Challenging the Myth of Professional Identity in Indian BPO

Chandrima Roy, Phil Taylor and Dora Scholarios (University of Strathclyde)

Introduction

This paper explores the impact of global economic crisis on employment and working

conditions in the Indian Business Process Outsourcing (BPO) industry based on empirical

evidence gathered in 2013. A specific intention has been to examine the validity of

professional identity as a characterization of BPO work under post crisis employment

conditions.

The Indian BPO industry grew remarkably over the past decade becoming known as the

“world’s back office” (Dossani and Kenney, 2007, Howcroft and Richardson, 2012), the

principal remote destination of choice for low cost business services (Dossani & Kenny,

2007; Russell & Thite, 2008, 2009, Taylor & Bain, 2005; Messenger & Ghosheh, 2010). A

recent overview of the Indian BPO or BPM (Business Process Management) by the leading

industry body NASSCOM notes that with ‘uncertainty and moderation of economic activity

across the world’ and ‘persistent economic weakness’ there has been a ‘higher degree of

uncertainty than at almost any time in recent memory and this has left an indelible impact

on the IT-BPM industry’ (NASSCOM, 2013, p. 9). The Indian BPO industry consisting of 52

percent of the global sourcing market and employing 876,000 people (NASSCOM, 2013)

owes the bulk of the client demands to the two largest English speaking Liberal Market

Economies (LMEs) – the US and the UK. In 2009, 50 percent of the business services in value

terms delivered from India originated in the United States and 22 per cent in the United

Kingdom (NASSCOM, 2009, p. 64). It is the level of demand from lead firms in the developed

countries that determines the scale of employment and shapes the organization of work

and management practices to be followed in the Indian BPO. Significant consequences for

Indian BPO industry inevitably follow as corporate decisions made in developed economies

have significant impacts on the labour process and its management in Indian BPO industry

(Taylor, 2010b; Russell, 2009).

Offshoring to remote locations had been driven by the cost–cutting and profit- maximisation

imperatives that became central to lead firm’s relocation and restructuring strategies

(Kuruvilla and Ranganathan, 2008; Russell, 2009; Taylor 2010a). Nonetheless, Castree et al

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(2004) argue ‘that however ‘global’ some social relationships have become, place

difference, uneven geographical development and local specificity persist’ (p. 17).

Companies based in the liberal market economies such as the US and the UK could exploit

the labour cost arbitrage that has prevailed between developed and developing countries

(Russell, 2009). India is said to have the largest offshore skilled labour/talent available at low

cost across all offshore destinations (Russell, 2009). Castree et al (2004) assert that the flows

of people, goods, capital, technology and information are by no means uniform and they

have different implication in different geographic contexts. Taylor et al (2011) also

emphasize that the distinctive characteristics of the Indian call centre industry such as low

discretion standardized, routine high volume work have their root in an uneven

international division of labour, and forms of governance and control essentially dictated by

companies in the sending countries.

As the young Indian graduates have become integrated into the new international division

of labour as skilled low-cost labour, an influential characterization of BPO employees as

having professional identity (Noronha and D’Cruz, 2009) has emerged. It is claimed that this

identity anchor not only helps these employees in absorbing the job strains (Noronha and

D’Cruz, 2009) but also serves as means to articulate basic rights owed to them by their

managers (Vaidyanathan, 2012). The appropriateness of this conceptualization of

professional identity needs to be understood and examined under post-crisis employment

conditions and employees’ experiences of work.

The paper first examines the globalization of service work and relocation of service

provisions to India and then critically engages with literature on work and employment in

Indian BPO in the pre-crisis years that foregrounds the present study. The appropriateness

of professional identity in Indian BPO is then discussed. A brief description of the research

methods and data sources is followed by presentation of empirical evidence consisting of

senior managements’ evaluations of the impact of crisis and employee experiences and

perceptions. In conclusion the article reengages with the principal themes of work and

employment in the Indian BPO posing question on the validity of professional identity of

Indian BPO employees.

