Business Plan for BPO Company in Kenya

1) What is a Call Center?

2) Contact Center Location

3) Market Segmentation

4) The Customers

5) Market Landscape

6) Operations

7) Personnel

8) Finance

Business Outsourcing Markets

ITO BPO KPO

Business Process Outsourcing

Knowledge Process Outsourcing

Information Technology Outsourcing

• Software as Service
• Infrastructure as Service
• IT Cloud Services
• Data Center Management
• Software Testing Services

Business Process Outsourcing

• Contact Centers
• Customer Support
• HR Administration Services
• Telemarketing / Telesales
• CRM
• Data Entry/ Management

Knowledge Process Outsourcing

• R&D Services
• Telemedicine/Health Services
• Legal Process Outsourcing
• Graphical Design
• Marker Research
• Financial Data Research

BPO Overview: A Contact Center

What is BPO? What is a Contact Center?

A BPO (Business Process Outsourcing) is the externalization of non-cored services by

companies to other specialized and cheaper services companies in order to reduce
overhead expenses.

A Contact Center is a physical place where customers telephone, emails and other type of
communications are handled by an organization usually with some type of computer
automation. A company may provide inbound or outbound services to clients. Contact
Center services is one of the type of services within the BPO market.

Kenya: Country Facts

Capital: Nairobi

Population: 48.6 million (Census Bureau, 2016)

Area: 1.14 million square km (440,831 square miles)

Monetary unit: 1 Colombian peso = 100 centavos

Main exports: Petroleum, coffee, coal, gold, bananas, cut flowers, chemicals, emeralds,
cotton products, sugar, livestock

GNI per capita: US $7,780 (World Bank, 2015)

Internet domain: .co

Internet penetration: 58.6% of the population has access to the web.

International dialing code: +57

Kenya: BPO Market

BPO Overview

The National BPO association estimates that in 2015, the outsourcing sector sold US$ 1.9
billion and created 189.000 jobs.

- According to the latest study by the Productive Transformation Program (PTP), the
outsourcing sector can increase its sales between 2.9% and 9.5% in the next three years.

- During 2015, call center Spanish services represented 62.41% of the outsourcing sector
revenues followed by telemarketing and collections & billing.

- According to the Ministry of Education, in the last 14 years Colombia had 2.9 million of
graduates. 53.8% had tertiary education, 18.8% had technician or technological
education, and 19.2% had postgraduate education.

Latin America: COLOMBIA

Contact Center Location: Nairobi

Nairobi is the industrial capital of Kenya, and the largest business city in the country:

 It is located in the Department of Antioquia with 6.4 Million inhabitants in

2014

 Population of Medellin and tits Metropolitan Area is 3.7 Million

 Medellin in 2014 had a GDP per capita of USD 8.489

 Antioquia Area: 63,612 km2

 Medellin Metropolitan Area: 1,158 km2.

 Medellin has 51 thousands professionals enrolled in higher education courses.

 Medellin has a large BPO business base with high technological capabilities and
infrastructure. There is a large number of engineering and technical schools throughout
the Antioquia region.

TARGET MARKET: BPO Healthcare

Global healthcare BPO market size was valued at USD 15,084 million in 2014 and is
expected to grow at CAGR of over 10% over the forecast period.

Key drivers attributing to the growth of the market include increasing global geriatric
population, regulatory changes, rising healthcare costs, and the need to improve payer’s
operational efficiency and customer satisfaction.
BPO

The BPO Healthcare has a large variety of market components:

1) Accounts payable
2) Coding
3) Change Entity
4) Payment processing
5) Claim submission’
6) Patient follow up
7) Denial Administration
8) Payer follow up
9) Adjudication
10) Medical Transcript and
11) Enrollment

BPO Healthcare: Markets Segments

The BPO Healthcare is divided into 2 segments: 1. PAYERS 2. PROVIDERS

Specialization is needed due to the large number business practices or components within
the BPO outsourcing market.

The providers provide Clinics, Hospitals and Pharmacies

While the Payers Self-funded, fully funded and NHIF

Contact Center Specialization: Medical Billing & Collections

Claims/ Billing represent about 55% of the BPO healthcare market. It has annual CAGR
of 12-14%
Registration-Insurance Verification-Medical Records-Claims Submission and Billing-
Patients Pay Collection-Payment Review and Scheduling.

The ten step billing process

 Obtain detailed patients records from the physician

 Medical Records is verified and any mission information is reported immediately
 Documents are sent to medical coding departments to assign codes
 Medical records are verified and audited
 Patient account is created and sent to the data entry department
 Medical billing are entered for each code
 The claims are verified by the audit department prior to sending them to insurance
 Claims are sent to the insurance company of the client patient
 Follow up with the insurance company for accounts receivables
 Payment collections. Reconcile accounts and financial management

Contact Center: US Market ~ Client Landscape

The US payers and providers

Contact Center: Customers

The customer are to be concentrated in the USA, Canada and Africa.

SWOT Analysis

Strengths

Support from wide number of expert

Commitment from US GHEO management to support project
Ability to create a specialized and low priced service for Health sector

Weaknesses

Financing still in the fundraising stage.

Limited financial capacity to start operations
Lack of strategic relationships with potential customers.
No branding

Opportunities

Specialization in Health Sector represents an large opportunity for growth

Huge labor force at a reasonable cost will make company competitive in costs
Threats

Intensive competition of BPO sector in Colombia

Government incentives to end in 2017
Rising government volatility with the people’s rejection of new Peace Accord

BPO Main Players

The high performers

The winners circle

BPO IT Providers

Several

The Business Foundations

Vision

To share prosperity for all youth in Colombia

Mission

To be the world’s premier nonprofit supporting achievement in Higher Education in

Colombia

Values

Integrity
Education
Community Involvement
Excellence

Operations Stages

Idea
Concept Development
Business Plan

Concept Development
Business Registration
Grant requests
Secure Finance
Sales Development
Sales and Marketing Strategy
Recruitment of top management and team

Operation readiness
Establish business infrastructure
Hire and train staff
Secure investors

Launch
Start operations
Monitor performance

Contact Center: Services

What Services will the Contact Center Provide ? The Contact Center will provide a
combination of Healthcare Patient and Accounting related services:

PATIENT SERVICES

ACCOUNTING SERVICES
Scheduling / Appointment Setting (inbound / outbound)
Answering Service
Order Taking
Coding Services: - Document Scanning - Data Verification & Audit - Data Entry -
Content Development Services
Invoicing: - Invoice Generation - Invoice Submission
Claims & Billing: - Accounts Receivable & Payables - Claims Management: - Data
Collection - Debt Recovery Services

Finance