Justified Services Final

8/3/2019 Justified Services Final

1/15

a complete solution for business process outsourcing

By:-Amritanshu Mishra


2/15

Justifiedthe name implies real value for money.

Justified Services would be dealing in three processes viz. data entry,

survey and sales ofBellCanada cellular services.It will work as a franchise of a call entre operating in Mumbai with 200seats, on a contract basis.

Further it will be expanded into an independent full fledged BPO unit infuture.


3/15

Our business is a simple business outsourcing unit. The head office isalmyts services and we are going to be their helping hands.

The business is done in this way:-Firstly our head office gets a contract with a multinational company toprocess its work from India at a pre-decided rate. Then the Head Officewould sublet a portion of their work to us and would pay us the amountdetermined for that work. In return we will have to give a commission to

them .We would require a complete setup of a call entre but will work as afranchise so no need of bpo registration is there. Just a simple registrationwould do. Moreover since the work is of export of services nature so it isexempted from service tax even.


4/15

We will have a portfolio of processes, as after doing a market survey of BPOindustry I got to know that the basic thing is proper know-how ofoperations and non dependence on any one particular processes.

Therefore to ensure cash f lows we will work on three processes:-

1. Data Entry

2. Survey

3. Bell Canada

Data Entry is a kind of process in which payouts are flexible, sometimes we get 2 or 3 dollars per file and some times the payout is even 8or 9 dollars but in this b-plan we have approximated the payout per fileto be 3 dollars only.


5/15

Survey is the next process, and the payout in this is 3 dollars per survey.

Actually in survey processes we have to call the people in stipulated countryand ask them some simple questions like what is the brand of dth servicethey are using etc etc

Then comes our major business and revenue generating stuff, Bell CanadaHere the payout is 25 dollars at start for each sale. We have to call thecustomers and sell them the product of bell canada cellular services.

Our head office is providing all these processes to us and arranging for leadsas well. There would be a cler cut contract signed between us according towhich we will work for Almyts and will give it 10% of our total earnings ascommission.


6/15

Many call centre units are working in Lucknow and even call centreplacement consultancies and call centre training institutes are operating.

We are in touch with some of them and have got assurance that they will beproviding us with candidates to select for our venture and we will have topay a commission of maximum 800 for each selected candidate of BellCanada process. While for other processes the commission is less.

In recruitment the crucial part is the recruitment of a promising TeamLeader, who has experience of such processes and can be appointed totackle the centre.

I have got that one as well. The salary of TL would be more than the other

operators but also the targets and expectations.


7/15

About the training part, it has been decided that the head office wouldsend its team Leader to our place for imparting training to ouremployees .

Moreover use of video conferencing will be done to get training fromabroad as well as Mumbai centre.

Frequent visits of TLs will be made from Mumbai centre to our centre

at lucknow as they plan to come up with more franchise in this region.


8/15

Our unit was supposed to work for 24 hours shift. At night the shift was from 2100

hrs to 0600 hrs and in day time it was from 1000hrs to 1800hrs. In day shift onlydata entry work was to be done and a separate staff was recruited for it, ten innumber.

Then in night shift two processes viz. survey on 4 seats and then Bell Canada on 6seats.

The employees for this were also of different kinds and thus their remunerations.

Data entry operators were to be paid Rs 4500 pm and their target would be 100 filesper week

Survey Operators were to be paid Rs. 6500pm and target would be 200 surveys perweek

Sales operators(for bell Canada) salary would be Rs.8500 with target 25 sales per

week


9/15

On exceeding the target by 5% an incentive of 4% of salary would be givenand any further business/task done would be compensated in proportion ofthe target and salary, for example if an employee meets his target of 100, hewill get his full salary, now if he does 5 more files i.e. 5% of target, he willget 4% of his salary as incentives and from now on if he will do 1% morebusiness he will get 1% of his salary as incentives, if he does 2% morebusiness (2% of his initial target) he will get 2% of his salary as incentives.So overall if the target is 100files and an employee does 100+5+100 files then

he would get his two months salary and 4% of one month salary.


10/15

An overview of the funds needed to start and run the business for first 3months is stated here:-

Computer and Furniture (10 seats) 80,000

Office Setup (Manager Cabin) 20,000Dialer 300,000

ISD Minutes and leads 60,000

Recruitment Expenditures 25,000

Internet 5,000 + 1700 x 2 = 8400

Salary 393,000

Rent 8000 x 3 = 24000

Misc 15000

Commission paid to almyts 16200 +32400+33750= 82350

Total Amounts to Rs. 10,11,250


11/15

Now let us see revenue part:-

Revenue from Data Entry (day shift work)100 x 4 x 3= 12001200 x3=3600

3600x45= Rs.1,62,000

Revenue from Survey (night shift)200x4x3=24002400x3=7200

7200x45= Rs.3,24,000

Therefore total revenue from only two processes is1,62,000+324000= Rs.486000i.e. 45% of investment is recovered in 3 months by two processes only.


12/15

Now the revenue of Bell Canada Process:-

25x4x3= 300300x25=7500

7500x45= Rs.337,500

So Total revenue from all three processes

486000+337500= 8,23,500

Means in first quarter only we will recover 80% apprx. of our totalinvestment including variable and fixed costs.


13/15

And the total investment will be only running cost from next quarter, asfixed investments like dialer of 3 lacs etc would be minimized from nextquarter and running cost per quarter would be 587750.Which includes

OPERATING COST

ISD Minutes and Leads 60,000

Recruitment 5000

Internet 5100

Salary 393000Rent 24000

Misc. 15000

Comission paid to almyts 82350

Deprecation 3300TOTAL 587750

Therefore from Next Quarter The investment would be 587750

revenue per quarter would be 8,23,500

profit of Rs.235750 per quarter


14/15

Therefore a minimum threshold profit of Rs.235750 per quarter wouldcome. Point to be noted that it is the threshold profit, we have many looseends which will always keep our profit high from this threshold, forexample the exchange rates of dollar has been counted as 45 rupees for onedollar, but it would be more than that..then in expenses we have misc15000 per month, then we can increase the seats from 10 to 15 any time,

extension in seat costs Rs.16000 only per seat. In our day shift data entry Ihave counted the earnings per file as 3 dollars but is many times 8 or 9dollars even.

So there is enough security that the minimum profit per quarter would bemore than 235750 . And we can multiply our business just by buying a fewmore computers and employing people to run the process on thosecomputers. If we would make our unit a 20 or 30 seater call centre and justincrease the no of staff then in 30 seats call centre the quarterly profit

would be 707250 per quarter


15/15

Well this is not the end and there is a large scope to develop in a real call centre butall that will be done gradually with experience. With time new avenues wouldcome.

I have justified the name of my brandjustified, by the incentive system. Meansemployees will get equal proportion of their salary as incentives by doing equalproportion of task.

The most important thing regarding this plan is that every calculation has beendone with greater deals of approximation to reduce the profits. Means everywhereprofit has been deemed to be really very less in comparison to the real expectedprofit. However one may feel that this B-Plan sounds too good to be a reality butagain I would say that this is reality when we are talking about outsourcing anddollars.

Any business with an investment of ten lacs if gives a net profit of more than 78000per month, it is worth doing.!!!

Thank you

Documents

Justified Services Final