SlideShare une entreprise Scribd logo
1  sur  8
Télécharger pour lire hors ligne
MAY 2ND – MAY 7TH




              Glimpse of Indian Call Centre Industry
Call Centres are required for large companies to sell their products to the customers,
proposing a product or service as well as for the after-sale enquiries made by the customers.
Call Centres in India are at its peak today. Customized solution through customer interactive
programs in the success mantra of numerous corporate firms nowadays. For the strategic
business development - that requires acquired skills for customer queries, solutions etc.,
Indian call-centres are at par with the current marketing demands. Call centres not only handle
the task of interacting with customers but also provide a wider base for official tasks of
inventories, bill handling, web-solutions and various other business requirement proceedings.

Call Centres in India are prospering upon the upscale rise amongst the entrepreneurs who are
trying to allure their customers through inbound and outbound calling facility. This concept
raving in US have enabled many offshore call centres establishments, majorly is India. The
quality of English is at par with the international standards. Indians are technically literate and
comfortable with new technologies arising in the industry.
Indian Call Centres work round the clock and provide 24-hour support for the customers of
these US based clients. From the concept of being just a voice based medium of customer
support, today call centres are referred to as 'Contact Centres' which are capable of handling
customer queries over phone or the online medium. Qualified professional talent with fluency
in English and a neutral accent with the ability to shift to different accents have made India, a
preferred destination for offshore clients. Call centre industry in India is projected at $142
billion by the year 2008 as per NASSCOM. With its built-in potency, India is advertised as the
hot destination for 'offshore outsourcing hub'. The booming Indian call centre industry is the
benchmark of the changing global trend.

The call centre industry estimated to grow into $301 billion industry by 2010 is a sheer
pleasure for the aspiring workforce in India. Call centres 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 centre. 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 centre industry, which in recent have
been the home more developed nations like Australia, New Zealand, and European nation.




                  Major Call Centre Cities in India
Since the beginning of Call Centres in India many cities have emerged in this
sector.

The major call centre cities in India are:

   •   Delhi and NCR: Delhi and NCR has a number of popular call centres like
       American Express, Wipro, converges, Daksh, etc. In Delhi the employees
       working in call centres is calculated to be almost 73, 000.
   •   Hyderabad: It has call centres of HSBC, Satyam and Microsoft. The
       employees here are said to be around 36,500.
   •   Banglore: The major call centres in Banglore are Infosys, Wipro, Intel,
       Oracle, etc. The number of employees working is 109,500.
   •   Mumbai: The number of people working in call centres of Mumbai like
       TCS, Morgan Stanley, etc. is 62,050.
   •   Chennai: Chennai has a working population of 51,100 in call centres.
   •   Kolkatta: The major call centres there are Infotech, TCS and the people
       working there are 7,300.
   •   Pune: Pune also has a working population of 7,300 in call centres.
Why Outsource to India?
The foundation of successful outsourcing relationship is laid when an organization
communicates to the potential suppliers about its intention to outsource business functions.
Outsourcing is not just a contract signed between two parties but is largely emerging as a
relationship managed from day one of the contract. Successful outsourcing relationship
requires a lot of professionalism and good management. Managing outsourcing relationships
requires constant attention and an expectation of continuous improvement and proactive
approach towards achieving it. A companies' success in managing their outsourcing
relationship will determine its business success. Some of the factors that make India, the ideal
choice for outsourcing are:

1. Resource Pool
Being a talent rich country, India offers the fastest growing pool of expertise that is computer
literate. The rich resource of educated customer care professionals is proficient in the English
language.

2. Time Zone
India is located at a 12 hour time difference with North America that facilitates the American
organizations to achieve a 24*7 business operations and customer service. This exclusive
advantage may also benefit organizations located in the Western Europe and Asia Pacific.

3. Low Cost
Per employee cost in USA is approximately $40,000 while in India it is only $5,000. The
relatively low cost of manpower makes India, a highly sought after destination for sourcing
cross-border IT-enabled services. India provides maximum number of software engineers to
Silicon Valley, West Europe and the Asian Pacific IT industry. Indian companies can provide
call centre 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. The country is moving towards next generation telecommunication
technologies.

