Business plan-of villit

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Business Plan
VILLIT SOLUTIONS.
VILLIT SOLUTIONS.
Near Yogi Narayana Swamy Temple,
Vinayaka Nagar,
Pavagada -561202

I. Table of Contents

I.Importance and benefits of BPO..................................................................................3

II.Operational Plan............................................................................................................7

III.Risk Management .....................................................................................................11

IV.Cost Analysis..............................................................................................................16

V.The infrastructure.......................................................................................................21

VI.Commercial Strategy.................................................................................................23

VII.Case study.................................................................................................................25

VILLIT SOLUTIONS – Business Plan and Success strategies

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I. Importance and benefits of BPO

Business Process Outsourcing is about optimizing business
performance to attain value creation. There has been a tremendous
upsurge in BPO and outsourcing industry in many developing
countries like Pakistan because of their (BPO) expertise in reducing
costs while increasing service quality.

These elements serve the core role in increasing the importance of
business process outsourcing because it also helps companies to
focus on core areas. Companies generally outsource processes to
reallocate accountability and control costs. Thus the management is
in a better position to focus on core areas, and not keep itself
engrossed in other areas. Outsourcing also helps companies to
avoid capital expenditures (future investments), which is in particular
important in non-core areas that may need new systems and up
gradation. By and large, companies only want to spend money on
core areas.

Reduction in costs is another BPO benefit. BPO provides quantifiable
benefits through improved efficiencies, lower overhead, reduced
payroll and benefit expenses, and fewer capital investments. Other
BPO benefits include assurance of best practices, skills, and
technology. It is important to note that BPO provides access to
proprietary workflow systems, process reengineering skills, and
innovative staffing and delivery models, coupled with world-class
technology delivered by experts.1

For the big picture, in call center environment, specifically VILLIT
Solutions., following things can be considered on Ops side:

 On-time Environment

 Concurrency

 Reliability

 Reactiveness

 Dynamic Resource Allocation
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 Distributed Environment

While on the other hand following things are proposed to be
outsourced

 Performance analysis

 Accounts

 Human resource management

 Management process formulization

 Field expertise

 Catering to the changing customer demands

The elements are much alike yet they provide the executives with
a lot of time to focus on new grounds for the organization to
generate more and valuable revenue.

The elements to be outsourced can be trimmed down and
expanded according to the organization needs and requirements,
from a single process to the complete business process.
Pertaining to the organizational infrastructure and organizational
demands these elements have been observed lucrative to be
outsourced.

Ranging from monetary benefits, increased revenue to increased
employee performance and service quality, BPO can provide an
organization with opportunities to develop and excel in the
industry, yet it has its own constraints and restrictions. Even
though several other reasons can be listed up in favor of
outsourcing, one must not overlook the disadvantages of it.

By outsourcing a business process, we tend to lose the
managerial control. This happens because it is harder to manage
the outsourcing service provider as compare to managing one's
own employees. Also because we generally tend to skip (or miss
to calculate) the potential hidden costs of outsourcing which
includes legal costs of putting together a contract between
companies and time spent on coordinating the contracts, we feel


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that outsourcing reduces the overall expenditure of a business
process, one of the major reasons why a company goes for
outsourcing. This hidden and missed out costs of outsourcing is
hard to predict causing overall costs to be underestimated.

Another disadvantage is that outsourcing can also prove to be a
threat to the security and confidentiality of issues of a company. If
your company is outsourcing business process such as payroll,
confidential information such as salary will be known to the
outsourcing service provider. Therefore one must be very careful
in choosing which business process to outsource and which one
not.

Outsourcing may also result into the possible loss of flexibility in
reacting to changing business conditions, lack of internal and
external customer focus and sharing cost savings. Loss of
internally generated talent is yet another problem associated with
the outsourcing as it may hamper the growth of an employee by
depriving him from the experience he would have gained by
handling the business issue himself then by passing it over to
some other external party.2

All in all, following are the risk factors involved in outsourcing
business process.

 Outsourcing cost

 Time factor

 Administrative control

 Confidentiality and security of organizational issues

 Loss in organizational flexibility to react to changing customer needs

 Loss of in-house talent development

 Immense change in organizational culture

With all these pros and cons in observation, outsourcing can still
not be neglected as a force for the good of the organization.
These may seem to be a threat to the organization but it can also
be converted into opportunities and strengths.
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II. Operational Plan

Plan and Specify First

For the best outsourcing outcome the BDO must come up with the
prospects its respective organization is looking for. The BPO will not
be able to determine the targets and scope of work at hand until
and unless they are communicated the main stream targets that an
organization is considering. Following are the credentials that a BDO
must come up with in order to present the mission of achieving its
targets with the targeted BPO.

