[kictanet] BPO Industry Review (was Re: Stakeholder Queries:)
Peres Were
pwere at cascadegl.com
Wed Sep 3 07:43:14 EAT 2008
Liko,
You have raised some very valid points here and your insights are definitely
very useful to us in the BPO sector. However, I beg to differ with you on
the issue of standards and ethics. You have stated "Kenya will not become a
better outsourcing destination if we come up with ethics guidelines, an act
of parliament and the like".
Standards and Ethics play a huge role when serious (and here I am talking
about the big name companies that Kenya is trying to attract - those that
have long term sustainable BPO contracts) outsourcers are looking for a
potential BPO to service their requirements. Particularly for call centre
and data processing in various industry verticals, but more so for the
financial services industry which contributes the largest chunk of
outsourcing work worldwide.
In addition to the questions you mentioned below, serious potential
outsourcers will want to establish whether the BPO providers have in place:
* Security standards - data security, access controls, security
policies etc etc etc
* Recruitment standards - recruitment policies specific to the call
centre industry environment, including screening and background checks
(particularly for those working in financial services industry)
* Training standards - they want to know what sort of training is
given to call centre agents, how that training is delivered, how often
refresher training is done etc
* Business continuity and DR Policies must be in place in the BPO
provider's centre.
* Quality Assurance standards
I could go on and with the various standards that need to be in place in a
BPO/Call Centre.
One of the reasons why India has remained competitive is that they have a
government agency (similar to CCK) that conducts regular audits of contact
centres and BPO's in India, to ensure they are meeting the set standards.
These audits are done impromptu and unannounced to the BPO's, with potential
ramifications to those who are not meeting standards.
If Kenya doesn't set up standards for the industry, then we cannot hope to
compete internationally.
It is for this reason that the Standards Committee of the BPO Society is
doing its best to move to the next stage of its Standards & Ethics
framework. This is the stage where they will finalize the draft document,
with the help of experts, and develop an implementation plan. It is critical
to have this in place, at this stage where we are in this developing
outsourcing industry. What we have right now is just a draft document. Much
more needs to be done to complete the process.
Kind regards
Peres Were
Vice Chair
Kenya BPO & Contact Centre Society
_____
From: kictanet-bounces+pwere=cascadegl.com at lists.kictanet.or.ke
[mailto:kictanet-bounces+pwere=cascadegl.com at lists.kictanet.or.ke] On Behalf
Of Liko Agosta
Sent: 02 September 2008 23:07
To: pwere at cascadegl.com
Cc: 'KICTAnet ICT Policy Discussions'
Subject: Re: [kictanet] BPO Industry Review (was Re: Stakeholder Queries:)
All that you guys are talking about is good ... but when I talk to clients
they ask the following questions
a. Can you do the job ?
b. How much will you save me ?
c. Have you done this for anyone else (especially in my sector/country) ?
d. Can I talk to references
1-3 page executive proposals work better than 50 page proposals. C level
execs never go past page 3 of proposals. They really don't care where I am
working from
Only 1 client asked about Kenyan copyright laws .. and our lawyer gave a
sufficient answer... we got the work and have saved them over USD 500,000
About Safaricom and Land Registry and all this projects that keep breaking
our hearts and hurting our feelings :) ....
Let's assume Safaricom is has 400 customer services reps .... would they be
an ideal client for any BPO in Kenya ? if they pay their employees 50k per
month .. a BPO would have to charge them 100k per month FOR THE SAME
EMPLOYEE across town.
Now, maybe I have all this wrong but there are more than 10000 companies in
the developed world with over 400 "clerical employees" who they pay an
average of 3000$ per month. If you went and targeted these companies ....
you can get 100k per employee, pay the employee 50k etc and the client will
be happy, you happy, employee happy ...
Many local clients take 60-90 days to pay invoices. In US for example,
depending on state, it's illegal to hold a vendors payment when work has
been done ..
My point ... BPOs, Software Providers have to be willing to ignore the local
market and focus on external sources of business. The local market is too
small, too complicated and the waters are very muddied.
