Tech Mahindra Business Services Group
BSG Tech mahindra

Customer Success Stories

Lead To Cash Shared Services

One of the world's leading communications companies with presence across several countries. The customer is a major supplier of telecom equipment and services to corporate and government customers worldwide. Its retail division is one of the largest suppliers of telephony, broadband and subscription television services in a leading western European country.

The Global Services division of the customer is a supplier of telecommunication equipment and services to corporate and government customers worldwide. Due to the complexity of delivering contract management services to a variety of customers, including delivering industry-specific solutions, operating globally and delivering locally, the customer was facing the following business challenges:

  • No formalized SLAs & KPIs. For example, No “Right First Time” measures
  • Working capital crunch and managing EBITDA pressures for this Line of Business
  • No significant revenue growth from existing customer contracts
  • Loss of productivity due to process standardization
  • Lack of ‘standardized’ contract management processes across all contracts – “cottage industry” model rather than “factory”
  • Scattered system stack – poor customer experience
  • Inconsistent change delivery, therefore revenue and margin leakage
  • Inaccurate billing information resulting in aged debt
  • Lack of documentation of contract management process resulting in “tacit” knowledge causing huge business risks
  • Manual activities for critical functions like billing without quality audit – resulting in revenue and margin leakage
  • Operational inefficiency therefore unable to manage peaks and troughs in back office work
  • Lack of consolidated commercial inventory – risk of billing inaccuracy and inaccurate cost base resulting in margin

The specific nature and extent of contract administration varies from contract to contract. It can range from minimum acceptance of a delivery and payment to the contractor to extensive involvement by program, audit and procurement officials throughout the contract term.

In collaboration with the customer, Tech Mahindra BSG deployed a contract delivery shared services model (CDSS) to provide a focal point for managing complex Tier 4 and 5 contracts for our customer and add value by reducing the ‘unit’ cost to deliver a contract.

A team of BPM, telecom domain and BPO experts was formed to conduct a due diligence on identifying the factors influencing the degree of contract administration including the nature of the work, the type of contract and the experience and commitment of the personnel involved.

Other factors that were identified for a ‘contract’ to be off-shored included degree of customization required to define a contract. These include contract value, managing ‘margin’ pressure, confidentiality clauses, number of orders, billing etc. An assessment report was developed, highlighting the business case and an approval from the customer was procured. Our team of experts analyzed the information to develop a clear, concise, performance-based statement of work to the extent possible and prepared a contract administration plan that effectively measured the program performance. Information related to business process SLAs, process deliverables and BAU conduct was stored in a form of a SOP. The SOP had low level activities’ details that a process associate is required to carry out, typically involving commercial functions like billing, operational functions such as project managing, service requests etc., in a timely manner, achieving and exceeding required quality parameters and meeting the RFT SLA targets across CDSS Towers.

Post this stage, a Parallel Run was initiated that ensured that all transactions were executed in a nesting environment with regular approvals from the customer contract managers. A successful parallel run would form the basis of a seamless Go Live. This model was replicated across a number of contracts that were eventually awarded to Tech Mahindra BSG for delivery.

Tech Mahindra BSG created a high-performance business Contract Delivery Shared Services Unit and delivered measurable business benefits on a number of customer contracts. Some of them include:

  • Improved KPI results, enabling faster quote procurement thus reducing the order-delivery cycle time for a global bio-pharmaceutical company.
  • Improved Inventory status to 90 per cent, thus ensuring billing accuracy for one of the largest American multinational consumer goods company.
  • Improved NPS Score to 80 per cent through FCR Improvement Plan for one of the world’s leading brewers.
  • Improved Pricing SLA to 98 per cent through FCR Improvement Plan for a giant American multinational food and beverage corporation.
  • Reduction in Service Request Backlog by 80per cent and collection of 800K GBP (approx.) for a global market leader in the Logistics industry.
  • Commercial inventory management benefits up to $ 23 million through cost and revenue analysis.

“I would like to share with you our exceptional achievement in cash collection,successfully collecting all of the £29m billed in December - within the month of January. By any standard, to bill and collect all £29m within one month would be considered remarkable. To do this across 80 plus separate invoices in a month where we had so many Solstice rate changes to apply - and not to mention of course the customer’s year end and the seasonal holidays to contend with - is quite simply an outstanding performance by everyone involved and probably represents best in class” – customer Delivery Director

View the Case Study on our  Lead To Cash Shared ServicesDownload

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