Business Process Management

BEST PRACTICES
PLAYBOOK - PART I
November 2021
Foreword
The BPM industry in India is diverse in nature – comprising of organizations of different sizes catering to a
variety of verticals serving Indian and global markets. It is spread across larger metro cities as well as some
smaller towns. As an industry, we have more than two decades worth of experience and expertise and have
moved up the value chain – from cost arbitrage to being transformation partners for clients, taking care of their
critical front office, mid office, and back office business operations as well as offering insights to drive business.

As we develop new capabilities, adapt to continuous technology changes, and make ‘digital’ an integral
part of all our offerings, it is important that all organizations big or small should have the right tools, insights,
processes, and practices to achieve the highest level of quality and attain scale. This in fact is critical to ensure
that the industry grows at a faster pace and organizations across segments and sizes are able to drive this
growth.

The BPM Best Practices Playbook has been compiled together with a vision to share learnings from across
the industry in four areas (identified through interactions with many small and mid-sized players) that have
significant potential to drive impact on the business operations of the BPM organizations. Our hope is that,
the ‘actionable’ recommendations will help the BPM players enhance efficiency and effectiveness of these
functions as well as build strong, sustainable client relationships.

The first chapter about Hiring, Onboarding, and Upskilling focuses on making these functions more
streamlined, effective, and future oriented. The next chapter on IT Infrastructure Standardization provides
useful suggestions to create a seamless, secure, flexible, and scalable IT set-up that is cost effective, fulfils
compliance obligations, and fits client demands. The third chapter is about Robotic Process Automation
(RPA) and offers detailed insights to develop and execute successful automation projects. The last chapter on
Contract Management includes valuable guidelines on drawing up comprehensive and meticulous contracts
that not only work for the present but also have room to govern the growing collaboration between the service
provider and the client. Each BPM organization has its unique suite of strengths and opportunities. Our hope
is to strengthen them further by encouraging adoption of some of these best practices, most suited for each
organization’s specific context.

We hope to identify many more areas of impact and bring out the best practices for the industry in future and
ensure that the learnings are available to all for implementation as relevant.

Sukanya Roy
Head – BPM and GCC Initiatives, NASSCOM

2
Contents

1
Chapter 1
Hiring, On-boarding, and Upskilling – A Planned Approach 4
Authored by EXL and Concentrix

2
Chapter 2
IT Infrastructure Standardization – Need Of The Hour 18
Authored by Genpact

3
Chapter 3
Robotic Process Automation – An Exciting Opportunity 30
Authored by HGS

4
Chapter 4
Contract Management – An Effective Tool For Successful Client Engagement 48
Authored by eClerx and Mahindra Integrated Business Solutions (MIBS)

5 Acknowledgments 59

3
Chapter 1
Hiring, On-boarding, and Upskilling –
A Planned Approach
Authored by EXL and Concentrix

4
Chapter 1

The Indian BPM industry has been Key Challenges Faced by

evolving continuously since its inception the BPM Industry
over two decades. While the industry
• Customer expectations
has witnessed stellar growth, it has also
faced its share of hurdles. • Shoestring budgets
• Increasing number of customer
As work moved higher up the value
interaction channels
chain and the demand for digital-
backed solutions have started to • Employee attrition
increase, recruiting and retaining • Scarcity of right talent and
quality talent has become increasingly niche skills
important. Steep competition in
the industry also means that the
BPM organizations have to offer a
differentiated employee experience to
attract and retain talent. A 2018 study
commissioned by FICCI, NASSCOM,
and EY reported that by 2022, 60-65
percent of Indian workforce in the IT-
BPM sector would be deployed in jobs
that require significantly different skill
sets. At the same time, 97 percent of
the participants deemed reskilling the
current workforce as a key imperative.

A great employee experience starts

much before a candidate joins – the
Key Steps in the
entire sourcing phase needs to be
Hiring Process
well planned and thought-through to
create a positive brand impression as 1. Job Description Creation
well as facilitate efficient candidate 2. Recruitment Calibration &
screening. Similarly, induction, training, Strategy
and reskilling initiatives have to be
3. Sourcing Strategy
designed not only to serve business
needs but also to create an engaging 4. Assessment Steps
and enriching workplace. This chapter 5. Offer Rollout
covers the best practices in the above-
mentioned areas as well as information 6. Background Verification
on common job roles, role-specific
7. Onboarding and Induction
requirements, and relevant assessments
for them.

5
Chapter 1

Job Description
1 Creation

A detailed and unambiguous job description helps both the candidates and the recruiters to evaluate if they
are a good match for the position. A succinct introduction of the organization and the function will help set the
right context. Remember to call out all the USPs of your organization as well as the salient points about the
function to make a compelling pitch.

Important Details to be Included in a Job Description

Introduction of the Qualification Industry and domain

organization and the function requirement experience requirement

Classification of skills required Clearly defined ‘key

as ‘mandatory’ and ‘preferred’ responsibility areas’ (KRAs)

Recruitment Calibration
2 and Strategy

It is important that the operations and the recruitment

functions are aligned well when it comes to
recruitment requirements – number of candidates
to be hired, timelines, budgets, and the role
requirements, for the best outcomes. Thereafter, the
recruitment team can allocate an appropriate number
of in-house recruitment resources for the task, map
the target organizations, and finalize the sourcing
channels.

6
Chapter 1

3 Sourcing Strategy
Seeding
The sourcing channels can be selected based on the skills required
Strategy
and timelines – leverage several channels in parallel as necessary.
This strategy primarily
a. Job boards (for sourcing and job posting) works well when you are
b. Walk-ins pitching for a new business
c. In-house tele-callers or have less time to get the
d. Seeding strategy team ready for new work.
This strategy works well when you require people with For example, if you are
experience as a point of diffrentiation or quick transition pitching for a new stream
e. Referrals & internal job posting (IJP) of work on New Business
Having a robust and visible referral and internal job-posting
Submission in Insurance,
program with constant communication and reward structure
can be a viable and low-cost channel for sourcing. then seeding people with
f. Social media channels
experience in this specific
Use social media promotions to widen the reach in the market area will not only accelerate
place. These channels are also effective if you want to target the transition process but
specific demographics and skills.
will also become a point of
g. Specialized recruitment partners/Search firms
differentiation in the new
Specialized search agencies/partners can be used to aid your
own recruitment efforts. They are helpful in terms of creating pitch.
a pipeline of viable candidates based on their own screening,
especially when you have to recruit in large numbers.
h. Campus hiring
Strong campus relationships with universities through
strategic tie-ups and programs can be useful as they have a
ready pool of candidates, entering the job market every year.
You can select the institutions based on your requirement
– if you need to hire candidates with a specific subject
background such as technical skills and accounting, this
channel can be fruitful.

7
Chapter 1

Assessment
4 Process

Follow the four-step assessment methodology for screening candidates to hire the right talent. Customize the
assessments to suit specific needs.

Assessment Description

1st Level Conducted by in-house recruiters to check organization and role fitment.

2nd Level Performed using language assessment tools especially for testing voice skill.

1. Assessed for analytical skills, computer proficiency, typing skills, and data
handling ability – benchmarked against agreed upon skill sets.
2. Domain assessment conducted to evaluate the interpretation skills of the
3rd Level candidate across common operations parameters. For example, insurance
terminologies, basic rating calculation, subject driven interpretation requests
(for instance the difference between ‘increase premium by’ and ‘increase pre-
mium to’).

4th Level Conducted by hiring manager/operations/subject matter experts (SMEs)

8
Steps for Conducting an Effective Interview
a. Introduce the interviewer

b. Describe the interviewer’s role in the organization

c. Share an overview of the organization and of the specific The interview should aim at
department for which the hiring is being done gaining information about
d. Describe the role and outline the role expectations
the personality and behavior
clearly including the reporting structure associated with patterns of the candidate
the role and not only on testing the
e. Discuss the culture of the organization knowledge levels.

f. Conduct an in-depth conversation with the candidate

pertaining to – education, work experience, key
achievements (over and above what’s noted on the
resume), scenario/situation based questions

g. Keep the conversation engaging and make an effort to understand candidate’s personality and
behavior patterns based on the information shared in response to your questions – specific
examples from their experiences, challenges faced, lessons learnt, etc.

h. Ask if the candidate has any questions at this time on the role, organization, timelines, etc.

i. Close on a positive note with significant emphasis given to the organization and the brand,
irrespective of the potential outcome of the interview

Offer Roll
5 Out

Roll out the offer after document

verification pertaining to academic
qualifications, photo identity
proof, experience certificates
is completed, and the salary
negotiations are concluded.

9
Chapter 1

Background
6 Verification

a. Include key clauses in Master

Services Agreement, for example,
subcontracting clauses, verification
criteria, approved vendors, risk
appetite in case of partial fail
verification, and administrative cost
covering the additional verification
cost over and above the standard
verification.

b. Cover standard mandatory checks as

a part of hiring process as explained
below:

» Criminal database check -

This verification covers Indian
court databases (JUDIS) and
“world check” which covers
Organized Crimes, Sanctions
Screening, Countering the
Financing of Terrorism (CFT),
and Politically Exposed Persons
Monitoring (PEPs), Anti-Money
Laundering, OFAC, and more
than 750 other databases across
the world

» Highest declared education

» Employment verification - Last

one year of employment for the
front line hires and last 3 years
of employment for hierarchy
positions

In addition to the standard Background

Verification checks (BGV), additional BGV
checks can be conducted as per the
Master Services Agreement such as drug
test and address verification at an extra
cost.