About brokers and "consultants". I have been approached by quite a few.
People who claim to have connections, venture capital and all that good
stuff. I learnt early to say no. early. They are a waste of time in my book
Kenya will not become a better outsourcing destination if we come up with
ethics guidelines, an act of parliament and the like . now, those will not
hurt . but we will benefit more if the ICT Board flanked companies when they
are pitching their services to potential clients.
By flanking I mean fly to meet the client, do research on financials, help
with financing - have a conference in US and invite 100 potential and vetted
clients to meet Kenyan providers .. This works like a charm here .. (if GOK
spends 500k on tickets and 30 Kenyans are hired making 50k . - ROI is there
pretty fast)
If the CEO of the ICT board calls the CEO of ATT he is more likely to get a
meeting and business as opposed to the CEO of Kamau Wanjala Outsourcers .
again, I don't know what the ICT Board has been doing (am sure they have
done a lot . may be like top secret strategy stuff) but in my opinion the
CEO of that board should be based in US for like 90% of the year .. talk to
clients, be a rain maker, schmooze, play golf and open doors.
I have always felt that the ICT Board should headhunt and hire people with
C level experience from either US or UK . people from the bigger consulting
companies Bain, BCG, Accenture, Avanade, EDS . these guys work on million
dollar outsourcing deals and have very good contacts. They also would be
able to come up with a strategy immediately
As Gilda has shown, the harvest is plentiful .
Liko Agosta, CEO
Verviant Consulting Services.
www.verviant.com
Phone : 1-919-341-1820
Fax : 1-978-268-8403
Toll Free: 1-866-551-4935
Pager: 9193891551 at txt.att.net
-----Original Message-----
From: kictanet-bounces+likoa=verviant.com at lists.kictanet.or.ke
[mailto:kictanet-bounces+likoa=verviant.com at lists.kictanet.or.ke] On Behalf
Of David Otwoma
Sent: Tuesday, September 02, 2008 11:45 AM
To: Liko Agosta
Cc: KICTAnet ICT Policy Discussions
Subject: Re: [kictanet] BPO Industry Review (was Re: Stakeholder Queries:)
Dear Brian,
Looks like you are fully re-charged after last weeks retreat in
Naivasha on Strategy. Tell us some more of what is not confidential.
Otherwise my wish is to take the baton from my able Chair and respond
on bullet 3 in your beautiful rejoinder.
As Chair of the Standards and Ethics Committee of the KBPOCCS we (are
7 members) did come up with Standards and Ethics Guidelines which took
over eight (8) months to prepare and on June 22nd 2008 the Permanent
Secretary of the Ministry of Information & Communication led us
(KBPOCCS members, KICTB who graciously sponsored the event at KICC,
CCK, CSK, members of the public who have an interest in BPO&CC pie)
into adopting the S&E Guidelines.
The next milestone we wish to aim for is have the Guidelines upgraded
into a Regulation or an Act of Parliament. Either achievement would be
binding to all and sundry who operate in the BPO&CC world. A world
which is moving the advancement of the human race from industrial age
into information age. Just imagine Kenya having a binding law on
Standards and a slice of the USD$310 Billion industry. It would make
our young people, because they are the future force in the knowledge
economy we keep talking about.
What are the next immediate steps. Cozy relations between the Private
Public Partnership.
Another bullet I will let you peer into what you have been seeing but
refuse to acknowledge is bullet No. 7. It was KPLC who introduced me
to the world of BPO&CC when they sought S. African expertise to deal
with their in-house contact centre better known to the general public
(read Brian et al) as Customer Care Centre or Customer Relations
Management. Ever wondered when power disappears at any time of the day
or night where that 'frustrated' call 'agrily demanding 'where is
power?' goes? Yes to a call center owned and managed
by KPLC. KPLC as of 2005 when we engaged had a call centre running
24/7 with 210 seats in Nairobi alone. Telecom has a bigger one.
Safaricom is soon overtaking Telecom with that news flash. Water
companies have. So do all the banks, insurance, etc. companies both
private and public owned.
