CASE STUDY

IN
FUNDAMENTALS OF BPO 101

Submitted by:

Nayan, Bea Patrice S.

BSBA HRM 2-4D

Submitted to:

Mr. Bonifacio Echauz

S.Y., 2019-2020
Nayan, Bea Patrice S.

BSBA HRM 2-4D

Fundamentals of BPO 101:

CASE STUDY:

POINT OF VIEW:

Chander Prakash Gurnani or C. P. Gurnani is the CEO & Managing Director of Tech
Mahindra. His company provides Information Technology (IT) to different
telecommunications sector worldwide.

According to him, it is time to drive positive change by leveraging digital technologies

and building good relationships with other companies that have the same goals to
achieve. Serving others is our purpose. It’s time for each one of us to step-up,
collaborate and contribute towards the great India dream.

TIME CONTEXT:

April, 2019

HISTORICAL BACKGROUND:

Tech Mahindra incorporated in 1986 offers Information Technology (IT) services and
solution to telecommunications sector across the world.

Tech Mahindra is part of the $12.5 billion Mahindra Group, in partnership with British
Telecommunications plc (BT), one of the world’s leading communications service
providers. Focused primarily on the telecommunications industry, Tech Mahindra is a
leading global systems integrator and business transformation consulting organization.
Tech Mahindra has recently expanded its IT portfolio by acquiring the leading global
business and information technology services company, Mahindra Satyam (earlier
known as Satyam Computer Services).
Tech Mahindra’s capabilities spread across a broad spectrum, including Business Tech
Mahindra has successfully implemented more than 16 Greenfield Operations globally
and has over 128 active customer engagements mostly in the Telecom sector. The
company has been involved in about 8 transformation programs of incumbent telecom
operators.

Its client list includes big companies like British Telecom (BT), AT&T, Motorola and
Alcatel–Lucent are among others. BT is largest client that contributes 60% to its
revenues.

The company has received various certifications such as ISO 9001:2000, ISO/IEC
20000–1:2005, ISO/IEC 27001:2005, SEI–CMMI Level 5 P–CMM Level 5 and SSE–
CMM Level 3.

STATEMENT OF THE PROBLEM:

For the past four (4) years Tech Mahindra has been the service provider of HOOQ
Account. Tech Mahindra takes care of the customer service of HOOQ.

The contract made for service level agreements greatly favored the side of HOOQ and
this resulted to various and numerous disagreements in employee handling (e.g.
termination of employees without legal process)

Also, Tech Mahindra can no longer meet the standards set by HOOQ account.
Employees are often unable to pass metrics (performance indicators) and HOOQ has a
special language preference for their CSRs which makes it very difficult for the
employees of Tech Mahindra to comply.

AREAS OF CONSIDERATION:

STRENGTHS:

 Strategic partnerships
 Reduced dependence on European market
 Has a strong workforce of over 40,000 employees working on over 30 countries
  High brand recall and visibility being one of the top IT companies in India

WEAKNESSES:

 High Retention

OPPORTUNITIES:

 Increased in demand for IT solution in telecom service provider

 Acquisition of Satyam telecom gives visibility in more verticals

THREATS:

 Intense Competition
 A slowdown in IT spending
 Employee attrition

ALTERNATIVE COURSES OF ACTION:

A. Compromise. Try to save the account by re-visiting the contract and arrive at an
agreement. The service provider will facilitate training programs for their
employees to increase skills and productivity to meet the standards of the client.
And for the client, engage in specific education about multicultural awareness
helps to improve the team’s understanding of the service provider staff’s norms
and customs. Let the client do what it wishes to do and let the service provider
absorb the perineal problems both of them are facing.
Advantages:
 Increased job satisfaction and morale among employees
 Increased employee motivation
 Increased efficiencies in processes, resulting in financial gain
 Reduced employee turnover
 Enhanced company image, e.g., conducting ethics training (not a good
reason for ethics training!)
Disadvantage:
 If the service provider continues to allow working with a client like HOOQ, there
will still be a chance of having the same concerns since it has already been said
that from the very start both parties just could not get along and were not
compatible at all. Also, training programs are expensive. The service provider
may incur many more losses if training programs and seminars are conducted.
B. Do not renew the contract since there is only an existing problem which cannot
be solved and since the client has been very demanding regarding performance
of the service.
Advantage:
The problem is solved. The toxic relationship between the service provider and
the client is ended. The service provider could start over and focus on its other
clients. This could be the time to gain back all the company’s losses.
Disadvantage:
Any of the parties may be subject to bad reputation/image due to the incident.

CONCLUSION:

Clearly, in the case of Tech Mahindra and HOOQ, it is observed that Tech Mahindra
have not been able to overlook the possible problems that may arise when it let itself
get into agreement with a client with a different cultural background. This only tells us
that knowing the background of your outsourcing partner should be on top of the list of
the company.

Before considering getting into a contractual agreement with another company, both the
client and the service provider should have a better understanding of how and why such
contracts are established, before signing on the dotted line.

Those who are interested in writing a contract may also consult with an attorney prior to
it being finalized, as a way to help ward off any potential future misunderstandings.

Client problems are inevitable. But with a little preparation, you can prevent (or greatly
minimize) potential miscommunications and conflict before it happens. Both parties
should compromise. They should be able to understand what are their responsibilities
and roles.
 RECOMMENDATION:

B. Do not renew the contract since there is only an existing problem which cannot be
solved.

These two parties should stop renewing their contract since both of them could no
longer go into agreement. Tech Mahindra had already incurred a lot of losses and these
two parties have been experiencing the same concerns for 4 years. The client could not
adjust to the demands of the service provider and vice-versa. Besides, renewing the
contract would not bring any good in the part of Tech Mahindra.