India has long been an attractive destination for outsourcing business. Due to its vast human resources, the rising number of skilled professionals, and last but not the least, cheap labor, foreign enterprises had always favored India for offshoring their services and products. This had resulted in a great number of job opportunities for Indians, and companies used to carry out recruitment on a massive scale to meet their growing demands.
The National Association of Software and Services Companies (NASSCOM), the leading organization that defines and sets the trends in the Indian software industry, reports 2012 to be a landmark year. For the fiscal year 2013, a growth of 11%-14% is predicted for exports, while for domestic revenues, the growth is expected to be 13%-16%.
Emerging issues in BPO companies in India
While the IT-BPO sector retains its position as a major employer in India, certain issues have emerged that have led to some serious concerns. As a matter of fact, this industry employs about 2.8 million professionals. The year 2012 saw the addition of more than 230,000 jobs to this field.
Budget constraints in the West have led enterprises to tighten their purse strings. This has led to immense pressure on Indian companies to deliver jobs at a lesser period of time than ever before. Decrease in lead times has led to Indian companies hiring fewer freshers. For example, many job aspirants who were recruited through campus by HCL in 2011 are still waiting for their call letters to arrive.
Indian BPOs are no longer looking for entry-level operators. They require people who can multi-task, and learn and adapt to any work situation. If a new recruit had the privilege of staying on a job for quite a few years and gaining experience, the new generation has a different story to tell.
The outsourcing industry now wants to speed up the process of learning by its new employees, so that productivity may be increased within a short span of time.
In the scholarly publishing industry, for instance, the turn-around time (TAT) of deliverables has been reduced drastically. A few years back, the TAT was set at 15 days by Elsevier, the publishing giant; now it has come down to a mere six days. This has forced Indian enterprises into applying automated processes and innovation in their fields of work. This has translated into more work being output by fewer people.
Again, this has turned the tide in favor of hiring fewer workers. Hiking the rate of productivity by employing the services of fewer skilled professionals has now become the norm in the India outsourcing industry.