The offshore BPO industry has matured considerably and third party service providers have become increasingly resilient with the larger ones acquiring scale and stability. With the emergence of various alternate models, the captive model, originally motivated by lack of industry maturity, is looking somewhat unattractive owing to its inherent inefficiencies and higher cost structures. Even as third party players have augmented their process execution competence, there is still the issue of ensuring control given the apprehension about privacy issues, legislative compliance, pressures from governmental agencies and even customer concerns. It is in this context that the partnership model of BPO operation is gaining prominence to becoming the preferred offshore BPO model. By using this means, India, companies could access all the benefits of a third party model and at the same time ensure control by virtue of their stake. We feature the partnership between Client Logic and ITC Infotech who collaborated to form CLI3L, a joint venture company that imbibes the best practices from its parent companies.
Client Logic is a BPO provider in the contact center and fulfillment industry. It is among the top 5 global contact centers with over 140 million customer interactions in 2003. It is a subsidiary of Canadian company Onex Corporation and has over 19,000 employees. In 2003, Client Logic began exploring having an offshore presence, prompted by customer pressure and competitors who already had an offshore strategy. The company evaluated two destinations- India and Philippines- as candidate destinations. India , with its vast pool of English speaking professionals and lower costs, emerged as the preferred offshore destination.
Once the offshore destination was decided upon, the next decision was to decide upon the model of off shoring. Client Logic's business proposition had various elements favoring a captive strategy such as scale and high degree of control requirement. At the same time, the company lacked the critical India experience required for a captive model. |