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SECTION D
STUDY OF INDIAN MARKET
Business Process Outsourcing- The New Growth Sector
Global outsourcing spending is projected to top $1.2 trillion by the
end of 2003.
Globally, outsourcing spending is increasing by 11 percent per year.
Two thirds of the outsourcing spend is in large Fortune 500
companies.
Two-thirds of outsourcing spending is in the US.
Shrinking margins will force more companies to break with tradition
and consider BPO to reduce operating cost.
A lot of demand is expected to be generated by HR processes
especially payroll Management
In India , ITES-BPO segment registered a growth of 59% to reach Rs.
113bn (US $2.3 billion)
According to current industry estimates, India commands more than
90% of all offshore outsourcing in IT services
ITeS contributed 25% to the total IT Software and Service exports
from India during FY03
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Captive ITES-BPO players have almost doubled their share in Indian
software exports, growing by a phenomenal 90% in last financial year
ITES-BPO segment is projected to register a growth of 54% to clock
revenues of US$ 3.6 billion during FY2003-04
The ITeS industry is expected to grow to Rs. 810bn in 2008.
What to outsource to India?
Forward-thinking companies are realizing the importance of the holistic
approach to IT strategy, where information is regarded as an essential tool
for furthering business. However, these skills may not be available to you in-
house.
If you've been tearing your hair wondering how to find someone to write
XML for you or update your website or answer customer queries, don't give
up. You'll find that India is well-equipped with qualified and experienced
people to provide IT services and IT enabled services. You can tap them
through Outsource2India's network of strategic partners, technology
specialists, and service providers.
Scan the following categories to see the outsourcing potential in India.
IT Services
Software development services
Application development and management
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Re-engineering
Conversion and migration (across platforms/ languages/ versions)
Data warehousing and mining
Embedded systems
E-commerce applications
Data Entry
Data control audits
Regular reporting of work systems
Data entry software and validation tables Dispatch of data to the customer
Double keyed data (when required by the customer)
Proof checks
Programming
C, C++, VisualC++, Java, Javascript, Java Beans, Java Server Pages
(JSP), Enterprise Java Beans (EJB), ASP (Active Server Pages)
Visual Basic
Microsoft Access
Novell Networking
EDI and Integration
Bar Coding and Hand Held Data Collection
DOS, Windows 95/98/2000, Windows NT
Business and Industrial Systems
Support of spreadsheets, word-processing and various 3rd party
applications
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Defined Contribution/ Defined Benefit administration and customer
service
Health claims administration
401(k) plan record-keeping
Human resources
Asset management and staffing
- supplement your existing e-business staff
- access both management and technical assistance on a long
term or monthly basis
Infrastructure
Communications and messaging
Upgrading and configuring message management software
Launching an XML strategy
Integrating e-business messages with CRM, ERP and legacy systems
Managing change as your e-business programs and business systems
evolve
e-business operations
management and day-to-day operation of EDI infrastructure
creation and management of a new XML strategy
e-marketplace development
ERP integration
communications monitoring
trading partner management
order processing
workflow enhancement, evaluation and benchmarking
application hosting
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system implementation and integration
system maintenance
upgrades
backups
disaster recovery
Communications and Networking
Telecommunications
Computer telephony
Internet telephony
e-solutions
Media and Entertainment
Advertising
Film-making
Animation
Printing and publishing
Consulting services
Photography
Web Development Services
Portals
e-commerce consulting
e-business IT consulting
Domain registration
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Website design and redesign
Website promotion
Web-enabled applications
Website maintenance
Web hosting
Operations
e-marketplaces
web applications XML and EDI operations
implementation assistance
security administration
monitoring data traffic
generating activity reports
troubleshooting problems
creating any necessary maps
system support
help desk
Relationship management
Customer Care Services
customer acquisition
customer activation
customer retention
cross-selling/up-selling
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inside sales
surveys and polling
Community Management
Managing your ongoing partner relationships
opening e-business channels with new vendors and customers
meeting with partners
defining e-business requirements
establishing the rules of play
educating them on benefits, security measures and day-to-dayprocedures
Medical Transcription
Patient history and physical reports
Clinical notes
Office notes
Operative reports
Consultation notes
Discharge summaries
Letters
Psychiatric evaluations
Laboratory reports, x-ray reports and pathology
On-site services
On-site assistance
System setup and testing, software installation
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Preventive maintenance
Communications and network testing
On-site and depot hardware repair
These are just samples of several outsourcing services that are available in
India. Outsource2India is a marketplace that will put you in touch with
reliable vendors who will deliver the results you want, within your deadlines
and budget.
When you run your eye over the list on this page, you'll find lots of things
you can outsource, so that you can do what you do well, even better.
Oursourcing in Software
The Indian software industry has grown from a mere US $ 150 million in
1991-92 to a staggering US $ 5.7 billion (including over $4 billion worth of
software exports) in 1999-2000. No other Indian industry has performed so
well against the global competition.
Outsourcing software requirements depends mostly on quality of services,
and quality has continued to remain a prime edge for Indian software
companies. According to the NASSCOM survey, the Indian software
industry continued to win recognition for its quality in software development
over the last year. Out of the top 400 companies, more than 250 have already
acquired ISO 9000 certifications. Out of the 54 companies in the world that
acquired SEI CMM Level 5 certification, 27 companies are located in India.
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The annual growth rate of Indias software exports has been consistently
over 50 percent since 1991. As per the projections made by the National
Association of Software and Services Companies (NASSCOM) for 2000-
2001 (April 1, 2000 - March 31, 2001), Indias software exports would be
around $ 6.3 billion, in addition to $ 2.5 billion in domestic sale.
(US $ million)
1995-
96
1996-
97
1997-
98
1998-
99
1999-
2000 2000-01*
Domestic
software
Market 490 670 920 1250 1700 2450
Software
Exports 734 1085 1750 2650 4000 6300
Indian
Software
Industry 1224 1755 2670 3900 5700 8750
(* Source: NASSCOM Report)
Today, India exports software and services to nearly 95 countries around
the world. The share of North America (U.S. & Canada) in Indias software
exports is about 61 per cent. In 1999-2000, more than a third of Fortune 500
companies outsourced their software requirements to India.
NASSCOMs survey during 1999-2000 indicates a reversal in the mode of
services offered by India. In 1991-92, offshore services accounted 5 per
cent and on-site services 95 % of the total exports. However, during
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1999-2000 offshore services contributed over 40 percent of the total
exports.
Exports of $50 billion in 2008
Outsourcing in IT-Enabled Services
Indias strengths in the software market also lie in its pursuit of new
opportunities. In fact, two key segments that are expected to open up over
the next few years for India are e-commerce and remote processing.
Opportunities in e-commerce software solutions are emerging as a major
area of growth in the Indian IT software and services industry. A recent
study undertaken by The Boston Consulting Group for NASSCOM clearly
stated that India can earn revenues of US$9 billion from e-business solutions
by 2005.
IT-Enabled Services, or Remote Processing, has emerged as the next
major driver of the technology services industry. Call centers and business
process outsourcing is emerging as the next wave of growth in India. The
McKinsey study indicated that India will earn $18 billion in revenues
through these services and create additional employment of one million
jobs. Already companies like GE Caps, British Airways, Swissair, American
Express and British Telecom are using Indian companies for these services.
The IT-Enabled Services segment currently employs around 70,000 peopleand accounts for 10.6 percent of the total IT software and services industry
revenues.
