AuxiCogent to expand BPO operation
Mahavilachchiya a role model:
by Surekha Galagoda
AuxiCogent International (Pvt) Ltd, the BPO operation under the JKH
umbrella has just concluded a contract with a client based in USA for
500 seats (the BPO industry pays by the seats).

Ronnie F. Peiris |
In six weeks we hope to start the operation with 40-60 persons and
ramp up to 500 within 6-8 months, said Group Finance Director John
Keells Holdings PLC J. Ronnie F. Peiris.
He said, "we are confident that the manpower can be found within the
next 6-8 months with the support and help of our Shared Services office
Infomate and CSR initiative at Mahavilachchiya, a model BPO. They have
to be trained and we are happy to do that." He said that the success of
the first step gives us the impetus that this model will succeed.
Some challenges are difficult to solve on our own. Therefore we will
need the support of officials in the government sector to solve these
issues. From the JKH point of view this is an element of an overall
strategy, the first step towards establishing a Business Process
Outsourcing (BPO) industry.
One of the reasons we chose the BPO industry was because Sri Lanka
has the critical success factors for a BPO industry to flourish such as
the supply of quality manpower, particularly in the finance and
accounting fields. We may not have the numbers as in India but we
certainly have quality in the limited numbers we have.
JKH looked at the numbers and the quality and decided to engage in
areas we can optimise the return on the limited supply that is available
in Sri Lanka in accounting. In Colombo there is a fair number but out of
Colombo it is very low.
We then realised that the whole success of the BPO industry was not
only based on having these higher level analytical people but also
having more people who are good but may not have the analytical
knowledge but who are able to support the analysis - people who can be
entrusted with a fairly regular process be trained in that process and
ultimately be good in that process.
You have the analytical people who are supported by the processes to
give out the information. These are the repetitive processes, which are
important for the success of outsourcing. You can do outsourcing in many
forms. The most common form is to do a repetitive process where they
analyse them and up the process which results in efficiency levels
increasing by the day, he said.
JKH has a shared service named Infomate Ltd that employs 70 energetic
people who are either following accountancy examinations or are
graduates. They provide accountancy support to all our 70 companies.
This venture was started two-and-a-half years ago. Our companies were
used as a guinea pig to understand the pros and cons which helped them
to develop their skills. This is a parallel step towards entering the
BPO industry. In BPO we talk to International competitors.
He said that "we at JKH don't market a product unless we are
confident and can satisfy the customer. Therefore, it would have been
foolhardy to do it two-and-a-half years ago without having the
experience in that area. But now with all the experience, we are
confident that we can match to international standards".
He said the opportunity we came across in Mahavilachchiya was
glorious and in this day and age where connectivity was not a problem.
If people are skilled or they have the potential to be trained then they
can be trained. There is nothing magical about these skills as anybody
with O/L or JSC can be trained.
The youth of Horizon Lanka Foundation from Mahavilachchiya have the
yearning to succeed but lacked the opportunity. Therefore we were happy
to give the opportunity for them to go forward. When we get involved we
do it well, that has been the JKH policy.
We got the COO of Infomate involved and gave an incentive to the
students during the training period. Now we pay them on a per
transaction basis and we have got a tracking mechanism.
It is working extremely well and we are confident that we can expand
it quite rapidly. It is not only a part of our business plan but also it
enmeasures with our CSR objective.
We at JKH firmly believe that for CSR to succeed there should be a
sustainable development. For this to be a reality it should get linked
to your business otherwise it becomes philanthropy. We try to make it a
part of our business so that with the growth of our business they also
grow, he said.
For example we have the ginger farmers producing ginger for the CCC
ginger beer. Similarly at Walkers Tours we arrange financing and all the
people own the vehicles and they work for the various people we bring
in. it is a sustainable development. Similarly in the BPO industry this
is also fitted with the sustainable development program.
This showed that a massive potential exists in the country and if we
can extend it to the East where there are well-educated English-speaking
youth it will help solve a lot of problems in that area. The BPO
operation is based on labour arbitrage and the cost difference between a
low level accounts clerk in USA and Sri Lanka are 11:1.
He said the working ethics and culture in Sri Lanka are very high and
strong, though modernism has to some extent eroded it. Therefore if we
are really keen we can expand the BPO operation, he said.
We are no grumblers and we see and look for opportunities at every
point, he said.
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