MBI SUMMERSCHOOL 2012 BANGLADESH

INTRODUCTION ABOUT UU
Founded in 1636, Utrecht University has evolved into a modern and leading institution with a growing international reputation. The university is home to 30,000 students and 7,500 staff and counts 12 Nobel Prize winners among its (former) staff and students. Utrecht University is an internationally renowned research university and demonstrates an outstanding performance in multiple international rankings. The 2011 Shanghai Rankings of worldclass universities put Utrecht in first place in the Netherlands, 12th in Europe and 48th world-wide. According to the 2011 annual Elsevier survey of professors and the 2011 World University Rankings (Times Higher Education top 200), Utrecht is the best university in the Netherlands. Also, of the 56 leading universities in Europe, Utrecht University together with ETH Zurich, Imperial College London and Cambridge University make up the top 4 of the CHE Ranking. To formulate this ranking CHE assessed the Mathematics, Physics, Chemistry and Biology research disciplines of 4,000 European higher education institutions. Information Technologies in Science and Society Utrecht University was the first university in the Netherlands to group its top research into 15 focus areas. By enabling academics from different disciplines to collaborate in these focus areas, the University has created an integrated approach that contributes to solving societal problems such as climate change, health, safety, social cohesion and sustainability. One of these focus areas is Information Technologies in Science and Society where a 67 fte research staff studies the fundamental issues in algorithm and software development in order to allow users of information technology in science, business and culture to handle and exploit the enormous flood of data they are facing. Partnerships inside and outside the University Utrecht University is a member of internationally renowned networks such as the League of European Research Universities (LERU). Utrecht collaborates with universities, knowledge institution and businesses at the regional, national and global levels. These collaborations result in innovative research and ensure that our knowledge contributes to economic development and the solving of societal problems.

CONTENTS
INTRODUCTION PARTICIPANTS BUSINESS PROCESS OUTSOURCING WHAT WE OFFER BENEFITS & RESEARCH EXPERIENCE ABOUT BANGLADESH 4 6 8 10 14 16

INTRODUCTION
The MBI Summerschool has a proud tradition of visiting nations and territories that are famous for recent developments in the Information Systems and Technology world. I am therefore proud to announce that the destination set for the 2012 MBI Summerschool is Bangladesh. We chose Bangladesh not just for any reason. Bangladesh is a nation that is becoming a stronghold in the offshoring community. In the previous edition we visited India, a marvellous country that was by then already fortified in the offshoring landscape. Bangladesh is putting much effort in getting the same grip. It has been listed as a Next 11 (N:11) country and is a founding member of the D8 and the SAARC. Backed by the stability of the Commonwealth of Nations, is sure has a bright and ambitious future ahead. And this couldnt be a better time. In the outsourcing world, the trend towards Business Process Outsourcing (BPO) is becoming clearer than ever. This method of outsourcing is highly effective, it provides a higher level of customer satisfaction whilst cutting down on costs and streamlining the organization. BPO can happen at any level of your organization, at the back office where human resources, finance, accounting and for instance procurement can easily offshored to a Bangladeshi location. The front office is swiftly growing as well, where customer support and customer contact centres are large. Other interesting developments happen at knowledge process outsourcing (where intellectual property can be managed and in part developed), legal process outsourcing and in the banking industry. Bangladesh also faces some tough issues it needs to solve, some where you might be able to play a part in. Needless to say, Bangladesh has a lot to offer for us is the academia world and for you in the business world. Like weve setup the program of the Masters in Business Informatics, the students will also with this Summerschool be on the verge of the latest developments in the IT world where pragmatic business sense and thorough academic sense meet. Hoping to see you get involved I write you, Prof. Dr. S. Brinkkemper Full professor at Organisation & Information, Department of information and Computing Science Utrecht University Having spoken to many of the students that went to India in 2010, it was clear that Summerschool is an amazing addition to the curriculum of the Masters in Business Informatics program. Not only does it provide for a wonderful cultural orientation at a completely different country than our own, it also gives every participant an opportunity to see what questions businesses struggle with how we, as future-employees, can answer them. Being asked to lead this project was thus a great honour and privilege. But without you as potential client this project will be nowhere. We need organization to ask us the questions we are going to solve. On our website we have listed some questions and points of interest, but anything can do. From market analysis to deep academic questions concerning governance. From quality management to alignment. Or something completely different. And you too can take advantage of the Summerschool. Not only will you receive high quality deliverables that will surpass your expectation, you are also invited to join our trip (partially) as we will visit many organization in Bangladesh. This might be an opportunity for you to meet potential partners, explore the country and see what Bangladesh is all about. This might be great extension of the desk research that we will be able to do at your organization. Feel free to contact us about the possibilities. In closing, I am hoping you will enjoy reading this booklet, understand better what the summerschool in Bangladesh is about and what business process outsourcing is and can do for you. The participants are always available for you might you have any questions, comments and our remarks. I hope to see you in future, at the seminar where the results will be presented, or at your organization where I myself might doing desk research in an effort to answer your question the best that I can! Thijs Baars Master student Business Informatics Project Lead MBI Summerschool 2012