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India IT Software and Services Industry
US$ billion
Source: NASSCOM
A study conducted by renowned consultancy firm McKinsey and Co., for
NASSCOM, has proven why India is becoming the offshore software
development out-sourcers destination of choice. According to the
NASSCOM-McKinsey study, the Indian software industry is expected to
gross US$50 billion in exports in 2008! This is based on an average growth
rate of 35 percent per year. The industry is well placed to achieve this target
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India is Best positioned for cross
border IT services
Source : NASSCOM-McKinsey Study
Indias success in the software arena is attributed to the software industrys
knowledge and expertise in cutting edge technologies and skilled manpower
base. Both these strengths are likely to contribute towards the industrys
future growth.
In fact, Indias prowess in emerging technologies is also helping the
software and services industry obtain new customers, even in the face of a
debilitating U.S. economy slowdown. There is only one way that the Indian
software industry is headed and that is up. The coming years will only
reiterate this trend.
The segments within ITES that will witness tremendous growth include
back office operations, remote education, data search, market research
and customer interaction services. As per Nasscom-McKinsey report
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The Government of India has announced a special policy for call
centers
Many state governments in India are offering incentives and
infrastructure for setting up IT enabled services.
A comparison amongst some countries in Asia Pacific based on these factors
highlights the following: (Ratings are on a scale of 1 to 3, with 1 being the
lowest and 3 the highest.)
Country Workforce
Market
Access
Local
Market
Infra-
structure Cosmopolitan
Cost
base
New
Zealand2 2 - 2 3 2
Kuala
Lumpur1 2 - 2 2 2
Japan 1 2 1 3 1 3
Hong
Kong 1 2 2 2 2 2
India 3 2 2 2 3 1
1 denotes low; 2 denotes average; 3 denotes high
Source: Mckinsey & Co
Outsourceing of call center
India commands 90% of IT offshore outsourcing
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The call-center services sector in India is the part of the booming
outsourcing industry flourishing in India. A report by research firm Gartner
suggests that India grabs more than 65% of the global outsourcing market. In
another report on current industry estimates, India commands more than
90% of all offshore outsourcing in IT services. Of all, call-center services
market attracts most of offshore firms.
The call-center services in Indiaare amongst the most economical as well
as reliant for US corporate market. India is the call-centers hub for some of
the major companies from US and Europe
Last few years have seen India as cheap-hub to outsource businessby the
giant companies mainly from United States of America as well as some
European Nations. Call Centers in India have grown manifolds - partly the
result of broad outlook of Indian Government, the Low Cost Structure, and
Technically Vibrant Workforce along with numerous other reasons.
Outsource Business Process can be defined as handling the management
and optimization of ones business to a third party to lower stress and
demands of the business management. This Third Party logistics are based
on the companys credentials and outlines to abide strategies and procedures.
The Call Center Industry estimated to grow into $301 billion industry by
2010 is a sheer pleasure for the aspiring workforce in India. Indians have
tactfully managed to produce quality assurance in the areas of Database
Management, customer service help line, helpdesk services, handling credit
and billing problems, entertaining complaints from the customers with
http://www.telegenisys.com/http://outsourcingtoindia.blogspot.com/http://www.telegenisys.com/http://www.telegenisys.com/http://outsourcingtoindia.blogspot.com/http://www.telegenisys.com/ -
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personalized solutions along with numerous other chores that arises within
business operations.
Call Centers in India has also effectively developed a niche in the areas
of data verification, data capture, Tele research, service follow-ups and
renewing subscriptions, which becomes the core outbound activities of a
call center. Unless there is talented enough manpower to handle such
queries, no business organization will make a move. Thus India have
taken a leap step in Call Center Industry, which in recent have been the
home more developed nations like Australia, New Zealand, and
European nation.
India is all set to register the highest growth rate in call centre services
industry in Asia Pacific region. Recently conducted survey on Information
Technology Enabled Services (ITES), predicts, there are currently more than
150 call centres operating in the country, inclusive international and
domestic. This industry in India went into an overdrive after the release of
NASSCOM-McKinsey report which predicted that IT-enabled services
would account for a mammoth $17 billion business a year. Why this sudden
gold rush in this industry? Despite the imminent shakeout, 'call centres will
be larger than the IT industry in the next eight years,' predicts Sandeep
Gulati of Renasonic. It is widely believed that this industry is expected to
compensate for the loss of revenue for the software industry. With
increasing competition, reducing margins and increasing customer
expectations, organisations are looking for tools to serve the customers
better which resulted in the mushrooming of call centres. The report also
predicts that IT-enabled services in India might generate 1.1 million jobs and
Rs 810 billion in revenues by the year 2008. Currently, the industry is
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growing at the rate of 30 per cent annually and will employ over 2.5 lakh
English-speaking Indians in coming seven years. The growth in this sector is
phenomenal in India. With US and European companies looking at countries
like India and Philippines for outsourcing their non-critical back-office work
and transaction processing the critical issue would be how fast existing call
centres can build its operations to meet overseas requirements. A study by
the International Data Corporation (IDC), predicts that India will clock over
50 per cent of compound annual growth rates until 2005, which will be
ahead of China's 40 per cent plus growth rate. Currently, more than 10,000-
seat in the country handles an average of 45-80 calls per seat per day. The
cost of investment per seat varies from Rs 5 to 8 lakh is required for setting
up a state-of-the-art call centre with 100 to 300 seats. Revenue per seat
ranges from Rs 8 lakh to Rs 10 lakh per month. Most of the companies are
poised for a big growth. Some of the major players which have already
ventured into the bandwagon are GE, American Express, E-funds,
Spectramind, Msource, Air Infotech, 24x7, e-Serve Technologies (HCL), E-
Serve International (Citibank), Exl Services, First Ring, Brigade, Bharti,
Daksh.com etc. The list is endless. Hoping to achieve at least a seven-fold
increase in its revenue several companies are investing heavily.
Current salaries in the BPO world in India
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o Customer Care Representatives [CSRs]: Rs 7,500 - Rs 11,500
per month
o Team Leaders: Rs 16,500 - Rs 24,500 per month
o Managers: Rs 3 lacs - Rs 5.5 lacs per annum
o Training Heads: Rs 8 lacs - Rs 12 lacs per annum
o Training Managers: Rs 5 lacs - Rs 8 lacs per annum
o Trainers: Rs 2 lacs - Rs 5 lacs per annum
Note: Rs 1 lac = Rs 100,000
Competitor of India
Philippines boasts of strong skills in finance and accounting. The
other countries India is competing with are Mexico, Canada and
Ireland. In terms of cost, Philippines and Malayasia are competitive
with India.
BPO Competitors of India
Country USP Limitation
PhilippinesUnderstands the US market;
voice work; low attrition
More expensive than
India; small talent pool
Canada,
Ireland,
Australia
Understands the US market;
high-end skilsHigh costs
South Africa
Time zone similar to
Europe; 25% cost saving,
good for niche work
Skill shortage
China Low costs Quality of English not
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Finance & Accounting Services 15.0
Translation, Transcription & Localization 2.0
Engineering & Design 1.2
HR Services 5.0
Data Search, Integration & Management 44.0
Remote Education 18.0
Networking Consulting & Management 15.0
Website Services 5.0
Market Research 3.0
Total 141.2
Source: NASSCOM McKinsey Study India IT Strategies
In that the opportunity for India will be $ 17 Billion.
Indian ITeS industry employed more than 100,000 people in 2001-
2002. This industry clocked approximately 70% growth last year is
expected to grow similarly in 2002-2003.