10
Chapter 1

On-boarding,
7 Induction
On-boarding is an ongoing activity, not a one-time initiative.
The Buddy From the moment a candidate accepts an offer, a gradual flow of
System information should start to keep him/her engaged.

A buddy can answer Ideal Steps to Follow:

questions that any new a. Send a welcome email or set up a call before the joining
employee might have day, share details of Day 1 activities such as the session
without making him/ details and who will be conducting each of the sessions.

her feel like a burden. b. Conduct an in-depth orientation session.

Formalize the buddy » Include organization overview.
system by establishing » Acclimatize the new joiner with the organization’s
a meeting schedule and processes and policies during induction.
» Share reference guide with important contact
continue until the fresh
numbers to help settle the new joiner in the
hire becomes more organization.
comfortable with the job
c. Provide a welcome kit for new joiners along with branded
and begins to assimilate office supplies.
in the organization.
d. Assign a buddy if applicable.

11
Chapter 1

Break Down the

Training Modules into
Smaller Lessons
Sharing loads of information,
Well-rounded Introduction all at once, can overwhelm
new joiners and make it harder
All the relevant departments in the company should be involved
for them to take in lessons. As
in the knowledge transfer, each of them sharing appropriate such, it is advisable to break
information with the new joiners. The stakeholders should be down lectures into smaller
there to give an overview about the company, human resources sessions. Split the time spent
personnel should educate employees on the company on each skill development and
guidelines, while the team leaders or supervisors should be alternate it with breaks instead
of dedicating one whole month
tasked with taking care of the operational aspects of on-boarding.
to non-stop training.
The experienced team members should be in charge of helping
the new hires adjust to the work culture. All these activities should For example, in insurance
be completed within a definite timeframe. world, create customized
modules on types of work like
Commercial Auto, Commercial
Property, etc. or in Billing and
Collections, create specific
modules such as cash
application, disbursements, etc.

12
Chapter 1

Minimum Eligibility, Skills, and Job Roles

Minimum Eligibility
Eligibility criteria should be determined as per the Master Services Agreement. However, suggested below are
minimum requirements as per the Labour Law and the industry standards.

Age – 18 years or above

Category Requirement

International and domestic voice Preferably to be a graduate

Domestic back office Undergraduate with minimum 10+2 education

Experienced resource hiring Minimum 6 months of experience in domain

Availability of broadband connection at home to enable work from home as necessary.

Include an agreed percentage mix of fresher and experienced resources. An agreed percentage mix of
candidates with BPO and non-BPO experience can be hired, if the requirement is to hire domain specific
talent only.

Skills and Ability Requirements

The client and service provider must agree on skill
requirements. The standard operating procedure
(SOP) must contain the methodology of assessment,
type of assessment as fit for the contact channel, and
geography. Below are the standard checks, which can
cover skill and ability requirement.

• Excellent written communication in English

• Basics of computers and MS Office
• Excellent verbal communication skills (Only for
‘voice’ for non-scripted roles)
• Ability to multi-task
• Logical and analytical skills
• Multi-tasking skills
• Interpretation skills to be tested using scenario
based questions
• Assertive approach
• Persuasiveness and the ability to influence
(negotiation skills) for leadership roles
• Domain-specific skills, for example, Banking,
Financials, Insurance, Healthcare

In the new setting, keeping business continuity in mind,

having a broadband connection, computer, etc. in home
environment is becoming a critical ask during hiring
(subject to client approvals and MSA compliance).

13
Chapter 1

Skill Assessment
The Master Services Agreement should cover the contact channels and geographies to be supported.
Skill assessment can be customized as per the complexity of the work and the contact channels. Different
type of skill assessments are necessary for voice and back office roles. Described below are the minimum
requirements for these jobs.

Back office Voice

1. Typing test (Minimum - 35 words per minute 1. Online or digital tools that are available in the
and 100% accuracy) organization can be used to test voice and accent
skills. Language assessment scores can be agreed
2. Aptitude test (Passing score 50-60%)
in the solutions considering the complexity of the
3. Digital platform/assessment tool to test written process and geography. Minimum requirement
skill - grammar and sentence formation for international process can be set as the score
above 65 while for the domestic process the score
can be between 55-60
2. Mock calls
3. Additional process related assessment could be
clearly agreed on Master Services Agreement
considering complexity of the work and level
of understanding required for the frontline
colleagues.

14
Chapter 1

Job Roles

Technical Writing/
Business Analyst Instructional Designing
This profile is typically related to the knowledge As this is a specialized segment, certification in
process outsourcing (KPO) segment and the work instructional designing or technical writing, is
involves business or financial analysis of companies. required. Many companies are outsourcing content
This is a domain-specific profile and demands writing to India, and apart from technical writers,
relevant academic qualifications like a degree flash designers are in demand for these types of
in mathematics and statistics. Average to good roles.
communication skills are also required, as you will
need to interact with clients on a regular basis.

Financial Support Technical

Executives Support
These profiles are with banking and insurance This is mostly a specialized role, which typically
support sectors. A candidate should be a commerce requires a special degree or diploma; however, in
graduate with good communication skills. Exposure some instances, this requirement can be waived. The
to banking, finance, or insurance will be an added following are some of the specialized roles within
advantage. technical support category.

a. Hardware support
A candidate can be a graduate in any
discipline with a diploma in computers. Most
organizations offering hardware support will
Language train you on their hardware; however, you do
Specialists need a basic understanding of computers.

Candidates should have proficiency in foreign b. Software support

languages such as German, French, Spanish, and This is a specialized customer service
Japanese. segment that requires additional qualifications
like MCSE. Some institutes offer courses in C,
C++, which will also be good qualifications to
start with. The jobs in this domain are technical
in nature, for example, troubleshooting
operating systems.
Medical c. Network support
Transcription Requires the candidate to complete a
A candidate needs to be a science graduate. certificate course in networking like CCNA.
Communication can be average, as it does not
require interaction with clients, although listening
skills, good written English, and suitable typing
speed are necessary.

15
National Skills Registry (NSR)
An organization must avail of the "trusted sourcing" initiative by NASSCOM which offers an access to a national
database of registered and verified workforce for its member companies through "National Skills Registry
(NSR)". The database seeks to develop and hold a lifetime permanent profile for each person working in the
industry. Such profiles will be uniquely identified based on bio-metric and will hold credible data about each
industry employee including results of background check conducted by a professional third party on the
information of such a person. NSR is a web-based system hosting a fact sheet of information about existing
and prospective employees of Indian IT & ITeS / BPM industry. This database can be used by the IT & ITeS /
BPM industry and its clients as a credible source of information about the registered professionals.

NSR system has been designed in co-operation with the industry by collecting inputs from industry
representatives. Here are some key features of NSR.

• Central system • NSR empanelled background checkers

• Unique profiles (one person - one profile) • Standard background check processes
• Deterrence for professionals faking their profiles • Transparency of background check process
• Identity assurance • Permanent use of background check reports
• Data ownership & privacy • Online background check process
• Factual and objective data

The company can access further details at the National Skills Registry Website (www.nationalskillsregistry.com)
and join the National Skill Registry initiative.

16
Chapter 1

Upskilling & Reskilling the Existing Workforce

Due to the skills crunch and the ambiguous future of work considering increasing usage of AI and automation,
it has become imperative for organizations today to reskill and upskill their workforce to keep up with these
trends.

