EXL SERVICE :

BUSINESS PROCESS
OUTSOURCING IN

Group 5
Abhishek
Kedar
Koushik
Pushkar
Rakesh

Introduction
Exl Service is BPO conceived by Mr. Kapoor & Mr. Talwar
Originally they were doing low-end outsourcing work
Through their Angel investor they got high-end outsourcing work in Insurance Sector Conseco
Ultimately became subsidiary of Conseco 95 % of revenue generated from Conseco
Exl Service acquired by Oak Hill for USD 1
Total business from Conseco will dry in 3 months
2 types of opportunities for Exl Services for survival Low-end BPO v/s High-end BPO

Porters 5 Forces Low-end BPO services

Threat of new entrants High
Positive sentiment for BPO industry (USD 2 Bn to
USD 35 Bn in 5 years)
New countries targeting outsourcing business
Target low-end work in initial years
Bargaining power of buyers High
Many service providers are available in the market
Low-end BPO service has become a commodity
Threat of substitutes Low
Automation of processes. The probability of this is
low

Porters 5 Forces Low-end BPO services

Bargaining power of supplier Low
Work force Available in plenty
Qualification & training requirements are low
Other services like IT, Infra, etc.
All these are commoditized and hence low
bargaining power
Rivalry amongst existing competitors High
As the specialization requirement is low many
competitors are already in the market
Competition is based only on price

Porters 5 Forces High-end BPO services

Threat of new entrants Medium
New entrants will start with low-end work
Winning trust of customer will take time
Probability of threat from existing low-end suppliers
Bargaining power of buyers Medium
Buyer is interested in the service than price
Experience in the field is more relevant so relatively
less players in market
Threat of substitutes Low
Automation not possible
Change in law may have an effect on some
assignments like SOX Audit

Porters 5 Forces High-end BPO services

Bargaining power of supplier High
Associates Turnover will result in additional cost.
But the same is not significant. New workforce is
available.
Managers Turnover will result in significant cost.
Other services like IT, Infra, etc. - All these are
commoditized and hence low bargaining power
Rivalry amongst existing competitors Medium
Rivalry will be lower as compared to low-end
services

Value drivers of different segments

Driver

Low-end BPO
Expectation Capability
of the
of Exl
segment
Services

High-end BPO
Expectation Capability
of the
of Exl
segment
Services

Cost
Previous
Experience

Lowest Cost
Not relevant

Not relevant
Relevant

Quality of
work force

Lesser
skilled

No
Yes

No : Current Higher skills

work forces
is highly
skilled

Yes
Only in
insurance
sector
Yes

Exl Services requirement

Current Requirement
Appropriate Segment
Immediate revenue
Low-end
Keeping the work-force engaged Low-end
Retaining top executives
Immediately low-end but in long
term high-end
High profitability
High-end

Strategy For EXL to sustain and grow

Arena
Sustain Dell option, engage the current work force, get
some revenue
Grow Look for clients requiring SOX, especially in
insurance sector
Vehicles
Insurance operations similar to Conseca
Showcasing present skills to business
Using Oakhill as their partners
Approaching business similar to Conseca, insurance sector
Differentiator
Previous experience for call center operations and low-end
services
Staff trained on US GAAP with understanding of SOX
Knowledge in insurance sector

Strategy For EXL to sustain and grow

Staging
Target low-end jobs immediately (Dell)
Look for high-end jobs in SOX and Insurance sector
Gradually exit low-end jobs
Eco-logic
Work on cost arbitrage between US/Europe and India
Insurance sector has potential to bring 10-15% cost saving
( which is our core competency)

THANK YOU!