PARTICIPANTS
Alexander Maruta Karl Weder Michail Theuns

Machiel Schnbeck

Lucas van den Bemd

Robin van den Akker

Thijs Baars

Eric Ververs

INTRODUCTION BUSINESS PROCESS OUTSOURCING

Business process outsourcing can be defined as the delegation of one or more IT-intensive business processes to an external provider that, in turn, manages the selected processes based on defined and measurable performance metrics. IT-based BPO is the fastest growing business globally. Its phenomenal growth can be attributed to technological advancements, such as the Internet and mobile services, which have reduced communication costs and facilitated the internationalization of business processes and services. The BPO industry is heterogeneous, differentiated by horizontal process domains such as HR, logistics, or finance, and vertical specializations such as medical transcription in the health sector and check processing and imaging in banking. Other categorizations also exist. A distinction can be made between onshore and offshore BPO: Onshore BPO refers to outsourcing to a domestic or nearby vendor whereas offshore refers to the vendor from a different country. For example, for U.S. clients, Canada is considered an onshore location, and India is offshore. Another classification is discreteprocess BPO, comprehensive BPO, and a multi-domain BPO (Stone, 2004). Discreteprocess BPO refers to a single-process BPO where the vendor is responsible for only one process, for example accounts payable in banking. In a comprehensive BPO, the vendor undertakes multiple business processes within a single support area, such as HR. Multi-domain BPO is more complex: The vendor supports various clients functions across multiple support groups. For example, a vendor may be responsible for HR, finance, and accounting, as well as customer relations. The third classification divides BPO on the basis of type of service. It includes: (1) front-office processing, (2) middle-office processing, and (3) back-office processing. Front-office BPO includes customer service and technical support services; middle-office processing includes services such as banking, insurance, telecom, transportation, and utilities; back-office BPO supports functions such as HR and finance and accounting. The increasing trend of outsourcing has generated considerable debate as to why firms outsource and various explanations have been offered by scholars. Firms may be driven by the need to reduce costs improve responsiveness to changing market conditions , concentrate on core activities, or to achieve a combination of these benefits. Traditionally, outsourcing was a means to lower the costs of production and processes, and even today, economies of scale are cited as a major motivation to outsource. For example, cost-effective access to specialized skills and saving on overhead through short-term cost savings have been mentioned as critical reasons for outsourcing. From another perspective, the emergence of globalization has forced firms to concentrate on their core activities to remain competitive, which has led to the notion that firms should identify and outsource their non-core processes. A third perspective is that long-term relationships between clients and BPO vendors can help clients enhance their existing competencies and create new ones.
Source: Anju Mehta, Achilles Armenakis, Nikhil Mehta, and Feruzan Irani