Ways to Upskill Employees

Businesses today must consider the skills that are in demand and show their employees benefits of acquiring
such new skills. Encouraging employees to learn additional skills requires a two-pronged approach:

1) Customized Courses
Organizations can develop customized learning c. Conflict management (For Team Leaders and
courses basis the ongoing technology changes and above)
business requirements via their Learning Department. d. Coaching skills (For Team Leaders and above)
Some of them can cover:
e. Acing an Internal Job Posting (IJP) (For all levels)
a. Leadership skills (For Team Leaders and above) f. Knowing your organization (For Frontliners)
b. Time management and stress management
(For all levels)

2) Certification and Licensing Courses

Organizations can encourage or develop domain- d. Underwriting and Claims certifications from
specific certification and licensing courses, which renowned institutes
help build these skills among employees. Acquiring
e. Six Sigma certifications
these skills can be advantageous for the entire
industry because of improved work-readiness and
employability of the employee base. Some examples
are given below:

a. Certified F&A Process for Frontline Associates/ Conclusion

Agents in Finance & Accounting BPM
companies People are key assets for any
BPM organization. Attracting and
b. CBQASM - Certified BPM Quality Analyst
covering below:
retaining right talent requires
coordinated and structured
» Quality overview and role of a Quality
Analyst
approach – creating appropriate
» Quality monitoring job descriptions, defining minimum
» Quantitative methods requirements, deploying optimum
» Improvement tools sourcing strategies, ensuring
» Project management and Change effective on-boarding, and
management investing in upskilling at regular
» Quality systems intervals are important strategies
» Auditing
for creating a sustainable
c. Certificate in Insurance (CII) is a core talent pipeline and a rewarding
qualification for insurance staff working across employee experience.
all sectors of the industry

17
Chapter 2
IT Infrastructure Standardization –
Need Of The Hour
Authored by Genpact

18
Chapter 2

Information Technology Infrastructure primarily refers Investing in IT infrastructure as per your need and
to an arrangement of computing and communication scaling it up as required, instead of incurring heavy
facilities and services needed to enable efficient expenditure upfront, is critical. In this context, let
data collection and data analysis and utilizing these us understand what IT standardization may signify
insights for seamless day-to-day operations. or look like. Your business needs and prevailing
infrastructure define your IT standardization, and this
Small and medium-sized businesses including
may take many forms. Surely, not every organization
BPM organizations typically face various challenges
can fit the same framework, though there are some
due to insufficient and inadequate IT infrastructure.
best practices regardless of industry, budgetary
Unlike large corporations, small businesses have
concerns, and company size that any organization can
limited funds and IT expertise, which pose problems
follow:
in building a robust IT set-up. At the same time, an
up-to-date technology ecosystem is a key growth • Similar hardware - not a mixed configuration of
driver for these smaller organizations that increases PC and Mac
efficiency, boosts productivity, and cuts operating • Matching operating systems - instead of
costs. Therefore, there is a need of an IT ecosystem different generations of the same system
that is manageable, affordable, and fit-for-purpose.
• Comparable equipment - servers, printers,
Here are some key factors that small/medium- scanners, copiers
sized BPM organizations should contemplate before • Similar applications - email, collaboration tools,
building their IT infrastructure: business management software, file sharing
services, password managers
• Nature of their business activities
• Standardized policies such as two-factor
• Core and auxiliary services
authentication
• Method of operations
Implementing and maintaining IT Infrastructure is
• Their geographic presence (remotely located/ not easy. Given below are a few recommendations to
presence in tier 1, tier 2 cities) build a strong yet cost effective IT infrastructure.

Key Steps in IT Infrastructure Standardization

1. Strategy for Framing IT Infrastructure Policy

2. Standardizing IT Infrastructure is Beneficial

3. Challenges Resulting from Absence of a Standard IT Infrastructure/IT policies

4. Risks of Too Much Standardization

5. Successful Automation Hinges on Effective IT Infrastructure and

Standardization

19
Chapter 2

Strategy for Framing

1 IT Infrastructure Policy

a) Focus on Critical d) Estimate an Appropriate

Business Requirements Size of the IT Infrastructure
Depending on the nature of operations of any As a very first step, decide the right size for your IT
organization, consider the criteria below to select the infrastructure. The goal should be to measure your
relevant software. IT needs and accordingly set up your hardware,
software, and applications so that you can scale up
• In case of remote work location, cloud managed without spending much time/money and efforts to
services would be the best option.
re-assess your requirements at every subsequent
• In case of a critical service provider, avail of a step.
robust, scalable solution that provides real-time
business insights.

b) Assess Appropriately for e) Consider the

the Server Requirements Regulatory Framework
Setting up of the servers to connect scattered The other thing to consider is the local law of the land
resource systems helps, not only to manage and to build up your regulatory framework and control
control systems centrally but also to enhance the set-ups.
experience and cut costs.

c) Ensure Appropriate
Network Speed
An increased network speed helps in boosting
productivity of the resources and ensures consistency.
Choose a fast internet option to ensure lesser
downtime and to reduce maintenance costs.

20
Chapter 2

Standardizing
2 IT Infrastructure is Beneficial
Although the extent of standardization possible will depend on unique company circumstances – industry
type, company size, and the available budget, standardization offers significant benefits that cannot be
overlooked.

a) Cost Control & Scalable

Infrastructure c) Agile Deployment
Standardizing IT infrastructure drives unification of Being able to push out patches, fixes, and enterprise-
your systems. This minimizes both initial procurement wide upgrades can be an unnerving task if the
and ongoing operational costs. It also means that organization has complex and disparate systems in
future upgrades are cost-effective as well. Without a use. Standardization makes rolling out these updates
standardized approach, you are likely to face a variety hassle-free.
of challenges as the business grows. IT needs of the
business may completely change over a horizon of
3-5 years. Standardizing the infrastructure ensures
that it is simple and streamlined and therefore, easily
scalable. Reusable and reconfigurable components
are the building blocks of a standard IT architecture.

b) Faster Problem d) More Secure

Resolution IT Environment
Standardized infrastructure makes the problem If the infrastructure is standardized, monitoring
resolution process more efficient, saving precious and trouble shooting numerous services will not
time and IT resources. be necessary. As the systems and processes are
standardized, it is easier to detect anomalies or
suspicious activities when they occur.

21
Chapter 2

Challenges Resulting from Absence of

3 a Standard IT Infrastructure/IT policies

Information systems infrastructure is the cornerstone of operations and a basic building block that other
business systems and processes rely upon for various purposes. Here are the challenges faced in absence of
a consistent IT set-up.

a) Data Breach e) Inferior Data Analytics

Inefficient networking arrangement can cause breach A standardized IT framework facilitates easy data
of confidential data and make online collaboration computation thus leading to a faster, superior data
impossible. analysis. A disparate infrastructure makes data
integration harder, thereby reducing the speed and
the quality of available insights.

b) Inadequate Data
Provisioning
The processing and utilization of the humungous
amount of data available today can be a formidable
competitive advantage. To that end, choose the
most effective and efficient system arrangement for
simplified, expedited data processing. Inadequate
provisioning may lead to not having enough data
available to be able to glean meaningful insights.

c) Lack of Efficient Data

Storage Architecture
Based on your company’s specific needs for data
collation and processing, wisely select the IT
infrastructure, which serves your needs the best and
in a most cost effective manner. Anything generic or
over-the-top may be wasteful.

d) Improper Network &

Irregular Connectivity
To ensure smooth running of operations, it is
imperative to have a good, reliable network in place,
which calls for an appropriate selection of new
software-based methods and network design for
optimizing data. Poor and irregular connectivity can
cause serious damage to business operations.

22
Chapter 2

Risks of Too Much

4 Standardization

Standardization is necessary to pull the diverse

strings together and lay a common ground
to facilitate valuable data analysis and usage;
however, at times, too much of standardization
can lead to adaptations that lie outside the
standards due to local requirements or local
needs.

While planning standardization, consider the

existing regional regulatory framework to check
suitability for specific groups/regions. Cost
effectiveness is another big consideration to
ponder over before laying the groundwork.

Successful
5 Automation Hinges
on Effective IT
Infrastructure and
Standardization

The first step for any organization when it

gets started is stabilization. The next step is
automation, and any successful automation
begins with a well-organized, competent, and
economical IT framework.

23
Chapter 2

Quick Tips - Ground Challenges to Deal with Different Client Needs

a. Each client has its own requirements and demands. Convincing clients from different segments
/industries to follow the same standardization approach is usually a challenge. Clients usually
come with their wish list; however, it is not feasible to design client specific IT structure.

b. Clients’ demands for diverse specifications can be addressed by virtualizing some of the
computing resources, allocating the usage to them as per their needs, and charging them for
their share. This way, the additional cost for customized IT set-up may discourage them and
persuade them to utilize the already established standard infrastructure. Given the additional
costs of a customized set-up, clients may appreciate the effectiveness of having a shared cost
model and the flexibility of ‘pay as you use’ model for cloud managed services.

c. That being said, build the IT infrastructure based on industry best practices, including for
security and compliance. Modern business operations rely on complex IT frameworks spanning
across hybrid IT infrastructure, from the cloud to the edge. The IT infrastructure performance
makes or breaks the end-customer experience and ultimately the business performance. The
key objective is to minimize the downtime and ensure the continuity of the operations.

d. A robust standardized infrastructure works for at least 80% of the clients. It has rationalized
pricing that is offered to the clients and this will always tend to remain within the budgetary
limits as pricing is always based on volumes and the shared consumption/services model.

e. The remaining 20% of the clients may still need customization in terms of more controls,
different configurations, etc. which then would need to be priced at premium.

24
Chapter 2

Key Considerations for Building A Standardized IT Infrastructure

Standardizing IT infrastructure drives unification of your systems. This minimizes both initial procurement
and ongoing operational costs. It also means that future upgrades are cost-effective as well. Without a
standardized approach, you are likely to face a variety of challenges as the business grows. IT needs of the
business may completely change over a horizon of 3-5 years. Standardizing the infrastructure ensures that it
is simple and streamlined and therefore, easily scalable. Reusable and reconfigurable components are the
building blocks of a standard IT architecture.