• A scope of work
• Level of effort projections
• Time frames
• Performance indicators that will be used to monitor the project.

In customer services projects, project milestones are popular
because they specify both deliverables and the time frames those
deliverables are due. However, it often requires some extra amount
of investment in feasibility and scoping study to come up with a full
scope of work, milestones, and a budget for a major customer
service project.

The benefits of conducting feasibility studies in customer services
are:

• Service level requirements man power specifications are clarified and agreed upon
before development work is undertaken;
• Features can be reconciled with available budgets;
• The project can be canceled at an early stage if it is found to not be feasible to
undertake as intended (Probation phase of business process outsourcing).

Failed customer services projects are often the result of
specifications being neglected before full business process
outsourcing of customer services project is undertaken.

Customer service project outsourcing specifications do not just
implement themselves. There needs to be an outsourcing plan,


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detailing how the project will be conducted and governed. Placing
requirements and plans under change control prevents a project
from growing out of control and exceeding its budget and time
frames.

Examine Your Workflow Procedures

For the first step, standard operating procedures are a must to be
developed to guide its in-house administrative call center
employees.

Core Strategies for Success

Do not expect immediate financial savings from outsourcing
customer service and technical support work. In most cases, as
observed, organization will be supporting duplicate efforts until the
transition is complete.

When doing outsourcing, recognize that your BPO facility and its
staff might not have much subject matter expertise or familiarity with
how your individual business works. Organization will need to
establish a mentoring relationship with the BPO. Organization must
not let this relationship become acrimonious, since it is to be
expected that offshore staff will need time to become proficient in
their client's operations.

Expect to have to be patient, expect initial mistakes, and be ready to
correct them in a way that does not poison the working relationships
that you have with your outsourcing contractor. Don't leave your
people skills or professionalism behind when you outsource
business process.

Many BPOs have hot-call transferring capabilities, whereby calls that
cannot be resolved with BPO service can be transferred back to the
client organization.

Invoicing and Payment

Payment and invoicing for customer service programs can vary
according to the size of the service provider. Normally, most of the
call centers organizations work under advance payment


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arrangements, working with a decided time frame advance
payment.

At the mid-sized and smaller outsourced call centers, payment
terms might not require as much of an advance payment as the
large outsourced centers require. Billing is usually done weekly with
payment due after one week. Rates are based on production (login)
time, defined as the time that a customer service agent actually
spends logged into a phone system and prepared to take calls.
Each payroll hour generally provides between 42 and 45 minutes of
production time at most call centers.

Clients have an option simply to go for least cost in choosing
outsourcing facilities. By starving an outsourcer, it is more likely that
the program will be terminated by the BPO service provider
prematurely, or that they will hire poor quality staff, or that there will
be excessive staff turnover.

Mistakes To Avoid

The major mistake in outsourcing customer service work is to
attempt to scale up too fast. If you do not start small, with five to six
people (who can later serve as trainers or team leaders), then you
will find that after three to four months (if not sooner) you will be
back at that staffing level once an outsourcing program has run into
trouble. Some organizations might initially recognize the need to
scale up from a low staffing level, but when the time comes for
implementation, they feel pressured into adopting untenable ramp
up strategies.

To reduce risks from internal staff turnover, contract provisions can
be used to tie staff to specific projects. This is particularly important
for supervisors and team leaders, with whom clients often invest
substantial training. It can be specified that replacements for
supervisors come from within the original team that was trained by
the organization.

Another mistake that organizations can make in outsourcing
customer service work to a BPO is to not budget for adequate
training time.

Maintain Momentum


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There are three things that are needed from a BPO to keep an
outsourcing arrangement dynamic and effective, particularly for
customer service programs:

1. Constant communication -- BPO need to call the client every
morning, even if there is nothing new to report.
2. Reporting -- especially with metrics that scale down to
individual agent performance so that you can see if one agent
is performing really well in accordance to the others, for
example. When you see unusual metrics, investigate.
3. Also have the BPO develop and implement an action plan when
things go awry.


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III. Risk Management

When firms outsource a business process, they also tend to
outsource the risk associated with the execution and management
of the process. Not surprisingly, these relationships are marked by
high levels of dissatisfaction. The risks are firm- or relationship-level
risks. No macro risks such as political or economic risks are outlined
here. The risks are broadly classified as project planning and
management risks, supplier selection risks, contracting and
negotiation risks, transition and start-up risks, and contract and
supplier performance risks, a firm would be considering while
outsourcing.