Since we have very able Chairs for Training, Marketing etc. I will
stop there and go for my dear bottle.....tusker.
David
On Tue, Sep 2, 2008 at 6:12 PM, Brian Munyao Longwe <brian at caret.net> wrote:
> Excellent Feedback Gilda,
>
> So I see a few very clear issues arising out of your response:
>
> 1) There is a distinct global opportunity - but that calls for
> appropriate positioning as well as preparation on Kenya's part
> 2) Capacity issues need to be addressed - knowledge transfer could be
> on way - but that implies finding someone who is willing to impart
> the knowledge - do they come from inside or outside?
> 3) Global standards must be recognised and adhered to in order to
> ensure entry and competitiveness - what are these standards are they
> clearly documented somewhere?
> 4) Many local operations have not had the exposure necessary/needed
> to develop expertise/efficiency/etc - what kind of interventions can
> facilitate this?
> 5) BPO is not the "Holy Grail" as some perceive it, but one piece of
> the ICT puzzle that needs to be solved in order to help Kenya attain
> it's ambitious goal of becoming a global ICT hub
> 6) There is a distinct and precise training need for personnel to
> supply the Kenyan BPO industry with "bodies to put on seats",
> presumably to allow the BPO industry to harness and deliver against
> the global opportunity - what interventions (planned or otherwise)
> are we taking to meet this target? How accurate is this estimate and
> can it be verified?
> 7) Local Players - your website (must say it's very cute) lists quite
> a number (28) - but I must say that I'm quite surprised at some of
> the names I find there - didn't know KPLC was offering BPO services
> for example - but maybe I'm mistaken in my assumptions....
> 8) Local opportunities: seems many/most local companies are looking
> outside to outsource certain functions or simply "self-provisioning"
> - why would Safaricom claim that it's too expensive to outsource
> locally based on the price estimates that they got from industry. Is
> there a need for our local BPO industry to do some kind of soul
> searching and find ways of making themselves/their services more
> palatable to local companies?
> 9) The industry for some reason seems to have attracted brokers - who
> are watering down/diluting the true opportunity - what kind of
> interventions do we need to "eliminate the middleman" - a seemingly
> consistent argument in many sector e.g. tea, coffee, flowers, tourism
> etc.....
>
> Brian
>
> On Sep 2, 2008, at 4:10 PM, Gilda Odera wrote:
>
>> Hi Brian,
>>
>> You have raised very pertinent questions in your email below.
>> Let me answer your queries.
>>
>> Firstly, it is true that BPO has taken centre stage in many
>> discussions surrounding Kenya's ICT development and growth and it
>> is a good thing, here's why:
>> We are looking at a USD$310 Billion industry by next year, up for
>> grabs for any destinations that get it right. India is currently
>> taking up 45% of the total share and China and Phillipines are
>> steadily growing. And what's more, it can only grow, with the fuel
>> prices soaring each year,what choice is there for the companies out
>> there to look for more affordable means of operating.
>> It is a fact that the western countries are looking for new
>> alternative destinations to Asia so they do not put all their eggs
>> in one basket, not with the terrorism threats all over. Where else
>> but Africa. Why would Kenya not put its house in order to take a
>> piece of this pie?
>>
>> Now in regard to your comment on BPO taking centre stage in ICT
>> development, I would say one thing we need in this country is
>> opportunity for knowledge transfer done right here. We may produce
>> more technology oriented personnel but as long as we operate within
>> the Kenyan way of operating, we are not developing our personnel to
>> the global standards we want them to attain.Not because we are not
>> capable, but because many operations have not had the exposure.
>>
>> I would beg to differ (and government can speak for itself) that we
>> are putting all eggs in one basket. BPO is but one sub-sector in
>> the ICT arena. Many other sub-sectors within the sector are quite
>> active. Software development is coming up and I keep reading
>> debates on KICTANET. There is an interest.
>> Content development is also being encouraged. The
>> telecommunications sector is busy preparing for real competition
>> and we the consumers can't wait for the benefits, they will have to
>> have great value adds and affordable pricing.