1) Standardized Hardware 2) Software Specifications

The BPM organizations with a small scale/limited A quick way to discover relevant software applications
capital should go for standardized models widely for the business is to research and evaluate what
available in the market, for example, from companies others in the industry are using. Before buying any
such as Lenovo, Dell, and HP. This approach has software, first, assess current and future client needs
several advantages. Their spares are easily available as well as internal needs. Other considerations for
everywhere, they offer packaged deals, the choosing and installing the software are the type and
hardware is bundled with the software and the utility the extent of usage, as described below.
applications, and all of them offer good after-sale
Solution 1 – Purchase laptops and get the
service and warranties.
relevant software pre-installed into those laptops.
Licenses can be bundled along with laptops/
assets like Dell laptops being purchased with the
requisite software preloaded into the systems.
Some models are available with bundled
packages, or subscription method can be availed
at the time of purchase, and new requirements
can be evaluated at regular intervals.

Solution 2 – Software can be in a virtualized

environment and as many resources can use it
as per the requirement. For additional users, just
add on the number of licenses by ‘pay as you go’
method.

The virtualized model is more advantageous for

standardizing the specifications and licenses based
on concurrency and usage.

Company mentions/examples are illustrative and not endorsements

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Chapter 2

3) Annual Maintenance 6) Business Continuity Plan

Contract (AMC) (BCP)
If the machines are rented or taken on lease, annual Business continuity plan (BCP) is a framework that
maintenance is mostly covered, and it is largely the outlines how a business will continue its operations
most preferred option for small-scale set-ups. You un-interrupted even during an unplanned disruption.
can provision incremental usage by paying extra for Smaller organizations start their operations with cloud
the add-ons, as per your requirements. hosted/managed provider, which typically has a BCP
built in within the business model. As the users are
In case of self-bought machines, warranty period
required to continue working form anywhere, it is
usually covers all maintenance and repairs. Ask the
possible only in the scenarios of open network or the
vendor for an extended warranty period by paying a
internet-based accesses to applications/software.
little extra. This extended warranty then covers the
maximum expected life of the machines bought. By adopting the open internet model/hosted services
on cloud, there is no need to set up any additional
physical back-up unit equipped with all the systems/
applications to ensure continuity of the operations in
case of downtime of the main unit. At the same time,
this approach also saves the overhead expenses
4) Maintenance of Machines
attached to the maintenance of the additional set-up.
If Not Owned by the
Provider
Company mentions/examples are illustrative and not endorsements.

External managed/rented equipment are usually

covered with maintenance/support services
to address technical challenges. Major original
equipment manufacturers (OEMs) lease/rent based
on finance models including upgrade/refresh of
software within the warranty/lease period to avoid
high capital investments. For example with Cisco and
Dell, SLAs can also be defined to provide services
and additional inventory at any given time across
locations/offices. Everything such as maintenance,
support, repair, and replacement is going to be taken
care of by the vendors.

5) Certification of the
Network
For small set-ups, take advantage of cloud based
security on centrally managed model with ‘open
internet’ rather than building a private network. In
simple words, small-scale units should keep the
network simple and deploy applications on cloud so
that they can be used from anywhere and at any time.
In absence of cloud, heavy networking system would
have to be built with extra cost along with forming an
in-house team to maintain it.

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Chapter 2

7) Work from Home

Environment – Information 8) Client-specific
Security Requirements
As mentioned earlier, smaller businesses should Avail services hosted/managed on cloud to provide
leverage the cloud/hosted managed services to additional delivery requirements with lower costs
standardize the framework and enable access from rather than setting up internal infrastructure to meet
anywhere. Such centrally managed service providers, clients’ specifications. Subscription model is also
by default, provide wholesome standard security a good alternative, which can be negotiated for a
features to maintain the utmost confidentiality and specific client’s needs, based on the terms of the
security of data and information. The service providers contract to seek pre-determined, committed services,
even take care of the respective industry specific or get initial discounts.
security standards like the Health Insurance Portability
and Accountability Act (HIPPA), for the healthcare
industry, which publicizes standards for the electronic
exchange, privacy, and security of health information.
Likewise, there is the Payment Card Industry (PCI)
compliance standard, as mandated by credit card
industry, which can be inbuilt into the cloud managed
central services to ensure safety and security of data
while working remotely as well.

Summary of Key Considerations for an Ideal

IT Infrastructure Set-up

Quick Tips
1) Devices a. Adopt a CYOD policy for simplified
Adopting a ‘choose your own device’ (CYOD) policy
IT support, MDM to provide remote
can be a good compromise. This policy allows access to all the company devices.
employees to choose from a variety of devices that
b. Provide a wireless network for ease of
have been approved by your IT department. As a
result, the number of devices available is limited, and
access and flexibility.
IT support is simplified. A CYOD policy combined with
c. Leverage SaaS platforms for
‘mobile device management’ (MDM) is an excellent
improved productivity, mobility,
solution for small businesses.
sharing, and collaboration
It provides them with the necessary flexibility and capabilities.
employee mobility. An MDM provides remote access
to all company devices, allowing you to apply security d. Choose a conferencing software
updates, upgrade operating systems and programs such as Zoom or Google Meet based
and most significantly, remotely delete all data on a on the group size and the level
device if necessary. Your cybersecurity policy must
of interactivity anticipated in the
undoubtedly include an MDM.
meetings.

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Chapter 2

2) Network 4) Conferencing
Connectivity Applications
A wireless network is recommended for most small There are several applications available for video
to medium-sized businesses. This is because they are conferencing, meetings, webinars, and interviews
cost-effective, faster and easier to scale, easy to set such as Zoom, Google Meet, and MS Teams. Though
up and access, and provide employees with flexibility. they seem similar in many aspects, depending upon
Typically, 90% of the network and Wi-Fi issues result specific requirements – size of the group participating
because of the problems in the network equipment. in a meeting or the nature of the conversation (highly
For businesses that have 10 or more Wi-Fi devices interactive vs. minimal collaboration) – a suitable
in the office, business-grade equipment should application can be chosen.
be considered. Easy control, improved security,
increased scalability, and consistent performance
are just a few of the advantages that business-grade Company mentions/examples are illustrative and not endorsements.
network equipment providers offer. Further, as ISPs
may sometimes go down, it is advised to go for a low-
tier plan from a secondary ISP provider as a backup.

3) Productivity
Applications
SaaS platforms must be considered for the set of
productivity applications required for business use
since they help create documents, presentations,
and spreadsheets all on the cloud. They also offer
the ability to share and collaborate. In addition, they
provide cloud storage, synchronization, and video
conferencing services. These SaaS platforms are
constantly available, can be accessed from any
device or location, and can be integrated with your
other apps. Employee mobility and productivity are
improved by the ease of sharing and collaboration
capabilities.

Despite being available, many companies choose to

generate, modify, and exchange data offline. Desktop
programs are required in these situations, and hence
Office 365 is preferred by these companies. On
the other hand, G Suite is the ideal option if cloud
storage, collaboration, and mobility are more vital to
your company. Deploying and administering Office
365 is far more expensive in terms of IT resources.
Supporting Office 365 takes more time and effort than
supporting G Suite.

As a result, G Suite is more suited to small and

medium enterprises in terms of operational costs.

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Chapter 2

Conclusion
In today’s fast paced, global operations, it is essential to build a standardized,
seamless IT infrastructure. This requires correctly estimating your requirements,
investing in the right hardware and the software, having judicious mix of on-
premise/cloud models, ensuring compliance with local and global laws,
and leveraging the latest technologies. Such an efficient IT set-up not only
improves productivity but also enhances reliance, trust, and viability. A robust IT
infrastructure is essential for a business to gain a sound standing in a competitive
environment. As technologies evolve rapidly, whether to develop in-house
expertise around the new technologies or to hire services from outside depends
on the size of the business and resources available internally. Evaluate the pros
and the cons of both and make a conscious decision. With the IT standardization
in place, you already have the right foundation to scale further.

29
Chapter 3
Robotic Process Automation –
An Exciting Opportunity
Authored by HGS

30
Chapter 3

CXOs are often tasked with driving cost optimization by enhancing business efficiency. This objective can be
achieved through digitization, by automating processes, and reducing manual effort. As per Gartner, robotic
process automation (RPA) is a type of automation – a productivity tool that allows a user to configure one or
more scripts (which some service providers refer to as ‘bots’) to activate specific keystrokes in an automated
fashion. In simple words, the RPA bots are digital employees equipped to perform several tasks such as parse
emails, log into programs, connect to APIs, and extract unstructured data. These RPA bots can adapt to any
interface or workflow, there is no need to change business systems, applications, or existing processes in order
to automate.

Forrester predicts the RPA industry to grow to $2.9 billion in 2021 while Gartner says 90% of large organizations
globally will have adopted RPA in some form by 2022. Considering the above-mentioned benefits, growing
demand for the RPA services, and the need to build digital resiliency to overcome future challenges like
the Covid-19 pandemic, medium and small-sized BPM organizations have a big opportunity to leverage
automation, specifically RPA, to enhance their current services and offer new ones. There are several
challenges in deploying RPA optimally such as lack of understanding on the client side, resistance from
business and the employees, selecting the most appropriate process for automation and the lack of properly
structured RPA implementation teams. That being said, RPA can be deployed successfully with an in-
depth knowledge of what to automate, how to automate, and how much to automate while keeping value
maximization in mind.