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Global Political-Economic Dynamics and Indian BPO

A critical review of academic literature on the globalization of service work and relocation of

service provisions to India indicates the broader political-economic dynamics driving

offshoring (Taylor et al., 2011; Messenger & Ghosheh, 2010; Taylor, 2010a & b; Dossani &

Kenny, 2007) and highlights the importance of the global economy to be understood as a

complex, deeply integrated system, in which production chains are dynamic and ‘constantly

evolving spatial divisions of labour’ (Smith and Meiskins, 1995, p. 261). It emphasizes the

need to integrate and situate the service work and its labour process within dynamic

political economic contexts at global, national, sector and local levels and within the

organizational context of firms (Taylor, 2010b). It is important to understand that it is the

broader underlying changes associated with liberalisation, privatisation and de-regulation

(Harvey, 2005) that are driving global servicing and not just the revolution in ICTs. The

transformative role played by transnational corporations, and the sharply competitive

sectoral markets in which companies operate are as highly significant.

Despite the global interconnectedness involved in the offshored phenomenon (Dicken,

2011), there is a tendency in certain studies of Indian BPO (particularly call centres) to

analyse the phenomenon as a nationally bounded economic activity (Batt et al, 2005;

Holman et al, 2007). The distinctiveness of Indian BPO and its characteristics such as low

levels of discretion exercised by Indian employees and highly controlled managerial regimes

(Batt et al, 2005; Holman et al, 2007) needs to be embedded in an understanding of

international division of call centre labour and India’s specific place within it.

Given the need for more effective conceptual framework to understand globalised services

Taylor (2010b) draws on the related conceptual frameworks of the Global Commodity Chain

(GCC), the Global Value Chain (GVC) and Global Production Networks (GPN) but integrates

labour as the key conceptual element with this synthesis. In drawing upon the these

frameworks, he highlights the power asymmetry between client and supplier in an

outsourced call centre ‘chain’ with performance verification residing ultimately with senior

management in the sending country (UK or US). Operational governance at the service

delivery interface requires continuous performance monitoring and reporting to the

management in these countries. The key mechanism of governance used by these countries

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to exercise control over remote operations is through the ‘stringently enforced’ SLAs – the

Service Level Agreements which is a key instrument detailing exact quantities and qualities

of ‘labour power deemed necessary for profitable activity’ (p. 261). The significance of the

SLA has been generally neglected by researchers, but could be central to understanding the

impact of crisis on Indian BPO. The ways in which SLAs articulate the lead firms’ cost cutting

strategies with service delivery from Indian BPO sites is a principal line of inquiry. However,

it is emphasized that ‘indeterminacy’ in production remains and SLAs cannot shield the

service delivery from ‘quality slippages’ or ‘quantitative underachievement’ due to the

consequences of labour being an ‘active agency’.

Understanding the impact of crisis also necessitates grasping the significance of place-based

factors in shaping working conditions, employment relations and in generating perceptions

of work. The dynamics of national and city-wide labour markets, HRM challenges (including

attrition), levels of skill and education (including linguistic and cultural capabilities), working

times and hours and Indian socio-cultural environment (Cowie, 2007; Das et al, 2013; D’Cruz

and Noronha, 2012; Noronha and D’Cruz, 2009; Sengupta and Gupta, 2012; Taylor et al,

2009) are important ‘territorial’ factors. Understanding the impact of crisis necessarily

involves grasping the global-local dialectic, as firm-centred chains (or networks) impact on,

and are impacted by, concrete socio-economic contexts. A critical engagement with

literature on work and employment in Indian BPO in the pre-crisis years is helpful for

framing the contributions of the present study.

