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TABLE OF CONTENT

Page No.

CHAPTER-1 1

1 INTRODUCTION, PURPOSE AND OBJECTIVE 2

1.1 Background 2

1.2 Concept and Evolution of Outsourcing 2

1.2.1 Perspective on Outsourcing 3

1.2.2 ITeS-BPO - Definition 4

1.2.3 Classification of ITeS-BPO Services 4

1.2.4 Rationale of ITeS-BPO 5

1.2.5 The ITeS-BPO as a Value Adding Proposition 6

1.3 Contextual Framework of the Indian ITeS-BPO Industry 6

1.4 Contribution of ITeS-BPO to the Economic Growth in India 8

1.4.1 Direct Contribution to the Indian Economy 8

1.4.2 Indirect Contribution to the Indian Economy 10

1.5 Growth of Indian ITeS –BPO Industry: 13

1.5.1 Operational Structure of India ITeS-BPO Industry 16

1.6 The HR Issues and Challenges Confronted by ITeS-BPO Industry in

India 17

1.6.1 High Level of Attrition 17

1.6.2 Lack of Career Commitment 18

1.6.3 Nature of the Job 18

1.6.4 Mismatch of Expectations 18

1.6.5 Communication Issue 18

1.6.6 Generating Motivation and Increasing Efficiency 18

1.6.7 High Training Costs 19

1.7 Significance and Need for Study 19

1.8 Doctrine of Human Resource Management and Outsourcing 22

1.8.1 Human Resources 22

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1.8.2 Human Resource Management (HRM) 22

1.8.3 Outsourcing 23

1.8.4 Business Process Outsourcing (BPO) 24

1.8.5 Call Center 26

1.8.6 Recruitment and Selection 26

1.8.7 Performance Appraisal 27

1.8.8 Compensation 28

1.8.9 Benefits 28

1.8.10 Training and Development 28

1.8.11 Stress 29

1.9 Conclusion 29

CHAPTER-2 31

2 LITERATURE REVIEW 32

2.1 Background 33

2.2 Events Leading to Outsourcing 34

2.3 Core Competence and Outsourcing 36

2.4 Meaning and Scope of Outsourcing 37

2.4.1 Definitions of Outsourcing 38

2.5 Theoretical Underpinning of Current Outsourcing Research 40

2.5.1 Transaction-Cost View: 41

2.5.2 Resource-Based View: 41

2.6 Evolution of Modern Day Outsourcing 42

2.7 Drivers of Outsourcing 44

2.8 Strategic Reasons for Outsourcing 45

2.9 Levels of Outsourcing 47

2.9.1 Tactical Outsourcing: 48

2.9.2 Strategic Outsourcing: 48

2.9.3 Transformational Outsourcing: 48

2.10 Outsourcing Process 48

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2.11 Framework for Choosing an Outsourcing Location 50