WHAT WE OFFER
We offer high quality, tailor-made research in Bangladesh on Business Process Outsourcing for organization with aspiration and interest in the power of Bangladesh as an offshoring destination, Business process outsourcing and the crossroads between those two fields. We can deliver this on a non-profit basis at an extremely competitive pricepoint. Goal The main goal of the Summerschool is to conduct research in Bangladesh and the Netherlands, which is fully customized to the wishes of the organization, in the field of Business Process Outsourcing and Bangladesh as an offshoring destination. The result should be a clear, complete answer of the question stated in the research statement, delivered as requested by the client. Of course, the research can be conducted in several areas. Examples of research that has been conducted previously are: Governance in Offshoring Mission critical outsourcing Success and failures in offshore development projects Knowledge management in outsourcing Optimal team compositions But many more can be thought of and all ideas are welcome. Methodology Each research project will roughly have the same setup. First, thorough desk research will be executed. This can be a literature study, case study at the client or any other method needed to acquire the knowledge needed to conduct field research in Bangladesh and to answer the research question. This method will be agreed upon in negotiation with you. Although timing for this varies, approximately four to six weeks will be scheduled for this step. During this step, the researchers will acquire enough knowledge of the topic of your research question that they are optimally prepared for the field research in Bangladesh, which is the next step. The field research will be executed at a location suitable for this research. This can be a variety of locations, organizations or geographic areas within Bangladesh. The locations will be chosen on forehand, and relations with organizations will be setup in the previous step, so that all effort once in Bangladesh can be put into the field research. The methods of this field research vary per project and are chosen to fit with the research question at hand. This field research will last for approximately two weeks. The next step is analysing the data gathered in Bangladesh. Even though some data may be analysed in Bangladesh itself in an effort to improve data gathering and assert any dynamics in the process, the majority of this work will be done back in the Netherlands. Here, data will be analysed and the research question will be answered. It will then be transformed in a deliverable as requested by you, as the client. The results will be verified by assigned professors of the MBI program to assure high quality of results and analysis. During this process, close contact with the client, or his team, will be held to share progress and assert any questions that might come up. The final step is presenting the deliverables. These will be presented at your office, and were possible, at the seminar with all other results and published in an outlet suitable. One of these outlets will be a hard-cover book that comprises of all public results. Another possibility might a scientific journal or conference. Researchers The team of researchers exists out of the best students from the Master in Business Informatics. Aside from the academic activities, they are entrepreneurs, active in one or more committees and/or run several projects to differentiate themselves from the normal crowd. It is an international selection of students coming from all over Europe. Many of them have already successfully published one or more articles and book chapters, and have themselves to be objective, thorough researchers. To sum up, they are In their final stage of study Highly motivated and ambitious Internationally oriented Organizational experience Good academic results Team playing skills Quantitative strong Objective Loyal Proven researchers Participating organizations are able to express their preference for participating students. On the MBI Summerschool website, an overview can be found, including links to their rsums. Desk Research Desk research covers a period of approximately six weeks. The participants will study their personal project and select the methods to answer the question/project you have assigned to them. They will be fully aware of the Bangladeshi economy, culture and facts and figures covering the question and any possible answers pertaining to the project. They might visit your organization, depending on the

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WHAT WE OFFER
research methods needed. For example, interviews can be held or questionnaires distributed. This of course in consensus with you. The desk research should prepare the student with ample information for the field research. Field Research Approximately two weeks of field research will be carried out in Bangladesh. Depending on the participants personal project, he may visit organization, institutions, perform interviews and other methods of data gathering. This will be clearly discussed with you, as this influences the results fo your assignment and the deliverables. Youre welcome to join (a part of) the field research. We are able to book rooms and flights for you, and bring you in contact with organizations of your choice. Be aware that fields research can be highly dynamic. If interesting results are found, it can be that participants change their schedule in an effort to acquire the best information possible. This will in the end benefit you, as you will receive the best possible deliverable, but might require some flexibility from your side depending on how close you want to follow the field research. Please contact us for any information regarding joining us in Bangladesh and participating in the field research. Reporting When the Summerschool arrives back in the Netherlands, the participants will start to analyse the results and create the deliverables. Researchers might need more information from you, and will send you copies of the deliverables. In case your project is private, students might make a second copy that is anonymized so that the results can be shared with the academic community while remaining at your and your organizations discretion. The results will then be presented at your organization. A general seminar (see below) will be organized so that every participating organization can see the general results of the Summerschool, can connect to each other, the professors involved and the participating students. Seminar After all results are worked out and presented to the individual companies, a general seminar will be hosted where the overall results will be presented of the Summerschool. This will allow you, and your colleagues, to meet the professors and students behind the Summerschool as well as other businessmen that participated in the Summerschool. You will be able to give a talk on your organization. Please ask us for more information. Book A book will be published with the results of the summerschool. The book, named Collaboration in Outsourcing: A Journey to Quality, which evolved from the 2010 summerschool to India has just rolled of the press and is very impressive.