Global Market size estimates of BPO
o $712 billion in 2001
o Gartner/Dataquest: $ 544 billion in 2004
o Gartner: $173 billion in 2007, of which $24.23 billion would be
outsourced to offshore contractors
o IDC: $300 billion in 2004
o IDC: $1.2 trillion in 2006
Indian Market size estimates
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Indian Market size estimates of BPO
o Nasscom has estimated that the Indian ITES industry will gross
over $5.7 billion by 2005 (based on a conservative year-on-year
growth of 65 percent by Nasscom).
o Nasscom-McKinsey: In 1999 they estimated by 2008 it will be
$17 billion but it has been revised to $21-24 billion by 2008.
Indian can capture 25% of global BPO offshore market and
12% of the market for other services such as animation, content
development and design services.
o Gartner: $1 billion (2002), $1.2 billion (2003). $13.8 billion by
2007. Gartner does not incorporate animation, medical or other
(legal) transcription services, GIS, market research, data search,
research and development, network consultancy and other non-
business processes in its estimates on the ITES market size and
potential.
Revenue
\ Year2002 2003 2004 2005 2006 2007 CAGR
Offshore
BPO
Revenue
1,322 1,825 3,017 6,439 12,563 24,230 78.91
Indian
BPO
Revenue
912 1,205 1,961 3,928 7,412 13,811 69.35
Total
BPO
110,167 121,687 131,171 143,090 157,033 173,070 9.45
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Market
CAGR in % 2002-
07
Figures in $
million
Source: Gartner Dataquest (May
2003)
Revenue areas for Indian BPO companies
India's BPO Market in 2008
Service LineFirst Estimate
(1999)
Second Estimate (2001)
HR 5.4 3.5-4.0
Customer Care 4.1 8.0-8.5
Payment Services 2.9 3.0-3.5
Content
Development2.6 2.5-3.0
Administration 1.3 1.5-2.0
Finance 0.7 2.5-3.0
Figures in $ billion
IT Services is the largest contributor to the exports pie.
Year ITES IT Services
1999-2000 14% 86%
2000-2001 14.5% 85.5%
2001-2002 19% 81%
2002-2003 24% 76%
Source: Nasscom
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Few companies are into both IT and BPO. What percentage of the
revenue is contributed by BPO?
Company June2002
Sept2002
Dec2002
March2003
June 2003
Mphasis 16.48% 21.71% 22.61% 25.24% 28.9%
Wipro 4.85% 5.78% 6.81% 7.785% 8.61%
Infosy 0.027% 0.23% 0.85% 1.01% 1.175%
Digital
GlobalsoftN.A. N.A. 1.454% 3.53% 5.9%
HCL Tech 5% 5% 6% 9% N.A.
BPO sector performance in 2002-2003
As on March 31, 2003, the sector employed 171,000 professionals. It
has $1 billion invetsed in it, creating about 100,000 smart cubicles in7.5 million saq ft of space. It generated revenues of $2.3 billion in
2002-03.
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Benefits for OUTSOURCE TO INDIA
India has the largest English speaking population in the world after the
United States.
Principal language for the business transaction is English.
India has the fastest growing pool of expertise.
High availability of English speaking & educated customer care
professionals.
India has a huge number of computer literates.
Indians are highly reliable and can deliver world-class quality and ensure
rapid delivery of service.
They are increasingly adapting to international quality standards.
The country is moving towards next generation telecommunication
technologies.
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The Government of India has recognized the potential of IT-enabled services
and has taken positive steps by providing numerous incentives.
Indian companies can provide call center services to clients based in the U.S.
or the U.K. at less than half of what it costs in U.S., U.K. or Australia.
Per employee cost in USA is approximately $40,000 while in India it is only
$5,000.
Comparison of India Vs US BPO operating costs
US$ Cost per FTE
(Full TimeEmployee)
UnitedStates India India as % of US costs
Personnel 42,927 6,179 14%
G&A Expense 8,571 1,000 12%
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attributes, India gives foreign investors the additional advantage of an
affordable location.
"You save considerably setting up an operation in India," says Keith
Fiveson, managing director of IT Enabled Services Alliance, a New York-
based consulting firm that helps foreign investors set up sites in India.
"Generally, you can save anywhere from 30 to 50 percent on administrative
costs setting up an operation in India."
India intends to be a major player in the call center arena, as indicated by the
current construction of a telecommunications network. Restrictions have
been removed for foreign direct investment into business-to-business e-
commerce and telecom and teleservices.
"Up until a year ago, in order to do any business in India, you could not have
a 100-percent stake in your investment," notes Fiveson. "You had to have a
49 percent stake with an Indian firm." Many foreign firms are also
partnering with Indian companies to set up centers, among them firms such
as The Godrej Group and The Hiranandani Group. The latter firm, a
construction giant, launched call centers at Powai in Mumbai for automobile
export firms.
"With the awareness increasing for greater customer service, the demand for
call centers is bound to grow," notes Priya Hiranandani, a director with his
namesake group.
Fiveson also notes the Indian government is offering incentives for call
center jobs, approximately $1,000 per job per year. While that doesn't sound
like an enormous amount of money, it amounts to a substantial sum in a
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country where most call center employees only make $3,000 per year.
Fiveson notes that the supply of highly educated workers and a low demand
creates these low wages, but he hastens to add that this is not subsistence
pay.
Supply-and-Demand Economics
"It is not because they are treating people badly. It is due to supply and
demand economics,".
"You're talking about a country where you can feed a family of four for
about $5 to $10 dollars a day."
The Indian government has also established tax-free zones. These areas
allow foreign firms setting up new locations to bring into the country
without penalty goods such as computers and furniture. Local Indian
governments are also helping establish technology parks near areas such as
Goa, with telecom infrastructure in place.
Mumbai, formerly known as Bombay and within the Indian province of
Maharashtra, has been the site of numerous major back office investments.U.S. companies such as GE Capital, Dell Computers, Oracle and Citicorp
have located in the area. Some of these firms have retained outsource
partners, while others are maintained by the companies themselves.
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"We want American companies to know they are welcome additions to our
broad-based economy," says Vilasrao Deshmukh, Chief Minister of the
province. "Maharashtra is determined to create a knowledge-based
economy."
India also offers firms a huge pool of well-educated workers without
preconceived notions about working in a call center. Companies have
discovered Indian employees do not associate working within the call center
industry with a negative stigma and are committed to building a career
within the business. The salary costs for skilled workers are among the
lowest in the world, and it is not uncommon to find supervisors with
advanced degrees.
"This is still one of the largest English-speaking populations in the world,"
notes Fiveson. "The quality and ethic of the workforce is much higher and
you have a six day work week here."
Call center service providers are also offering American English courses to
their employees, to allow them to be more familiar with American
terminology. Service providers are also aware of quality issues and many
offer certification programs to their employees.
"You will see in India more certification than nearly anywhere else in the
world and more adherence to call center practice standards," adds Fiveson.
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Top 9 ITES Cities of India
New Delhi, August 6, 2002: oNASSCOM, the apex industry body of
Software and Service Companies in India, today, revealed the findings of an
extensive study conducted in association with Netscribes to assess the
competitiveness of nine Indian cities as destinations for IT Enabled Service
companies. The three-month long study evaluated the top nine cities
including Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Kochi,
Mumbai (including Navi Mumbai), Pune and NCR (Delhi, Noida and
Gurgaon). The cities were assessed on factors such as manpower
availability, real estate, telecom infrastructure, policy initiatives, power
infrastructure, city perception and entrepreneurial history.
Speaking on the study, Mr. Kiran Karnik, President, NASSCOM, said,
"About 90% of all ITES companies in India are concentrated in nine major
cities while others have not been able to
attract more than two companies each. Our
study reveals that despite a large number of
ITES companies being based in Mumbai,
NCR and Bangalore, these cities are facing
increasing competition from other cities.
