Integrated IT-BPO Services A Whitepaper

InterGlobe Technologies:
A global leader in travel technology and
business processes
 Introduction
The IT services market is changing dramatically and the industry is at a tipping point where the
traditional mode of technology procurement & management is phasing out. The process is ongoing
and slow and outsourcing is the reason for this change.

The whole market was founded on supporting and supplying IT assets and people associated with
handling those assets. But at this point the traditional technology has become more of a liability than
an asset which is expensive to create, maintain, support, purchase, build and lease. Newer disruptive
technologies like mobility, analytics, big data, social media and cloud technology are bringing about a
wave of change. Most organizations are at a crucial stage where they need to utilize the technological
convergence to reap business benefits.

Today IT/BPO services providers face customers who are demanding solutions that help them
optimize their operations, transform their processes, seamlessly explore new technologies, reduce
risk and generate new opportunities for revenue growth.

The providers skilled in the optimized use of newer technologies help speed clients on the path of
achieving business transformation

We are at the position now where business has changed dramatically; it is now global and virtual.
Technology outsourcing has to support a whole new operating environment. It is time for organizations
to really take advantage of much better, broader set of services we provide by integrating IT and BPO
services together.

Client Owned Tools Standard Platforms

1st Gen, 2nd Gen, 3rd Gen, 4th Gen, 5th Gen, 6thGen,
Late 1990s Early 2000s Mid 2000s Late 2000s Today Near Future

Reducing Costs Location Enhanced Enhanced Supporting Strategic

Advantage Products & Customer Decision Partnerships
Services Reach Making

Cost Arbitrage Based Deals Outcome Based Deals

Cost Savings Analytical Insights & Innovation

InterGlobe Technologies Ltd. 2013: www.igt.in

1.1 Evolution of Outsourcing

Outsourcing dates back to the 1960s from where it has grown to different levels from the time-sharing
data process model to business process outsourcing (BPO) to knowledge process outsourcing (KPO)
then to business process management (BPM). The history of outsourcing started in the United States,
when it was struck with economic stagnation and rising inflation rates. Since, then the US companies
started outsourcing their service related jobs to cheaper locations to regain their profitability.

Globalization of economies supplemented by technological advances has led to the evolution of the
outsourcing industry in India. After the flourishing of information technology (IT) in the late 1990s and
2000s, outsourcing has spread to Indian States.

However, recently companies have adopted a business strategy of outsourcing entire business
activities, such as technology operations, customer relationship, logistics, finance, document
processing, etc.

1.2 Traditional Drivers of Outsourcing :

Cost Savings: In most cases, cost savings are the main driver of an outsourcing project. Each
outsourcing initiative within any company has a mix of other drivers, prioritized differently in
each case.

Access to Capabilities: Beyond cost savings, a second major theme is access to capabilities
whether human talent, process excellence, or sheer physical resources. Apple designs the iPod in
its Cupertino, California offices, but it outsources the manufacturing to select Chinese firms not
just because they can build it cheaply, but also because of their unique intellectual property in
materials science and packaging technology.

Strategic Benefit: A third major theme is strategic benefit freeing up ones own resources,
improving flexibility, gaining access to capital, access to new markets, or changing the rules of
competition in an industry.

InterGlobe Technologies Ltd. 2013: www.igt.in

 Key Drivers for Outsourcing

Reducing Costs
Gaining Competitive Advantage
Lack of In-house Resources
Leveraging technology expertise 2009
Availability of cheaper manpower 2010

Flexibility
Consolidating assets/resources

0 10 20 30 40 50 60

*Source: FIN Sights

Each company must achieve an optimal balance of top-down management and collaborative
partnering in dealings with suppliers, channel marketers, companies selling complementary services
and customers. Each definitely illustrates that a uniquely integrated IT and BPO service business
model makes possible the squaring of many circles: cost savings with growth, speed as well as
quality, and organizational cohesion plus knowledge and innovation.