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CLIENT BENEFITS
In the past decade the MBI Summerschool, organized by the Department of Information and Computing Science at Utrecht University, has conducted research in various territories relevant in the area of Business Informatics. The results from this research have led to advances in academia and organizations, ranging from published papers to extensive seminars to important business reports. Year after year, clients have been satisfied with results from the Summerschool and its research. In an effort to deliver the same, if not better results this year, each project will be tailor-made to the client. The topics and deliverables will be customized to your need to assure that you receive what you expect. Quality Assurance Only masters students in the Business Informatics (MBI) program can apply to the Summerschool, so that quality can be guaranteed. All the students participating have experience in conducting research, are capable of an objective, sharp view of the world and have strong quantitative skills to understand and analyse the results from the research. As the MBI program is a cross-road between academics and business, the students have acquired a strong business sense and the expertise to solve problems. Furthermore, the program is backed by the professors of the MBI program to assure a high quality in research and foremost in results. Because of a division in desk research in The Netherlands and field research in Bangladesh, directed effort can be put in obtaining field data in Bangladesh whilst being fully prepared. This allows a for a rigorous research setup that guarantees proper results. This setup has enabled the Summerschool to provide clear, compelling and satisfying results in the past decade and will do so this year. Deliverables with Discretion Having experience with the business community, the participants of the Summerschool understand that your data and your research are private. Research will only be published and communicated about with explicit permission of the client. Where needed, deliverables will be anonymized so that discretion can be upheld. We will discuss this clearly when starting a project with you. Competitive Pricing The Summerschool can offer competitive pricing for a variety of reasons: The Summerschool is part of Utrecht University, a non-profit education organization. The research is done by students, who have highly talented skills at a lower price point. The costs are calculated depending on the requirements and deliverables of your project. Costs are expenses based. Expenses are low as students dont fly businessclass, need luxurious hotels and other needs that full-time consultants have. This means we can offer research starting at 2200,00 including the deliverable, desk research in the Netherlands of approximately four to six weeks, field research of approximately two weeks, access to the seminar with results from other research conducted in Bangladesh and a copy of all the public results in a hard-cover book.

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INTRODUCTION ABOUT BANGLADESH

Bangladesh is a sovereign state located in South Asia. It is bordered by India on all sides except for a small border with Burma to the far southeast and by the Bay of Bengal to the south. The capital is Dhaka, which is the hub of all cultural, political and religious affairs. neglect by the politically-dominant West Pakistan, popular agitation grew against West Pakistan and led to the Bangladesh Liberation War in 1971, which succeeded after Pakistan surrendered to Freedom Fighters of Bangladesh, and her ally an Indian Brigade in Dhaka. After independence, the new state endured famines, natural disasters and widespread poverty, as well as political turmoil and military coups. The restoration of democracy in 1991 has been followed by relative calm and economic progress.
Source: Wikipedia

Economy With approximately 150 million hardworking people, Bangladesh has great market potential. Although today Bangladesh is still a low income country, tomorrow, Bangladesh could very well be the next emerging market in South Asia. The country is listed among the Next Eleven economies. Which are economies identified by Goldman Sachs investment bank and Jim ONeill as having a high potential of becoming, along with the BRICS, the worlds largest economies in the 21st century. Bangladeshs macroeconomic performance has been relatively good over the last years; the economy has grown at over 6% per annum, with

inflation remaining at acceptable levels. Aided by moderate growth in agriculture, the real GDP growth was propelled mainly by the industry and service sectors. The growth has been mainly supported by private investment and bolstered by a surge in workers remittances, which account for 9 Billions USD/year, (amounting to 10 % of GDP). External trade of Bangladesh has emerged as a vibrant source of economic growth. Exports stood at USD 14 billion in 2008, with Ready Made Garments (RMG) constituting three fourths of the export basket. The garments manufacturing sector (RMG, knitwear, textiles) is providing employment to more than 2.5 million people (80% women) in 3500 factories. The cheap labour force compared to other countries in the region and increased quality of the products are comparative advantages of the local RMG industry.
Source: Federal Department of Foreign Affairs

Education The educational system in Bangladesh is threetiered and highly subsidized. The government of Bangladesh operates many schools in the primary, secondary, and higher secondary levels. It also subsidizes parts of the funding for many private schools. In the tertiary education sector, the government also funds more than 15 state universities through the University Grants Commission.
Source: Wikipedia

The borders of present-day Bangladesh were established with the partition of Bengal and India in 1947, when the region became East Pakistan, part of the newly formed nation of Pakistan. However, it was separated from the western wing by 1,600 km (994 mi) of Indian territory. Due to political exclusion, ethnic and linguistic discrimination, and economic

Economy Indicators 2011 GDP: GDP per capita: GDP real growth rate: Inflation rate: Unemployment rate: Labor force:
Source: CIA World Factbook

ICT There is considerable potential for the development of ICT industries in Bangladesh because of the availability of trained personnel at relatively low wage rates. The present government of Bangladesh envisions creating a Digital Bangladesh by 2021, which critically depends on proper policies as well as infrastructure development for this sector.
Source: The International Growth Centre

US $282.5 billion US $1,700 6.3% 10.7% 5% 75.42 million

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More information? www.mbisummerschool.nl twitter.com/uu_mbi T.Baars@uu.nl