4. Core Competency
Of the 23 software companies in the world that have achieved the prestigious SEI-CMM Level
5, 15 of them are Indian. India will soon have the highest number of ISO-9000 software
companies in the world, according to Nasscom. Indians are increasingly adapting to
international quality standards.
5. Government Policies

  •   Having recognized the potential of IT-enabled services, the Government of India has
      taken positive steps by providing numerous incentives. It has established a task force
      for developing world class knowledge based outsourcing industry allowing duty free
      imports of capital goods and providing tax exemption on export of IT enabled services.
  •   India boasts of excellent investment potential and was ranked third in Asia, just after
      Japan and China, in terms of investment potential for the next 10-year period in a study
      by the Export-Import bank of Japan.
  •   Software Technology Parks (STPs) with state-of-the-art IT infrastructure and telecom
      facilities providing a "single window clearance" for all regulatory compliances have
      helped India emerge as a prominent outsourcing hub.
  •   India enjoys an infrastructural advantage owing to the convergent network being
      created by the intertwining of the ISP, Telecom, VSAT, Cellular and networking sectors.
      India's large business houses and Public Sector Units ( PSU's) are working towards
      creating greater bandwidth availability.
  •   A separate Ministry of Information Technology was set up to expedite swift approval and
      implementation of IT projects and to streamline the regulatory process.
  •   The Information Technology Bill that was passed in the Indian Parliament in May 2000
      has now been notified as the IT Act 2000. The IT Bill brings E-commerce within the
      purview of law and accords stringent punishments to "cyber criminals". With this, India
      joins a select band of 12 nations that have cyber laws.
  •   A powerful supply of high-programming talent, favorable government and tax incentives,
      and the ability to complement U.S. time zones with a virtual around-the-clock approach
      are just some of the many benefits that India offers. Hence, outsource to India for
      technological agility, quality, flexibility, cost control, time-to-market and competitive
      advantage.

Benefits of Outsourcing

  •   Increased sales and profits
  •   Reduced costs per sale
  •   Maximum phone productivity
  •   Increased number of appointments
  •   Increased customer base
  •   Increased lead generation
  •   Higher number of qualified leads
  •   Higher number of closed sales
  •   Better customer retention
  •   More immediate feedback
  •   Better results through test marketing
  •   Increased local, regional, or national market share
Call Centre Growth Rate in India
India has been surfaced as the hottest destination to place call centre over a period of time.
With costs running less than 50% of what they do in the United States and Europe, India has
sprouted a call-centre work force of about 150,000 people.

Indian Market size estimates of BPO

   •   As on March 31, 2003, the sector employed 171,000 professionals. It has $1 billion
       invested in it, creating about 100,000 smart cubicles in 7.5 million sq ft of space. It
       generated revenues of $2.3 billion in 2002-03.
   •   Nasscom has estimated that the Indian ITES industry will gross over $5.7 billion by
       2005. The amount is said to be increased by a rate of 65% each year.
   •   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.

Main Revenue Areas for Indian BPO companies

                               India's BPO Market in 2008

       Service Line             First 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 Development                       2.6                          2.5-3.0

Administration                            1.3                          1.5-2.0

Finance                                   0.7                          2.5-3.0

Figures in $ billion
BPO Competitors of India
India has several advantages over other countries in terms of being the hottest destination of
call centres and BPO. Most of the MNCs are interested in outsourcing their operations in India
because of cost savings, operational efficiencies, access to a highly talented workforce and
improved quality. Inspite of that, there are several competitors of India. India should be on
guard to improve the sector and overcome the challenges in order to maintain its stability.



