And finally BPO gets to see the first successful ‘T' of the BOT Model

On January 1st 2007, in what has been the first and largest transfer in the history of Business Process Outsourcing, 24/7 Customer transferred 1600 employees to AVIVA as part of a BOT agreement signed in 2003. This is one of the earliest and the largest BOT arrangements in the Indian BPO industry. The successful transfer this year has proved that if planned and executed well, Build-Operate-Transfer can be a successful model in the Business Process Outsourcing industry. The most important question that industry watchers have asked about the BOT model has been less about Build & Operate and more about the ‘T' of the BOT. “Will the Transfer really happen?” is the most frequently asked question. The AVIVA Transfer more than answers this.

The transfer was a result of a well laid out plan mutually agreed upon in 2003, when Aviva, the world's fifth largest insurance group, started their off-shoring journey with 24/7 Customer in India. The legacy and leadership position of Aviva in insurance combined with 24/7 Customer's expertise in BPO enabled both partners to pioneer a new model of partnership in its true essence and build a model center of excellence.

Highlights of the Aviva BOT

The relationship began nearly four years ago in 2003. A four-step structured process facilitated the entire process starting with clearly defining the end objectives of BOT engagement. Operations commenced with 49 advisors for one process out of Bangalore in 2003 and scaled to 1600 advisors in 2007 handling 18 processes. For Aviva, 24/7 Customer created the core management team, hired and trained 1600 employees and operated the center adhering to quality and performance for close to four years. In this collaborative model, both partners worked closely during the operative phase to inculcate the corporate philosophy and values of both companies. Employee satisfaction and leadership scores were among the best in the industry. Within 18 months of the BOT relationship commencement, the Aviva-24/7 center in Bangalore became the model center of excellence across Aviva's worldwide network.

Challenges and Drivers for a Successful Execution

The BOT model comes with its own set of challenges and it is important for both the client and the service provider to understand these. Executing a BOT is not everyone's cup of tea. Some service providers have turned away from the model as they view the “transfer” part as a loss of business and intellectual property. Having pioneered the BOT model in Business Process Outsourcing, 24/7 Customer is able elucidate some of critical factors for success as follows:

Clarity of end objectives: Defining the end objectives of the BOT at the beginning of the relationship in terms of people, processes, performance, financial structuring, maturity and timing of transfer are critical for its success. This provides the clarity that is essential to create the end state of the business and hence align the entire operations.

Executive Sponsorship: A BOT model requires a high-level commitment, conviction and active participation from the client management team to make it a success.

Partnership & Alignment: A clear distinction and identification of roles and responsibilities between the client and the service provider and alignment of the corporate philosophy and values is critical to the success of the BOT model. Both partners should remember and adhere to the objective and the vision of the partnership during the entire phase of the relationship.

Scale: A BOT model requires a certain scale for the client to be able to reap the benefits from it. A typical scale would mean a minimum of 1000 people.

Strategic Fitment: It is important for outsourcers to examine all strategies and decide on the one that best fits their global sourcing strategy. Every model presents its own set of challenges and advantages. What is important is the service provider's ability to understand the client's requirement, domain expertise and flexibility to offer the right-fit solution. Above all, a clear commitment and road map to implement and finalize the agreement as originally planned is critical.

Without taking into consideration all these factors, 24/7 Customer's engagement with Aviva would have well remained and operated as just another third party BPO model, without a transfer really being effected. What has stood out in this ‘Transfer' has been the effective and seamless knowledge and process migration that enabled Aviva to assume full ownership of its centre with zero hiccups. Today, the Aviva centre in Bangalore continues to enjoy high performance results and low attrition rates. With the successful execution of the ‘T' phase, 24/7 Customer and Aviva have truly pioneered the industry's “first” highly successful BOT model, in its entirety.