Tuesday, February 05, 2013

BPO INDUSTRY: EMPLOYMENT SCENARIO

Good ol’ B.O is worried that Indian (and Chinese) BPOs are taking away American jobs! His worries might actually be true, irrespective of whether he can do anything about it

Even Gaurav admits that his work pressure has almost doubled over the last one month, much to an extent that his company is contemplating options to add three new faces to his team. In fact, he is also expecting a 15-20% hike in his salary this year. And why not? As per Nasscom, the industry can achieve an export target of $60-62 billion by FY2011 employing 2.5-3 million professionals directly. Even as per IDC India estimates, the domestic BPO market is expected grow to $6.82 billion by 2013 at a CAGR of 33.33%. “But, to succeed, these companies will not only have to strengthen their focus on domestic outsourcing business, but will also have to expand their client base across industries while paying heed to process efficiency & service delivery through technology advancement. Companies should now look at Shared Services Center (SSC) design and execution as one of the key focus areas to deliver a more significant impact on their client’s business,” cautions Rajeev Sharma, Director, Osource India (an outsourcing service provider for BFSI, Telecom, Pharmaceuticals & Hospitality companies).

Even big wigs like TCS and Wipro are quite bullish on their hiring plans. While TCS plans to hire 30,000 employees in FY2010-11, HR managers at Wipro too are looking forward to add 7,500 people to the company’s payrolls and that too over the next six months. In fact, Wipro has just given a pay hike (8-15%) to its employees. However, the irony is that despite having an impressive track record (pre-recession) and remarkable future estimates, the outsourcing industry in India still suffers from hitches like lack of staff with right skills & high attrition levels. But, is there a solution? As per experts, the best way out for companies is to treat employees as their internal customers apart from following the Pyramid rule while infusing fresh talent in the company (so that a clear growth path is defined at the beginning itself). Also, cross training at all levels by domain experts is required in a big way. Moreover, the shared service functions (HR, Finance, IT Support, et al) should be made on fair parameters of performance, rewards & responsibilities.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

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