RPA Benefits

Better capacity Faster Better turnaround

handling processing time

Reduced penalties and Better Cost

agent mistakes compliance optimization

Key Steps in Robotic Process Automation

1. Process of Discovery and 5. Technical Development Life Cycle and Best

Opportunity Identification Practices

2. Business Case for Automation – 6. Resource Skillsets

Levers to be Targeted for a
Compelling ROI 7. Bot Capacity Planning and Optimization of
Costs
3. Governance for Automation
8. Contracting with the Client – What Needs to
4. Select the Right Automation Change in a Typical BPM Contract with the
Solution and Platform Clients to Accommodate for the Benefits of
Automation?

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Chapter 3

In this chapter, you will learn about a systematic approach to deliver RPA solutions to your clients. The eight
points discussed below are the key pillars of any successful RPA deployment.

Process of Discovery
1 and Opportunity
Identification

a) Process Discovery
Workshop
This is usually the very first step in the process automation
journey. Most of the time, only a few stakeholders within a client
organization have some understanding of what automation can
deliver. The objective of this discovery is to make the stakeholders Process Discovery
aware of the ‘art of the possible’ – essentially, help them realize Workshop is a
what can be achieved through automation – and then identify the
right processes for it. While there could be scope for automation
great way to bring
in several areas, it is important to follow a systematic method to all stakeholders on
arrive at processes that are most suitable for automation.
the same page and
Conduct workshops with key business, functional, and automation understand their
stakeholders to socialize the concept and run an idea generation
activity to collate a list of opportunities. As part of this exercise, expectations from the
it is also important to understand the objectives from every automation projects.
stakeholder, their business priorities, pain points, etc. This
information will further help during the prioritization stage.

These workshops play a critical role in determining the success of

the entire automation journey – to start the journey successfully
and subsequently, to scale it up, or to extend it across other
functional units.

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Chapter 3

b) Process Mining
The other useful method could be to deploy process-mining tools
on the systems of subject matter experts (SMEs) of a client. These
tools could capture the activities done by every individual across
Process mining can different functions or teams. An analyst can further study these
reveal important data points to provide insights on the automation opportunities,
complexity of the processes, ROI, etc.
data points that can
This activity can follow once the high-level workshops are
help in prioritization conducted and the areas that have potential for automation are
of processes for broadly identified. Process mining can typically be used where
there is scale, as it would come at an additional cost and may
automation.
add to the overall cost of automation. Some of these process
mining tools are offered by RPA platform providers while other
independent tools are available too. There are several advantages
of using these tools including lesser dependency on the SME
time and availability, more reliable data points for the baseline and
impact study, process documentation for the current process, and
prior understanding of exception scenarios.

c) Selection Criteria &

Prioritization
When it comes to selecting the processes for automation, there
are certain criteria to keep in mind. Process-level factors such as
complexity, data type, number of applications involved, volumes,
turn around time (TAT), number of scenarios, structure of the
There are several process, etc. are important determinants.

factors that need to On the prioritization side, evaluate the effort and time required to
be considered for automate, dollar value impact, quality and compliance mandates,
customer satisfaction, etc. Additional areas to consider would be
selecting processes the environment, technology, etc., as some complex environment
for automation or legacy system could over complicate the automation solution.
Where the implementation of the project could be long and
including complexity complex, the plan should include phase-wise roll out and
of the process and the compute the potential ROI accordingly.

business needs. Ensure that the process is mature enough for automation, if not;
optimize the process beforehand to get optimum results. Mature
processes are structured, have clearly laid out workflows, and
involve minimal manual system intervention. Having documented
process flows and standard operating procedures (SOPs) is a plus;
however, if not available, these can be created during the design
phase. Sometimes the business teams may pose a challenge
on re-engineering aspects. In such a situation, emphasize
the importance of re-engineering in the context of the larger
automation goals and the envisaged benefits.

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Chapter 3

d) Score Card
The best way to select projects for automation
is through a score card. The scorecard should
be created with parameters such as the ease of
implementation, business priority, and ROI with an
appropriate weightage for each parameter. Decide
the score card weightage based on business
priorities, and then the right processes could be
filtered for the automation pipeline.
Starting Right!
Be sure to create awareness
about what automation can
help achieve, evaluate diverse
processes thoroughly, and
prioritize based on the business
goals as well as the suitability of a
given process/workflow.

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Chapter 3

Business Case for Automation –

2 Levers to be Targeted for a
Compelling ROI

a) Cost Impact
A robust business case goes a long way in setting up the automation
journey for success, in any organization. It is important to have a
good ROI for every process automated; otherwise, lack of clear
financial gains or other relevant benefits could become a hurdle
for the acceptance of the entire automation roadmap. In addition
to establishing a sound ROI, it is important to clearly ascertain the
investments needed for the automation initiatives.

The analysis of capex/opex versus the returns needs to be clear,

especially if the objective is cost containment. When it comes to Build a robust business
recurring costs, it could include the RPA licenses, infrastructure
case for introducing
and applications, maintenance, control room monitoring as well as
any additional overhead that needs to continue. On the capex front, automation, outlining
the one-time cost, which could be on the services side, should be investments needed,
included.
expected ROI, and
Some of these costs, especially the opex, should not be charged to
a single process as it could have resulted from supporting multiple
streamline classification
projects and hence the cost burden should be allocated accordingly. of expenses under
These finer aspects need to be streamlined and clearly accounted.
capex and opex.
In terms of current costs, typically, manpower costs would be
included – salary and other perks for an individual or a team.
In addition, the licenses for business applications and other
infrastructure required for the bots to function and any other routine
activities should be factored in as well. However, over a period of
time when the FTEs are impacted, these costs can be neutralized.
Overall, the process automation should ensure that there are
definitive returns on the current and future investments versus the
cost incurred in the current state.

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Chapter 3

b) Error Reduction/
Compliance c) Turn Around Time/SLA
If some processes are considered as high risk or There are several time-bound or SLA driven
critical due to their nature, for example, financial processes where transactions need to be completed
transactions, sensitive data points, they may on time or within a specific duration. Some processes
be pertinent for automation. Errors in handling may also have seasonal fluctuation of volumes, for
these type of transactions could mean breach example, higher volumes during the holiday season.
of compliance, negative impact on the company Any delay in processing such transactions would
image, and might result in financial implications. For mean loss of revenue, brand reputation risk, and loss
example, processing an invoice incorrectly may lead of reward in some cases. These are relevant scenarios
to lesser or excess payment by the company. to be considered for automation. Absenteeism or work
overload leading to additional staffing requirement
can be addressed via automation as well. Having
bots work 24/7, beyond the regular time slots, would
help provide more capacity with the same digital
resources, drive efficiency while also meeting the
SLAs set.

d) Penalty and Fines Process inaccuracies, compliance

This is another area where any incorrect handling of mandates, financial implications
transactions would not just lead to negative brand
including penalties and fines,
reputation but also turn out to be costly as companies
may have to pay penalties and fines for any non- SLAs related to TAT, capacity
compliance. expansion without adding
headcount – these are all high
impact areas where automation
can deliver tangible ROI.

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Chapter 3

Governance for
3 Automation

Good governance goes a long way in setting up a

strong automation program within a company. A
well-articulated governance program should include
clear objectives, roles and responsibilities as well
as SOPs across people, processes, and technology.
Include a clear team structure to take care of the
automation life cycle, process discovery, and delivery
approach. Having a roadmap outlining milestones
and key outcomes will help keep the projects on
track. Similarly, a plan around upskilling people will
ensure that they are in sync with the latest technology
advancements.

a) Operating Models b) Sponsorship

There are two popular operating models leveraged Having a C-suite level sponsor would be beneficial
for automation projects: to set up and run a sustainable automation program.
The sponsor should be a CXO level executive who
• Centralized Model works for enterprise-wide can ensure fast decision-making and who can help
initiatives where there is greater synergy
navigate through key dependencies, limitations, and
between the functional/operation units.
exceptions to consider.
This would involve setting up an RPA Center
of Excellence (CoE), which will govern the
automation function at both the strategic and
the operational levels. This model would help
in better resource utilization and will offer better
visibility of the ROI at the enterprise level.

• In a Hybrid Model, an RPA CoE is centralized Choosing a right operating model,

and sets the strategy and best practices for the establishing comprehensive
automation program while functional units at
governance, and having an
the localized centers are responsible for the bot
deployment. influential sponsor would be critical
Our recommendation is to have a centralized model for the long-term success of the
for smaller BPM organizations, keeping in mind the automation projects.
scale and the resource utilization.

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Chapter 3

4 Select the Right Automation

Solution and Platform

Not all automation opportunities are the same; hence choose an RPA solution most suited for the specific
problem at hand. The focus should be more on the design and the solution than the platform itself.

a) Best Use Cases for RPA b) Selection of Platform

RPA should generally be used to automate processes There are several RPA tools in the market, and each
that are repeatable, structured, rule based, volume has its own set of features. Some work very well for
heavy, and manual intensive. For example, invoice back-office processes while others are more suitable
processing and order creation processes are for front-office automation. Consider the attributes
repetitive in nature and therefore suitable for RPA of the process, complexity of the environment, and
implementation. the transactions involved for selecting the right RPA
platform. Sometimes a simple VB script/macro could
solve the problem; hence, assess its usefulness and
effectiveness before finalizing the platform or the
solution.