2.12 Growth in Acceptance of ITeS-BPO 52

2.13 Business Process Outsourcing in India: 55

2.13.1 Events Leading to the Growth of ITeS-BPO in India 56

2.13.2 Emerging Competition for Indian ITeS-BPO 58

2.13.3 Governments‘ Role in ITeS-BPO Growth: 61

2.13.4 ITeS-BPO in India- Industry Dynamics and Challenges 62

2.14 Examining Issues in Call Center - A Representative Sample for ITeS-

BPO 66

2.15 Theoretical Underpinnings Applicable to Call Center 66

2.15.1 Foucauldian Electronic Panopticon Perspectives and Call Centre 67

2.15.2 Emotional Labor and Call Center 68

2.16 HR as a Tool of Sustained Competitive Advantage 72

2.17 Human Resource Management Issues in ITeS-BPO 75

2.17.1 Worker Profile in ITeS-BPO 75

2.17.2 Wages of Employees in ITeS-BPO 78

2.17.3 Recruitment and Selection in ITeS-BPO 78

2.17.4 Tenure in the ITeS-BPO Organization 83

2.17.5 Training in ITeS-BPO 83

2.17.6 Career in ITeS-BPO 87

2.17.7 Compensation and Reward in ITeS-BPO 88

2.17.8 Stress in ITeS-BPO 89

2.18 Conclusion 91

CHAPTER-3 93

3 RESEARCH METHODOLOGY 94

3.1 Statement of Problem 94

3.2 Research Gap 95

3.3 Objectives of the Study 96

3.4 Research Design 97

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3.5 Instrumentation 97

3.6 Sources of Information 98

3.6.1 Secondary Data 98

3.6.2 Primary Data 98

3.6.3 Questionnaire Design 99

3.7 Focus Group Discussion 99

3.8 Pilot Study 99

3.9 Sample Selection 100

3.10 Sample Size 100

3.11 Limitation in Data Collection 101

3.12 Procedure 101

3.13 Research Ethics and Confidentiality of Data 102

3.14 Tools Used for Data Analysis 102

3.14.1 Focus Group Discussion 102

3.14.2 Mean 103

3.14.3 Weighted Mean 103

3.14.4 One Sample T-Test 103

3.14.5 Mann-Whitney Test 103

3.14.6 One Sample Kolmogorov-Smirov Test 104

3.14.7 Kruskal Wallis Test 104

3.14.8 Chi Square Test 104

3.14.9 Content Analysis 105

3.14.10 Pattern Finding 105

3.15 Data Coding Scheme 105

3.15.1 Coding for the Questionnaire 105

3.16 Conclusion 111

CHAPTER-4 112

4 RESEARCH FINDINGS 113

4.1 Profile of Respondents 113

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4.2 Location of the ITeS-BPO Organizations Studied 113

4.3 Results of Employee Interview 114

4.3.1 Employees in Voice and Non Voice Segment 114

4.3.2 Gender of the Employees in ITeS-BPO 115

4.3.3 Age of Employees in ITeS-BPO 115

4.3.4 Qualification of Employees 116

4.3.5 Marital Status 117

4.3.6 Income of Employees 118

4.3.7 Reasons for Joining the Industry 118

4.3.8 Higher Studies 119

4.3.9 Recruitment Process 121

4.3.10 Selection Test 122

4.3.11 Accommodation Arrangement 124

4.3.12 Commuting Time to Office 125

4.3.13 Transport Facility 125

4.3.14 Safety Measures 126

4.3.15 Facilities at Workplace 128

4.3.16 Provision of Breaks 131

4.3.17 Smoking Breaks 132

4.3.18 Training of Employees 133

4.3.19 Career Progression Opportunities 134

4.3.20 Factors Leading to Career Progression 136

4.3.21 Employee Satisfaction Levels 137

4.3.22 Work Schedule 141

4.3.23 Work from Home 142

4.3.24 Satisfaction with Working Hours 143

4.3.25 Ideal Working Week 144

4.3.26 Personal Leaves 145

4.4 Health Hazard and Ailments Affecting the ITeS-BPO Employees 148

4.5 Work Related Stress in ITeS-BPO 150

4.6 Results of Structured Interviews Conducted with HR and Operational

Managers 153

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4.6.1 HR Planning 153

4.6.2 Recruitment Process 153

4.6.3 Selection Test 154

4.6.4 Accomodation Facilities 155

4.6.5 Transportation Facilities 156

4.6.6 Amenities Provided by Company 156

4.6.7 Work Area Layout/Settings 157

4.6.8 Food in Cafeteria 157

4.6.9 Induction Process 158

4.6.10 Training Provided 159

4.6.11 Training Department Composition 159

4.7 Conclusion 160

CHAPTER-5 162

5 FINDINGS AND CONCLUSIONS 163

5.1 Work Organization in India ITeS-BPO 165

5.2 Demographics Profile of the Indian ITeS-BPO 166

5.3 Role of Women in Indian ITeS-BPO 168

5.4 Recruitment and Selection in Indian ITeS-BPO 169

5.5 Benefits Management in Indian ITeS-BPO 170

5.5.1 Accommodation and Accessibility 171

5.5.2 Amenities and Breaks 172

5.5.3 Work-Life Benefits and Policies (WLBP) 172

5.6 Training and Development in Indian ITeS-BPO 173

5.7 Career Management in Indian ITeS-BPO 174

5.8 Performance Management in Indian ITeS-BPO 176

5.9 Compensation Management in Indian ITeS-BPO 177

5.10 Retention Management in Indian ITeS-BPO 178

5.11 Stress Management in Indian ITeS-BPO 179

5.12 Limitations of the Study 180

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5.13 Directions for Future Research 181

6 REFERENCES xiii

7 APPENDIX xlvii

7.1 Employee Questionnaire- Appendix A xlvii

7.2 Employer Questionnaire- Appendix B lvii