Comprehensive Standards for the

BPO / Data Centers

Asia Pacific
Asia Pacific

Todays agenda
The Business Case
Popular and emerging standards
Applicability
Content
Limitations

Discussions / Q&A

Asia Pacific

The conventional Outsourcing

argument

Free up internal resources for other purposes

Reduce and control operating costs
Improve company focus
Leverage on world class capabilities

Asia Pacific

The real case for outsourcing

Competitiveness
Developed countries and business entities have to market their
products in a competitive way to different countries to remain a
developed country / sustain growth.
The developing country and business entities, to transform into a
developed country, has to market its products to other countries in
a competitive way.

The three dimensions of competitiveness

Quality of the product
Cost-effectiveness
Product is in the market just-in-time

It is not about Exporting Jobs. It is about

Importing Competitiveness

Asia Pacific

Factors affecting International

Competitiveness
Multidimensional
Three main factors
Country Specific
advantages
Technology
Financial
Infrastructural Status of economy
vis--vis competitors

Industry Specific advantage

Fiscal and Monetary policies

Enterprise Specific
advantages
Asia Pacific

Where does The Philippines stand?

Asia Pacific

So which are the key Asia Pacific

Markets?

Characteristics

Markets

Mature

Unique

Hong Kong
Singapore
Japan
Australia
New Zealand
Korea
Taiwan

China

Developed
Logistics
High Competition
High Service
levels
Lead time
pressure
Lower Growth

Rapid
Development
Undeveloped
domestic
Increasing
service levels
High Growth

Mid-Level
Malaysia
Thailand
Indonesia

Philippines
India

Developing
sophistication
Increasing
competition
Increasing
service levels
Varied Growth

Developing
Sub-Continent
Vietnam
Cambodia
Laos
Myanmar
Etc

Poorer
infrastructure
Lower
competition
Customs
Ownership
Issues
Asia Pacific
High Growth

IT Outsourcing Market attractiveness

(Source: Gartner)

Is there a branding opportunity here?

Asia Pacific

Focus of existing Models / Standards

Model / Standard

Focus Area

ISO 9001

Quality Management

CMM for Software, CMMI

Software / Systems Development

People CMM

Workforce Development

SS 507

Business Continuity / Disaster Recovery

Six Sigma

Data-driven Decision Making

ISO 20000(BS 15000 / ITIL )

IT Service Management

COPC

Customer-Centric Service Delivery

ISO 27001 (BS 7799-2)

Information Security Management

eSourcing Capability Model

Sourcing (Service Providers / Clients)

Asia Pacific

Standards and Models in the BPO space

No dearth of models and
standards
Limitations:
Do not address the entire
sourcing process
Do not readily provide methods
to appraise capabilities and
provide guidance for
improvement in IT-enables
sourcing services
Emphasize a level of structure
that is either too flexible or too
rigid
Asia Pacific

Popular Standards in the BPO industry

ISO 9001:2000
International Standard issued by ISO
Generic in Nature
Global Acceptability
Needs Domain-Specific Supplementary Interpretation
Guidelines
BPO relevant issues of Information Security, Service
Continuity, Performance Metrics, Relationship
Management need to be additionally considered

Asia Pacific

Popular Standards in the BPO industry

COPC 2000 (Customer Operations Performance Center)
Standard issued by Consortium of Users and Suppliers
Standard based on Malcolm Baldrige Criteria and
addresses issues related to Leadership, People,
Processes and Goals (Defines Performance Matrices)
Domain Specific (Contact Centers & Fulfillment Centers)
High Resource and Certification Cost Requirements
Does not address complete life cycle phases
Training, Support and Certification controlled by COPC

Asia Pacific

Popular Standards in the BPO industry

ISO 27001:2005 (BS 7799-2)
Standard released by ISO originally a British Standard
Scope: Information Security Management System
Addresses Security policy and Deployment, Risk
Management, Business Continuity and Disaster
Recovery, Incident Management, Legal compliance and
IPR Issues
Independent Third Party Certification Mechanism

Asia Pacific

Information is an asset

Information is valuable

Motivation
for ISMS
Information can exist in
many forms

Assets need to be safeguarded

Information Security Safeguard
levels
Product
Process
Management System
Information Security system to
preserve

of Information.

