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Skyline Business School |
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Skyline Business School |
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Issue:2
Forget the Drawl, desi will do
Latest Demand from overseas clients that should please employees of call centers all
across the country- Americans, British and the Aussies would like to hear understandable
English, with no mother tongue influence of course. Clients abroad are not amused with
call center employees mimicking their accents and this issue has proven to be the biggest
asset in the anti-outsourcing movements abroad.
Source: Times News Network January 31st
2004
BPO juggernaut rolls unchecked
Yes, steady and speedy. The Indian BPO juggernaut is rolling. Top BPO companies are adding
5-7 customers a week, global political backlash and domestic tax irritants not
withstanding. Last week, the US Senate tabled a bill prohibiting outsourcing on government
contracts. Growth might also be stymied by a recent tax on captive units of
multi-nationals. However, Indian BPO companies are dismissive of both factors as having a
major impact on the industry, which earned $2.3 billion for the country in 2003.
It is believed that the Senate will have almost no impact since very little outsourcing
work to Indian companies is from government contracts. Adding almost 200 jobs a week for
fresh graduates, the industry is poised to show 100 percent growth in 2004.
Source: Times News Network January 31st
2004
Assocham backs Asian alliance
To call Meet of BPO companies on US Bill
The Associated Chambers of Commerce and Industry (Assocham) has suggested the Indian
Government to create a strategic plan, where a CEO Group comprising Fortune/Global 500
companies, (which rely on outsourced activities) explain the logic of outsourcing to
India. The need to develop a bigger picture of trade, commerce and geo-strategic
cooperation with US; focus on interest groups like India; Caucus in the US to form opinion
against protectionist legislations and make a case under various WTO agreements that the
Bill will act as a trade barrier, are amongst other suggestions provided by the Chamber to
counter increasing BPO backlash
Source: United News of India January 25th
2004
Spectramind to focus on non-voice business
In a move to increase its seat utilization and improve margins, Wipro Spectramind is
looking at growing its non-voice process business over the next few quarters. This
division, which handles complex value added processes, currently accounts for 14% of
earnings for the corporation, compared to a mere 5% less than a year ago. A company
executive did however admit that the voice business was growing at a faster rate. The
company expects the non-voice process business to account for between 20-25 percent of its
revenues over the next six to eight quarters.
Source: The Hindu Business Line January
26th 2004
Outsourcing will grow at 31-40 pc annually: McKinsey
"Remote businesses are worth $3 trillion"
Amidst the furore over outsourcing jobs from countries such as India, a study has
said that off shoring industry in the US is still in the nascent stage and is expected to
grow 31 to 40 percent annually in the next five years. The McKinsey Global Institute said
that business-process off shoring, which was valued between $32 and $35 billion in 2002,
was just one percent of the $3 trillion worth business functions that could be performed
remotely. Though, this may cause job losses, it will make it an industry with revenues
well over $100 billion by 2008.
The study also states that companies are saving billions of dollars when they offshore
back-office functions and service jobs. They can boost their capital productivity in
low-wage environments in three ways: round the clock shifts, cheaper capital equipment and
reduced automation, the study published in the Forbes Magazine said.
Source: Press trust of India January 25th
2004
Grey Sells
The entry of middle-aged employees in the youth centered BPO sector
may bring in maturity and stability that it lacked till now.
The latest employment trends in the BPO sector are startling if unimaginable. More and
more well trained people in their 30s and 40s are beginning to get interested in this
work. People with such backgrounds feel that the work culture is employee-friendly and
provides equal opportunity for all. The sector with a very high turnover rate has been of
concern for all HR managers across industry. This is why BPO firms see value in the mature
middle-aged job market and are actively employing 35-40 year olds. Large percentages are
educated and have work experience. Adding stability and maturity, a plethora of
opportunities open up.
Source: India Today February 2nd 2004
BPO Players focus on Quality of training
Training and recruitment standards in the BPO sector are becoming more stringent as jobs
in move towards the higher end processes. Recent allegations regarding poor quality of
agents have triggered off quality consciousness among BPO firms.
A definite shift in the training process at two levels has been observed: At the entry
point, companies are looking for prospects who have a reasonable amount of work
experience, rather than getting fresher. Secondly, the firms are looking at prospects who
have excellent learning skills in terms of the processes in an organization. Companies are
looking to intensify training programmes, especially in the case of value-added processes,
soft skills for customer relationship management, as well as training for the actual
process and operations. Entry barriers such as psychometric tests are being utilized to
ensure that employees are "trainable".
Source: The Financial Express January 26th
2004
U.K firm shuts India Call Center
Shop Direct Group Ltd., a mail-order firm owned by Britain's wealthy Barclay Brothers,
plans to close its India call center in February and repatriate jobs to the U.K. While the
closure follows what the company says was a two-year trial period to handle customer
calls, labor unions and outsourcing experts in the U.K believe that the 250 seater call
center in Bangalore was shuttered because of complaints of Indian accents, which some
customers found hard to understand.
Source: The Asian Wall Street Journal
January 31st 2004
Infy BPO arm in groundbreaking deal with UK firm
Progeon, the BPO subsidiary of Infosys Technologies today has entered into a strategic
alliance with Hazell Carr of the UK. Clients in the life and pensions market will be
offered an integrated onshore/offshore outsourcing option under which work will be
performed at either company's location best suited for clients. Hazell Carr is a leading
business process management company based in the UK providing services to life assurance
companies and corporates with pension schemes. The tie-up offers short-term outsourcing in
areas such as endowment complaints.
Source: Business Standard January 29th 2004
Prepared by - Abhimanyu Puri BBA-MAHE-Level 1
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