I360 Weekly digest 2nd may to 7th may


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i360 Staffing & Training Solutions is a vocational training institute started in 2008 with the aim of reducing the gap between employers’ expectations and the available talent pool, by providing necessary training to improve employability.

i360 is an eminent name facilitated by the promoters of Unicon Investment Solutions. With number of operational centres across India & constantly expanding, i360 is a fast paced Training Solutions Company, offering industry specific custom designed courses to the students/ corporates.

Our courses have evolved after intensive R&D and market research. Since we understand the requirement of the organizations and capabilities of the students, therefore, we try to bridge the gap between the employer and the employee. Students can experience effective and easy learning at i360.

We believe in following stringent and unimpeachable principles. With the distinctive mixture of right aptitude, motivated and devoted team we yearn to serve world class qualitative education. Their skill and dedication is adding to the success of the company. i360 also assures bright career assistance to every promising student.

Considering the continuous and remarkable growth in Finance & Accounting, Retail sectors, i360 is offering different courses in Financial Accounting, Retail Management, Call Centre Training, IELTS, Career Development, Spoken English and various other courses for corporates.

"There are plenty of employment opportunities available and they are expected to grow faster than the average." Ms. Sonia Nagpal cited a study by ICRA, which states that up to 25 crore(rpt) skilled workers would be required over the next 12 years to cater to the demand in 20 high-growth sectors and the unorganized segment.

Companies want to recruit employees with proficient managerial and communication skills. Therefore, keeping these points in mind i360 is offering various courses to the students and corporates. After completion of these courses one can explore the opportunities available in the market. In the learning atmosphere of i360 student can groom their personality and learn many fruitful things under the guidance of competent and resourceful faculty.

i360 does have multilevel corporate engagements; starting from student placements to trainings to academic endorsements. All these associations directly or indirectly add value in a student's career. Presently, students of i360 are working with brands like Vodafone, Airtel, Pantaloons, Haldirams, Unicon, Asian Paints, Erricson to name a few…

Join us on Facebook: http://www.facebook.com/i360Institute
Follow us on Twitter: www.twitter.com/i360staffing
Connect with us on linkedin: http://www.linkedin.com/company/i360-staffing-&-training-pvt.-ltd.

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I360 Weekly digest 2nd may to 7th may

  1. 1. MAY 2ND – MAY 7TH Glimpse of Indian Call Centre IndustryCall 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 interactiveprograms in the success mantra of numerous corporate firms nowadays. For the strategicbusiness 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 handlethe task of interacting with customers but also provide a wider base for official tasks ofinventories, bill handling, web-solutions and various other business requirement proceedings.Call Centres in India are prospering upon the upscale rise amongst the entrepreneurs who aretrying to allure their customers through inbound and outbound calling facility. This conceptraving in US have enabled many offshore call centres establishments, majorly is India. Thequality of English is at par with the international standards. Indians are technically literate andcomfortable with new technologies arising in the industry.Indian Call Centres work round the clock and provide 24-hour support for the customers ofthese US based clients. From the concept of being just a voice based medium of customersupport, today call centres are referred to as Contact Centres which are capable of handlingcustomer queries over phone or the online medium. Qualified professional talent with fluencyin English and a neutral accent with the ability to shift to different accents have made India, a
  2. 2. preferred destination for offshore clients. Call centre industry in India is projected at $142billion by the year 2008 as per NASSCOM. With its built-in potency, India is advertised as thehot destination for offshore outsourcing hub. The booming Indian call centre industry is thebenchmark of the changing global trend.The call centre industry estimated to grow into $301 billion industry by 2010 is a sheerpleasure for the aspiring workforce in India. Call centres in India has also effectively developeda niche in the areas of data verification, data capture, tele research, service follow-ups andrenewing subscriptions, which becomes the core outbound activities of a call centre. Unlessthere is talented enough manpower to handle such queries, no business organization willmake a move. Thus India have taken a leap step in call centre industry, which in recent havebeen the home more developed nations like Australia, New Zealand, and European nation. Major Call Centre Cities in IndiaSince the beginning of Call Centres in India many cities have emerged in thissector.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. 3. Why Outsource to India?The foundation of successful outsourcing relationship is laid when an organizationcommunicates 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 arelationship managed from day one of the contract. Successful outsourcing relationshiprequires a lot of professionalism and good management. Managing outsourcing relationshipsrequires constant attention and an expectation of continuous improvement and proactiveapproach towards achieving it. A companies success in managing their outsourcingrelationship will determine its business success. Some of the factors that make India, the idealchoice for outsourcing are:1. Resource PoolBeing a talent rich country, India offers the fastest growing pool of expertise that is computerliterate. The rich resource of educated customer care professionals is proficient in the Englishlanguage.2. Time ZoneIndia is located at a 12 hour time difference with North America that facilitates the Americanorganizations to achieve a 24*7 business operations and customer service. This exclusiveadvantage may also benefit organizations located in the Western Europe and Asia Pacific.3. Low CostPer employee cost in USA is approximately $40,000 while in India it is only $5,000. Therelatively low cost of manpower makes India, a highly sought after destination for sourcingcross-border IT-enabled services. India provides maximum number of software engineers toSilicon Valley, West Europe and the Asian Pacific IT industry. Indian companies can providecall centre services to clients based in the U.S. or the U.K. at less than half of what it costs inU.S., U.K. or Australia. The country is moving towards next generation telecommunicationtechnologies.4. Core CompetencyOf the 23 software companies in the world that have achieved the prestigious SEI-CMM Level5, 15 of them are Indian. India will soon have the highest number of ISO-9000 softwarecompanies in the world, according to Nasscom. Indians are increasingly adapting tointernational quality standards.
  4. 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. Indias large business houses and Public Sector Units ( PSUs) 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. 5. Call Centre Growth Rate in IndiaIndia 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 hassprouted 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 Indias BPO Market in 2008 Service Line First Estimate (1999) Second Estimate (2001)HR 5.4 3.5-4.0Customer Care 4.1 8.0-8.5Payment Services 2.9 3.0-3.5Content Development 2.6 2.5-3.0Administration 1.3 1.5-2.0Finance 0.7 2.5-3.0Figures in $ billion
  6. 6. BPO Competitors of IndiaIndia has several advantages over other countries in terms of being the hottest destination ofcall centres and BPO. Most of the MNCs are interested in outsourcing their operations in Indiabecause of cost savings, operational efficiencies, access to a highly talented workforce andimproved quality. Inspite of that, there are several competitors of India. India should be onguard 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 zoneFew other competitors include: • Canada • Ireland • Malaysia • Russia • Vietnam
  7. 7. from ChinaChina is one of the major competitors of Indian call centre industry. China has severaladvantages over India and has a strong base to become a major hub for call centres in thecoming years. The competition between two old rivals, China and India, is sparking up as bothcountries become prime destinations for a substantial number of well-paid IT jobs. Manymultinationals, especially U.S. corporations, plan to move operations overseas to slash costs.The major strengths of China in the global outsourcing markets are: • Manufacturing - Chinas 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. 8. faced by Indian Call CentresThe 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