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What is BPO??
Business Process Outsourcing is the long-term contracting out of non-core business processes to an outside provider to help achieve increased shareholder value
Benefits of BPO
Productivity Improvements Access to expertise Operational cost control
Cost savings
Improved accountability Improved HR
Nasscom-McKinsey report projects that, of the total IT & BPO exports of $ 60 billion by 2010, $ 25 billion will be contributed by BPO. Currently BPO contributes $ 5.2 billion of the total exports of $17 billion. 13% of Karnatakas IT exports for 2004-05 came from ITES/BPO.It was 15% for Tamil Nadu and 36% for Andhra Pradesh. South India seeing even non-IT companies shifting activities requiring IT applications to India. Industry plagued by lack of adequate supply of quality manpower and also attrition. Good training system recommended for the industry to attract and retain talent.
Why India????
Scope:
A booming IT industry, with IT strengths recognized all over the world
Language:
India has one of the largest pool of low-cost English speaking scientific and technical talent
Manpower:
A vast workforce of educated, English speaking, tech-savvy personnel: A boon in a high-growth industry faced with a shortage of skilled workers.
Cost-effective manpower: In a call interaction center operation, manpower typically accounts for 55 to 60 percent of the total cost. In India, the manpower cost is approximately one-tenth of what it is overseas. Per agent cost in USA is approximately $40,000 while in India it is only $5,000. Technical support: India graduates about 100,000 engineers each year. These can be used in call centers for troubleshooting/tech support, as the salaries are dramatically lower than in Europe or the US.
Government policy
The Government of India has recognized the potential of IT-enabled services and has taken positive steps by providing numerous incentives. IT is one of the Government of India's top five priorities.
Regulatory Enablers:
100% foreign ownership permitted in IT Enabled Services industry unlike other sectors where foreign ownership is restricted.
Infrastructure Enablers:
Basic, Cellular, Paging and Internet Services privatized Dell, Sun Microsystems, LG, Ford, GE, Oracle all have announced plans to scale up their operations in India. Others like American Express, IBM and British Airways are leveraging the cost advantage India has to offer while setting up call centres.
Both third-party BPOs and captive centres focusing on KPO have come up in Bangalore, Chennai, Hyderabad and Kochi.
The KPO industry is opening up job opportunities for professionals not usually associated with the BPO industry
Schools - The State already has a large number of private and public schools. Many of these schools have comprehensive IT laboratories. The policy aims to leverage infrastructure to enhance the verbal, written and communication skills of the students. This program will be implemented in coordination with the Education department. The selection of trainers, course materials, method of delivery will be decided by BITES (Board for IT Education Standards). Colleges - While a large number of Karnataka colleges already have IT labs, the policy not only also aims to encourage the existing IT labs but also setting up 500 more labs in the State
Professionals - there are a numerous of unemployed graduates as well as working professionals who are technically proficient, yet need to improve certain soft skills. For this purpose the IT Department plans to set up training facilities not only in Bangalore, but also at major cities of Karnataka. The program will be conceptualised and implemented by BITES.
The End
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