer is listening while doing some work or traveling in a car, he or she often switches stations when an ad comes and divides his or her attention between the radio and road. 3. Fragmented Audiences The large number of stations that try to attract the same audience in a market has created tremendous fragmentation. If a large number of radio stations compete for the same audience, advertisers who want to blanket the market have to buy multiple stations, which may not be cost effective. However, in radios quest to continue to fine tune its reach, some advertisers wonder if radio is offering too many narrowly defined options. For those product categories with broad appeal, it is difficult to gain effective reach and frequency without buying several radio stations and networks. 4. Chaotic buying procedures For an advertiser who wants to include radio as a part of national advertising program, the buying process can be sheer chaos. Since national networks and syndicated broad cast do not reach every geographic market, an advertiser has to buy time in individual markets on a station-by-station basis. This could involve dozens of different negotiations and individual contracts. 5. Short Lived and Halfhearted Commercials Radio commercials are brief and fleeting. They cant keep like a newspaper or a magazine adds. Radio must compete with other activities for attentions, and it does not always succeed. Only 20 % of time availability restricts the frequency of message exposure. 6. Creative Limitations The audio-only nature of radio communication is a tremendous creative compromise. An advertiser whose product depends on demonstration or visual impact is at a loss when it comes to radio. Many advertisers think that without strong visual brand identification the medium can play little or no role in their advertising plans. 7. Limitations of Sound Radio is heard but not seen, a drawback if the product must be seen to be understood. Some agencies think radio restricts their creative options. 8. RJ needs training It is very important that the Radio Jockey is trained enough to deliver the ad. Sometimes the voice really matters. If the voice is irritating then there is a chance that the campaign may flop.
9. No proper research available In India, there is no proper research has been available on the area of radio listening, which will be very helpful for the advertisers to decide them on advertising plan and budget and other matter. Therefore, there could be a problem for the marketers in the sense that they might advertise on wrong channel at a wrong time.
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MARKETING PLAN
Christian
Mahila College
KKV IT Cauraha
Canopy Operation
Date 20/6/2 011 21/6/2 011 22/6/2 011 23/6/2 011 24/6/2 011 25/6/2 011 26/6/2 011 27/6/2 011 28/6/2 011 29/6/2 011 30/6/2 011 Day Monday Tuesday 9AM to 12PM Sapru Marg Bachrawa 3PM to 6PM Sapru Marg Bachrawa Leaflet Distribution Sapru Marg Bachrawa Postering Sun Pack News Paper Ad Target
Set - A
Bakshi ka Talab
Set - B
DJ - Josh
Itaunja
Set - C
Sapru Marg
Ataria
Sitapur
Kamlapur
Data Collection 50 Data Collection 50 Data Collection 50 Data Collection 50 Data Collection 50
Mohanlalganj
Mohanlalganj
Set - A
Tuesday
Sidhauli
Sidhauli
Set - B
Sapru Marg
Sapru Marg
Set - C
Sapru Marg
National
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1/7/20 11 2/7/20 11 3/7/20 11 4/7/20 11 5/7/20 11 6/7/20 11 8/7/20 11 9/7/20 11 10/7/2 011 11/7/2 011 12/7/2 011 13/7/2 011 14/7/2 011 15/7/2 011
Friday Saturda y Sunday Monday Tuesday Wednes day Thursda y Friday Saturda y Sunday Monday Tuesday Wednes day Thursda y
National Christian
Nearest Market Nearest Market Nearest Market Nearest Market Nearest Market Nearest Market
Exhibit 8.1
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ANNEXURE
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2.
In which city were the first Modern Olympics held? Athens Munich Barcelona Olympia What do the rings on the Olympic Games flag represent? Five continents of the world Seven continents of the world Five primary colors Seven primary colors
3.
4.
Vienna Warsaw
5.
Ngultrum Kroon
6.
7.
Which Planet of our solar system has the fastest orbiting speed? Venus Mars Mercury Earth
8.
9.
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Heart Lungs
Kidney Liver
10.What is the name of the character Ron Weasley in the movie Harry Potter?
Tom Felton Daniel Radcliffe Robert Pattinson Rupert Grin
Page 2
Name Student Qualification School/University D.O.B Students Contact No. Father`s Name Fathers Contact No. Occupation Address Suggestions:-
:::::::::-
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CURRICULAM VITAE
Objective:
To enhance my professional skills in a dynamic and stable workplace
Contact Information:
Name: Address:
Priya Mishra 10/B hazratmahal marg, Lucknow cantt Lucknow, U.P, India
Country:
Personal Information: Date of Birth: Citizenship: Visa Number: Visa Validity: Gender : 26th June 1988 Indian G2723801 Valid till 2017 Female
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Employment History: Worked for 2 years in Oberoi Group of hotels as a Front office assistant, at The Oberoi Amarvilas, Agra and also worked as a pre-opening team at Trident Bandra Kurla, Mumbai Educational Qualification: S.No. 1. 2. Degree MBA B.Sc. Biotechnology SSC MATRIC Year 2010-2012 2007-2010 School/Institute/University Amity Business School,Lucknow All Saints college of science and commerce; Baraktulla University, Bhopal Army Public School , Bikaner Army Public School, Bikaner Result Pursuing First Division
2006 2004
Languages: Language Hindi English Work Profile: Was responsible for coordinating events like weddings, meetings etc. from there reservations to their entire stay. Worked as a pre-opening team of Trident Bandra Kurla, a 436 rooms hotel. Very active in handling guest and their needs and interacting with them. Read Yes Yes Write Yes Yes Speak Yes Yes
Achievements: Acknowledged as Champion for getting maximum guest appreciation. Was made group coordinator for handling the Annual meet of American School Of Bombay A Bronze medal holder in Kendria Vidyalaya national swimming championship and Gold medal winner in regional level swimming championship. Imbibed the art of work as a team leader by participating in Basketball and Kho-Kho as team captain and achieving second and first position respectively. Proved my confidence and ability to communicate well in English language by being the Master of ceremonies in various occasions and giving performance in an English play at college level.
Hobbies: In my spare time I like listening to music. Like to workout by swimming, which is one of my favorite sports apart from Badminton. Like sketching portraits specially faces.
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References: Mr. Vishal Virmani Asst. Manager Front Office The Oberoi Bangalore, Bangalore Contact: +919986018897 Mr. Visheshwar Raj Singh General Manager Trident Bandra Kurla, Mumbai Contact: +91 9930003133
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BIBLIOGRAPHY
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1.
Peter F. Drucker, Management: Tasks, Responsibilities, Practices, Mumbai, Allied Publishers Pvt. Ltd., 1975, p .366 Government of India, Report of the high powered expert committee on companies and MRTP Acts, New Delhi, Controller of Publications, August 1978, p. 95.
2.
3.
Philip kotler, What Consumerism Means for Marketers, Harvard Business Review, May-June, 1972, p. 55. Gray E Willard and Arun M Savara, Patterns of Entry: pathways to new markets, California Management Review. Winter 1988, p. 59.
4.
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