2. Confidential & Proprietary
2
NASSCOM BPO Strategy Summit
Tata Communications: Vision
Emerging Markets
Converged IP
Solutions
Managed
Services
INDIA, ASIA incl CHINA, SOUTH AFRICA
New WORLD of
Communications
New WORLD of
Communications
To deliver a new world of communications to advance the reach and
leadership of our customers
India’s Gateway
To the World
3. Confidential & Proprietary
3
NASSCOM BPO Strategy Summit
Monopoly ILD Provider
ILD (89%); Others (11%)
Wholesale Voice, Wholesale &
Enterprise Data, Retail Broadband
VSNL in 2002 Tata Comm in 2008
Carriers; Retail (Dial-up)
Customers
Carriers, Large Enterprises,
Mobile Operators, Broadband
Consumers
India-Centric Play; negligible
global operations
Global Infrastructure, Global
Customers
Revenues: $1.6 bn
Market Cap: $1.2 bn
Revenues: ~$2.0* bn
Market Cap: >$3.5 bn
*FY07
Transformation Story
Lines of
Business
Reach
Financials
Customers
5. Confidential & Proprietary
5
NASSCOM BPO Strategy Summit
Revenue Enhancement in Existing
Businesses
• Creation of Enterprise Business Unit
• Expansion of VPN networks, Data Centers
• Implementation of ATM and MPLS networks
• Launch of Voice Calling Cards
Recovery and Transformation Process
Improving Competitiveness of the
Company
• Focus on Customer Service
• Balance Sheet Restructuring
• Business process re-engineering
• Redeployment / Sale of assets & recovery of
debts
Investments in New Businesses -
Domestic
Investments in New Businesses -
International
• Entry into NLD Voice and Data Services
• Entry into new Corporate Data offerings –
vertical solutions for BPO, IT, BFSI,
Media…
• Managed Services
• Broadband Services, incl. WiFi and Content
• Entry into Sri Lanka and Nepal
• Expansion into USA, UK, Singapore
• New submarine cable to Singapore
• Acquisitions of TGN and Teleglobe
• Entry into South Africa
6. Confidential & Proprietary
6
NASSCOM BPO Strategy Summit
India Leadership
India Enabled
A New World
• International & Internet
bandwidth led
• Expansion into NPLC, IP / MPLS
& Ethernet
• Global MPLS & Ethernet
• Targeted fiber investments
• Expansion of Managed
infrastructure, collaboration &
security
• India + Asia + South Africa
leadership
• Global MPLS
• Data center expansion
• Introduction of Global Ethernet &
managed services
• WiMAX-led last mile access in
India
2005-06 2007-08 2009-102003-04
Transforming our Enterprise Business
8. Confidential & Proprietary
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NASSCOM BPO Strategy Summit
People Transformation
> 5,000 employees
(net addition of ~4000)
20% outside India
(from 0% in 2002)
37 nationalities, 36 years age
(1,43 in 2002)
80% less than 5 years
(< 20% in 2002)
> 30% are customer facing
(from < 1% in 2002)
9. Confidential & Proprietary
9
NASSCOM BPO Strategy Summit
Transformation Journey Summarized
Global
Challenger
Competitive
Private Sector
Monopoly
Public Sector
International
Expansion
2002 2003 2004-06 2007-
ILD Leadership
Enterprise Services
NLD
Tyco Global Network
Teleglobe
South Africa
Mobile VAS
Global Enterprise
IP Transit
Global Voice
Global Connectivity
Managed Services
Emerging Markets
10. Confidential & Proprietary
10
NASSCOM BPO Strategy Summit
Transformation into a New Outsourcing Model
Tata Communications Experience
Transformation incl. integration of 6
acquisitions in 3 yrs, including TGN and
Teleglobe
Off-shoring of 400 jobs from Canada &
USA to India
Creation of Global Delivery Centers in
Pune and Chennai
TL9001 Quality and BS7799 Information
Security certifications
Tata Communications
Transformation Services
The Global Telco Challenges
Increased competition and tariff
pressures
Increased costs & insufficient ops
support
Delayed / poor customer service
processes
Wholly owned subsidiary of Tata Comms
Focused on outsourcing services to
other carriers (including “competitors”)
Major Service Areas:
Network Engineering (Planning & Design)
Service Fulfilment
Network Operations
Customer Benefits:
Productivity improvements (zero backlogs,
quick turnaround)
New business
Higher accuracy levels in SLAs
From Zero to 650 employees in 18 mos;
planned addition in FY09: >1500
11. Confidential & Proprietary
11
NASSCOM BPO Strategy Summit
Audio Web
Conferencing
Audio Web
Conferencing
The Next World for the BPO Industry
Cost Arbitrage
Value- added services
Business Knowledge
Process improvement
Business Transformation
Processes & Tools – Full services
12. Confidential & Proprietary
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NASSCOM BPO Strategy Summit
What is our role as a Service Provider ?
Offshoring
Multi-Channel
Multimedia
IP Migration
Speech Recognition
Globalization
Remote Agents
Out-Tasking
Competitive Requirements
VcIPLC mVoIP
SIP Trunking Hosted PBX
Touch Tone
IVR
Speech Recognition /
Text to Speech IVR
Enhanced Call
Routing
Hosted Contact Center
The new world of communications that we seek to deliver comes from our focus on:
Connecting the Emerging Markets to the developed world (and vice-versa)
Managed Services
MPLS, Ethernet and Wimax
So what does that mean for our customers…
Slide captures the essence of what has been achieved.
Our core ILD business went through lot of competitive challenges … our competitors, some legal, many illegal, caused our market share and revenues to come crashing down
Re-skilling, Performance Management, Career Planning
Speaker notes: The Success trends for BPO industry – Outsourcing has historically been viewed on the basis of Competitive pricing strategies. But that is history!!
Then came the concept of Globalization. With the advent of globalisation,BPOs moved up the value chain & expanded their reach by new acquisitions & moving across geographies. That’s again history now!!
Now when We & our Clients are talking about Virtualization ,Multi-channel capabilities ,Unified communications & emerging Work from home concepts, What is your view If a services provider with global presence ,providing connectivity to your doorstep, also offers a state of the art technology bundled with suite of applications in the form of Hosted Contact Center Portfolio.
Some organizations already know these benefits, Some are in discovery process & others have not even begun.