Financial Daily from THE HINDU group of publications
Wednesday, Jun 08, 2005
Financial Daily from THE HINDU group of publications Wednesday, Jun 08, 2005 |
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Info-Tech
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Outsourcing BPO job potential stays high: Nasscom Our Bureau
BPO JOB POTENTIAL STAYS HIGH: Mr Rajeeva Ratna Shah (right), Member Secretary, Planning Commission, with Mr Kiran Karnik, President, Nasscom, at Nasscom's India ITES-BPO Strategy Summit 2005 in Bangalore on Tuesday. - G.R.N. Somashekar
Bangalore , June 7 THE National Association of Software and Services Companies (Nasscom) has said that outsourcing IT-enabled services/ business process operations to India cuts costs by as much as 40-50 per cent for companies, which can, in turn, generate free cash flows due to reduced investments in infrastructure and equipment. At the ITES/BPO summit here on Monday, Nasscom released a study on how wage arbitrage continues to keep India as an attractive outsourcing destination. A Nasscom-McKinsey report identified the level of intellectual property and breadth of the offerings by players as the competitive and differentiating factors for the Indian industry going forward. There has been a mismatch between demand and supply of human resources in the industry in India. Nasscom has pointed out, "Both employment generation and attrition levels remain high in the industry, even as the ITES/BPO industry has added 1,50,000 jobs in 2004-05. Demand for experienced professionals outpaced supply and attrition was between 25 and 40 per cent." 2004-05 saw a 44 per cent surge in ITES/BPO exports to $5.2 billion. With growth this year expected to be over 40 per cent (to touch $7.3 billion), the BPO sector continues to have significant employment potential, said the Nasscom President, Mr Kiran Karnik. By 2008, the sector is expected to fall short by 2,62,000 people out of a total requirement of about 10 lakh people, according to the Planning Commission Member-Secretary, Mr Rajeeva Ratna Shah. The requirement may not be met by over three million graduates trained by universities each year, as the gap between abilities and skills are substantial, Mr Karnik indicated. Nasscom is working with vendors on a pilot basis to introduce certification to BPO human resources as well as with the University Grants Commission on developing the necessary skill set, he said. Nasscom is also working with industry players to create a database or registry of BPO/call centre employees to facilitate better background checks and recruitment processes in the light of the recent fraud attempt by employees at MphasiS.
HR, security concerns worrisome BANGALORE: Even as the Indian ITES/BPO sector sees rapid growth, it is hampered by shortage of skilled pool of workers and by perceived security concerns among media and customers. Retaining management talent is challenging, said Mr Vikram Talwar, Vice-Chairman and Founder CEO, EXL Services, adding that at the associate level, the English- speaking requirements were far greater than the skills available. According to Mr Pramod Bhasin, President and CEO, GECIS Global, the industry was facing security concerns despite having put in place security measures far in excess of customers' own practices. According to Mr Rahul Singh, CEO and MD, e-Serve International, there is a need for the industry to establish security and hiring best practices as a measure of caution. A nationwide registry of ITES/BPO employees will help, according to Mr Jerry Rao, Chairman and CEO, MphasiS.
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