Recent development in business and employment opportunities: ites-bpo,kpo,call centers and special economic zones
1. RECENT DEVELOPMENT IN BUSINESS AND EMPLOYMENT
OPPORTUNITIES: ITES-BPO,KPO,CALL CENTERS AND
SPECIAL ECONOMIC ZONES
2. OUTSOURCING
• What is outsourcing ?
“Outsourcing refers to the practice of transferring activities traditionally
done within a firm to third party providers within the country.”
• Definition :
Outsourcing is a practice used by different companies to reduce costs by
transferring portions of work to outside suppliers rather than completing it
internally. Outsourcing is an effective cost-saving strategy when used properly.
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7. BPO
• Business process outsourcing (BPO) is a subset of outsourcing that involves the
contracting of the operations and responsibilities of a specific business process to
a third-party service provider. Originally, this was associated with manufacturing
firms, such as Coca-Cola that outsourced large segments of its supply chain.[1]
• BPO is typically categorized into back office outsourcing, which includes internal
business functions such as human resources or finance and accounting, and front
office outsourcing, which includes customer-related services such as contact centre
services.[2]
• BPO that is contracted outside a company's country is called offshore outsourcing.
BPO that is contracted to a company's neighbouring (or nearby) country is called
nearshore outsourcing
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11. KPO
• KPO – KNOWLEDGE PROCESS OUTSOURCING
Knowledge process outsourcing (KPO) describes the outsourcing of core
information- related business activities which are competitively important or form an
integral part of a company's value chain . KPO requires advanced analytical and
technical skills as well as a high degree of specialist expertise.
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16. SPECIAL ECONOMIC ZONES
• A special economic zone (SEZ) is an area in which business and trade laws are
different from rest of the country. SEZs are located within a country's national
borders, and their aims include: increased trade, increased investment, job
creation and effective administration.To encourage businesses to set up in the
zone, financial policies are introduced.These policies typically regard investing,
taxation, trading, quotas, customs and labour regulations. Additionally, companies
may be offered tax holidays, where upon establishing in a zone they are granted a
period of lower taxation.
17. TYPES OF SEZs
Type [6] Objective Size
Typical
Location
Typical
Activities
Markets
FTZ Support trade <50 hectares Port of entry
Entrepôts and
trade related
Domestic, re-
export
EPZ (traditional)
Export
manufacturing
<100 hectares None
Manufacturing,
processing
Mostly export
EPZ (single
Unit/free
enterprise)
Export
manufacturing
No minimum Countrywide
Manufacturing,
processing
Mostly export
EPZ (hybrid)
Export
manufacturing
<100 hectares None
Manufacturing,
processing
Export, domestic
Free port/SEZ
Integrated
development
>1000 hectares None Multi-use
Internal, domestic,
export
Urban enterprise
zone
Urban revitalization <50 hectares Urban/rural Multi-use Domestic
18. • Background of SEZ India.
During late 1990s the then UnionCommerce Minister Murasoli Maran visited the high tech
SEZs in China and got impressed by their contribution to the rapid growth of GDP of the
country. He then thought about taking measures to do the same in India. However by that time
India was already introduced with the first export processing zone in Kandala. But the main
difference that it was not SEZ but EPZ. India was not deemed to be very happy with the EPZs
because they were falling short due to various reasons.As a result the expectation rose high
and the SEZs were conceived to be far efficient, calculated and modernized than the EPZs. In
the light of the experiences drawn from international level it is evident these centers have
added tremendously in the growth of employment and foreign direct investment or FDI.Their
role has been evaluated as very significant in the growth of the economy of the host country.[7]
In New Delhi the InternationalConvention on Special Economic Zone was arranged on March
21, 2002.The main guest was undoubtedly Mr. Maran, the Honorable Minister for Commerce
and Industry on that time. In his speech he pointed out that for a long period of time foreign
trade in India has been viewed as suspicion rather an optimum potential to charge a high
growth rate of the economy.The time has come when the country is moving towards export
fatalism to export apathy.This change of notion would definitely lead to an incentive to the
economic progress of the country and for this the need of SEZ is inevitable.The SEZs would act
as vehicles of production and the FDI increase swiftly.As a result India will attain a considerable
place in its contribution to the world economy.[8
19. Recent trends in SEZS
1.The policy of SEZ has already become a political football that worries the present govt. of inviting popular
backlash.The controversy has already become a major election issue.Therefore the govt. decided not to grant
permission for new SEZs until and unless the rehabilitation policy put into place properly.This is due to the
political cost involved in the issue being measured too high to bear.[31]
2.The new National Rehabilitation and Resettlement (NPR) 2006 policy suggests that first priority should be to
provide land for land. People whose lands are acquired should get jobs in the new industries established on
their land.The compensation package includes allotting a free house site to the affected family, allotting
cultivable land and a rehabilitation grant equivalent to 750 days minimum agricultural wages, giving fishing
rights where dams are made.[32]
3.The govt. has further decided to make the final version of the policy (NPR) legally enforceable.This kind of
policy will have no meaning unless it is enforceable in a court of law’’ said Raghuvansh Prasad Singh, Minister,
Rural Development.This policy introduces the concept of Social Impact Assessment (SIA) along with the
current norm of Environmental Impact Assessment.The SIA would also involve public hearings on
displacement-related issues, loss of livelihood, compensation, effects on family. Sources said there is also a
proposal to set up a statutory National Rehabilitation Commission to ensure independence of the monitoring
mechanism.[33]
20. 4. New ceiling has been imposed on the size of SEZs. Minimum processing area has been raised from
35% to 50%.This new norm has already upset some of the developers of multi-product SEZs which
had to cut down certain plans chocked out earlier.[34]
5. Speaking at a FICCI meeting, the PM said issues such as land acquisition and displacement of
people and their rehabilitation and resettlement should be transparently addressed. Urging the
Indian industry to be sensitive to the need to empower the weaker sections of society, Mr. Singh said
industrial development is not a zero-sum game.[35]According to the PM the policy of SEZ is
irreversible but since it is exposed to certain problems which can not be dismissed. It is the strength
of our democracy. A mechanism is to be set up to address those gaps in the policy.There will be a
comprehensive review of Empowered Group of Ministers (EGoM) with reference to the pending
approvals. He said I do believe that we should address these concerns if we want the policy to
succeed in the long run.[36]
6.The other developments include i)Area of an SEZ capped at 5000 hectares; states can fix lower
ceiling, ii) state govts are barred from acquiring land, developers will have to do it of their own, iii) at
least one job per family of those displaced, iv) developers to devote at least 50% area for core
activities like manufacturing v) list of non-processing activities may be reviewed.[37]
7. One more step has been taken to make special economic zones more acceptable to critics. State
governments have decided not to give any tax exemption to non-processing[38] areas in SEZs.As a
result of this decision states levies on building material and fuel are now expected to be applicable
with reference to non-processing activities in SEZs.