With any outsourcing arrangement, you have less control than you
would if everything were housed within your organization and run by
your employees. In fact, the loss of control is one of the most
frequently cited reasons not to outsource, and, coupled with the
flexibility of being able to change things and make them exactly how
you want them, is certainly a compelling argument to keep
technology and skills in-house.

For most contact centers, however, the biggest risk with "loss of
control" isn't actually in the functionality of the service. Many
outsourcers can provide as much flexibility as your own staff. In
addition, the overhead and extra delay involved in making changes
can actually be a good thing. Take a look at an area you are
changing frequently -- routing, reporting, and recorded
announcements, whatever. Are you making changes in this area
because you need to, or because you can? Frequent changes and
creeping complexity can be detrimental; take this into account when
discussing change management with your outsourcing vendor.

The larger risk of "loss of control" actually has to do with service
quality, such as service performance, uptime, correctness, etc. You
are dependent upon your outsourcer to manage this well. Many
times, an outsourcer can provide superior service on these counts.
The trouble happens when they can't, or don't.

The value and risk of outsourcing


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Clearly, having specialists provide the highly technical services
promised by technology outsourcing can offer an enterprise real
cost savings. The ability of call centers to gain access to the newest
technology without overcoming a great learning curve is just as
powerful. The speech self-service technology described in the last
column of this series (Speech Self Service: A New Technology Trend for the Call
Center3) is one such an example. It is possible to outsource the
design, implementation, operations and management of these
applications entirely.

But, it is important to be cautious. Along with the benefits of
technology outsourcing comes a loss of control -- and these are
technologies upon which your customers' interactions with your
organization may rest entirely. As you consider options for
outsourcing, in sourcing and co-sourcing, think about these "top 10
gotchas" that had been seen over the last years.

1. Latency matters. Applications built and tested at an enterprise and
then shipped as VXML to a hosting service rarely run with the
same performance. For example, a recent test of the same
application, local versus hosted, showed almost one second of
additional latency and substantially less capacity per platform
in the hosted configuration.

2. SLA (Service Level Agreement) monitoring. Most outsourcers provide
reporting as part of their services so that you can tell how well
things are running. But this may be a case of the fox watching
the hen house. In addition to reviewing the outsourcer's own
information, you should require a way to check performance
against an SLA.

3. The form of the SLA. Understanding what matters to your
customer and how it relates to the service level that you
receive from your outsourcer can be challenging, and
negotiating an SLA can be even more complicated. As a result,
many existing SLAs are very weak. It may be more important to
have a strong relationship with your outsourcer than it is to

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have a strong contract, but operating without a meaningful SLA
and regular measurements can lead to problems. Consider
this: would you work without a meaningful SLA if you were
outsourcing your staff? So why would you work without an SLA
when you outsource your technology?

4. Carriers in the middle. Phone calls in hosted scenarios often
traverse three or four networks, from the caller to the hosted
IVR to the agent, both in house and off-shore. A failure or issue
in any of these links can cause quality problems in the calls.
And when things start to go wrong, a "finger-pointing" party
often ensues. It's critical to understand all the links in the chain
and to be sure that each party in the process has a view of the
whole picture. Most providers want to deliver great end-to-end
service, but they often only control a piece of the puzzle.
5. Start-up troubles. Starting a new service is complicated, and you
rarely know how well everything will work together until the
service is actually running. At this point, it is much harder to
create a "lab" to do a performance evaluation, and it is more
important to undertake effective testing across specific
windows that are agreed upon with the providers. There is no
substitute for system testing and too many deployments have
suffered from "infant" mortality.

6. Back-end system performance. The most common latency issues and
system failures in self-service are not in the telecom equipment
itself; they're in the IT systems behind the equipment: the data
base, corporate intranet, application servers, etc. These may
be outsourced at a completely different facility with a different
outsourcer than the one hosting your self service and ACD, for
example. Understanding this performance relationship is the
key to delivering a good customer experience.

7. Failover mechanisms. One of the great advantages of hosting call
center technology is that business continuity is built in. Proper
disaster planning, however, requires collaboration between the
enterprise and the outsourcer and is not something you can


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ignore. Too often, failover mechanisms don't work properly and
the coordination of multiple outsourcers in an emergency can
be horrendous.