The major competitors of Indian Call Centre Industry are:

   •   China: A major competitor because of the availability of large people of pool. The only
       drawback here is that they do not have enough English speaking graduates.
   •   Philippines: It competes in terms of good telecom infrastructure and skilled workforce.
       As a former American colony, American culture and language is widely emulated here.
   •   Mexico: It is competitive only in terms of low-end jobs.
   •   Australia: It has the advantage of large English speaking population with a favorable
       time zone



Few other competitors include:

   •   Canada
   •   Ireland
   •   Malaysia
   •   Russia
   •   Vietnam
from China
China is one of the major competitors of Indian call centre industry. China has several
advantages over India and has a strong base to become a major hub for call centres in the
coming years. The competition between two old rivals, China and India, is sparking up as both
countries become prime destinations for a substantial number of well-paid IT jobs. Many
multinationals, especially U.S. corporations, plan to move operations overseas to slash costs.
The major strengths of China in the global outsourcing markets are:

   •   Manufacturing - China's emergence as a global manufacturing hub is one of the major
       factor drawing foreign software developers.
   •   Information Technology - Its IT market is the strongest in the world.

The main advantages of China are as follows:

   •   Lower Manpower costs: The Chinese workers cost about 15 percent less than equally
       qualified Indians.
   •   Infrastructure: China has more comprehensive and reliable infrastructure.
   •   Japan Advantage: China is likely to grow through the Japanese outsourcing route.
       India currently offers almost no BPO services in Japan.
   •   Extremely low cost real estate and power: These costs are lower than in India. This
       can be a very attractive to the US companies, which are looking for cost cutting due to
       the downturn.
   •   Proactive Govt.: The govt. is very friendly to this sector and has taken several steps
       like English teaching and other skill sets.

Apart from all these advantages China also has certain disadvantages:

   •   Lack of a good Quality record in Software: India has a better image as a quality
       supplier.
   •   Low English speaking population: It has a very small proportion of the population
       speaking fluent English.
   •   Less mature: China has only recently entered into BPO. As such, despite lower billing
       rates, total project costs in China would turn out be higher because of the higher
       overheads incurred. China is on the process of overcoming these drawbacks to beat
       India to become a major destination of call centres. Chinese government is strongly
       supporting the call centre industry and is on toes to compete with India.
faced by Indian Call Centres

The major challenges faced by the Indian call centre industry are:

   •   Market Maturity: India is one of the longest-serving markets for offshore contact centre
       services. Because of this, western investors are aware of its capabilities, and many
       have already established operations there. Thus, the relatively slow growth is reflective
       of India’s mature positioning on the offshore product life cycle.
   •   Increased Competition: Philippines, South Africa, Central and Eastern Europe and
       North Africa are continuously making efforts to increase the market value of their call
       centre industry.
   •   HR Issues: The call centre industry currently employs more than 171,000 professionals
       compared to a 25,000 in 1999. However, India is running out of the supply of good
       quality managerial talent.
   •   Infrastructure: Most cities still face power outages and water shortages, and are
       heavily dependent on backup supplies.
   •   Increasing Labor Costs: Overall salary levels have gone up by 20-25% in the last 12-
       18 months in major Contact Centre clusters across India.
   •   Margins under Pressure: With increasing competition and subsequent price dips, the
       margins these companies have come under tremendous pressure.
   •   Attrition: Indian BPO attrition rates are far too high, with levels over 50% p.a. This
       inevitably impacts service levels and impedes ongoing improvements.
   •   Security: Although India compares well with competing destinations on the security
       matrix, awareness about security issues is still low. Data security is an important issue
       and needs to be tackled on multiple fronts - regulation (to keep out unscrupulous
       players who spoil the fair name of India), robust processes, systems, and training.
   •   Health Concerns: One has to sacrifice social life, time and health. The odd working
       hours is a major issue. As health problems, arising from tampering with the biological
       clock of the employees, become more pronounced the lure of BPO and IT-enabled
       services will go away.
   •   Necessity Bilingualism: Apart from English, most Indian contact centres are unable to
       service other languages like Spanish, French, Mandarin and Cantonese.

