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PRESENTATION ON HUMAN RESOURCE DEVELOPMENT

OF BPO

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What is BPO??

Business Process Outsourcing is the long-term

contracting out of non-core business processes toan outside provider to help achieve increasedshareholder value

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Benefits of BPO ProductivityImprovements Access to expertise Operational cost control

Cost savings

Improved accountability

Improved HR Opportunity to focus on core business

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Beyond The Call Nasscom-McKinsey report projects that, of the total IT &

BPO exports of $ 60 billion by 2010, $ 25 billion will becontributed by BPO. Currently BPO contributes $ 5.2billion of the total exports of $17 billion.

13% of Karnatakas IT exports for 2004-05 came fromITES/BPO.It was 15% for Tamil Nadu and 36% forAndhra Pradesh.

South India seeing even non-IT companies shiftingactivities requiring IT applications to India.

Industry plagued by lack of adequate supply of qualitymanpower and also attrition.

Good training system recommended for the industry toattract and retain talent.

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Why India????Scope:A booming IT industry, with IT strengths recognized all overthe world

Language:India has one of the largest pool of low-cost English speakingscientific and technical talent

Manpower:A vast workforce of educated, English speaking, tech-savvypersonnel: A boon in a high-growth industry faced with ashortage of skilled workers.

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Cost-effective manpower: In a call interaction centeroperation, manpower typically accounts for 55 to 60 percent ofthe total cost. In India, the manpower cost is approximatelyone-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 engineerseach year. These can be used in call centers fortroubleshooting/tech support, as the salaries are dramaticallylower than in Europe or the US.

Government policy The Government of India has recognizedthe potential of IT-enabled services and hastaken positive steps by providing numerousincentives.

IT is one of the Government of India's topfive priorities.

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Regulatory Enablers: 100% foreign ownership permitted in IT Enabled Servicesindustry unlike other sectors where foreign ownership is

restricted. To provide ready to plug IT infrastructure and telecomfacilities.

Infrastructure Enablers:

Basic, Cellular, Paging and Internet Services privatizedDell, Sun Microsystems, LG, Ford, GE, Oracle all have

announced plans to scale up their operations in India. Otherslike American Express, IBM and British Airways are leveragingthe cost advantage India has to offer while setting up callcentres.

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KPO: Know more.... Knowledge Process Outsourcing (KPO) is estimatedto touch $ 17 billion by 2010 with at least 70%

coming to India. Both third-party BPOs and captive centresfocusing on KPO have come up in Bangalore, Chennai,Hyderabad and Kochi.

The KPO industry is opening up job opportunitiesfor professionals not usually associated with the BPOindustry

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Problems face by BPOsAs Nasscom-McKinsey report points out, only 10-15% of thegeneral college graduates are suitable for employment in theBPO industry. It has also said that there is a potential

shortfall of 350,000 people for the BPO industry.K Subramanian, head, ITes division, Manpower Services India,Says,

This shortage of manpower is further accentuated by the

fact that other sectors like retail and airlines are also growingwhich is competing for the same set of pool.

Attrition is one of the major issues facing the industry. Mr.Subramanian says, a good training system is the only wayforward for the industry to attract and retain talent.

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Human Resources Development and Training:

By the year 2010 the employment potential in Karnataka'sBPO sector is expected to be 360,000 across the State, withnon metro cities offering substantial portion of the manpower.

Non Metro cities offer low operational costs due to lessexpensive real estate cost and abundant availability of localtalent.

To make quality man power for the BPO

companies, the Human ResourceDevelopment and Training action plan is inplace. This aimed actively improving qualityat all levels-schools, colleges and schools,colleges and unemployed graduates

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Schools - The State already has a largenumber of private and public schools. Manyof these schools have comprehensive IT

laboratories. The policy aims to leverageinfrastructure to enhance the verbal,written and communication skills of thestudents.

Colleges - While a large number of Karnataka colleges alreadyhave IT labs, the policy not only also aims to encourage the

existing IT labs but also setting up 500 more labs in the State

This program will be implemented in coordination with the

Education department. The selection of trainers, coursematerials, method of delivery will be decided by BITES (Boardfor IT Education Standards).

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Professionals - there are a numerous ofunemployed graduates as well as

working professionals who aretechnically proficient, yet need toimprove certain soft skills. For thispurpose the IT Department plans to setup training facilities not only in

Bangalore, but also at major cities ofKarnataka. The program will beconceptualised and implemented byBITES.

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The End

Thank You