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Friday, July 27, 2007

Should IT, BPO staff work longer?

The appreciation of the Indian rupee against some currencies, especially the US dollar, has come as good news for many, but for those in the BPO and IT sector, it means no more Saturday night partying.

Several IT and BPO firms in Bangalore have decided that their employees will have to work on Saturdays too in order to counter the negative impact of the appreciating rupee.

Do you think this is a step in the right direction? Or will this demotivate IT & BPO staff? Could increased work hours lead to less productivity?

Instead of making employees work for longer hours, should the IT industry come up with better plans to counter the crisis?

Rupee rise: No big pay hikes for IT, BPO staff

The appreciation of the Indian rupee has probably hit the IT and BPO sector the hardest. IT pundits say that the days ahead will be hard as the need of the hour is more time and dedication.

Apart from working extra hours, employees in the IT and BPO sector will now have to bear with cost-cutting, which would mean that their salary increments could be affected.

At least 47 per cent of the expenditure incurred by IT firms is in the form the salary paid to employees.

Tuesday, July 03, 2007

BPO in India - Good companies, bad karma!!

BPO in India - Good companies, bad karma!!

There’s also concern on the profit margins of Indian IT firms (especially smaller and medium-sized ones) post 2009, when the Software Technology Parks of India scheme expires.

Meanwhile, more service providers are now nibbling at the outsourcing pie. The number of providers winning contracts has increased by 64 per cent in the past four years - from 55 in 2002 to 90 in 2006.

The Big Six of outsourcing - Accenture, ACS, CSC, EDS, HP and IBM - still dominate the offshore outsourcing market, having won 73 per cent of all contracts in 2006, compared to 18 per cent for the Indian providers (source: TPI).

The good news for Indian IT firms, though, is that the Big Six are winning a decreasing proportion of deals valued at over $50 million (over Rs 200 crore). In 2006, the India-based providers achieved 7 per cent of the total market share, up from a minuscule 0.5 per cent in 2002.


The BPO sector in India is going through a bumpy phase this year

The BPO sector in India is going through a bumpy phase this year. Based on some of the recent indicators, industry observers believe the expected result may be mild compare to the previous five years, which was at 14 percent.

The first quarter of 2007 witnessed the lowest number of contracts signed since the first quarter of 2003. The contract value was also the lowest compare to third quarter of 2002 as pointed out by Mr.Indraneel Banerjee, project director, Technology Partners International, a sourcing advisory firm.

The industry also witnessed a shift away from large multi-process BPO agreements to single function contracts of a smaller size.


Next in line to BPO and KPO is EPO (Engineering Process Outsourcing)

Next in line to BPO and KPO is EPO (Engineering Process Outsourcing), which is expected to grow 10 times over the next seven years. The EPO is also likely to promote India as a major hub in this part of the world. Industry analysts believe that if EPO maintains to keep consistent pace it is likely to touch USD 30 million.

The Indian Governments Commerce Ministry came out with a report citing that over the last couple of years (2004-06), the demand for Engineering Process Outsourcing to India has grown at a rate of 30-35 percent and this is likely to add momentum in the coming years.

A study conducted by the state-run Engineering Export Promotion Council (EEPC) says, "The global EPO market, is expected to grow at a rate of USD 110-140 billion by 2015 taking Indias share to 20-27 percent". Taking into account Indias last year (2006-07) result that touched USD 26 billion the EEPC is expecting the industry to grow substantially.

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