REFERENCE: http://www.call-centres-india.com

Contenu connexe

Dernier

The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptx
heathfieldcps1
 
Spellings Wk 3 English CAPS CARES Please Practise
Spellings Wk 3 English CAPS CARES Please PractiseSpellings Wk 3 English CAPS CARES Please Practise
Spellings Wk 3 English CAPS CARES Please Practise
AnaAcapella
 

Dernier (20)

Spatium Project Simulation student brief
Spatium Project Simulation student briefSpatium Project Simulation student brief
Spatium Project Simulation student brief
 
psychiatric nursing HISTORY COLLECTION .docx
psychiatric  nursing HISTORY  COLLECTION  .docxpsychiatric  nursing HISTORY  COLLECTION  .docx
psychiatric nursing HISTORY COLLECTION .docx
 
Unit-IV; Professional Sales Representative (PSR).pptx
Unit-IV; Professional Sales Representative (PSR).pptxUnit-IV; Professional Sales Representative (PSR).pptx
Unit-IV; Professional Sales Representative (PSR).pptx
 
General Principles of Intellectual Property: Concepts of Intellectual Proper...
General Principles of Intellectual Property: Concepts of Intellectual  Proper...General Principles of Intellectual Property: Concepts of Intellectual  Proper...
General Principles of Intellectual Property: Concepts of Intellectual Proper...
 
The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptx
 
On National Teacher Day, meet the 2024-25 Kenan Fellows
On National Teacher Day, meet the 2024-25 Kenan FellowsOn National Teacher Day, meet the 2024-25 Kenan Fellows
On National Teacher Day, meet the 2024-25 Kenan Fellows
 
Grant Readiness 101 TechSoup and Remy Consulting
Grant Readiness 101 TechSoup and Remy ConsultingGrant Readiness 101 TechSoup and Remy Consulting
Grant Readiness 101 TechSoup and Remy Consulting
 
Asian American Pacific Islander Month DDSD 2024.pptx
Asian American Pacific Islander Month DDSD 2024.pptxAsian American Pacific Islander Month DDSD 2024.pptx
Asian American Pacific Islander Month DDSD 2024.pptx
 
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
 
Key note speaker Neum_Admir Softic_ENG.pdf
Key note speaker Neum_Admir Softic_ENG.pdfKey note speaker Neum_Admir Softic_ENG.pdf
Key note speaker Neum_Admir Softic_ENG.pdf
 
ICT role in 21st century education and it's challenges.
ICT role in 21st century education and it's challenges.ICT role in 21st century education and it's challenges.
ICT role in 21st century education and it's challenges.
 
Spellings Wk 3 English CAPS CARES Please Practise
Spellings Wk 3 English CAPS CARES Please PractiseSpellings Wk 3 English CAPS CARES Please Practise
Spellings Wk 3 English CAPS CARES Please Practise
 
How to Give a Domain for a Field in Odoo 17
How to Give a Domain for a Field in Odoo 17How to Give a Domain for a Field in Odoo 17
How to Give a Domain for a Field in Odoo 17
 
ComPTIA Overview | Comptia Security+ Book SY0-701
ComPTIA Overview | Comptia Security+ Book SY0-701ComPTIA Overview | Comptia Security+ Book SY0-701
ComPTIA Overview | Comptia Security+ Book SY0-701
 
Holdier Curriculum Vitae (April 2024).pdf
Holdier Curriculum Vitae (April 2024).pdfHoldier Curriculum Vitae (April 2024).pdf
Holdier Curriculum Vitae (April 2024).pdf
 
SOC 101 Demonstration of Learning Presentation
SOC 101 Demonstration of Learning PresentationSOC 101 Demonstration of Learning Presentation
SOC 101 Demonstration of Learning Presentation
 
Unit-IV- Pharma. Marketing Channels.pptx
Unit-IV- Pharma. Marketing Channels.pptxUnit-IV- Pharma. Marketing Channels.pptx
Unit-IV- Pharma. Marketing Channels.pptx
 
UGC NET Paper 1 Mathematical Reasoning & Aptitude.pdf
UGC NET Paper 1 Mathematical Reasoning & Aptitude.pdfUGC NET Paper 1 Mathematical Reasoning & Aptitude.pdf
UGC NET Paper 1 Mathematical Reasoning & Aptitude.pdf
 
Making communications land - Are they received and understood as intended? we...
Making communications land - Are they received and understood as intended? we...Making communications land - Are they received and understood as intended? we...
Making communications land - Are they received and understood as intended? we...
 