>>
>> What steps are we taking to enhance BPO? I leave the ICT Board to
>> answer that although as Kenya BPO and Contact Centre Society, we
>> have presented to them the need to train not less than 10,000 per
>> year, specifically for this sector. Frost and Sullivan who are
>> normally 90% accurate in their new destination analysis says Kenya
>> will by 2012 have a BPO sector employing about 120,000 direct jobs
>> ( you can add indirect by another 3-5) as long as the fibre optic
>> infrastructure is in place on time next year and marketing of the
>> country takes root.
>>
>> Who are the players? Our members are on our website
>> www.kenyabposociety.or.ke . There are ofcourse others quietly
>> operating.
>> What are the local opportunities- Our biggest challenge is getting
>> local companies to outsource though some have started. We expected
>> the giants like Safaricom to play a role even if it is a CSR role
>> to demonstrate a level of confidence in the local companies. This
>> is possible, other companies work with those they outsource to for
>> a given period, and leave them running efficiently as they require.
>> All is not lost. Some local companies are outsourcing BPO work and
>> I wish to challenge Safaricom to outsource part of their BPO work
>> if they say local outsourcing is not competitive.
>>
>> The international opportunities are the ones that I have mentioned
>> are worth $310 Billion. The ball is in our court as Kenyans to
>> market Kenya as a destination if we are to make any gains. We need
>> to attract direct clients and not the current brokers who are
>> exploiting the existing centres,much as their contracts are keeping
>> some of the centres going.
>> I hope I have addressed your queries.
>>
>>
>>
>>
>> Gilda Odera
>> Chair, Kenya BPO and Contact Centre Society
>> ----- Original Message ----- From: "Brian Munyao Longwe"
>> <brian at caret.net>
>> To: "Gilda Odera" <godera at skyweb.co.ke>
>> Cc: "KICTAnet ICT Policy Discussions" <kictanet at lists.kictanet.or.ke>
>> Sent: Tuesday, September 02, 2008 11:12 AM
>> Subject: [kictanet] BPO Industry Review (was Re: Stakeholder Queries:)
>>
>>
>> Hi All,
>>
>> It is interesting that BPO seems to have taken a centre stage in many
>> discussions surrounding Kenya's ICT development and growth. While I
>> do believe that BPO/KPO has huge potential. I am a bit skeptical
>> about this "silver bullet" approach which might be akin to putting
>> all our eggs in one basket.
>>
>> What if the basket gets stepped on by some giant like Malaysia, South
>> Africa or others?
>>
>> I would be very interested in taking a much closer look at the BPO
>> industry in Kenya. Who are the players? What are the opportunities?
>> What is the potential for growth? What steps are we taking to enhance/
>> develop/increase capacity in BPO/KPO? What kind(s) of investments are
>> required to make this industry boom? What are the local opportunities
>> for BPO/KPO? What are the international opportunities for BPO/KPO?
>>
>> I think that answers to these and many other questions will help
>> other like me who are a bit unclear in their minds as to how BPO will
>> be our saviour have a clearer view. It might also just show that BPO
>> is a contributing factor and not necessarily the holy grail that at
>> the moment seems to be the general perception.
>>
>> Regards,
>>
>> Brian
>>
>>
>>
>> On Sep 2, 2008, at 8:25 AM, David Otwoma wrote:
>>
>>> Dear All,
>>>
>>> "Comments from BPO operators and of course other Stakeholders"
>>> please.
>>>
>>> Safaricom in Sh1bn customer care plan (see Daily Nation page 28)
>>>
>>> -------------------------------------------------
>>>
>>> Many companies have been turning to BPOs as the financial benefits of
>>> outsourcing continue to make it compelling, with cost savings and
>>> efficiency improvements being the dominant reasons companies use such
>>> services. However, companies biggest concerns on outsourcing
>>> relate to
>>> data security.
>>>
>>>
>>> -----------------------------------------------------
>>>
>>> The move, seen a precautionary measure in the face of growing
>>> competition, marks a complete turnaround by the mobile provider which
>>> in July last year had sought quotations from local Business Process
>>> Outsourcing (BPO) firms.