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Chapter 3

c) Handling Unstructured
or Semi-structured Data
Sources
While RPA can handle rule-based structured
information seamlessly, it may not work as well
when unstructured or semi-structured inputs are
involved. Therefore, evaluate the complexity of the
documents and identify the right solution. Most of the
prominent RPA platforms today provide additional
tools to support handling of these data sources
and some work very well when it comes to digital
documents such as invoices, bank statements and
on boarding documents while others need additional
configuration. These solutions may not provide 100%
accuracy and may evolve over a period based on
model training etc. Be cognizant of the type of the
problem, complexity, and the business case for
the automation opportunity before selecting the
solutions.

d) POC/Pilot Approach
Take a proof of concept (POC) or pilot approach
when working with a new client to help show quick
progress and outcomes and to help build stakeholder
confidence to scale eventually. The POC would also
help in socializing the concept with different units
within the organization and help them understand the
impact of automation.

For optimum results, select rule-

based repetitive processes for RPA
implementation, be cognizant of diverse
data sources, choose an RPA platform
that is best suited for the specific problem
you are trying to solve, and adopt a
‘pilot’ approach to build confidence by
demonstrating quick results.

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Chapter 3

Stages of RPA
Lifecycle
Technical
5
a. Discovery – Process identification,
Development Life creation of high-level
implementation plan
Cycle and Best b. Solution Design – Process deep
Practices dive, solution design, creation
of technical documents for
development

c. Development Phase – Creation

of automation scripts, integration
of various scripts, end-to-end bot
building
a) Discovery Phase d. User Acceptance Tests (UAT) –
Testing done at the system & the
This is the first and crucial phase of the RPA
business level, code pushed to
implementation roadmap. In this phase, focus on the
production environment
requirement of the client. If the decision is taken to
automate a given process; then the RPA analyst team e. Deployment & Maintenance – Bot
conducts a detailed evaluation including assessing controller and business SME monitor
the complexity of the process. The business team bot activity, pass the feedback to the
and the RPA architect strategist work together to development team
create a high-level implementation plan to ensure
their analysis is full proof. Finally, capture the benefits f. Support & Maintenance – Bot
associated with automation and obtain a provisional runs in a BAU mode, monitored
sign off. by a dedicated control team or
maintenance team

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Chapter 3

d) User Acceptance Tests

b) Solution Design Phase (UAT)
This is the phase where the process deep dive is This stage signifies testing of the developed bot.
conducted, and solution design is undertaken. This Testing is conducted in a pre-production environment
includes creation of useful documents for effective to examine bot usage by the users by automating a
RPA development as below: few specific tasks. This is typically done in the test
or in the staging environment. It involves various
a. Solution Design Document – SDD (as is process
test activities both at the system level as well as at
documentation)
the business level. Ensure that enough ‘exceptions
b. Process Design Document – PDD (to be handling’ is factored in every bot to handle both the
process documentation) known and unknown errors and scenarios.

c. Technical Design Document – TDD (helps Testing is done either by the development team or by
technical teams to understand the components a separate testing team as per the client requirement.
of the bot built) Upon successful testing, the code is pushed to the
production environment. However, if the tests fail,
The above-mentioned documents contain all the bugs are fixed in the development environment and
information that will be required by the developers to re-tested in UAT or staging before being moved to the
build a bot as well as ensure that the business users production environment. After successfully testing the
understand the process laid out for the bot activity. subsequent runs, the bot is moved to the deployment
Typically, these documents capture keystroke level phase.
details, thus giving a step-by-step detailed guide for
both the business users as well as the technical users Typically, these tests are run in the presence of
for all the current and future operational needs. business users who will review the bot output and
sign off for the next phase.
Take a sign off at each phase to ensure that the
solution is in line with the expectations of the client.
Company mentions/examples are illustrative and not endorsements.

c) Development Phase
In this phase, the developer creates automation
scripts using the chosen RPA tools from providers
such as UiPath, Automation Anywhere (AA), and Blue
Prism.

This phase will involve unit testing each script and

finally integrating the various scripts to build the end-
to-end bot. Be sure to follow the technical standards
set for development such as naming conventions,
modularized code, using annotations, and leveraging
the framework set by the individual platform provider.

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Chapter 3

e) Deployment &
Maintenance Phase f) Support & Maintenance
After deployment of a bot in production environment, In this ongoing phase of RPA life cycle, the bot is
track its accuracy and output for a set duration, based running in a BAU mode.
on the complexity of the automated tasks, as these
Any issues that surface during the production runs
are live cases. Gradually increase the number of
need to be handled by the maintenance team. It
cases for better outcome. In case of any gaps in the
is good to have a checklist of hygiene activities to
processing by the bot, the bot controller may note
proactively manage the bot. This could include folder
such instances and pass them on to the development
clean up, re-boots, code review, applying patches,
and the testing teams for review and closure. It
revisiting capacity, monitoring runs, bot performance
is imperative to have the business SMEs monitor
management, etc.
the runs alongside the controller during the initial
stage, solicit their feedback, and pass it back to the Depending on the scale of the bots deployed have
development team for any fixes. a dedicated control room team or cross-utilize
maintenance team to perform both activities. The job
A final sign off from the business as well as the bot
of the controller is to monitor bots regularly to check
controller is helpful to ensure all the activities have
for any unforeseen issues and liaise with maintenance
been completed satisfactorily and accurately. A
team to fix and minimize any production gaps.
checklist of all the issues through development,
testing, and production should be captured and Moreover, process changes or system upgrades
handed over to the maintenance team along with the could also affect the functioning of the bots and
TDD. typically, these activities should be planned in
advance in order to have minimal impact on the bots.

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Chapter 3

6
Resource Skillsets

This section describes responsibilities as well as best practices for key roles in the automation space

a) Solution Designers
i. Command strong understanding of the
industry, domain, and business processes

ii. Visualize the whole process and grasp the

finer details of the processes

iii. Understand business requirements and

translate/represent them in technical terms
for implementation/ development teams

iv. Define the project scope based on strong

technical understanding/knowledge of
different platforms including available feature
sets and limitations

b) Developers/Tech Leads c) Solution Architects

i. Have in-depth knowledge of one or more i. Consult management and engineering teams
automation platform/tools with technical advice on subjects like business
analysis, project management, IT architecture,
ii. Skilled at solution building and programming
infrastructure, and cloud development
logic to be able to develop stable processes
ii. Liaise between various stakeholders and
iii. Create technical documents for the developed
product delivery teams
solution
iii. Equipped with strong technical background
iv. Have in-depth knowledge of frameworks of
and experience in development
diverse RPA platform providers
iv. Have project and resource management skills.

v. Preferably hold certifications like Scrum

Master, PMP, Prince2 or ITIL

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Chapter 3

Scheduling a bot is dependent on

several factors including, criticality
of the process, bot runtime,
Bot Capacity Planning
7
input arrival pattern, and the
and Optimization of departmental operational hours.
Costs Plan around these carefully to
optimize the monitoring and the
maintenance costs.

a) Operational Hours b) Criticality of Processes

Bots have the capacity to run 24/7. However, Another important factor to be considered is the
operational hours is a departmental decision criticality of the processes. High runtime processes or
considering factors like scale/number of bots, non-critical tasks can be scheduled to execute during
application availability, and maintenance, monitoring non-working hours while SLA critical processes
and support availability. A bot can run anywhere should be scheduled to execute when support
between 8 hours to 16 hours or up to 24 hours and for and maintenance resources are available for quick
5 to 7 days a week. turnaround.

During the bot operational hours, the monitoring

and support requirement involve a running cost. For
maximum capacity utilization and cost-effectiveness,
it would be efficient to have higher operational hours
as one scales up.

c) Runtime d) Input Availability

Bot scheduling and capacity planning include Depending on the input arrival pattern, the bot can
determining the ideal start time and runtime for the be scheduled to run once or multiple times in a day.
processes. Having multiple starts/schedules for a process helps
reduce the idle time where the input availability
If the runtime is higher than the operational hours,
is periodic/sporadic. In case of the latter, trigger-
multiple bots can be deployed for the same process
based schedules are extremely helpful. Planning
to balance the workload and complete the execution
the schedules throughout the operational hours and
within the SLAs.
maintaining cooling off period between schedules
will help eliminate bottlenecks and provide consistent
experience to the users.