Sociology 101 Demonstration of Learning Exhibit
Sociology 101 Demonstration of Learning ExhibitSociology 101 Demonstration of Learning Exhibit
Sociology 101 Demonstration of Learning Exhibit
 

En vedette

How Race, Age and Gender Shape Attitudes Towards Mental Health
How Race, Age and Gender Shape Attitudes Towards Mental HealthHow Race, Age and Gender Shape Attitudes Towards Mental Health
How Race, Age and Gender Shape Attitudes Towards Mental Health
ThinkNow
 
Social Media Marketing Trends 2024 // The Global Indie Insights
Social Media Marketing Trends 2024 // The Global Indie InsightsSocial Media Marketing Trends 2024 // The Global Indie Insights
Social Media Marketing Trends 2024 // The Global Indie Insights
Kurio // The Social Media Age(ncy)
 

En vedette (20)

2024 State of Marketing Report – by Hubspot
2024 State of Marketing Report – by Hubspot2024 State of Marketing Report – by Hubspot
2024 State of Marketing Report – by Hubspot
 
Everything You Need To Know About ChatGPT
Everything You Need To Know About ChatGPTEverything You Need To Know About ChatGPT
Everything You Need To Know About ChatGPT
 
Product Design Trends in 2024 | Teenage Engineerings
Product Design Trends in 2024 | Teenage EngineeringsProduct Design Trends in 2024 | Teenage Engineerings
Product Design Trends in 2024 | Teenage Engineerings
 
How Race, Age and Gender Shape Attitudes Towards Mental Health
How Race, Age and Gender Shape Attitudes Towards Mental HealthHow Race, Age and Gender Shape Attitudes Towards Mental Health
How Race, Age and Gender Shape Attitudes Towards Mental Health
 
AI Trends in Creative Operations 2024 by Artwork Flow.pdf
AI Trends in Creative Operations 2024 by Artwork Flow.pdfAI Trends in Creative Operations 2024 by Artwork Flow.pdf
AI Trends in Creative Operations 2024 by Artwork Flow.pdf
 
Skeleton Culture Code
Skeleton Culture CodeSkeleton Culture Code
Skeleton Culture Code
 
PEPSICO Presentation to CAGNY Conference Feb 2024
PEPSICO Presentation to CAGNY Conference Feb 2024PEPSICO Presentation to CAGNY Conference Feb 2024
PEPSICO Presentation to CAGNY Conference Feb 2024
 
Content Methodology: A Best Practices Report (Webinar)
Content Methodology: A Best Practices Report (Webinar)Content Methodology: A Best Practices Report (Webinar)
Content Methodology: A Best Practices Report (Webinar)
 
How to Prepare For a Successful Job Search for 2024
How to Prepare For a Successful Job Search for 2024How to Prepare For a Successful Job Search for 2024
How to Prepare For a Successful Job Search for 2024
 
Social Media Marketing Trends 2024 // The Global Indie Insights
Social Media Marketing Trends 2024 // The Global Indie InsightsSocial Media Marketing Trends 2024 // The Global Indie Insights
Social Media Marketing Trends 2024 // The Global Indie Insights
 
Trends In Paid Search: Navigating The Digital Landscape In 2024
Trends In Paid Search: Navigating The Digital Landscape In 2024Trends In Paid Search: Navigating The Digital Landscape In 2024
Trends In Paid Search: Navigating The Digital Landscape In 2024
 
5 Public speaking tips from TED - Visualized summary
5 Public speaking tips from TED - Visualized summary5 Public speaking tips from TED - Visualized summary
5 Public speaking tips from TED - Visualized summary
 