Cities such as Hyderabad, and Kochi are
emerging as attractive ITES destinations
primarily due to rapid improvements in
infrastructure (power, international bandwidth and urban transportation) and
lower manpower costs due to lower cost of living and lack of alternative
employment opportunities in these cities."
RANKING OF INDIAN ITES
CITIESCITY RANK HYDERABAD 1KOCHI 2CHENNAI 3KOLKATA 4AHMEDABAD 5BANGALORE 6MUMBAI 7
NCR 8PUNE 9
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According to NASSCOM, the ITES industry in India is experiencing the
third wave of growth; both in terms of geographical areas of operation and
services offered
In the first phase, the industry was dominated by captive centers of
large multinationals such as GE, American Express, and Swiss Air
who set up operations in leading metros of the country such as Delhi
and Mumbai
In the second phase, the growth of the industry attracted numerous
entrepreneurs (in many cases, employees of multinationals who quit
their jobs to set up their own ITES ventures) again in and around
Delhi (NCR) and Mumbai (including Navi Mumbai)
The third phase of growth has been more geographically dispersed -
with new locations emerging such as Hyderabad, Pune, Bangalore,
Chennai, and more recently, Kochi.
The growth has been driven by three factors:
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The desire by state governments to attract entrepreneurship, which
resulted in the former offering attractive policy environments and
incentives
The rapid improvement in key infrastructure such as power, telecom
bandwidth, and real estate in newer locations
The need for ITES companies to lower operating costs (especially
employee costs, and transportation)
According to the report's findings, Hyderabad has emerged as the most
competitive city for ITES. Chennai, Kochi and Kolkata too rank highly in
their infrastructure offerings, policy incentives, and low cost manpower
availability though not at the same level as Hyderabad. On the other hand,
Ahmedabad, which ranks highly on availability of low cost manpower, loses
out on competitiveness as a result of weaker policy incentives and
infrastructure availability. Bangalore, Mumbai, NCR and Pune ranked low
in infrastructure availability, policy support and availability of low-cost
manpower.
"Given the potential of the industry to create jobs and generate foreign
exchange, NASSCOM will actively work with the various state governments
and ITES companies in order to create a conducive policy environment and
a world class infrastructure to develop the ITES industry in different states",
stated Mr Kiran Karnik, President, NASSCOM.
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Highlights Concerns
Telecom Pune, Ahmedabad and
Bangalore have direct
international bandwidth.
All cities expect Kolkata
have tele-density in
excess of 14%.Power The variance in the ranking
comes due to the tariffs existing
across various cities. Kochi has alow tariff of Rs 3/unit and it goes
as high as Rs 4.97/unit in
Mumbai
Pune, Bangalore, NCR
and Kochi experience pre
scheduled power cuts.
Real Estate Increasing real estate cost have
pushed NCR and Mumbai down
the 'affordability' list.
There is a large variance
in the rates within larger
cities, for example real
estate cost in Mumbai
ranges from Rs 287 to Rs
50 per square feet per
month. However the
variance is lower in cities
like Ahmedabad and
Pune and thus they areranked higher in real
estate.Manpower Manpower cost varies depending
on the city's cost of living. The
city's attractiveness also depends
on the number of trained
manpower.
Manpower cost is as high
as Rs 51.59/hr in Mumbai
as compared to Rs
17.04/hr in Kochi.
Perception Perception plays an important
role while deciding the location
of a new units. Bangalore ranked
high because of the state's IT
policy.
Kolkata, Ahmedabad and
Kochi lag behind in the
IT initiatives undertaken
by the government.
Recent riots at
Ahmedabad has harmed
its perception even more
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In order to assess the competitiveness of different locations, the relative
importance of parameters such as telecom and physical infrastructure, IT
orientation and policy support provided, each city was ranked on a scale of 1
to 10, in order of increasing importance. Weights were then assigned to each
of the factors. Multiplying the rank for each factor with its particular weight
and then dividing the sum total of all the factors for each city by the total
weight derived the score for each city. The study also highlights the
importance of qualitative parameters such as entrepreneurial culture and
perception of policy environment. It is important to note that these are
indicative scores and the attractiveness, or otherwise, of a city could also be
a function of a company's business mix and strategy. To illustrate, a
company in the inbound call business would have to invest significantly in
training its employees in accent neutralization, thereby offsetting the lower
employee costs in a particular city.
ANNEXURE: Findings of the NASSCOM ITES Super Nine Study:
Though the 'Super Nine' cities have already herded a number of ITES firms,
there are many areas that need to be addressed to make them globally
competitive. These requirements vary from city to city.
Ahmedabad
According to the profile of the ITES companies operating in the city,
Ahmedabad is strong in website services and Web applications, call / contact
centers and back-office operations. However, in other services such as
database management / development, data processing / management and
network management/remote maintenance, the city is relatively weak,
though it has the telecom infrastructure to support these services. This shows
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that the manpower available in the city is best suited for call / contact centers
and back-office operations. In order to attract the entire range of ITES
companies, the city needs to address
The recent communal riots have raised security concern for
businesses. The government needs to address the issue proactively if it
has to attract ITES companies
Though the city's power infrastructure is reasonably good, the same
can't be said about the public transport system
Though power is not a major problem in the city, the cost of power is
one of the highest in the country. This reduces the competitiveness of
products and services coming out of the city
The city has a fairly good educational infrastructure, however many
students migrate to Mumbai each year in search of better prospects.
This drain needs to be stanched to retain local talent
Bangalore
Though Bangalore has got a range of ITES companies, it seems to be
stronger in the call / contact center, transcription, and back-office operations
services. However, perhaps because of its IT-orientation, the city has also
been able to attract a reasonable number of companies into database
management / development, data processing / management and engineering,
design, and GIS services. Given this, the city should still be able to attract
other forms of ITES companies. However some of the issues that need to be
looked into are:
The city's infrastructure, especially power and telecom, are not
keeping pace with the IT expansion. While the government promises
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Hyderabad
Though the city scores high on infrastructure and policy, it has been able to
attract only certain kinds of ITES companies. The current ITES population
in the city is favourable towards engineering, design, GIS, and data
processing / management / digitization and seems to lag in the contact center
and transcription businesses. The following are the issues that should sit atop
the state government's priority list:
The Andhra government is aggressively marketing Hyderabad as a
choice destination for ITES companies. Thus, it has to take much
greater care of the city's infrastructure
The city's public transport infrastructure can definitely stand
improvement.
The state's ITES policy is perhaps one of the best in the country and
puts a lot of emphasis on quality manpower. The government must
now deliver on those intentions and support institutes that train
manpower suitable for ITES
Accent is a major problem that needs to be addressed through training
support
Kochi
Kochi is an upcoming city in Kerala and is aggressively being promoted by
the state government as an IT destination. Though it doesn't have any ITES
companies of significance yet, it holds a lot of potential to attract many. The
city needs to address the following infrastructure issues:
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Though it has the lowest power tariff among the Super Nine, it still
experiences some power cuts
Like most cities in India, Kochi lacks a decent public transport
infrastructure.
