A case study of Desi Crew
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BP
O
3.0
DESICREW SOLUTIONS (P) LTD
Uma ShankarKrishna TejaMali SundaresanNeerad Kumar
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Background• Started in 2005 by Saloni Malhotra as a test project
sponsored by Ashok Jhunjhunwala's TeNet group from Indian Institute of Technology, Madras.
• Connected the three dots in her head, ‘rural’, ‘business’, and ‘technology’ to give rise to The DesiCrew Solutions Pvt Ltd.
• Incubated by RTBI* of IIT Madras.• Tried different models on a basis of trail and error• The ‘kiosk’ based model• The franchise model• The final model
• Registered as a Limited Company in 2007.
*IIT Madras did not have a formal incubator at that time. It is now called RTBI
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The Need for a “Rural BPO”Market Need: • Alarming industry statistics of almost 100% attrition levels.• An outcome of cost cutting exercises.• Social pressures (especially in case of women).
• Insufficient marginal salaries to sustain themselves in cities. • The decentralized DesiCrew model seeks to fill this workforce gap.
Social Need: • OECD estimates indicate 130 million educated workers in rural India with little or no access to meaningful employment. • Migrating to cities is their only option. • DesiCrew aims to leverage this potential of rural India.
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A Rural BPO?!PERCEPTIONS FACTS
Availability of talent in rural areas.
• Production staff, middle management and support staff.
The industry is already employing 60% of the staff from rural areas.
Infrastructure For the first time rural India has over taken cities in internet usage
Lack of Workable models Outsourcing is a very well established and a very commercial one at that : It’s easy to pick the model and replicate in a smaller area.
Rural BPO can’t do high end data entry and time sensitive work
From multimedia to plotting maps, It’s all possible with adequate training.
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Statistics• 8.5 lakh jobs created by IT/BPO sector in Q1 of FY 2010-11.
(source: NASSCOM)• 60% of employees come from tier 2 and tier 3 towns.• 60% employees are women.• Almost 60% attrition on an average in the industry!
1991 2001 2011
73.1 80.3 86.62
44.759.4
75.02
Literacy Rate %
Urban Rural
Area Rural Avg.(%) Urban Avg.(%)
Logical Reasoning
70.5 73
Analytical Ability
68 70
Language and communication
65 80
English 59.8 70.1
Maths & Science
53.5 55.2Source: India.gov.inSource: NASSCOM
BPO related skills study
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PHILOSOPHY
Vision:• To expand economic geographic boundaries by leveraging local talent pools to provide a competitive advantage to customers.
• A double bottom line (financial and social development), connects global clients with low cost back office centres in rural India.
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The DesiCrew Model
Rural, Educated Unemploy
ed
D Touc
h
Crewmate
D Touch – Training Program District Level Training Centre:• 25-seater Training Center• Batches of 3 months• 50 people/ batch
• a minimum of 12th pass and basic knowledge on computers to be considered for employment
• The candidates are selected based on a screening test.
Serv
ices
as
an
em
plo
yee
in D
esi
crew
Valu
e, C
om
pete
nce
, Skills
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The DesiCrew Model
Clients DesiCrew
DC2
Crewmate
Crewmate
DC2
Crewmate
CrewmateDC2 – DesiCrew Delivery centers
Services(completed Projects)
money
Distrib
uted
wor
k
mod
ules
,
Mai
nten
ance
of
cent
er
Finished
modules
Salary+ training
Services
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• A distributed operations model, whereby the Chennai office acts as the interface between the client and the rural centers. • Rural delivery model is a network of micro-centres strategically selected across rural and semi-urban locations.• Each centre is professionally run with a 25 seat facility working in 2 shifts to provide back-end services to global clients.• Locations of the micro-centres are identified in those territories with a population in the range of 10 to 100 thousand.• The workforce manning these centres is built up by training the educated but under employed.
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Advantages
• Lower costs for clients as overheads (operating expenses) at these centers are far cheaper as compared to the urban counterparts.• the client gets a cost advantage of up to 40% of their current
costs.
• Creation of computer based/ knowledge related jobs in communities where there are no similar jobs.• Lower attrition rates for the industry• The employees are far more rooted, in fact 70% are women.• Thus more loyal and happy workforce and better quality work
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Scalability
• Yes the model is scalable.• Secondly, there is competition now.• A lot of others started similar distributed models– Which validates
the model in a sense.
• More and More BPOs are looking at Indian customers.• ‘The Global Delivery Model’ doesn’t always work.
• Indian companies offer 1/3rd of what foreign companies are willing to pay.
• So many are experimenting with the model – the Tatas, Wipro, Aditya Birla Group etc.
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Source: www.desicrew.in
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•They handle clients from Insurance, Market Research, Internet, Mobile, E-Governance and Social sectors
• The services offered: Generating, Populating and Moderating content, Digitization, Data Entry, Mailroom activities, Secondary Research, Translation, Beta testing of web products Website monitoring, et cetra.
SERVICES
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REACH• 5 centres and a new center recently established in Kaup, Karnataka.
• 250 strong workforce
• Across 2 states- Tamil Nadu and Karnataka; signed MOUs for setting up new centers in 22 districts of Andhra Pradesh
• 21 clients in all, and 40 plus completed projects
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Challenges
• Perception about Rural areas
• Infrastructure bottlenecks in Rural areas
• Competition in the BPO market
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IMPACT
Source: www.desicrew.in
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50 seats
1000 companies
100 people
720 Cr per
annum
RS 6000/-
per month
per person
72 lakh PA per village
IMPACT
=This infusion of money into the rural areas, is what we call ‘creating wealth at the bottom of the pyramid
Source: Talk by Snali Malhotra at TEDx 2011
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AWARDS
• BID Challenge India
• Sankalp (Highly Scalable Social Model)
• FICCI FLO (Best Woman Social Entrepreneur)
• CII Seal of Appreciation
• The Mantham Award
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Thank You