>>>
>>> "Outsourcing the customer care function proved to be too expensive
>>> for
>>> the kind of quality that we required. We will just have to run the
>>> service in-house," said Safaricom chief executive Michael Joseph.
>>>
>>>
>>> http://www.nation.co.ke/business/news/-/1006/466372/-/jiyt3xz/-/
>>> index.html
>>>
>>>
>>> On Mon, Sep 1, 2008 at 8:58 PM, Sean Moroney
>>> <seanm at aitecafrica.com> wrote:
>>>> Dear Liko,
>>>>
>>>>
>>>>
>>>> We would like to invite you to make a presentation at the
>>>> forthcoming
>>>> Outsourcing & Contact Centre Conference, which we will be holding
>>>> over 4-5
>>>> November under the auspices of the Ministry of Information &
>>>> Communications
>>>> and in partnership with the ICT Board. The programme of confirmed
>>>> presentations so far is attached.
>>>>
>>>>
>>>>
>>>> It would be great if you would be willing to share your experience
>>>> with the
>>>> other participants.
>>>>
>>>>
>>>>
>>>> Yours sincerely,
>>>>
>>>>
>>>>
>>>> Sean Moroney
>>>>
>>>> Chairman
>>>>
>>>> AITEC Africa
>>>>
>>>> seanm at aitecafrica.com
>>>>
>>>> UK Tel: +44(0)1480-880774
>>>>
>>>> UK Fax: +44(0)1480-880765
>>>>
>>>> UK Mobile: +44(0)7973-499224
>>>>
>>>> Kenya Mobile: +254(0)721-845674
>>>>
>>>> Mozambique Mobile: +258-82-6181618
>>>>
>>>> Nigeria Mobile: +234(0)802-0571766
>>>>
>>>> SA Mobile: +27(0)724-577887
>>>>
>>>> Skype: seanmoroney
>>>>
>>>> www.aitecafrica.com
>>>>
>>>> Please visit our discussion group on The Banking Technology sector
>>>> in Africa
>>>> at: http://groups.yahoo.com/group/africanbankingtech
>>>>
>>>>
>>>>
>>>>
>>>>
>>>> AITEC Africa is the trading name of AITEC Conferences Limited
>>>> UK Company registration number: 4698475
>>>>
>>>>
>>>>
>>>>
>>>>
>>>>
>>>>
>>>>
>>>>
>>>> ________________________________
>>>>
>>>> From: kictanet-bounces+seanm=aitecafrica.com at lists.kictanet.or.ke
>>>> [mailto:kictanet-bounces
>>>> +seanm=aitecafrica.com at lists.kictanet.or.ke] On
>>>> Behalf Of Peres Were
>>>> Sent: 01 September 2008 12:23
>>>> To: seanm at aitecafrica.com
>>>>
>>>> Cc: 'KICTAnet ICT Policy Discussions'
>>>> Subject: Re: [kictanet] Stakeholder Queries:
>>>>
>>>>
>>>>
>>>> Liko,
>>>>
>>>>
>>>>
>>>> It would be great to hear from you and others, your insights into
>>>> sales and
>>>> marketing insights that can benefit the BPO, KPO sector. We can
>>>> continue the
>>>> discussion off the list.
>>>>
>>>>
>>>>
>>>> Kind regards
>>>>
>>>>
>>>>
>>>> Peres Were
>>>>
>>>>
>>>>
>>>> ________________________________
>>>>
>>>> From: kictanet-bounces+pwere=cascadegl.com at lists.kictanet.or.ke
>>>> [mailto:kictanet-bounces+pwere=cascadegl.com at lists.kictanet.or.ke]
>>>> On Behalf
>>>> Of Liko Agosta
>>>> Sent: 01 September 2008 10:33
>>>> To: pwere at cascadegl.com
>>>> Cc: KICTAnet ICT Policy Discussions
>>>> Subject: Re: [kictanet] Stakeholder Queries:
>>>>
>>>>
>>>>
>>>> About ICT Board and all these Boards .