1.3 Outsourcing Across Functions

Outsourcing of services is a business function has become a proved and accepted strategy for
organizations seeking cost efficiency and improved brand identity management, according to The
Outsourcing Institute. More and more companies have found outsourcing of services as a flexible and
scalable solution to weather the upturns and downturns in demand for sales collateral, multimedia
presentations and web initiatives without sacrificing the quality of work that is essential to good brand
management.
Marketing & Manufacturing Information
Sales 7% Technology
6% 20%

Human Resource
9%

Real Estate
Distribution & 10%
Logistics
10%
Transportation
5%
Finance
7%
Management Customer Administartion
*Source: PricewaterhouseCoopers 4% Service 15%
Global Outsourcing Survey 7%

InterGlobe Technologies Ltd. 2013: www.igt.in

Companies are now evaluating and implementing organization wide business process outsourcing
strategies, as opposed to pure departmental initiatives. Outsourcing is also being explored across the
corporate value chain from Accounting, Human Resource Management and IT to Procurement,
Sales & Marketing and Product Development. Past concerns on data security and identity protection
have been replaced by increasing confidence and comfort

2. An integration between IT & BPO Services

Most large organization typically have heavily invested into IT systems because of the immense value
that these automated systems provided. However over the past 4 decades, they are looking at new
age and cost effective IT systems to manage their business needs. However as the cost pressures
have increased for large layers and the dynamic nature expects them to be agile & nimble,
organizations now focus on achieving cost saving from every IT investment they make .

On the other end of the spectrum, Business Process Outsourcing, started as a cost saving measure
alone & in its early days was not looked upon as a value adding function. However today, BPO and
contact centers have come a long way from managing low value operations like data entry to
becoming providers of business analytics, on demand services and being partners in the innovation
process. According to recent work by the Economist Intelligence Unit(EIU) senior managers are
demanding closer alignment of IT with outsourcing of business processes to business goals to meet
the competitive challenges.

Today IT and BPO outsourcing stands at a juncture where organizations can derive both cost
advantage and value addition from it. As organizations mature in their experience with outsourcing,
bundled outsourcing is fast emerging as a strategy to improve top line growth opportunities and
increase bottom-line savings. Today, BPO is transforming into Business Process Management(BPM)
and strategic partnership.
Optimum Value
and Cost Benefit
Data Entry Customer ServiceBack Office Analytics & CRM Specialized
Reporting Services

Social Media
Strategic Partnership
Platform Based / On Demand
Cost Advantage

Business Intelligence

eCommerce

Web Services

Revenue Management

Mainframe Systems

CRS

Value InterGlobe Technologies Ltd. 2013: www.igt.in

Creation
In the present scenario, managers have to re-assess the scope of activities performed by external
vendors to leverage synergies by consolidation of outsourced services. They have to look beyond the
myopic silos of business transactions, IT applications and infrastructure and take a holistic view of
business processes that includes all components. Such a re-assessment will enable organizations to
make IT accountable for its contribution to the overall corporate profitability, while reducing hand-offs
and eliminating disconnects between departments and external service providers. Companies cannot
afford to fix processes and IT systems one at a time, rather by putting business processes at the
center stage of all outsourcing including IT, corporations gain the ability to innovate, reenergize
performance, and deliver value that todays market demands.

Adopting Integrated offshore outsourcing will enable organizations to make agile course corrections,
embed Six Sigma quality, and reduce costs while improving productivity across the value
Chain.

3. Value Proposition for Integrated Outsourcing

The value proposition for Integrated IT & BPO Outsourcing includes:

Reduced Total Cost of Outsourcing

Realize financial benefits of more than 15% by utilizing integrated service providers.
Organizations can utilize these lower cost skills as well as the savings that have been generated
to drive applications standardization across various business organizations and process owners.

Reduced Operating Risk

Mitigating potential risks for failure. Options to use a variety of service locations such as near
shore, follow-the-sun, in-country and other options depending on what the business requires and
the firms risk profile.

Faster Time to Market

Integrated service architecture leads to reduced time to market for organizations product and
services.

Enhanced Knowledge Management

Cross functional knowledge sharing leading to lower turn around time.

Standardized Operations
Unified delivery, document management and governance process

InterGlobe Technologies Ltd. 2013: www.igt.in

4. The IT BPO Integration Roadmap:
Adopting a Partnership Approach

In traditional client / supplier relationships, the primary focus is generally on cost or price. Moreover,
organizations often perceive a lack of trust with the service provider which can jeopardize the success
of the overall engagement.

When adopting a multisourcing model, the development of a partnership relationship between client
and supplier, based on trust and focused on mutual business outcomes is essential. This model
requires organizations to adopt a new attitude toward service providers as strategic partners and as
business partners with experience, skills and assets that can be harnessed to create competitive
advantage. Service providers, in turn, must work to better align their services to their clients unique
needs.

The Right Measurement Tools

Effective measurement techniques are critical to establishing a trusted partner relationship between
clients and service providers. A common problem in traditional sourcing relationships is that often
Service Level Agreements (SLAs) just measure incidental items that have no bearing on business
outcomes. The result is that the organization cannot ascertain whether it is getting value for money
and is unable to prove to management that it has made a good decision to outsource.