Compared to its larger brethren, Kochi has only a few colleges. As
ITES companies would mainly hire graduates, the state needs to
ensure abundant supply of trained manpower
Kochi loses out in the perception game. The government needs to
ensure that the city moves up this scale to start attracting new
businesses
Kolkata
The profile of the ITES companies in Kolkata suggests that it is relatively
strong in data processing / management / digitization and back-office
operations. However, in other areas, the city hasn't been able to attract many
companies. The government needs to address several issues, especially on
policy, to attract companies from other kinds of services. Some of these are:
The main issue that needs to be tackled to place Kolkata firmly on the
ITES map is perception
Although the state government is aggressively promoting Kolkata as a
destination for ITES firms, it needs to do more. Offering more
incentives - possibly following the Andhra model - and showcasing
the success stories coming out of the city could be the first step
toward achieving this
The state also needs to increase its tele-density, and bring it at par
with other leading cities
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Despite the government's sops for ITES units on the FSI norms, real
estate rates in Pune are not that low
Call Centers in India
In order to meet the growing international demand for cost-effective,
customer-oriented call centers, many organizations worldwide are
outsourcing these services from locations like India. India has intrinsic
strengths which can make it a major success as an outsource destination:
A booming IT industry, with IT strengths recognized all over the
world
The largest English-speaking population after the USA
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 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. The Government of India has recognized the potential of IT-enabled
services and has taken positive steps by providing numerous
incentives.
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The presence of most international technology vendors and solutions
would enable creation of most advanced set-ups in this technology-
intensive segment.
One company in India proposes to harness the high-quality technical support
available here by hiring 300 Ph.D.'s to provide very high-end consulting
through videoconferencing/telephone. Given these advantages, India could
build a $17 billion industry by 2008 according to the NASSCOM McKinsey
Report.
Call centers in India are on upsurge as US and European market is
constantly seeking economical services in their drive to reduce cost of
operating their business. This has opened fortunes for service vendors who
have tapped the burgeoning contact center from west especially USA.
Outsourcing to India registered almost 60% jump in the last fiscal. Since
professionals in India are good at English and are backed by the concrete
Info Tech infrastructure in the country choosing profession as a call center
executive is luring new breed of fresh graduates.
Call Centers in Indiahave shown advantage over their counterparts from
US due to some peculiar reasons. Professionals in Indian Call Centers
constitutes of youngsters when compared to European and US experts. Eager
to learn they are more energetic and dedicated than the professionals from
those countries. This gives a distinctive advantage to them for providing
better advantage while working at Call Centers.
How large is the call center industry in India?
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There are 25 CTI(Computer Telephony Integration)-enabled call centers and
300-500 non-CTI call centers in India. British Airways' subsidiary employs
about 750 people and is expected to hire 800 more, while GE has 1000
personnel at its Gugaon facility.
GE in India: an outsourcing success story par excellence
A large part of GE's business in India is in remote processing centers.
Success stories like GE's provide tremendous encouragement to both the
Indian entrepreneur as well as potential business partners from overseas.
GE positions its call centers as "productivity enhancers". According to GE,
companies could be spending two-thirds or more of their time on things that
have to get done but have little to do with what makes their business
successful.
GE Business Productivity Solutions offer companies services and software
that help them grow revenue faster than expenditures by reducing resources
and time devoted to "back office" processes.
GE Capital International is employing over 1,000 people in its Center of
Excellence at Gurgaon near New Delhi in India. The Call Center facility at
Hyderabad is expected to be ready for use by March. These Centers provide
IT-enabled business process outsourcing services to GE and non-GE
customers around the world. GE's business objective is to consolidate back
office processing into India for client organizations and to deliver quality
services at competitive cost.
Business Solutions
GE Capital India Business Solutions focuses on three areas:
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Axa Global 350
Source: Nasscom ITES directory September 2002
Rankings of call centres based on revenues
Ranking of Call Center & BPO players
1 Wipro Spectramind
2 WNS Group
3 Daksh e-services4 ExlService (I) Pvt Ltd
5 HCL Technologies BPO Services
6 Convergys
7 GTL Ltd
8 MsourcE India
9 Hinduja TMT
10 ICICI OneSource
11 Sutherland Technologies
12 Epicenter Technologies
13 Zenta Technologies
14 24/7 Customer
15 Datamatics Technologies
Source: Nasscom
Number of employees Vs revenues sector wise in India
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Government Incentives for Call Centers
The government of India has recently released first set of Terms/Conditions
for Call Center operators in India. The new policy initiatives are broad based
and are aimed at liberalizing the Call Centers operations in India. These
initiatives were announced through the Press Note dated 16 July'1999 issued
by Department of Telecommunications. Amongst its salient features are:
The Call Centers are being permitted on non-exclusive basis against
the requests received from IT Service Providers. These Call Centers
can be international Call Centers or domestic Call Centers. However, no interconnectivity of the international and domestic Call
Centers is permitted. But interconnection of two domestic Call
Centers of the same company is permissible, subject to prior written
approval from DoT.
The International Call Centers will be permitted on IPLC`s
(International Private Leased circuits) only and will cater to calls from
foreign end PSTN (Public Switched Telephone Network). However,
no PSTN connectivity will be permitted at the Indian end. On Indian
end, even linking to any private or public network is not permitted
even if it is of the same organization.
The domestic Call Centers can have PSTN connectivity at one end or
both end or at multi-points in a more complex configuration, with
only incoming and with outgoing disabled at all places where PSTN
termination is provided.
No other interconnectivity, except as permitted as above, with any
public or private network, shall be permitted to the Call Center setup
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Guidelines from Department of Telecommunications
In India, Call Centre operators have to get a no objection certificate from
Deputy Director General (Customer Relations) at Department of
Communications, Government of India, New Delhi. This NOC is granted
with the aim of granting a special permission to use voice circuits over
international gateways with the dedicated and stated purpose of serving
overseas customers, and accompanied by an undertaking that it will not be
connected to a PSTN within India.
The Government of India has released a set of Terms / Conditions for Call
Centre operators in India. The new policy initiatives are aimed at liberalising
Call Centre operations in India. Some of the salient points of the policy are
as under:
The Call Centres are being permitted on nonexclusive basis against the
requests received from IT Service providers. These call centres can either be
international or domestic in nature.
However, no interconnectivity of the international and domestic call
centres is permitted. But, interconnection of two domestic call centres
of the same company is permissible, subject to prior approval of the
DoT.
The International Call Centres will be permitted on IPLCs
(International Private Leased Circuits) only and will cater to calls
from foreign end PSTN (Public Switched Telephone Netweork).
However, no PSTN connectivity will be permitted at the Indian end.
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At Indian end, even linking to any private or public network is not
permitted for IPLC, even if it is of the same organisation.
The domestic call centre can have PSTN connectivity at one end or
both ends or at multipoints in a more complex configuration, with
only incoming and with outgoing disabled at all places, wherever
PSTN termination is provided.
No other interconnectivity, except as permitted above, with any public
or private network, shall be permitted to the call centre set up.
Nasscom welcomes the above initiative announced by DoT. This is expected
to give boost to proliferation of call centres in India. However, there is a
strong need to permit PSTN connectivity at the Indian end, to international
call centres as well as for software companies in India (who provide
software support from India). This is important not only for large
establishments of international call centres ( a great source of export revenue
and employment) but also to encourage software companies to enable their
employees to perform as teleworkers. Nasscom is presently working with
concerned authorities to resolve this issue. It is also desired that domestic
and international Call Centres be permitted interconnectivity. Actually, there
should be no distinction between them.
ECONOMICAL ISSUES
Indian IT industry is on track to achieve its long term aspirations of US$ 50
billion in export revenues by 2008 and remain the pre-eminent destination
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centers, back office processing, etc. India is also the first country to see
significant third party activity.
Philippines and China could pose the strongest competition to India and
challenge India's supremacy in the medium to long term. Only China and the
Philippines, other than India, have a sizeable, low cost talent pool, which
could meet global ITES manpower needs. Governments in both countries are
taking significant steps to improve their attractiveness for the ITES industry.
Other countries like Malaysia, the Caribbean, South Africa, Hong Kong, etc.
have seen some ITES activity. However, the small size of their talent poolsand lack of reference customers severely constrains their ability to emerge as
hubs.
