Spreading the benefits of BPO growth
India’s BPO industry has grown at phenomenal rates in the past few years. BPO exports grew from a mere $565 million in 1999-2000 to $3.6 billion in 2003-04. Despite emerging constraints, the industry is expected to grow rapidly, given cost pressures and demographic shortages in developed countries and India’s comparative advantage based on its labour endowment and skill base. BPO exports are projected to rise to $20 billion by 2007 and employment in this sector is projected to rise from its current level of around 300,000 to one million by 2012. Given this, the BPO industry has far-reaching socio-economic and cultural implications, beyond the employment and foreign exchange earning effects.
One important contribution is the sector’s enabling role in the accumulation of human capital. High-end and specialised outsourcing projects enable the development of knowledge and capabilities in areas like engineering design, finance and accounting, and provide exposure to cutting edge technology and practices. Productivity gains can, in turn, result from specialisation and adoption of new technologies and processes. This industry also enables the development of generic skills, such as customer relationship management, pattern identification, and inference-based analysis.
The constant focus on performance metrics such as quality, timeliness, and accountability, helps improve work discipline and professionalism. Such attributes can, in turn, help firms in improving organisational systems and in adopting more globally competitive and strategic management approaches. Moreover, as such generic skills are portable, they can potentially benefit other sectors of the economy.
The growth of the BPO industry also creates demand for ancillary services, such as housekeeping, security, catering, transport, language and culture training, telecom and computer equipment provision and maintenance, and real estate. Caterers are required for shift catering services. Support staff are required for maintenance of world-class premises. Fleets of vehicles are hired along with shift drivers for call centre employees, to maintain on-time delivery schedules in the absence of reliable public transport. Hence, the industry creates indirect employment opportunities for the less skilled and less educated.
One important contribution is the sector’s enabling role in the accumulation of human capital. High-end and specialised outsourcing projects enable the development of knowledge and capabilities in areas like engineering design, finance and accounting, and provide exposure to cutting edge technology and practices. Productivity gains can, in turn, result from specialisation and adoption of new technologies and processes. This industry also enables the development of generic skills, such as customer relationship management, pattern identification, and inference-based analysis.
The constant focus on performance metrics such as quality, timeliness, and accountability, helps improve work discipline and professionalism. Such attributes can, in turn, help firms in improving organisational systems and in adopting more globally competitive and strategic management approaches. Moreover, as such generic skills are portable, they can potentially benefit other sectors of the economy.
The growth of the BPO industry also creates demand for ancillary services, such as housekeeping, security, catering, transport, language and culture training, telecom and computer equipment provision and maintenance, and real estate. Caterers are required for shift catering services. Support staff are required for maintenance of world-class premises. Fleets of vehicles are hired along with shift drivers for call centre employees, to maintain on-time delivery schedules in the absence of reliable public transport. Hence, the industry creates indirect employment opportunities for the less skilled and less educated.
posted by Manoj Jain @ 10:51 PM
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