Adopting a multisourcing model therefore requires a new discipline to measure and monitor the
performance of sourcing relationships.

Supplier Management Skills

One of the hardest parts of moving to a best-of-breed outsourcing approach is managing the
process. With this model, one sourcing relationship is not autonomous of another and numerous
service providers depend on each other and on internal services to reach goals. Managing multiple
suppliers is much more complicated and demands a new set of skills and management techniques.

To effectively cope with these new challenges, organizations need to develop a coherent plan for the
ongoing management. This includes re-evaluating the roles and responsibilities of in-house personnel,
building up internal skills to track the performance of the outsourcing contract and developing
techniques to assess whether value is being delivered.

Collaborative Innovation

Through the partnership approach, regular exchange of ideas and benefit from each others insights
outsourcing partners can help clients achieve new business outcomes and be a collaborative partner
in innovation process.

InterGlobe Technologies Ltd. 2013: www.igt.in

Introduction Part of Indias largest Travel
Conglomerate InterGlobe
InterGlobe Technologies (IGT) is a leading BPO & IT Enterprises
Services provider committed to delivering innovation Established in 1998
and business excellence for the travel, transportation Over 5000 travel professionals
and hospitality domain. Ranked amongst the Worlds 10 state-of-the-art delivery centers
Top 3 Travel Technology Solutions providers, the Focused expertise 100% revenues
company offers integrated Application Development and generated from travel vertical
Maintenance, Call Center Services, Back Office Quality, Process & Metrics driven
Services, Consulting Services and Solution Frameworks organization
to the travel industry worldwide. ISMS 27001:2005 certified
IT Organization assessed at CMMI
IGT is part of the InterGlobe Enterprise Limited, one of Level 5
the worlds largest travel conglomerates based in India. BPO Practice ISO 9001:2008
With 10 state-of-the-art delivery centers across the certified
globe, IGT employs over 5000 travel industry experts P-CMM Level 3 certified
and maintains one of the largest TPF resource pools in BPO Practice PCI DSS 2.0 certified
the globe. IGT through its innovative solutions and BPO Practice COPC standard
services offers a unique value proposition in terms of version 4.4
accuracy, quality, flexibility and cost savings to a large Six Sigma rigor for process
number of Airlines, Travel Management Companies, improvements
Hotels & GDSs. Global delivery model to service
clients across 5 continents

InterGlobe Enterprises is a leader in aviation and travel related services growing the market
through innovation and service leadership. Established in 1989 with headquarters in Gurgaon
today InterGlobe has a network of 126 offices across 59 cities globally. InterGlobe employs
more than 12,000 professionals across its businesses

Aviation Travel, Technology and General Aviation Services Hotels

InterGlobe InterGlobe InterGlobe InterGlobe InterGlobe InterGlobe

Aviation Air Technology Technologi Established Hotels
IndiGo Transport Quotient es Exclusive JV with Accor
Indias Largest Distributor for Integrated partnerships to build Ibis
Largest & airline Galileo and BPO and with Hawker hotels and to
Fastest manageme Worldspan travel IT Beechcraft, manage Accor
growing low nt company GDSs solutions Sikorsky brands in S.
cost carrier in India in India and Sri provider for Helicopters & Asia
Lanka global clients Dornier Sea
Planes

InterGlobe Technologies Ltd. 2013: www.igt.in

IGT Services Portfolio

Drawing upon its rich experience of working with airlines, hotels, cruises, car rental companies,
GDSs, travel management companies and travel portals, IGT provides efficient and high quality
customized solutions & services in a costeffective and timely fashion.

End to End service offerings ranging from simple to

highly complex processes

IGT offers an extensive portfolio of travel industry-specific operational and technology

services. IGT ranges from meeting transactional needs to providing process
management services where complex decision-making and keen judgment is required.
This drives a commitment to client excellence as well as process excellence.

InterGlobe Technologies Ltd. 2013: www.igt.in

InterGlobe Technologies (IGT) is a leading BPO & IT Services provider committed to
delivering innovation and business excellence across the entire spectrum of the travel,
transportation and hospitality domain.

The company offers integrated IT-BPO services comprising of Application

Development and Maintenance, Contact Center Services, Back Office Services,
Consulting Services and Solution Frameworks to the travel industry worldwide.

InterGlobe Technologies Pvt. Ltd.

InfoTech Centre, 2nd Floor
14/2, Old Delhi-Gurgaon Road
Dundahera, Gurgaon 122016
Haryana, India

T +91 (0)124 458 7000

F +91 (0)124 458 7198
www.igt.in

InterGlobe Technologies Ltd. 2013: www.igt.in