The Indian ITES industry is set to move well beyond contact center, low-
skilled work driven by the early success of the first movers. Capturing the
opportunity will require players to crystallize their business models and
develop tailored value propositions.
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New Delhi, October 9, 2003: NASSCOM (The National Association of
Software and Services Companies), Indias apex body of software and
services sector today released its report titled, The Impact of Global
Sourcing on the US Economy, 2003 2010. The report highlights how the
US economy will see significant benefits from global sourcing.
Mr. Kiran Karnik, President NASSCOM said, The report was
commissioned by NASSCOM to help understand the impact of information
technology and increased globalization on the US economy. A
comprehensive analysis of economic parameters such as GDP, productivity
and income levels was carried out to arrive at the projections.
The report outlines the cost-savings and increased flexibility that global
sourcing will provide to US companies, thereby keeping them competitive in
the global marketplace. Forecasts for the US indicate an annual GDP growth
of 3.20%, which will lead to an increased demand for labor. However, the
US will face a domestic labor shortfall of 5.6 million by 2010 due to an
aging population, which can potentially cost the US economy $ 2 trillion if
appropriate measures are not taken well in time.
Evalueserve Inc., a full-service business research firm, interviewed
worldwide economists and offshoring experts to produce the 80-page report.
Additional information was gathered from statistics and forecasts available
with the US Congressional Budget Office (CBO) and the US Bureau ofLabor Statistics.
"Frankly, the results are compelling," says Marc Vollenweider, CEO,
Evalueserve. "The study clearly shows the necessity of offshore activity to
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SOCIAL ISSUE
Job
Though Call Centers prefer graduates, most of them do show leniency to
undergraduates if they have excellent command over English.
One has to be prepared to work in shifts, mostly in the nights to keep up
with the working hours of the client.
One has to have a great appetite for customer satisfaction as tremendous
attention is focused on customers in this industry. CRM (Customer
Relationship Management) covers the client's entire business: customer
acquirement, customer support, direct marketing and collections.
Pluses
As a fresher one could start his/her career in an International Call Center as a
Call Center Executive and earn highly attractive pay packages ranging from
Rs. 6,500 to Rs. 10,000 per month other than bonuses for outstanding
performances.
Starting as a Call Center Executive, the next rung in the hierarchy ladder is
the position of the Team Leader. The Team Leader will handle a group and
will be responsible for the team's performance. A Team Leader earns
anything between Rs.15,000 to Rs.25,000 and reports to the Asst. Manager-
Call Center. The Asst. Manager handles a group of Team Leaders and takes
home a salary of Rs.30,000 to Rs.40,000 a month. The Asst. Manager in turn
reports to the Call Center Manager. The Call Center Manager will be
responsible for all the operations in the Call Center and the pay cheque will
be anything between Rs.50,000 to Rs.60,000 per month.
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There is also the facility of pickup and drop from your doorstep at the
expense of the company. With an estimated industrial growth rate of 100 -
300 percent there is tremendous opportunity for one to climb the career
ladder in this field. As more and more fresh talent foray into Call Centers,
the inflow pushes the existing workforce up the order.
Minuses
The element of monotony involved in the work, initial stagnation and
restricted job options are often highlighted as the negative aspects of call
center jobs.
Constantly working in the nights could also take a toll on ones health often
resulting from inadequate sleep and untimely eating habits.
Positives outnumber negatives
While looking at the positives and negatives, one could observe that the
positive aspects of call center jobs outnumber the negatives. In these days of
recession, layoffs and downsizing, how can one just say 'no' to a career in an
industry, which is ready to welcome enterprising freshers wholeheartedly?
Yes, monotony could be an issue, but on close observation one would realize
that every job involves monotony and it is the way one approaches the job
that makes it lively. The integral nature of any job cannot be changed much
and one would have to work around it.
In an attempt to help people enjoy work, call centers today take extra efforts
to make the workplace lively and interesting with parties, get-togethers,
competitions and so on. Extra care is also extended to those working in night
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shifts to make sure that they do not fall victims to diseases emanating from
lack of proper sleep and untimely eating habits
Although India's call center industry is thriving, its employees are not
impressed.
The nascent business is witnessing high rates of employee attrition, making
industry leaders sit up and take note.
TheNational Association of Software and Service Companies (NASSCOM)
recently formed a special task force to address that issue, along with how to
ensure availability of skilled talent in the long term.
"The current average rate of attrition faced by the industry is between 30
percent to 35 percent," Ashu Calapa, vice president of Icici OneSource, said
recently at an industry meeting in Bangalore. "If you compare attrition rates
for a voice and non-voice process, then attrition rates are significantly lower
in a non-voice process."
Indian call centers currently employ about 160,000 professionals, who
assume pseudo names and answer calls from U.S. customers. They have to
learn foreign accents, work at night to cater to U.S. time zones, and adjust to
an altered social and family life.
These factors, unique to the call center work environment, were cited in a
recent study as reasons for the high churn of employees and their perception
toward their work. These employees also face the risk associated with
working in a new industry.
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"All this, in totality, seems to be impacting professionals in the way in which
they lead lives and the long-term prospects of continuing careers in call
centers," said Manesh Mathew, director of PeopleEquity Consulting, a
human resources firm based in Bangalore. "The inherent nature of the job is
such that it is monotonous and lacks challenge."
India's call center industry, often locally referred to as information
technology-enabled services and business process outsourcing, accounts for
a quarter of all software and service exports from the country, according to
NASSCOM. The market grew 59 percent to $2.3 billion between 2002 and
2003. Total employment in the industry is expected to reach 600,000 by
2007, according to IDC India.
PeopleEquity and NFO India, a part of the U.S.-based consultancy NFO
WorldGroup, conducted a study on call center employees, interviewing
1,000 workers at 19 leading call centers including GE, Citibank, Transworks
and Convergys. These units are mostly located in Bangalore, Chennai,
Mumbai and Gurgaon near New Delhi.
The survey results indicated that although employees are aware of the
unique demands of the job, they are not prepared to handle the "work-life
balance." They believe their employers are not doing enough to reduce stress
at work.
Furthermore, employees don't look at their jobs as a long-term career option
and have low expectations of professional growth within the industry, the
study showed. Most of the workers are well qualified or even overqualified.
For instance, the survey found that 9 percent of employees hold M.B.A.
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degrees. Units in Chennai employ the highest number of engineers and
workers with a master's in computer applications.
The study noted that although employees don't complain about their salaries,
they have a lurking feeling that they are not "being paid as per industry
standards."
Suren Singh Rasaily, a senior vice president at NIIT, said at a NASSCOM
meeting last month: "We are encouraging companies to adopt responsible
behavior in order to ensure that the industry does not become a victim of its
own actions."
Health hazards for call center professionals
There is a whole bandwagon of multinational corps establishing in India
especially forCall-Center operations. From GE Capitals arrival in 1997 till
date, numerous corporate firms have started their Call-centers in India.
These include Microsoft, DELL, Oracle to name just a few. While there is a
whole conglomerate of MNC evolving in India the professionals working in
such call-centers are coping with hazardous health problems to comply with
US working hours.
The growth rate of forcall-center in India can be directly proportional to
the loosing health ofcall-centerprofessionals. This sounds very absurd but
the US working hours clashes with Indian sleeping time. Approximately 11
hours time difference means to accommodate US operations such as
personal calling, the professionals have to work at night. This is creating
severe health problems as severe as miscarriage, menstrual problems etc.
Besides headache, orthopedic trouble, digestive disorders are very common
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among such people. Call-centers in Indiaare making some great sacrifices
to post an impressive economical growth.