ChatGPT and the Future of Work - Clark Boyd
ChatGPT and the Future of Work - Clark Boyd ChatGPT and the Future of Work - Clark Boyd
ChatGPT and the Future of Work - Clark Boyd
 
Getting into the tech field. what next
Getting into the tech field. what next Getting into the tech field. what next
Getting into the tech field. what next
 
Google's Just Not That Into You: Understanding Core Updates & Search Intent
Google's Just Not That Into You: Understanding Core Updates & Search IntentGoogle's Just Not That Into You: Understanding Core Updates & Search Intent
Google's Just Not That Into You: Understanding Core Updates & Search Intent
 
How to have difficult conversations
How to have difficult conversations How to have difficult conversations
How to have difficult conversations
 
Introduction to Data Science
Introduction to Data ScienceIntroduction to Data Science
Introduction to Data Science
 
Time Management & Productivity - Best Practices
Time Management & Productivity -  Best PracticesTime Management & Productivity -  Best Practices
Time Management & Productivity - Best Practices
 
The six step guide to practical project management
The six step guide to practical project managementThe six step guide to practical project management
The six step guide to practical project management
 
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
 

I360 Weekly digest 2nd may to 7th may

  • 1. MAY 2ND – MAY 7TH Glimpse of Indian Call Centre Industry Call Centres are required for large companies to sell their products to the customers, proposing a product or service as well as for the after-sale enquiries made by the customers. Call Centres in India are at its peak today. Customized solution through customer interactive programs in the success mantra of numerous corporate firms nowadays. For the strategic business development - that requires acquired skills for customer queries, solutions etc., Indian call-centres are at par with the current marketing demands. Call centres not only handle the task of interacting with customers but also provide a wider base for official tasks of inventories, bill handling, web-solutions and various other business requirement proceedings. Call Centres in India are prospering upon the upscale rise amongst the entrepreneurs who are trying to allure their customers through inbound and outbound calling facility. This concept raving in US have enabled many offshore call centres establishments, majorly is India. The quality of English is at par with the international standards. Indians are technically literate and comfortable with new technologies arising in the industry. Indian Call Centres work round the clock and provide 24-hour support for the customers of these US based clients. From the concept of being just a voice based medium of customer support, today call centres are referred to as 'Contact Centres' which are capable of handling customer queries over phone or the online medium. Qualified professional talent with fluency in English and a neutral accent with the ability to shift to different accents have made India, a
  • 2. preferred destination for offshore clients. Call centre industry in India is projected at $142 billion by the year 2008 as per NASSCOM. With its built-in potency, India is advertised as the hot destination for 'offshore outsourcing hub'. The booming Indian call centre industry is the benchmark of the changing global trend. The call centre industry estimated to grow into $301 billion industry by 2010 is a sheer pleasure for the aspiring workforce in India. Call centres 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 centre. 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 centre industry, which in recent have been the home more developed nations like Australia, New Zealand, and European nation. Major Call Centre Cities in India Since the beginning of Call Centres in India many cities have emerged in this sector. The major call centre cities in India are: • Delhi and NCR: Delhi and NCR has a number of popular call centres like American Express, Wipro, converges, Daksh, etc. In Delhi the employees working in call centres is calculated to be almost 73, 000. • Hyderabad: It has call centres of HSBC, Satyam and Microsoft. The employees here are said to be around 36,500. • Banglore: The major call centres in Banglore are Infosys, Wipro, Intel, Oracle, etc. The number of employees working is 109,500. • Mumbai: The number of people working in call centres of Mumbai like TCS, Morgan Stanley, etc. is 62,050. • Chennai: Chennai has a working population of 51,100 in call centres. • Kolkatta: The major call centres there are Infotech, TCS and the people working there are 7,300. • Pune: Pune also has a working population of 7,300 in call centres.
