PRESENTATION ON HUMAN RESOURCE DEVELOPMENT OF BPO

What is BPO??

Business Process Outsourcing is the long-term contracting 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 over the world

Language:India has one of the largest pool of low-cost English speaking scientific and technical talent

Manpower: A vast workforce of educated, English speaking, tech-savvy personnel: A boon in a high-growth industry faced with a shortage of skilled workers.

Cost-effective manpower: In a call interaction center operation, manpower typically accounts for 55 to 60 percent of the total cost. In India, the manpower cost is approximately one-tenth of what it is overseas. Per agent cost in USA is approximately $40,000 while in India it is only $5,000. Technical support: India graduates about 100,000 engineers each year. These can be used in call centers for troubleshooting/tech support, as the salaries are dramatically lower than in Europe or the US. Government policy The Government of India has recognized the potential of IT-enabled services and has taken positive steps by providing numerous incentives. IT is one of the Government of India's top five priorities.

Regulatory Enablers: 100% foreign ownership permitted in IT Enabled Services industry unlike other sectors where foreign ownership is restricted.

To provide ready to plug IT infrastructure and telecom facilities.

Infrastructure Enablers:Basic, Cellular, Paging and Internet Services privatized

Dell, Sun Microsystems, LG, Ford, GE, Oracle all have announced plans to scale up their operations in India. Others like American Express, IBM and British Airways are leveraging the cost advantage India has to offer while setting up call centres.

KPO: Know more....

Knowledge Process Outsourcing (KPO) is estimated to touch $ 17 billion by 2010 with at least 70% coming to India.

Both third-party BPOs and captive centres focusing on KPO have come up in Bangalore, Chennai, Hyderabad and Kochi.

The KPO industry is opening up job opportunities for professionals not usually associated with the BPO industry

Problems face by BPOs

As Nasscom-McKinsey report points out, only 10-15% of the general college graduates are suitable for employment in the BPO industry. It has also said that there is a potential shortfall 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 the fact that other sectors like retail and airlines are also growing which 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 way forward for the industry to attract and retain talent.

Human Resources Development and Training:

By the year 2010 the employment potential in Karnataka's BPO sector is expected to be 360,000 across the State, with non metro cities offering substantial portion of the manpower. Non Metro cities offer low operational costs due to less expensive real estate cost and abundant availability of local talent.

To make quality man power for the BPO companies, the Human Resource Development and Training action plan is in place. This aimed actively improving quality at all levels-schools, colleges and schools, colleges and unemployed graduates

Schools - The State already has a large number of private and public schools. Many of these schools have comprehensive IT laboratories. The policy aims to leverage infrastructure to enhance the verbal, written and communication skills of the students.

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

This program will be implemented in coordination with the Education department. The selection of trainers, course materials, method of delivery will be decided by BITES (Board for IT Education Standards).

Professionals - there are a numerous of unemployed graduates as well as working professionals who are technically proficient, yet need to improve certain soft skills. For this purpose the IT Department plans to set up training facilities not only in Bangalore, but also at major cities of Karnataka. The program will be conceptualised and implemented by BITES.

The End

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