TECHNOLOGICAL ISSUE
Unparalleled Challenges in the New Call Center Industry
Today call centers employ 1.6% of the European work force and 3% of the
work force in North America, making the industry a larger employer than
the automobile industry on two continents. Five trillion dollars has been
invested in call centers worldwide. The industry accounts for nearly a trillion
dollars in sales annually. Between 1994 and 1999 the percentage of Fortune
500 companies with call centers more than doubled, from just over 40% to
83%. There are currently over 150,000 call centers worldwide, located on
every continent but Antarctica, and the number is growing by 17% per
annum.
Between now and 2004 the call center industry will be required to meet
distinct challenges. The first will be to transform the call center into a multi-
media center.
The phenomenal rate of public take-up of the World Wide Web, ComputerTelephony Integration (CTI ) and the convergence of the Publicly Switched
Telephone Network (PSTN) and the Internet are presenting call centers with
challenges and opportunities unlike any the industry has faced in the past.
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create a ripe market for value-added services that handle the queuing and
routing of IP traffic in the network for the call center industry.
Convergence
By 2004 the entire global PSTN, right down to the phone line into peoples
homes, will function in an environment where bandwidth is no more an
issue than electricity is today.
The advent of inexpensive, widely available broadband access to the Internet
is underway. Over the forecast period cable, ISDN and ADSL technologies
will become common in all major urban centers in the industrialized world
and a large portion of smaller cities. A number of Telcos are positioning
themselves for participation in this new convergent market through the
acquisition of cable companies and television production companies.
This Report reviews how call centers, due to their dependence on the
integration of telephones and computers, are a prime focus of both network
and IT convergence. The migration of call processing capabilities into the
core of the telecom network is being aggressively pursued by every
networking and telecommunications company we have reviewed.
Data Protection
It will potentially become much more difficult to engage in cross selling.
Data protection and privacy regulations being implemented in the European
Union will have a major impact on call centers, particularly outbound sales
operations, because they will restrict the ability of call center operators to
use information collected for one purpose and using it for another.
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These regulations will put severe restraints on transferring such information
to third-party countries, including the United States, particularly when they
do not have the same level of data privacy laws, although different countries
would apply them with different levels of severity.
This Report probes whether these restraints will affect the evolving North
American call center business model when it is applied in the European
market
Important New Insights:
This Report uncovers the key issues that are most prevalent in new global
wireless markets and provides an intelligent analyses of the solutions both
proposed and implemented. For example,
Companies must enter new markets at an early stage to maximize
their profits in new markets with limited competition and high
wireless subscriber growth.
A modest wireline infrastructure and substantial consumer base does
not necessarily translate into great consumer demand for wireless
services if the country is mired in systemic corruption, sporadic
network construction, and widespread poverty.
Strong economic growth is not the only determinative factor for
successful market entry and growth opportunities. The readiness of a
population to accept existing and newer technologies must also be
considered.
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Wireless companies wanting to enter newly emerging markets must
be sensitive to domestic conditions that are vital for surviving in a
market where social norms are critical to business success. The
national business climate in each region is influenced by political,
social and economic norms that are unique to the region.
New entrants must either take advantage of limited licensing
opportunities or acquire an interest in an existing network. Late entry
into an already existing market limits the opportunities to acquire
market share.
This business intelligence Report provides invaluable insights into how to
exploit the opportunities and counter the threats likely to be created in this
lucrative marketplace over the next five years.
Key Findings:
Consumer demand in emerging markets outstrips the ability of
antiquated wireline infrastructures to meet these demands. This
accelerates governments' commitment to increase the availability of
national telecommunications systems through wireless solutions.
The early entrants into the Colombian, Peruvian, and Chilean markets
have all developed strong market positions and benefited fromincreasing subscriber bases. The Spanish company, Telefonica de
Espana, entered the Chilean market in 1989, guaranteeing them a
dominant market position in a market that now has an estimated 1
million cellular subscribers.
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technology needs, vendor selection, and the possibility of increasing the
efficiency of a technology project by rethinking the organisation beforehand.
The technological systems choices while setting up call centres include:
a. Entry options ranging from traditional voice, e-mail, internet forms,
web triggered calls, fax and video
b. Desktop tools including knowledge based systems (AI), electronic
documentation, new contact management applications and CTI and
screen based telephony;
c. Resource locations ranging from home agents to centralised or
decentralised centres;
d. Service options ranging from self-help or assisted services via
Internet, voice response units, fax back systems, and electronic
technical support forums. Introducing the right technology will benefit
every component of a call centre including training, staffing, scripting,
customer relations, tracking and reporting etc.
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SWOT analysis on Indian ITES sector
Strengths
o Highly skilled, English-speaking workforce.
o Cheaper workforce than their Western counterparts. According
to Nasscom, The wage difference is as high as 70-80 percent
when compared to their Western counterparts.
o Lower attrition rates than in the West.
o Dedicated workforce aiming at making a long-term career in
the field.
o Round-the-clock advantage for Western companies due to the
huge time difference.
o Lower response time with efficient and effective service.
Weaknesses
o Recent months have seen a rise in the level of attrition rates
among ITES workers who are quitting their jobs to pursue
higher studies. Of late workers have shown a tendency not to
pursue ITES as a full-time career.
o The cost of telecom and network infrastructure is much higher
in India than in the US.
Opportunities
o To work closely with associations like Nasscom to portray
India as the most favoured ITES destination in the world.
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o Workers in British Telecom have protested against outsourcing
of work to Indian BPO companies.
o Other ITES destinations such as China, Philippines and South
Africa could have an edge on the cost factor.
For today's high-tech call center, people, technology and process are truly
integrated. The loss of any of the key elements - whether accidental or
deliberate - can put call centers at risk.
Risks to People
Successful call centers base their success on how well their staffs perform. If
call center staff members are unable or unwilling to perform their assigned
tasks, the call center is at risk.
Risks to Technology
Call center systems such as ACDs and IVR are at risk from fires, floods, loss
of power, system failure, component failure, loss of data (with no backups),
vandalism, and human error. Voice network services are at risk from cable
cuts, power failures, security breaches, and service interruptions. Data
communications equipment at risk includes routers, hubs, switches, and
power supplies. Data network services, such as switched or private circuits,
or Internet-based services, face the same risks as voice networks. Business
applications require hardware, such as mainframes, mid-range systems, and
servers, plus business applications, utilities, and web-based programs.
Threats to hardware are the same as for telecom equipment, while human
error, viruses, security breaches and theft of information threaten software.
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Risks to Process
Without documented procedures on how to operate, call centers cannot
function smoothly. The overall business process, e.g., Customer
Relationship Management, is comprised of numerous sub-processes and
functions, each of which link together in various combinations.
If we examine call center operations, we can see that loss of any of the key
elements - whether accidental or deliberate - can put call centers at risk.
Guidelines for setting up a Call Center
International -- which handles customers of clients who are based outside India.
Interconnectivity with other network/DTS Links at India is not
permitted. The PSTN connectivity is permissible only at the Foreign
end and not at the Indian end.
Separate Earth-Station is not permitted since VSNL is providing
International Private Leased Circuit [IPLC] link.
FIPB Clearance, Foreign equity, NRI involvement, e-commerce
activity & legal Connectivity, with Foreign end collaborator are to be
provided with an application.
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complete end termination details and addresses, along with the
connectivity to any private or public network at each of the proposed
locations.