8. Start of day. Machines are supposed to work the same way all
the time, but we've all experienced issues that are based upon
the time of day. The most common of these are start-of-shift
issues as new grammars are cached or moved from one
machine to another. Some callers can hear very long delays of
up to 30 seconds when this occurs, and it's not something you
can identify without testing this scenario in advance.

9. Security. You have worked hard to negotiate outsourcing that
promises to keep your customer and company data secure.
It's not possible to avoid this sensitive information traversing
the outsourcer's facility; in some cases, clients have made
special arrangements to ensure that it's not stored anywhere.
But security is a dynamic, never-ending battle. It's not
uncommon to discover security vulnerabilities in services that
have been running for more than a year. Typically, these have
crept in over time, so it's important to inspect the call flows,
information flows, and data security measures in place on a
regular basis.

10. Changes. Your routing and self-service configurations change
much more frequently than you might think, and change
management involves clean communication and coordination
with outsourcing providers. Most providers have a great
system for this, but you should be sure that this is the case
when you make your selection.

These issues can make the concept of technology outsourcing
intimidating, but in fact, call center technology outsourcing can be a
very viable option for most call centers. For it to succeed, however,
you should be aware of these pitfalls and bring them up in your
consideration. An intriguing model is one in which the outsourcer
and the enterprise keep parallel systems, with the outsourcer


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handling high-load or routing transactions, just as you might do for
highly skilled or less skilled agents. This might seem like double the
work, but it will keep you aware of how these systems are working.


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IV. Cost Analysis

Cost Analysis

Before launching a business, the organization must establish a
budget, identifying the various costs the company will have to take
into account. There are two parts to the budget: a start-up budget,
which gives the breakdown of the one-time costs necessary to set
up a recycling centre, and the operating budget, which details the
on-going costs of running the centre. This analysis will also enable
the organization to plan the activity and to establish the prices, in
order to be profitable and able to sustain the centre over the long
term.

Start-up budget

Investments

The start-up budget comprises all costs necessary to launch an
activity. It includes spending related to capital and to the creation of
the legal structure, but also all the expenses and investments
essential for the opening of the premises, i.e. renovations, purchase
of equipment and furniture, and guarantees paid to phone and
electricity providers.

Contributions in cash and in kind

The organization and its partners have several possible ways to
contribute to the capital : they may put money into the business
thanks to personal loans, microloans, aids and grants. These are
contributions in cash. The organization and its partners may also
provide equipment: vehicles, materials, furniture, premises, etc.
These are contributions in kind.

Operating budget

The operating budget includes all recurring expenses, such as rent,
salaries, insurance and supplies. For instance we can take the


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example of a pilot project of creating a recycling site, the scenario is
different from that of the call center industry but the example is to
illustrate the start-up analysis of the business. Henceforth, the
budget can distributed as presented below.

Running costs

Running costs comprise fixed expenses (administration costs) and
variable expenses (operating costs). Generally, administration costs
account for 13% to 15% of the global expenses. They include renting
costs, standing charges, telecommunication costs, and a part of the
salaries devoted to the management of the company. Operating
expenses include maintenance costs, heating and electricity
charges, the amortization of equipment, etc. To estimate these
costs, the organization can try to find out what another business or
organization of a similar size pays. It is best to over-estimate these
costs at first.

Labor force and handling costs

Adding up all the employees’ monthly salaries is enough to know
the global amount of labor costs. The hardest task for the
organization is to evaluate the number of employees he needs,
according to the production volume of the company. For instance,
the organization has to estimate the number of computers a
technician can dismantle in one hour. This ratio goes from 4
computers an hour to more than 20, if the technician is competent
and is used to working on the same type of equipment.

Treatment costs

Usually, refurbishing and dismantling operations generate income
when the equipment and subsets are resold. However, some
components (such as faulty CRT screens) and polluting residue
represent an added cost, since in most cases the enterprise will
have to pay a service provider to take care of the collection of this
material. The organization must find the most profitable and
environmentally sound way to get rid of this material, in order to
reduce the company’s expenses. Before the collecting stage, the


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organization should negotiate the logistical and financial
management of the expenses devoted to the final treatment of
waste with the client.

Income

Before starting up, the organization should be able to secure 6
months of supply. This will ensure the durability of the future
enterprise. Ensuring supply is more important than all the various
contributions from the organization or its associates.

Human Resources Management

The success of a computer recycling business depends on good
human resources management, as well as on the professional skills
of its employees. However, in some countries, it may be difficult to
find people qualified to meet the specific requirements of a recycling
activity. Therefore, the organization will have to see to it that the
employees are carefully recruited, properly supervised and, above
all, well trained in order to acquire new knowledge and technical
skills. At first, the organization will also have to ensure that the staff
has complementary skills and a good sense of responsibility.