Can a CEO confidently tell the board that the organization

is reasonably well protected from Information Security Lapses?
Asia Pacific

Popular Standards in the BPO industry

ISO 20000-1:2005 (BS 15000-1)
Standard released by ISO originally a British Standard
Scope: IT service Management
Independent Third Party Certification Mechanism

Asia Pacific

ISO 20000 framework

Business
Business
Requirements
Requirements

Manage Services
Management
ManagementResponsibility
Responsibility

Customer
Customer
Requirements
Requirements

Other
Otherprocesses
processes
e.g
e.gbusiness,
business,
supplier,
supplier,customer
customer
Service
ServiceDesk
Desk

Other
Otherteams
teamse.g.
e.g.
Security,
Security,
ITITOperations
Operations

Customer
Customer
Satisfaction
Satisfaction

ACT
ACT
Continuous
Continuous
Improvement
Improvement

Request for new/

Request for new/
changed
changedservice
service

New
Newororchanged
changed
service
service
CHECK
CHECK
Monitor,
Monitor,
measure
measureand
and
review
review

PLAN
PLAN
Plan
Planservice
service
Management
Management

DO
DO
Implement
Implement
Service
Service
Management
Management

Business
Businessresults
results

Other
Otherprocesses
processes
e.g.
e.g.business,
business,
supplier,
supplier,customer
customer

Team and people

Team and people
satisfaction
satisfaction

Asia Pacific

Popular Standards in the BPO industry

SS 507:2005
Singapore Standard likely to transition to ISO
Addresses Business Continuity and Disaster Recovery
targeted at BC/DR Service Providers
Companion Standard TR 19 targeted at Business
Continuity Management
Few certifications outside of Singapore
Key focus area in most emerging Standards

Asia Pacific

Popular Standards in the BPO industry

P -C M M F ram e w o rk
A s s e s s w o rk fo rc e
m a n a g e m e n t c a p a b ility

B u sin ess
O u tco m e s

S e t p rio ritie s fo r
im p ro v in g w o rk fo rc e
m a n a g e m e n t c a p a b ility

B ecom e an
e m p lo y e r o f
c h o ic e

In te g ra te im p ro v e m e n ts in
p ro c e s s a n d w o rk fo rc e
B rin g H R & th e b u s in e s s
to g e th e r to d e v e lo p th e
w o rk fo rc e

A v o id in g
T urnover

C en tr a l Issu e s

H ave and
e n a b le th e
ta le n t re q u ire d
to e x e c u te
y o u r b u s in e s s
s tra te g y

S u p p o r tin g P e o p le in
O r g a n iz a tio n a l C h a n g e

People CMM A framework to address People Centric Issues

Asia Pacific

Popular Standards in the BPO industry

eSCM-SP (eSourcing Capability Model for
Service Providers)
Model developed by ITsqc at Carnegie Mellon
University
Scope includes all BPO services
Addresses all Life Cycle Phases
Independent Third Party Certification
Mechanism
First certifications 2003

Asia Pacific

eSCM-SP v2 Best Practices Model

84 Best Practices
Example Practice Statements (High Level)
Establish and implement procedures to meet security
requirements
Assign roles and responsibilities to personnel based on
appropriate personnel competencies
Establish and implement procedures to track and control
changes to the technology infrastructure
Identify, control and provide the information that personnel
need to perform their work.

Requirements and Guidelines covered in next levels

Asia Pacific

Comparative Model Coverage

(Source ITSqc, Carnegie Mellon University)

eSCM-SP

CobiT

ISO 9001

BS 15000

CMMI

COPC

Knowledge
Management
People
Management
Performance
Management
Relationship
Management
Technology
Management
Threat
Management
Contracting
Service
Design &
Deployment
Service
Delivery
Service
Transfer

= fully

= largely

= partially

= not covered

Asia Pacific

Which Quality Model to use?

Addresses the user-specific
quality issues
Encourages organizations to
implement adequate QMS
Allows integration with other
standards
Easy accessibility to certification
process and agency
Credible Certification Program
Cost Effective
Asia Pacific

The need for standards

It may be years before it becomes
clear how much benefit companies
get from outsourcing.
In the meantime, expect a lot of trial
and error.
Source: Is outsourcing On the Outs?
Business Week Online, Oct 4, 2004

Intelligent use of Standards help mitigate the

risks in an outsourcing relationship
Asia Pacific

About UL
UL Background:
110 year old, independent not-for-profit
Conformity Assessment Body with a global
presence
Unparalleled expertise in standards
development
Evaluated millions of products and business
management systems across the globe
Participated in development of ISO 9001, ISO
14001 & QS 9000
Integrity hallmark of ULs existence.
UL Mark
Recognized & Trusted by the public, clients, their customers
as well as regulatory authorities.

Asia Pacific

For further Information:

JC Sekar
Asia Pacific General Manager
Management Systems Registration
Services
Tel: + 65 9125 4695
Mail: JC.Sekar@sg.ul.com
Fredrick Sy
Asia Pacific General Manager
Knowledge Solutions
Tel: +63917-536-5360
Mail: Frederick.C.Sy@hk.ul.com

Asia Pacific