>>>>
>>>>
>>>>
>>>> Do they ever have open sessions where stakeholders can review
>>>> strategy,
>>>> advice, brainstorm ?
>>>>
>>>>
>>>>
>>>> As CEO of verviant, I have been able to get business . I feel like
>>>> I have
>>>> insights into the sales and marketing process that can benefit other
>>>> software/ICT providers .
>>>>
>>>>
>>>>
>>>> Thanks
>>>>
>>>>
>>>>
>>>> Liko Agosta, CEO
>>>>
>>>> Verviant Consulting Services.
>>>>
>>>>
>>>>
>>>> www.verviant.com
>>>>
>>>>
>>>>
>>>> Phone : 1-919-341-1820
>>>>
>>>> Fax : 1-978-268-8403
>>>>
>>>>
>>>>
>>>> Toll Free: 1-866-551-4935
>>>>
>>>>
>>>>
>>>> Pager: 9193891551 at txt.att.net
>>>>
>>>> ---------- Forwarded message ----------
>>>> From: Brian Longwe <blongwe at gmail.com>
>>>> Date: Aug 29, 2008 9:31 AM
>>>> Subject: Re: [kictanet] ICT Board Strategy a Farce
>>>> To: wambuiwakarema at yahoo.co.uk
>>>>
>>>> Very strong language - but I think you should relax as your
>>>> concerns are
>>>> unfounded.
>>>>
>>>> I am at the Strategic retreat. Unfortunately Gilda Odera -
>>>> Chairperson of
>>>> BPO, who was supposed to be present had to cancel at the last
>>>> minute.
>>>>
>>>> Brian
>>>>
>>>> On 8/29/08, Wambui Wakarema <wambuiwakarema at yahoo.co.uk> wrote:
>>>>
>>>>
>>>>
>>>> I have read with surprise the Kictanet mailout from the ICT Board
>>>> claiming
>>>> they are going for a stakeholders strategy workshop in Naivasha.
>>>>
>>>> Who are these stakeholders? Are there any representing the BPO
>>>> sector?? I
>>>> ask this because I have contacted the industry association and
>>>> they dont
>>>> seem
>>>>
>>>> to be in the know either. This is quite bizarre, especially since
>>>> BPO is a
>>>> key sector of the ICT Board's mandate.
>>>>
>>>> Who are the stakeholders from the other ICT sectors? Shouldnt the
>>>> Board be
>>>> getting input from key stakeholders at this workshop.
>>>>
>>>> They are wasting government resources going to write strategies
>>>> and then
>>>> 'presenting' to stakeholders, yet stakeholders should have been
>>>> involved
>>>> from the word go.
>>>>
>>>> The
>>>>
>>>
>>>
>>> --
>>> David Otwoma,
>>> Chief Science Secretary,
>>> National Council for Science and Technology,
>>> Utalii House 9th Floor,
>>> Mobile tel: +254 722 141771,
>>> Office tel: +254 (0)20 2346915,
>>> P. O. Box 29899 - 00100, Nairobi, Kenya
>>> email: otwomad at gmail.com & otwoma at ncst.go.ke
>>> www.ncst.go.ke
>>>
>>> _______________________________________________
>>> kictanet mailing list
>>> kictanet at lists.kictanet.or.ke
>>> http://lists.kictanet.or.ke/mailman/listinfo/kictanet
>>>
>>> This message was sent to: brian at caret.net
>>> Unsubscribe or change your options at http://lists.kictanet.or.ke/
>>> mailman/options/kictanet/brian%40caret.net
>>
>>
>> _______________________________________________
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>> kictanet at lists.kictanet.or.ke
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>>
>> This message was sent to: godera at skyweb.co.ke
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>
>
> _______________________________________________
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>
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--
David Otwoma,
Chief Science Secretary,
National Council for Science and Technology,
Utalii House 9th Floor,
Mobile tel: +254 722 141771,
Office tel: +254 (0)20 2346915,
P. O. Box 29899 - 00100, Nairobi, Kenya
email: otwomad at gmail.com & otwoma at ncst.go.ke
www.ncst.go.ke
_______________________________________________
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