Too much focus on big IT brothers, BPOs in India raise red flag against NASSCOM

It seems like BPOs and small IT companies are losing faith in their trade association body NASSCOM. As per the updates from the industry, BPOs are raising their voices strongly against NASSCOM. Some small IT companies who are into production of IT devices are also unhappy with the recent activities of the association.

NASSCOM, the National Association of Software and Services Companies is a trade organization of IT and Business Process Outsourcing industry in India. The non-profit organization was formed in the year 1988 to promote growth in IT/BPO industry and to harness the latest technologies to support the growth. Over a span of years they attained the status of a global trade body with over 1200 members out of which 250 member companies are from US, UK, Europe Union, Japan and China.

BPOs in India raise red flag against Nasscom

Main functions of NASSCOM are listed below:

  1. Provide guidelines to member companies to adopt world class management practices.
  2. Encourage members to provide high quality services and solutions to the clients both in India and overseas.
  3. Provide a platform for companies to exploit the potential of strategic alliances, joint venture etc by organizing business meets and events.
  4. To work with foreign governments to make the visa procedures and work permit rules more India friendly.
  5. To update the member companies with various policies, changing trends, relevant research reports and various other market information.
  6. To help domestic companies to tap emerging opportunities and there by maintaining the leader position of India in global IT-BPO offshore industry.

But according to BPO industry, these functions do not cater to the needs and concerns of BPO companies. They claim that since Som Mittal became the president in 2007, IT industry is enjoying the privilege and benefits from NASSCOM at the cost of BPO. The BPO companies are frustrated because they feel that their concerns are presented to the government without due importance, and the frustration grew to such an extent where the BPOs raised their voice against the term extension of the NASSCOM president Som Mittal by two years.

BPO business in India especially call center business is witnessing a downfall for the past few years with Philippines gradually becoming a dominant player in the field. Players from the industry believe that this is because of the step-motherly approach of the NASSCOM towards the sector. They also said that the industry would not prosper until the NASSCOM President Som Mittal stop believing that BPO is all about only voice and voice as low-end-work. Small IT firms are also questioning the functions of the body and the role of Som Mittal as president. They are quite unhappy with the trade body because they failed to stop the government from ending the tax benefits that was being enjoyed by the industry.

BPOs and IT product companies have set the alarm for NASSCOM to stop discrimination and address their concerns with due importance because they have an important role in improving the overall growth of the economy.

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