This presentation discusses human resource development for the business process outsourcing (BPO) industry in India. It notes that BPO provides benefits like cost savings, productivity improvements, and access to expertise. India is well-suited for BPO due to its large English-speaking workforce and lower costs compared to other countries. However, the BPO industry faces challenges like high attrition and a shortage of qualified employees. The presentation proposes training programs targeting schools, colleges, and unemployed graduates in Karnataka, India to develop the necessary skills for the BPO industry and address its human resource needs.
2. What is BPO??
Business Process Outsourcing is the long-term
contracting out of non-core business processes to
an outside provider to help achieve increased
shareholder value
3. Benefits of BPO…
Productivity Improvements
Access to expertise
Operational cost control
Cost savings
Improved accountability
Improved HR
Opportunity to focus on core business
4. Beyond The Call
Nasscom-McKinsey report projects that, of the total IT &
BPO exports of $ 60 billion by 2010, $ 25 billion will be
contributed by BPO. Currently BPO contributes $ 5.2
billion of the total exports of $17 billion.
13% of Karnataka’s IT exports for 2004-05 came from
ITES/BPO.It was 15% for Tamil Nadu and 36% for
Andhra Pradesh.
South India seeing even non-IT companies shifting
activities requiring IT applications to India.
Industry plagued by lack of adequate supply of quality
manpower and also attrition.
Good training system recommended for the industry to
attract and retain talent.
5. Why India????
Scope:
A booming IT industry, with IT strengths recognized all over
the world
Language:
India has one of the largest pool of low-cost English speaking
scientific and technical talent
Manpower:
A vast workforce of educated, English speaking, tech-savvy
personnel: A boon in a high-growth industry faced with a
shortage of skilled workers.
6. Cost-effective manpower: In a call interaction center
operation, manpower typically accounts for 55 to 60 percent of
the total cost. In India, the manpower cost is approximately
one-tenth of what it is overseas. Per agent cost in USA is
approximately $40,000 while in India it is only $5,000.
Technical support: India graduates about 100,000 engineers
each year. These can be used in call centers for
troubleshooting/tech support, as the salaries are dramatically
lower than in Europe or the US.
Government policy
The Government of India has recognized
the potential of IT-enabled services and has
taken positive steps by providing numerous
incentives.
IT is one of the Government of India's top
five priorities.
7. Regulatory Enablers:
100% foreign ownership permitted in IT Enabled Services
industry unlike other sectors where foreign ownership is
restricted.
To provide ready to plug IT infrastructure and telecom
facilities.
Infrastructure Enablers:
Basic, Cellular, Paging and Internet Services privatized
Dell, Sun Microsystems, LG, Ford, GE, Oracle all have
announced plans to scale up their operations in India. Others
like American Express, IBM and British Airways are leveraging
the cost advantage India has to offer while setting up call
centres.
8. KPO: Know more....
Knowledge Process Outsourcing (KPO) is estimated
to touch $ 17 billion by 2010 with at least 70%
coming to India.
Both third-party BPOs and captive centres
focusing on KPO have come up in Bangalore, Chennai,
Hyderabad and Kochi.
The KPO industry is opening up job opportunities
for professionals not usually associated with the BPO
industry
9. Problems face by BPOs
As Nasscom-McKinsey report points out, only 10-15% of the
general college graduates are suitable for employment in the
BPO industry. It has also said that there is a potential
shortfall of 350,000 people for the BPO industry.
K Subramanian, head, ITes division, Manpower Services India,
Says,
“ This shortage of manpower is further accentuated by the
fact that other sectors like retail and airlines are also growing
which is competing for the same set of pool”.
Attrition is one of the major issues facing the industry. Mr.
Subramanian says, a good training system is the only way
forward for the industry to attract and retain talent.
10. Human Resources Development and Training:
By the year 2010 the employment potential in Karnataka's
BPO sector is expected to be 360,000 across the State, with
non metro cities offering substantial portion of the manpower.
Non Metro cities offer low operational costs due to less
expensive real estate cost and abundant availability of local
talent.
To make quality man power for the BPO
companies, the Human Resource
Development and Training action plan is in
place. This aimed actively improving quality
at all levels-schools, colleges and schools,
colleges and unemployed graduates
11. Schools - The State already has a large
number of private and public schools. Many
of these schools have comprehensive IT
laboratories. The policy aims to leverage
infrastructure to enhance the verbal,
written and communication skills of the
students.
This program will be implemented in coordination with the
Education department. The selection of trainers, course
materials, method of delivery will be decided by BITES (Board
for IT Education Standards).
Colleges - While a large number of Karnataka colleges already
have IT labs, the policy not only also aims to encourage the
existing IT labs but also setting up 500 more labs in the State
12. Professionals - there are a numerous of
unemployed graduates as well as
working professionals who are
technically proficient, yet need to
improve certain soft skills. For this
purpose the IT Department plans to set
up training facilities not only in
Bangalore, but also at major cities of
Karnataka. The program will be
conceptualised and implemented by
BITES.