Document required for submitting the application:
The application can be submitted on the letter-head of the applicantcompany. Following documents are required along with the application:-
International Call Center
1. Demand Draft of Rs 1000/- drawn in the name of "Pay & AccountsOfficer (HQ), DoT", toward the processing fees.
2. Address of the locations of the Indian end and foreign end where theIPLC would terminate.
3. Bandwidth of the IPLC.
4. Number of seats in the Call center.
5. Memorandum of Article of Association of the Company
6. Schematic diagram of the Call center layout with equipment details
7. Name of the foreign clients ( in case the company has not tied up withany foreign client this can be given before the start of the service)
Domestic Call Center
1. Demand Draft of Rs 1000/- drawn in the name of "Pay & AccountsOfficer (HQ), DoT", toward the processing fees.
2. Address of all locations connected with leased lines or where incomingonly PSTN lines are terminating.
3. Bandwidth of the leased lines.
4. Number of seats in the Call center.
5. Memorandum of Article of Association of the Company
6. Schematic diagram of the Call center layout with equipment details
7. Name of the clients ( in case the company has not tied up with any clientthis can be given before the start of the service)
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Indian Domestic call center pegged @ Rs1,000 cr
The domestic call center outsourcing business is estimated to be in the range
of Rs 1,000 crore by 2005. Sandip Sen the founder and CEO Customer First
Services said, This does not take into consideration any sudden burst in
sectors like retail or HR and administration outsourcing."
The outsourcing market for voice based customer support for the estimated
30 million subscribers is pegged at Rs 200 crore by 2005. Add other sectors
like BFSI, FMCG, consumer electronics, automobiles, information
technology, manufacturing, etc would easily elevate the business of the
domestic call center outsourcing to more than Rs 1,000 crore.
Apart from telecom and banking sector, the travel industry is emerging as
the biggest contributor for the domestic call center industry. With the
airlines beginning to outsource call center work, word is out that the railway
is also considering outsourcing their telephone and online reservation.
With India being looked as a desirable destination for technical support by
most of the IT companies, it is only apt that the country is home for
technical support of the domestic demand as well. Customer First supports
Epson, BPL and Wipro Infotech and is poised to grab more from the IT
industry.
PageLink, Spanco, Orion are some of the call centers vying for the domestic
pie along with Customer First. Besides, HLL, Reliance and Tata
Teleservices employ captive call centers to cater to their requirements.
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Customer First is the largest domestic player with a revenue of Rs 7.1 crore
for 2002-03. It plans to add 450 new professionals to its 700-strong
workforce by the end of this fiscal
Transition Process
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The call center industry is booming - growing at 20% - 30% per year! As
companies increasingly recognize that call centers are a strategic asset,
staffing agent positions with qualified employees becomes a major
challenge. And in an industry that bewails turnover of 50% -100% per year,
call center managers are looking for innovative ways to retain valued
employees. Remote Agent programs have proven to be very successful at
retaining talented agents in hundreds of leading corporations. Companies
such as American Express, Hewlett Packard, Circuit City, Travel One,
Deloitte & Touche, Netscape, Compaq, World Travel Partners, Aegon
Insurance, SunTrust Banks and many others are benefiting from equipping
their remote agents with MCK EXTenders. MCK EXTenders enable
employees to work from their homes or satellite call centers with seamless
access to the call center's PBX and ACD system. An agent working remotely
has all of the tools - both voice and data connectivity -- to the call center's
operations. Calls are routed to remote agents and managers can monitor the
agent exactly as if the agent were in the call center.
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PBX Gateway 1
Description:
PBX Gateway in 8 or 12 ports
This PBX Gateway can be configured to run on IP transport or traditional circuit-switched
and frame relay networks. Remote employees are able to use the same full-featured digital
sets and access corporate PBX functions, like voicemail, call accounting systems, unified
messaging and ACD sytems.
Supports MCK Extender 6000 and 4000.
PBX Gateway 2
Description:
PBX Gateway with 24 ports
This PBX Gateway can be configured to run on IP transport or traditional circuit-switched
and frame relay networks. Remote employees are able to use the same full-featured digital
sets and access corporate PBX functions, such as voicemail, call accounting systems,
unified messaging and ACD sytems.
Supports all MCK Extenders.
MCK 6000 Extender
Description:
Multiple Users Extender
The MCK EXTender 6000 for Branch Offices is a multi-user customer premiseequipment capable of extending voice services and applications to branch offices or call
centers over circuit- and packet-based networks. The MCK EXTender 6000 is easy to
install and maintain, with centralized and remote management tools for flexible
administration.
The MCK EXTender 6000 for Branch offices/Call Centers enables you to provide full
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corporate PBX capabilities over an existing data network, making voice and data
convergence a reality.
MCK 1000 Analog
Description:
Single-User Extender
Workers can now fully access corporate tools from any location. Information workers have
come to expect full data access. Now you can expand that access to include full voice and
data support in one box. Remote workers use the same deskset they use in the office, with
transparent access to all the PBX/KTS funcitions.
The MCK EXtender 1000+ provides off-site employees full access to their PBX/KTS overanalog dial-up or leased line connection. Simply connect to MCK EXtender 1000's to each
other for single-user scenario or connect multiple EXtender 1000's to the PBX Extenders
located at the corporate site.
Supports ACD software packages and call accounting, allowing statistics to be
monitored on remote workers, simplifying phone expenses.
MCK 3000 ISDN
Description:
Single-User Extender
Workers can now fully access corporate tools from any location. Information workers have
come to expect full data access- and now you can expand that access to include full voice
and data support in one box.
The MCK EXtender 3000 comes in two models; Model T and Model E. Model T uses the
second B channel to emulate a terminal adapter allowing users to connect via a PPP dial-up
connection. Model E uses the second B channel for data transmission through a 10Base-T
Ethernet connection.
Supports ACD software packages and call accounting, allowing statistics to be
monitored on remote workers, simplifying phone expenses.
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.
MCK 4000 IP
Description:
Single-User Extender
Teleworking has become a strategic advantage for many companies, allowing them to
recruit and retain skilled employees, save money on real estate and increase employee
productivity. But to be truly productive, remote workers need access to the same set of
tools at their home that they have in their office; high speed data connectivity and a
feature-rich telephone system.
The MCK Extender 4000 utilizes a teleworker's existing IP network connection through a
router or DSL modem, other remote access device or a company's private network to the
corporate voice and data systems.
MCK Extender 7000
Description:
Multi-User Extender for branch offices and call centers.
With the MCK Extender 7000, you have instant acces to the corporate PBX/KTS system.
Although the system may be located across the state, country or world, you make and
receive call as if both the PBX/KTS and the local telephone company (aka Local Exchange
Carrier or LEC) were at arms length.
The MCK Extender 7000 also enables any phone connected to the central PBX/KTS to usethe branch office's local lines resulting in significant telecommunication cost saving for the
organization.
This solution is ideal for companies with geographically dispersed branch offices with 13
workers or more, situated outside of the PBX/KTS local calling area and that typically
have a moderate to high level of comunciation both locally and with the corporate
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Ocean Connect ropes Scottish instructor for better services
Until yesterday I only knew that India offers talented, academically
vibrant teachers to UK. UK imports a huge pool of capable teachers
from India. But guess what the news here! A team of teachers (though
retired) from Scotland has been flown to India. The purpose? The
group of teachers will hone the skills of the professionals working in
the call-centers in India (read Ocean Connect). The teachers will be
conducting the tests and professionals educations in order to handle
UK customer calls. The major job will be to develop accent as well
making them aware of the cultural set up of England. With the rise inthe Call-centers in India service provider companies are making
extra efforts for sustenance and corporate emergence.
Since the accent in the call-centers requires dramatic changes for
offshore clients there was a sense of urgency amongst call-center to
deliver something for upliftment. Moreover there are several other
problems on air forCall Centers in India. The major concern is the
attrition rate by which the employees quit their jobs. Majority of