Business and administrative staff

Chief Partner

As the executive director, the chief partner is the main manager of
the enterprise. He guarantees the smooth running of the company
and is responsible for its development and global strategy. He will
have to prepare the business plan, define the positioning on the
market, create partnerships and represent the enterprise.
Therefore, he must be specially versatile and master all
management techniques extremely well, as well as the technical
aspects of his job. The organization will greatly benefit from being
assisted by a business manager and a supply manager to ensure
the expansion of his activity.

Technical staff


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The number of technicians working on site varies greatly. It mainly
depends on the quantity of equipment to be processed, on the
employees’ productivity. Although there are several specific parts
to play in, many employees are versatile and their training enable
them to change posts to meet specific needs.

Team management

Welcoming new employees

Each new employee must be able to benefit from a structured
orientation programme. This programme consists of a presentation
of the team and a basic description of the employee’s future
missions. The organization may also welcome the employee to
discuss targets and schedules. Once the new employee is working,
he may be given a manual to help him understand and perform his
tasks. Such a manual may consist of a description of the assigned
tasks, some tips to perform them and a description of the tools to
be used.

Training

To improve the competence of new employees, the enterprise may
set up a training programme. The first aim of this programme is to
enable, and encourage, the sharing of experience, through
demonstrations and exercises involving both newcomers and more
experienced employees. This programme must also define a
progression plan for the new employee to follow. It will help him to
estimate his level and his evolution. For example, this plan can at
first appoint the employee to simple cleaning tasks, then to testing
operations, and finally to computer refurbishment operations.

Motivating the team

To motivate the team and improve productivity, the organization
may resort to the attribution of realistic work objectives and to the
posting of results. The enterprise can post the quantities of
equipment treated and to be treated weekly, monthly or quarterly.


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Facilities and Utilities

The location

The choice of location of the recycling site must be one of the
organization’s main concerns. It should also be relatively close to
urban and commercial zones.


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V. The infrastructure

The call centre must be divided into several areas, separating
activities from one another. The dimensions required for various
areas may vary according to the requirement and business
activities.

Utilities

Electricity

A reliable mains electrical supply is essential to the operation of call
center. Without a reliable source of power, it is impossible to use a
test bed. Therefore, priority in operating expenses must be given to
the security of the power supply. Call centre must be equipped with
an Uninterruptible Power Supply (UPS), more commonly called
inverters. This device provides a stable power supply to electronic
or electric components. The minimum requirement for an inverter is
650mWa. In most extreme cases, the call center should resort to
the installation of its own generator.

The power cables coming from the electric meter must be of
sufficient size to support the total power of the workstations in test
(power of the central processing unit + power of the monitor) which
are connected simultaneously to the cable. There should be an
upstream cutout or a circuit breaker for each power cable in the
electric meter. To ensure the safety of individuals, it is preferable to
have ground fault circuit interrupters. Each test bed should be
equipped with a 10 to 15 amp fuse. A professional call center must
have electrical emergency stop buttons at every workstation.

Telecommunications

The centre must be equipped with effective means of
communication (phone, fax, Internet connection) to be able to
communicate efficiently with customers, suppliers and subsidiaries.
Low-bandwidth Internet connectivity may not be sufficient to run an
active centre. It is recommended to have a high-speed Internet
connection.


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In areas not covered by cable or ADSL, there is the possibility to
establish a high-speed Internet connection via satellite, which
guarantees a rapid, reliable and permanent Internet access. This
type of connection requires specific outdoor equipment (satellite
dish, cable, etc.) as well as a computer (with DVB-s card). There are
several types of subscription offers for satellite connection,
providing different bandwidths. The transmission/ reception material
required is generally specific to the provider. Advantages for each
type of subscription must be carefully considered, in order to select
the best offer with the best bandwidth.

Tools

To perform sorting and dismantling operations, several pieces of
equipment are required, all of which need to be purchased before
launching the enterprise. The most important are workbenches,
shelves, small tools, containers (boxes, roller bins, etc.) and a set of
scales (mechanical or electronic).


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VI. Commercial Strategy

The administrative body must pay particular attention to the
company’s positioning on the market (in terms of location, activities
and products), to optimize his pricing policy and to improve relations
with his clients and partners. A study of demand allows the
organization to get a better appreciation of the market: he is then
able to analyse and remove the obstacles to computer purchase
(such as price or lack of easy terms). Feasibility and market studies
also enable the organization to identify his potential clients and to
learn about the means to be implemented in order to meet demand.
Once the market has been fragmented and priority targets have
been determined, the organization must define a communication
plan, to make his offer known and find clients.

