Slowdown to benefit BPO industry in India

NEW DELHI: Indian industry will feel the real impact of the current meltdown in the US and other developed economies in the first quarter of 2009, with the business process industry likely to see job losses of up to a quarter of a million, said Samir Chopra, President, Business Process
Industry Association of India (BPIAI).

Addressing delegates at a session on 'Surviving US Recession- Developing & Transforming Policies', Chopra, however, saw a silver lining in the ongoing recession for the BPO sector, saying that it would compel more companies in the US and Europe to look at outsourcing as a way cut their costs and improve efficiencies.

India is the most favored destination for BPO / outsourcing. Future of Indian BPO

India is the most favored destination for outsourcing. In 2003-2004, ITES-BPO companies were the largest recruiters in the IT/ITES sector, adding around 70,000 jobs. According to a research conducted by NASSCOM, Indian IT/BPO sector will employ more than 1.1 million Indians by 2008.

The future of BPOs in India depends upon the quality of education imparted to our young generation. In the recent past, there has been a decline in the quality of education in India, though the number of institutes has gone up. Education is not growing at the same pace as Indian economy.

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BPO.biz : One stop bpo resource - BPO Portal launched.

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Are BPO jobs no longer attractive? Working for a BPO today is a fast way to rake in the moolah!

But what’s it like to be a BPO employee? The popular perception now is that ‘BPO’ is no more the acronym for Brighter Prospects & Opportunities. But is this true?

Well, the truth is that the BPO industry has done a whole lot of good for the country in terms of providing mass employment opportunities. In the early 1990s, it was unheard of for a graduate to get a job without having any additional qualifications. Today, an English-speaking graduate from any town or city in the country can easily find employment.

So, while the West continues to depend on us because of the relatively cheaper costs and intellectual capital here, why are people still hesitant to take up a BPO job? A former BPO employee, Arvind quit his job and opted for higher education. “It’s difficult to climb the corporate ladder beyond a certain point without a master’s degree.

A stint with a BPO became absolutely necessary to kill spare time while preparing for the numerous entrance exams to various colleges. I don’t want to be a BPO employee all my life,” he says.

Source

5 Indian cities among top global outsourcing / BPO hubs

Reflecting the immense potential of India's information technology and outsourcing prowess, five Indian cities are among the top 10 global emerging outsourcing destinations with Chennai topping the list.

Among the top 10 cities, Hyderabad is ranked at the second position followed by Pune (3rd), Kolkata (5th) and Chandigarh (9th).

The study jointly carried out by Cyber Media's Global Services magazine and investment advisory firm Tholons has drawn up a list of 'Top 50 Emerging Outsourcing Cities' and India is represented with six cities including Coimbatore (21st) while China has five cities.

The Philippines city of Cebu (4th), Vietnamese city of Ho Chi Minh (6th), Colombo (7th), Shanghai (8th) and Beijing (10th) have also found a place in the top-10 chart.

"With the demand-supply gap widening, newer Tier II cities will play a critical role in re-engineered globalisation models," said Tholons Chairman and CEO Avinash Vashistha.

Low cost, developed infrastructure, skilled workers and low attritions are the main reasons for Chennai bagging the top spot.

"Chennai is expected to house more than 73,000 workers of the top three Indian IT companies (TCS, Infosys and Wipro) by 2010," the report said.

In addition, it point out that Chennai is an established location for automotive engineering services, product development and health care BPO. It also houses big names like Accenture, Cognizant, TCS, Infosys, IBM, Satyam and Sun Microsystems.

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.

Top BPOs in India - BPO Companies India

Top BPOs in India : For an industry short on lists of BPO companies, here is a listing of the top BPOs in India. Amongst them are: EXLService, Firstsource, Genpact, HCL BPO, IBM Daksh.

The global outsourcing industry is not short on listings of IT-service companies, though it does lack listings of BPO providers. Everest Research Institute brings out a list of top Indian BPO players at a time when corporate America needs to know about offshore BPO playersas it increasingly offshores its finance and accounting, human resource and customer-service business processes.
Everest recognizes that these top Indian BPO companies (See Table 2) as global players are competing on the basis of not only cost efficiency but also on process and industry expertise.

WNS posted about a 141% increase in its net profit at $8.9 million for the quarter ended March 31. Its revenues grew by over 109% at $110.7 million.

The Indian IT-BPO sector is likely to achieve a target of $60 billion in export revenues by 2010,

According to a special report by the information technology department, India, the software and ITES exports from the country grew from $12.9 billion in 2003-04 to $23.6 billion in 2005-06 and exceeded by 32 pcer cent last fiscal.

The Indian IT-BPO sector is likely to achieve a target of $60 billion in export revenues by 2010, according to the Union Communications and Information Technology Ministry, Govt. of India.

According to a special report by the information technology department the software and ITES exports from the country grew from $12.9 billion in 2003-04 to $23.6 billion in 2005-06 and exceeded by 32 pcer cent last fiscal. In 2006-07 the IT-BPO sector witnessed a revenue growth of about ten times over the last decade, the report stated adding that the total IT-ITES exports from the country exceeded $31.3 billion during the year.

Call center / BPO and Outsourcing Jobs - A win-win situation

Reiterating the economists and the sociologists, the cheap labor in India owes its origin to the high rate of unemployment here. Hundreds of thousands of graduates are jobless and desperate for work in India. With higher studies only an option for the affluent, professionals too are facing increasing difficulties in recruitment. And as far as skilled labor is concerned, it is limited to few technical branches of work. Here is where the call center industry fills the gaps.

Call center units are not very demanding as far as qualifications and prerequisites are concerned. Most call center jobs require a basic understanding of computers and a good grasp over English. And the urban youth of India are computer literate graduates with a command over English language. This is the ideal unskilled labor that the call center industry is looking for.
Call center executives only need to be trained in soft skills that include voice neutralization and accent training. This helps to give them an accent more familiar with the people they are going to be talking to. For Indians, this is a smooth transition. Ours is not a country that has evaded the influence of the West and Americanism has seeped into our daily lives like ink on blotting paper.

India has a winning edge over other countries because

India has a winning edge over other countries because of the following reasons.

• Availability of English speaking, skilled human resources in plenty
• Availability of cheap work force to offer cost effective BPO Solutions.
• Well defined process to address global needs.
• High conscious towards quality.
• Government's support to develop the industry.
• Availability of advance technology at par with western countries.
• Flexible human resources to work in various time zones.