  • 3. Why Outsource to India? The foundation of successful outsourcing relationship is laid when an organization communicates to the potential suppliers about its intention to outsource business functions. Outsourcing is not just a contract signed between two parties but is largely emerging as a relationship managed from day one of the contract. Successful outsourcing relationship requires a lot of professionalism and good management. Managing outsourcing relationships requires constant attention and an expectation of continuous improvement and proactive approach towards achieving it. A companies' success in managing their outsourcing relationship will determine its business success. Some of the factors that make India, the ideal choice for outsourcing are: 1. Resource Pool Being a talent rich country, India offers the fastest growing pool of expertise that is computer literate. The rich resource of educated customer care professionals is proficient in the English language. 2. Time Zone India is located at a 12 hour time difference with North America that facilitates the American organizations to achieve a 24*7 business operations and customer service. This exclusive advantage may also benefit organizations located in the Western Europe and Asia Pacific. 3. Low Cost Per employee cost in USA is approximately $40,000 while in India it is only $5,000. The relatively low cost of manpower makes India, a highly sought after destination for sourcing cross-border IT-enabled services. India provides maximum number of software engineers to Silicon Valley, West Europe and the Asian Pacific IT industry. Indian companies can provide call centre 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. The country is moving towards next generation telecommunication technologies. 4. Core Competency Of the 23 software companies in the world that have achieved the prestigious SEI-CMM Level 5, 15 of them are Indian. India will soon have the highest number of ISO-9000 software companies in the world, according to Nasscom. Indians are increasingly adapting to international quality standards.
  • 4. 5. Government Policies • Having recognized the potential of IT-enabled services, the Government of India has taken positive steps by providing numerous incentives. It has established a task force for developing world class knowledge based outsourcing industry allowing duty free imports of capital goods and providing tax exemption on export of IT enabled services. • India boasts of excellent investment potential and was ranked third in Asia, just after Japan and China, in terms of investment potential for the next 10-year period in a study by the Export-Import bank of Japan. • Software Technology Parks (STPs) with state-of-the-art IT infrastructure and telecom facilities providing a "single window clearance" for all regulatory compliances have helped India emerge as a prominent outsourcing hub. • India enjoys an infrastructural advantage owing to the convergent network being created by the intertwining of the ISP, Telecom, VSAT, Cellular and networking sectors. India's large business houses and Public Sector Units ( PSU's) are working towards creating greater bandwidth availability. • A separate Ministry of Information Technology was set up to expedite swift approval and implementation of IT projects and to streamline the regulatory process. • The Information Technology Bill that was passed in the Indian Parliament in May 2000 has now been notified as the IT Act 2000. The IT Bill brings E-commerce within the purview of law and accords stringent punishments to "cyber criminals". With this, India joins a select band of 12 nations that have cyber laws. • A powerful supply of high-programming talent, favorable government and tax incentives, and the ability to complement U.S. time zones with a virtual around-the-clock approach are just some of the many benefits that India offers. Hence, outsource to India for technological agility, quality, flexibility, cost control, time-to-market and competitive advantage. Benefits of Outsourcing • Increased sales and profits • Reduced costs per sale • Maximum phone productivity • Increased number of appointments • Increased customer base • Increased lead generation • Higher number of qualified leads • Higher number of closed sales • Better customer retention • More immediate feedback • Better results through test marketing • Increased local, regional, or national market share
  • 5. Call Centre Growth Rate in India India has been surfaced as the hottest destination to place call centre over a period of time. With costs running less than 50% of what they do in the United States and Europe, India has sprouted a call-centre work force of about 150,000 people. Indian Market size estimates of BPO • As on March 31, 2003, the sector employed 171,000 professionals. It has $1 billion invested in it, creating about 100,000 smart cubicles in 7.5 million sq ft of space. It generated revenues of $2.3 billion in 2002-03. • Nasscom has estimated that the Indian ITES industry will gross over $5.7 billion by 2005. The amount is said to be increased by a rate of 65% each year. • 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. Main Revenue Areas for Indian BPO companies India's BPO Market in 2008 Service Line First 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 Development 2.6 2.5-3.0 Administration 1.3 1.5-2.0 Finance 0.7 2.5-3.0 Figures in $ billion