Marketing and communication

Beforehand, a market analysis should be conducted in order to
categorize customers, according to their purchasing power. The
organization must always look for creative ways to promote the call
centre.

Marketing plans should mainly focus on field missions, e.g.
prospecting, tracking quotes, follow-up and development of
customer loyalty. Even in a small organization, communication
issues are important. The organization must promote his products
and has to maintain and develop his reputation. In order to get good
exposure, the administrative body needs to use various types of
media. To communicate the administrative body can resort to press
conferences, advertising, television, telemarketing, emails, and
customer care centers etc.

Sanction Plans

The commercial strategy must be written in a concise way. The
organization must summarize the main procedures of the
company’s policy. The written form meets two needs: it clarifies
ideas and synthesizes key elements which constitute the
company’s competitive advantage. This is the reference document
the organization must align his strategy on. It enables decisions to
be explained and to make them understood and accepted.


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The administrative body must prepare in detail the action plans he is
going to set up to achieve the goals set out in the business strategy.
The next phase consists in describing in practical terms the different
stages and means implemented to achieve these goals. For each
step, the following aspects are detailed and planned : actions,
costs, timing and human resources. These action plans should be
aligned with the business and the objectives set. Actions are
prioritized according to needs. Depending on the situation, their
implementation may be simultaneous or sequential. Every action
must be validated before moving to the next.

Partnerships

Before making his business known, it is in the administrative body’s
interest to get in touch with networks of businesses and institutions
involved in computer science and which are committed to the
reduction of the digital gap. By establishing partnerships with the
key members of these networks, the organization will secure regular
clients for the company and will extend its scope of action. Partners
may contribute to the communication strategy: they can spread the
word about the company and act as free advertisements.

By getting in touch with governmental authorities, the organization
may also gain access to certain information (e.g. about the
expansion of the power system or the launching of a plan to finance
computer equipment in schools) which will enable the company to
enter new markets. In the same manner, a partnership with an
Internet access provider may be beneficial. Finally, the organization
may try to create partnerships with businesses which could sell his
products on other markets.


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VII. Case study

With respect to the above mentioned details for setting up a BPO, we here have the
scenario of VILLIT Solutions, the case under observation will be as follows:

With the current setup in hand, there is availability of resources in VILLIT ; there is a
running setup with a fair amount of inventory on hand that includes:

Premises with its basic requirement of seating arrangements, terminals to work on,
manpower availability to a certain level, administrative body managing the workforce
and miscellaneous obligatory elements to keep the system running smoothly.

With VILLIT moving into new market of providing BPO services to organizations and
searching for new clients, these available resources do prove to be viable for the
potentially growing VILLIT Solutions. BPO industry is still on its way to maturing in
Pakistan markets which makes it a good opportunity to step into. With its historical
background, the administrative body does have a relative experience of providing
services to its client. What should concern us are the SOPs (standard Operating
Procedures) that need to be developed within this firm before it steps into the business
flow. If we examine VILLIT ’s situation more closely with reference to importance and
benefits of BPO, VILLIT can prove to be a perfect fit in this industry with its current
resources available at hand.

As for the operational feasibilities, again, developing SOPs will help it a lot in every
imaginable step, but it should also be noticed that these SOPs will vary from time to
time depending on the case. Administrative body should, tough, carry out the
formulation of its core strategies for success, scope of primary work, targets for future,
and strategies to maintain its momentum for success in the long run.

The next big thing to do while outsourcing is to manage your resources which include
managing workforce, managing available resources, managing communication
channels, and managing every core element in the work procedure (all these elements
had been discussed prior in this document).


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Lastly, not the least is the financial aspect, the biggest cost in the occurrence of a new
setup business is the initial inventory and premises cost. Fortunately for VILLIT , all
resources are already available to work with. But there is a cost that will occur and that
is the running cost of this business. These costs accumulate in the following fashion:

• Labor force and service cost
• Maintenance cost
• Safety budget
• Human resource management
• Technical staff
• Training
• Keeping the team motivated

Apart from this, infrastructure may also need to be taken care of,

• Electricity
• Telecommunication
• Tools to carry out standard procedures

As mentioned all these aspects will vary from client to client, depending on the
requirements of business or its client.


Business plan-of villit

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