PRESENTATION ON HUMAN RESOURCE DEVELOPMENT OF BPO
What is BPO?? Business Process Outsourcing is the long-termcontracting out of non-core business processes to an outside provider to help achieve increased shareholder value
Benefits of BPO… Productivity Improvements Access to expertise Operational cost control Cost savings Improved accountability Improved HR Opportunity to focus on core business
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.
Why India????Scope:A booming IT industry, with IT strengths recognized all overthe worldLanguage:India has one of the largest pool of low-cost English speakingscientific and technical talentManpower:A vast workforce of educated, English speaking, tech-savvypersonnel: A boon in a high-growth industry faced with ashortage of skilled workers.
Cost-effective manpower: In a call interaction centeroperation, manpower typically accounts for 55 to 60 percent ofthe total cost. In India, the manpower cost is approximatelyone-tenth of what it is overseas. Per agent cost in USA isapproximately $40,000 while in India it is only $5,000.Technical support: India graduates about 100,000 engineerseach year. These can be used in call centers fortroubleshooting/tech support, as the salaries are dramaticallylower than in Europe or the US.Government policy The Government of India has recognizedthe potential of IT-enabled services and hastaken positive steps by providing numerousincentives. IT is one of the Government of Indias topfive priorities.
Regulatory Enablers: 100% foreign ownership permitted in IT Enabled Servicesindustry unlike other sectors where foreign ownership isrestricted. To provide ready to plug IT infrastructure and telecomfacilities.Infrastructure Enablers:Basic, Cellular, Paging and Internet Services privatized Dell, Sun Microsystems, LG, Ford, GE, Oracle all haveannounced plans to scale up their operations in India. Otherslike American Express, IBM and British Airways are leveragingthe cost advantage India has to offer while setting up callcentres.
KPO: Know more.... Knowledge Process Outsourcing (KPO) is estimatedto touch $ 17 billion by 2010 with at least 70%coming to India. Both third-party BPOs and captive centresfocusing on KPO have come up in Bangalore, Chennai,Hyderabad and Kochi. The KPO industry is opening up job opportunitiesfor professionals not usually associated with the BPOindustry
Problems face by BPOsAs Nasscom-McKinsey report points out, only 10-15% of thegeneral college graduates are suitable for employment in theBPO industry. It has also said that there is a potentialshortfall 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 thefact that other sectors like retail and airlines are also growingwhich 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 wayforward for the industry to attract and retain talent.
Human Resources Development and Training: By the year 2010 the employment potential in KarnatakasBPO sector is expected to be 360,000 across the State, withnon metro cities offering substantial portion of the manpower.Non Metro cities offer low operational costs due to lessexpensive real estate cost and abundant availability of localtalent. To make quality man power for the BPOcompanies, the Human ResourceDevelopment and Training action plan is inplace. This aimed actively improving qualityat all levels-schools, colleges and schools,colleges and unemployed graduates
Schools - The State already has a largenumber of private and public schools. Manyof these schools have comprehensive ITlaboratories. The policy aims to leverageinfrastructure to enhance the verbal,written and communication skills of thestudents.This program will be implemented in coordination with theEducation department. The selection of trainers, coursematerials, method of delivery will be decided by BITES (Boardfor 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
Professionals - there are a numerous ofunemployed graduates as well asworking professionals who aretechnically proficient, yet need toimprove certain soft skills. For thispurpose the IT Department plans to setup training facilities not only inBangalore, but also at major cities ofKarnataka. The program will beconceptualised and implemented byBITES.