  • 6. BPO Competitors of India India has several advantages over other countries in terms of being the hottest destination of call centres and BPO. Most of the MNCs are interested in outsourcing their operations in India because of cost savings, operational efficiencies, access to a highly talented workforce and improved quality. Inspite of that, there are several competitors of India. India should be on guard to improve the sector and overcome the challenges in order to maintain its stability. The major competitors of Indian Call Centre Industry are: • China: A major competitor because of the availability of large people of pool. The only drawback here is that they do not have enough English speaking graduates. • Philippines: It competes in terms of good telecom infrastructure and skilled workforce. As a former American colony, American culture and language is widely emulated here. • Mexico: It is competitive only in terms of low-end jobs. • Australia: It has the advantage of large English speaking population with a favorable time zone Few other competitors include: • Canada • Ireland • Malaysia • Russia • Vietnam
  • 7. from China China is one of the major competitors of Indian call centre industry. China has several advantages over India and has a strong base to become a major hub for call centres in the coming years. The competition between two old rivals, China and India, is sparking up as both countries become prime destinations for a substantial number of well-paid IT jobs. Many multinationals, especially U.S. corporations, plan to move operations overseas to slash costs. The major strengths of China in the global outsourcing markets are: • Manufacturing - China's emergence as a global manufacturing hub is one of the major factor drawing foreign software developers. • Information Technology - Its IT market is the strongest in the world. The main advantages of China are as follows: • Lower Manpower costs: The Chinese workers cost about 15 percent less than equally qualified Indians. • Infrastructure: China has more comprehensive and reliable infrastructure. • Japan Advantage: China is likely to grow through the Japanese outsourcing route. India currently offers almost no BPO services in Japan. • Extremely low cost real estate and power: These costs are lower than in India. This can be a very attractive to the US companies, which are looking for cost cutting due to the downturn. • Proactive Govt.: The govt. is very friendly to this sector and has taken several steps like English teaching and other skill sets. Apart from all these advantages China also has certain disadvantages: • Lack of a good Quality record in Software: India has a better image as a quality supplier. • Low English speaking population: It has a very small proportion of the population speaking fluent English. • Less mature: China has only recently entered into BPO. As such, despite lower billing rates, total project costs in China would turn out be higher because of the higher overheads incurred. China is on the process of overcoming these drawbacks to beat India to become a major destination of call centres. Chinese government is strongly supporting the call centre industry and is on toes to compete with India.
  • 8. faced by Indian Call Centres The major challenges faced by the Indian call centre industry are: • Market Maturity: India is one of the longest-serving markets for offshore contact centre services. Because of this, western investors are aware of its capabilities, and many have already established operations there. Thus, the relatively slow growth is reflective of India’s mature positioning on the offshore product life cycle. • Increased Competition: Philippines, South Africa, Central and Eastern Europe and North Africa are continuously making efforts to increase the market value of their call centre industry. • HR Issues: The call centre industry currently employs more than 171,000 professionals compared to a 25,000 in 1999. However, India is running out of the supply of good quality managerial talent. • Infrastructure: Most cities still face power outages and water shortages, and are heavily dependent on backup supplies. • Increasing Labor Costs: Overall salary levels have gone up by 20-25% in the last 12- 18 months in major Contact Centre clusters across India. • Margins under Pressure: With increasing competition and subsequent price dips, the margins these companies have come under tremendous pressure. • Attrition: Indian BPO attrition rates are far too high, with levels over 50% p.a. This inevitably impacts service levels and impedes ongoing improvements. • Security: Although India compares well with competing destinations on the security matrix, awareness about security issues is still low. Data security is an important issue and needs to be tackled on multiple fronts - regulation (to keep out unscrupulous players who spoil the fair name of India), robust processes, systems, and training. • Health Concerns: One has to sacrifice social life, time and health. The odd working hours is a major issue. As health problems, arising from tampering with the biological clock of the employees, become more pronounced the lure of BPO and IT-enabled services will go away. • Necessity Bilingualism: Apart from English, most Indian contact centres are unable to service other languages like Spanish, French, Mandarin and Cantonese. REFERENCE: http://www.call-centres-india.com