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Chapter 3

Contracting with the Client – What Needs to

8 Change in a Typical BPM Contract with the
Clients to Accommodate for the Benefits of
Automation?

a) Recommendations for Improving

BPM Contracts
i. Cost of Technology Updates
Providers need to factor in cost of upgrades due to rapidly evolving automation
technology. Buffers for additional development and license costs could potentially
offset any future patches or end-of-life decisions made by the automation software
vendors.

ii. Capturing the ROI Correctly

Contracts can be structured to be more outcome oriented in sales or marketing
contexts, while automation of cost centers could be looked at in a more traditional
sense like the headcount reduction. When a cost center adopts automation technology,
additional, less obvious benefits should be made tangible, for example, reduced
overheads through diminishing office space requirements as bots replace humans.

iii. Covering Malfunctioning of a Bot

An automation ‘insurance’ model of sorts could be explored to cover damages resulting
from a malfunctioning bot causing material damage to a client’s processes or look at
having similar SLA structure applicable for regular BPM contracts to cover for liabilities
associated with bot errors.

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Chapter 3

Business Models for Value Driven Engagement

Providers need to factor in cost of upgrades due to rapidly evolving automation technology.
Buffers for additional development and license costs could potentially offset any future patches or
end-of-life decisions made by the automation software vendors.

Model Observations & Recommendations

This approach requires a more fluid model to be built that would

Gain-share Based allow reconfiguring benefits calculations with every passing year
of active automation deployments.

Including the methods by which the committed outcomes will

Transaction, Incentive, or be achieved as part of the outcome definition, is key to having
Outcome Based this type of pricing model. Poorly defined methods may lead to
disagreements on achievement of the outcomes.

Mature providers can recommend such a model, which puts the

onus of digital transformation on a service provider but if done
right has the potential to yield larger gains for both parties with
high client satisfaction.
Risk & Reward Models • The challenge lies in the definition of success i.e. what mea-
sures indicate grounds for rewarding the provider entity.
• Disagreements in ownership, rate of return, and governance
models are the potential drawbacks of such a model being
employed in a contract.

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Chapter 3

Other Best Practices

a) Building Automation Capabilities
It would be good for BPM organizations to automate in-house processes, for example, processes
pertaining to the shared services to gain confidence and have the practical exposure of dealing
with such projects. The automation team can use this as a learning ground before embarking on
client engagements.

b) Focus on Your Area of Expertise

It would be a good practice to initially take on projects in domain areas where the service
provider has deeper knowledge as this will help in building robust solutions.

c) Platform Selection
There are multiple large and small RPA providers in the market. Some of them also have starter
packs and cheaper options to start the automation journey. It is important to get a sense of
the size of potential opportunities and then sign up for the right package with the automation
providers. There are also additional solutions being offered along with RPA tools which can be
picked up from the RPA providers or depending on the business need, some solutions can be
built in- house. It is important to try out different platforms for the specific use cases before
buying.

Conclusion
RPA can deliver tangible business impact by automating routine, repetitive, and
rule-based processes. For delivering successful RPA projects, it is important to
choose right processes for automation, accurately quantify the anticipated ROI
and benefits, follow a well-structured development process and ensure that an
appropriate business model is selected that is beneficial for both the client and
the service provider. Start with a pilot/proof-of-concept to showcase concrete
results and ensure that the key stakeholders in the client organization are well-
versed with the outcomes that are expected out of automation projects. These
are the key considerations to undertake a rewarding automation journey.

47
Chapter 4
Contract Management –
An Effective Tool For Successful
Client Engagement
Authored by eClerx and Mahindra Integrated Business Solutions (MIBS)

48
Chapter 4

BPM organizations offer a wide spectrum

of front-office and back-office services to
global brands – these are multimillion-
dollar contracts spread over many years,
involving critical business processes,
technology & people investments, and
long-term business relationships. Today,
BPM service providers are not merely
vendors but transformation partners
who are deeply invested in their clients’
success. At the same time, their own
business success, operations, and
growth are linked closely with these
client partnerships. In this context, it is
important for both the parties to clearly
and comprehensively articulate terms
of engagement to facilitate seamless
functioning. Progressive contractual
engagements can lay the foundation
for long and rewarding business
collaborations. In case of any adverse
event or ambiguity, these well-defined
documents can also help in resolution.

This chapter covers best practices

around contract management, including
pricing models, SLAs, dispute resolution,
payment-related clauses, arbitration, and
many other related topics.

Key Steps in
Contract Management
1. Pricing Model

2. Demonstrate Value

3. Contracts, Collections, and Dispute

Resolutions

49
Chapter 4

1
Pricing Model

a) Full Time Equivalency

(FTE) Based b) Variable
This model comprises of all-inclusive FTE pricing In this model, the costs are linked to outcome, for
which should cover several elements such as cost example, sales, qualified leads, approved data points.
to company (CTC) of agents, supervisors, support In this context, commercials (pricing) is arrived at
cost allocation, infrastructure costs, staff welfare based on total cost of operations + margin + out of
costs, technology cost allocation, technology assets pocket expenses divided by rational achievement
costs, corporate allocations, cost of bench, and to be defined as baseline fee. The slabs +/- can be
applicable non-recoverable taxes. It would also built around the baseline. For example, in highly
incorporate telecom and internet costs. Additionally, competitive environments like open RFPs, where
any costs towards providing technology/software/ several competitors are invited, it becomes important
customization/integration should be charged to factor all government benefits and variable cost
separately. Pricing on FTE basis does not mean that savings by use of cost-light models (such as ‘work
a service provider needs to give full control of the from home agents’) to win voluminous projects.
resources to clients. A service provider may still have
the right to hire, redeploy, assess performance and
implement a good mix of automation and FTEs.

50
Chapter 4

c) Fixed + Variable d) Additional Costs

This model is a combination of the FTE based and Charge the costs mentioned below as
the variable models where the fixed/committed reimbursements from the client if they are not
costs of operations are protected and the variable permitted to be built into the pricing model
fee is linked to performance/outcome, which will
i. Set up/Transition costs
directly affect the profitability of the organization. A
blended model can be adopted where, in addition ii. Software solutions
to the base FTE rate or transaction price, the service
provider would share the gains with the client (could iii. Customization of software
be in terms of X% of the base price) if its performance
iv. Integration with client systems
exceeds agreed benchmarks. These gain-share
based service credits/debits could either increase v. Specialized hardware for client process
the effective price or decrease it depending upon including upgraded desktops/laptops
performance.
vi. Specific network/infrastructure requirements
basis Clients IT policy including BCP recovery
SLA

vii. Dedicated internet/telecom connectivity

viii. Seats for client representatives operating from

the service provider premises

ix. Medical check-up/Country specific checks/

Background verification (BGV)

x. Insurance cover

xi. Overtime allowance (to be included due to

holiday or weekend working)

xii. Holiday allowance

xiii. Weekend working or shifts other than agreed

xiv. Special foreign language skills

51
Chapter 4

e) Annual Escalation Clause f) Billing SOP

The percentage should be mentioned in the There has to be a clearly defined and mutually
agreement and linked to the trend of revision in agreed upon billing-specific standard operating
minimum wages and contribution to statutory procedure (SOP) between the client and the service
benefits in the last two years. For contracts with provider. The SOP must contain the methodology
clients outside India, the overall inflation can be in of billing, currency of billing, remittance related
line with local inflation in client’s country with some details, any deduction for intermediary charges,
adjustment for adverse move of currency beyond preconditions to invoicing such as purchase orders,
an agreed range. Provision should be made in the time baring of old invoicing periods, delay penalty on
agreement to cover the higher escalation clause due client payment, early payment discounts, flexibility
to mandated changes by authorities (prospective available with the service provider and approval
or retrospective) in compensation and benefit mechanism with client for exceptions.
structures.

Here are some additional points to

be noted about billing.
i. Is the training period covered in billing?
If yes, then how many days of training
are covered?

ii. What happens if the training duration for

a batch exceeds the allotted time?

iii. Will the client cover the cost of

uncertified candidates in training?

iv. How many leaves are permitted pre

roster roll out and post roster roll out?

v. What are the elements to be factored

into the login hours for billing?

vi. What is the cover up factor for loss on

any day? How will overtime be approved
and calculated?

vii. What is the claw back period and

process in the case of variable billing?

For any payments that are milestone based, these

should be unambiguously defined and the client
should define the exception process in case of non-
acceptance of a milestone.

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Chapter 4

2
Demonstrate Value

a) Service Level Agreement

(SLA) b) Sustained Value
The Service Level Agreement (SLA) should cover As the relationship tenure increases, improvement
standard norms such as productivity, efficiency, in the SLA performance metrics demonstrates
quality, customer satisfaction scores, attrition control, service provider’s commitment in this regard and
training efficacy, and client specific business metrics. will ensure long-term sustainable relationship
This is a hygiene part of the SLA and non-negotiable. between the two parties. Most clients prefer their
Most clients prefer to have Reward & Penalty annual budget for service providers to be the same
provisions around these SLA clauses; however, agree and the success of a service provider is defined in
to a limited set of business KPIs for such conditional providing better outcome/value at the same budget
provisions. For example, a higher attrition may not y-o-y. You can achieve this by taking initiatives to
hurt the key business KPIs for throughput and quality improve performance on the defined SLA clauses.
if the service provider has provisioned adequate For example, higher vintage = higher productivity,
bench. Any changes in KPIs should be agreed in a and hence attrition control is a serious initiative to be
Change Order, which can be done after the process taken by the service provider.
is transitioned, and has reached the steady state. Any
penalties for a particular period can be agreed to be
offset against future period rewards for improved,
consistent performance as an incentive. A service
provider should proactively present the performance
against these set SLAs to a client at least once a
month so that any error does not become a point of
contention later on when the instance may be well
within the tolerance limits allowed in the SLA.

