Business process outsourcing strategy in Asia–Pacific

The problem

A mobile operator in a South Asian country was looking to establish a joint venture with a leading business process outsourcing (BPO) provider to strengthen its BPO operations in-country and expand its customer base to benefit from expected growth in the market.

We were asked to manage the initial selection process by identifying and recruiting potential partners. Initially, we identified a long-list of partners, then short-listed these potential partners and conducted initial discussions with them.

Finally, we ran a set of management presentations with the short-listed partners and provided our recommendations on the preferred partners to be taken through to the due diligence phase.

The solution

We began by identifying a long list of potential partners, considering factors such as their previous involvement in joint ventures, their focus sectors and their target geographies.

We then conducted a site visit to the client’s BPO operations and prepared an initial information pack for circulation to the list of potential partners.

Following circulation of the initial information pack, we followed up with individual companies to qualify their interest, and subsequently provided a more detailed information pack to interested parties under a confidentiality agreement.

In parallel, we conducted a benchmarking exercise for similar deals and a bottom-up analysis of expected cash flows to provide our client with a range of valuations to assist them during any subsequent negotiations.

From the list of interested parties, we identified four potential partners to be invited to management presentations with our client and managed the presentation process at our client’s offices. Based on the management presentations, we recommended three parties to be taken through to the due diligence phase and provided our client with a detailed summary of the pros and cons of each partner for the future successful growth of their BPO business.

The result

Following the due diligence phase, our client entered into a joint venture with one of the three recommended parties. The joint venture partner selected was,  in fact, the company that Analysys Mason had highlighted as the preferred partner following the management presentations. The joint venture is expected to be strongly positioned as a leader in the growing BPO space in-country by combining a local established operation and customer base with the joint venture partner’s global expertise in running BPO operations.

The team

The Analysys Mason team combined regional knowledge from our offices in Singapore and Delhi with BPO / contact centre expertise to provide our client with a tailored solution which best met its requirements.

Both the project director and project manager have more than 10 years of experience advising clients across the telecoms and media spaces in making strategic and investment decisions. The team was complemented by a specialist BPO / contact centre expert who visited our client’s operations in-country to assess the current status. This expertise, combined with our extensive experience in supporting financial transactions and investments on both the buy- and sell-side, allowed us to effectively communicate with our client and potential partners from both a technical and investment standpoint and facilitate the successful creation of the joint venture.