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Chapter 4

c) Transaction Based Pricing

with Volume Discounts
This can be done effectively where a service provider
has a platform, which provides volume efficiencies
and benefits can be shared with a client in the form
of volume discounts. Transaction-based pricing
also provides visibility to a client of the actual cost
of outsourcing, as they need not worry about the
productivity, attrition, etc. of service provider’s
personnel.

d) Co-creation
This is a critical element where the service provider
engages with a client to move up the process
benchmarks, provided the client is willing to invest/
sponsor in the change management, which could
be achieved by changes in process, quality/type
of people, and technology. This should be looked
at as a mutual win, such that there are medium-
term benefits for both parties. For example,
implementation of a voice bot may reduce X% of
headcount in the process, hence it delivers a cost
benefit for the client. At the same time, there would
be an investment in the voice bot by the service
provider with a payback period. The service provider
and the client can share the gains resulting from
the reduction in headcount by adjusting against the
investment in the voice bot.

54
Chapter 4

Contracts, Collections,
3 and Dispute
Resolutions
Contracts, Collections, and
Dispute Resolutions Related Key
Topics
a. Key documents
a) Key Documents b. Duties & charges

The Master Services Agreement (MSA) should c. Timelines

cover key clauses; for example, non-disclosure,
d. Various payment related terms &
data privacy & protection, scope of work (SOW),
conditions
pricing terms, standard operating procedure (SOP),
policies, taxation related matters and on whom the e. Duration of contract
deduction responsibility rests, third party clauses,
subcontracting clauses, representations & warranties, f. Arbitration and legal cover
key compliances, indemnity, force majeure, client
representations and liabilities, arbitration clauses
and legal recourse. As all service export invoices are
mandatorily required to be certified by government
authorities, make sure to provide any one or all of the
documents like client email confirmation, MSA, SOW,
or PO as relevant.

b) Duties & Charges c) Timelines

Determine the appropriate value of franking/stamp Agree upon the timeline for the commencement of
duty/registration charges to be paid. work. For example, pre-agreement or post agreement
as well as the timeline for the purchase order (PO) –
whether it will precede or supersede the agreement
or should the work be initiated basis email from the
client. Make these determinations based on risk
assessment and risk awareness.

55
Chapter 4

d) Various Payment Related

Terms & Conditions

i. Overall Clauses
Clearly articulate payment terms for seamless functioning – including the
turnaround time (TAT) for invoicing, method of invoicing, payment TAT, default
acceptance based on time lapse, payment of undisputed amounts, and payment
at time of disengagement under any scenario. Ensure no direct or indirect
administrative costs are added over and above agreed terms.

ii. Credit Terms

Determine client payment risk to decide credit terms. Advance (full or part) may
be incorporated basis perceived credit rating or performance history of a client or
a service provider’s investment in a process. For example, if the process involves
sending documents to customers of a client via RPAD, then advance payments
need to be made to the postal department. In this scenario, postal stamp value
and service fee can be demanded as an advance payment. Service provider fees
could follow post service billing method.

iii. Penalty for Delay

Clearly outline in the agreement the penalty for delay in payment and ascertain
the point at which the service should be stopped and the dispute should be
raised. All communications should be in writing with digital medium being
acceptable for serving a notice.

e) Duration of Contract

The period of contract and the notice period should be clearly specified in the
agreement. Let the contract termination notice be at least 15 days more than the
employee notice period as per the employment contract. Services that would be
provided during notice period should be clearly mentioned in the agreement. If the
services being provided to the client are critical in nature and the headcount reduces
during the notice period, this may invite penalties. Service provider can also decide
to give client flexibility of shorter notice for certain % of FTEs reduction, provided the
resources can be quickly redeployed to other processes or clients.

f) Arbitration and Legal

Cover

Explicitly mention the applicable laws, for example, whether Arbitration & Reconciliation
Act or MCIA rules will be considered, jurisdiction of legal disputes and arbitration,
choice of law, representation & warranties. Do not commit express or implied warranty
to provide services error free – instead providing service level credits might be more
prudent. A mutual clause is not always safe unless read in conjunction with other
clauses. London and Singapore are most favoured neutral jurisdictions for international
arbitration. Avoid choosing a country where you don’t have significant physical presence.

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Chapter 4

Other Salient Aspects –

Contracts, Collections, and Dispute Resolutions
1. Indemnity is one of the most important clauses in the agreement. Breach of contract
terms and breach of data privacy/security will typically have separate indemnity
provisions.

2. Omission of liability clause – is it beneficial for the service provider? Omission may
amount to ambiguity in the contract in the absence of any limitation of liability and
indemnity – being generally detrimental to the interest of the service provider in case
of dispute.

3. Here is the list of items that are usually considered as uncapped liability – death, injury,
breach of law, 3rd party IP, gross negligence, wilful misconduct, and employment
claims from vendor employees. Confidentiality breach may be uncapped provided
it excludes personal data from the definition of confidential information and a client
needs to make a claim on liability (and not on indemnity) basis.

4. Identify the Items that should be capped and negotiated.

5. Avoid duplication of the liability caps. The liability cap across all documents/damages
should be in aggregate and not compounded.

6. Liability for all indirect and consequential damages, including loss of profit, anticipated
revenue, and other similar issues should be excluded, i.e. no liability/damages to be
paid for these.

7. Liquidated damages.

8. Choose suitable insurance cover to protect against liabilities. The cover should be of
appropriate value and the voluntary deduction should be minimal.

9. As a rule of thumb, indemnity provided should not exceed the annual profits earned
from the client for Indian clients.

10. Cap the data and information security breach liability to a certain factor (1-2X) of
revenue for foreign clients.

11. Frame the force majeure clause appropriately to protect interests of the client and the
service provider considering the experience during the Covid pandemic. If the service
provider is capable of providing services as per the terms of agreement then the client
has to pay for services received/receivable fully with the only option to mutually agree
for a discount at the discretion of the service provider or terminate the contract under
appropriate notice period.

12. Include a clause to cover retrospective changes in statutory liabilities, which may result
in cost impact for the service provider.

13. The service providers should ensure zero non-compliance in areas of minimum
wages, non-payment, or delayed payment of statutory dues as the same are usually
committed to the client in the agreement.

14. Include a provision to permit ‘work from home’ in BCP situations so that separate
permissions are not needed in times of crises.

57
Chapter 4

Conclusion
Any successful client-service provider
relationship hinges on mutually
beneficial contractual terms and
conditions. These contracts cover
multitude of aspects — clauses that
span SLA, billing & payment terms,
arbitration and legal cover, etc. A
meticulously drafted contract makes
it easier for both parties to maintain
and improve quality standards, build
trust, ensure transparency and clarity of
expectations, and offers a clear roadmap
for remediation where necessary.
Efficient and effective contract
management creates a solid foundation
upon which a longstanding and winning
partnership between a client and a
service provider can be built.

58
Acknowledgments
NASSCOM takes this opportunity to thank the industry leaders for their valuable time and in-depth insights that
helped us create this playbook.

Contributors:

» Ravi Pallavoor » Pushkar Misra

Senior Vice President, Head - Transitions, President & CEO - Philippines,
Quality and Operational Excellence, EXL Hinduja Global Solutions (HGS)

» Maahi Chhabriaa » Santanu Nandi

Vice President – Operations, EXL Senior Vice President - Business Excellence,
Hinduja Global Solutions (HGS)
» Bharat Aiyappa
Director - Service Delivery, Concentrix » Ram Mohan Natarajan
Senior Vice President -
Global Business Transformation,
» Vishal Anand
Hinduja Global Solutions (HGS)
Director - Service Delivery, Concentrix

» Raghavendra R » Reetha Menon

Associate Vice President -
Vice President - Information Technology,
Global Business Transformation,
Genpact
Hinduja Global Solutions (HGS)

» Garima Srivastava
Assistant Vice President - Transformation Services,
» Rohitash Gupta
Chief Financial Officer, eClerx
Genpact

» Anushi Krishna » Mahesh Krishnamoorthy

Chief Business Officer,
Senior Manager - Operations, Genpact
Mahindra Integrated Business Solutions (MIBS)

Concept, Facilitation, and Review Content Editing and Design

NASSCOM BPM Council HGS Corporate Communications Team
NASSCOM Insights Team

59
About
NASSCOM
NASSCOM is the industry association for the IT-BPM sector in India. A not-for-profit organization funded by
the industry, its objective is to build a growth led and sustainable technology and business services sector
in the country with over 3,000 members. NASSCOM Research is the in-house research and analytics
arm of NASSCOM generating insights and driving thought leadership for today’s business leaders and
entrepreneurs to strengthen India’s position as a hub for digital technologies and innovation.

Disclaimer
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thereof. The material or information is not intended to be relied upon as the sole basis for any decision which may affect any business.
Before making any decision or taking any action that might affect anybody’s personal finances or business, they should consult a
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60
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