Perspectives on Work and Employment in Indian BPO

BPO is distinguishable from software or IT work (Dossani and Kenney, 2007; Taylor and Bain,

2005), but encompasses both voice (call centre) services and back-office activities of varying

complexity, ranging from routinized data processing to higher-order analytical workflows.

The proportion of call centre work has declined from 65 per cent of Indian BPO (NASSCOM,

2002) to around 50 per cent (NASSCOM, 2010), as the relative importance of back office

activity has grown within an expanding industry. There are increasing indications and

reports recently of Indian BPO companies turning to focus on non-voice work and scaling

down of ‘voice’ business (Messenger & Ghosheh, 2010; India Today, March 2013; NASSCOM

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2013). This article considers employer perspectives on, and employee experiences of, both

voice and non-voice segments.

Academic interest in Indian BPO has focused almost exclusively on call centres. Research in

management and labour studies has focused on work organisation, management practices,

the labour process and, relatedly, the conditions of work and employee experiences (Batt et

al, 2005; D’Cruz and Noronha, 2006; 2010; Remesh, 2005; Noronha and D’Cruz 2009; Russell

and Thite, 2008; Taylor and Bain, 2005; 2006; 2010; Thite and Russell, 2009; 2010). Diverse

lines of inquiry and approaches have been pursued producing, inevitably, differing

perspectives. Leaving aside overly pessimistic depictions of Indian employees as ‘cyber

coolies’ (Ramesh, 2005) and excessively optimistic accounts of rewarding work and

opportunity (Knights and Jones, 2007), a consensus of sorts has emerged. Indian call centre

work has been seen to consist largely (although not exclusively) of highly standardised,

transactional workflows, stringent job controls and demanding targets (Batt et al, 2005;

Taylor and Bain, 2005; 2006; D’Cruz and Noronha, 2006). Even those depicting Indian agents

as semi-skilled ‘info-service’ workers (Russell, 2009; Russell and Thite, 2008) evidence work

standardisation and strict management control. However, most studies have not located

this form of work organisation within the dynamics of business process globalisation.

Exceptions include Taylor and Bain (2005; 2008) who demonstrated that offshoring in its

initial phases was precipitated by lead firm restructuring in the ‘home’ country, during

which processes were re-engineered. Then, the most standardised were ‘sliced off’ and

migrated overseas, a cost-reducing, spatial transition described as ‘Taylorism through

export’.

During and following this relocation, Service Level Agreements (SLAs) became the mode of

operational governance (Taylor, 2010b; Noronha and D’Cruz, 2009: 73-4), by which services

delivered from remote sites were aligned to the requirements of client firms and end

customers. SLAs prescribe the quantitative metrics (e.g. call-handling times) and qualitative

standards (e.g. customer satisfaction scores) that suppliers at the Indian node of the

transnational chain must deliver.

When service delivery falls below prescribed standards, lead firms intervene, with penalties,

contract re-negotiation or even termination. Considering the links in the servicing chain

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downwards to workplace and workflow level, shortfalls against an SLA will have implications

for employees. Site management may take corrective action against, or even dismiss,

underperforming agents, or may compel more stringent adherence to performance

standards by teams or individuals. The terms of an SLA are changeable, although the timing

of permitted amendments will vary by contract. It follows that in response to economic

turbulence and cost-cutting imperatives at macro, sectoral or organisational level, the lead

firms will readily revise those clauses specifying the cost, volume and quality of service

delivery.

The experiences of Indian BPO employees, mostly call-handlers, have been documented.

The synchronisation of Indian agents’ working shifts with western customer servicing times

is identified as a source of work-life conflict (e.g. Mirchandani, 2012; Poster, 2007),

particularly for women with domestic responsibilities. In a survey of BPO workers, ‘working

times’ was cited as a major grievance (Taylor et al, 2009). Dissatisfactions include the length

of shifts and unpaid ‘extra time’ worked. Closely related are complaints regarding travel

times and the inflexibility of firms’ transport arrangements that cause excessive waiting and

drop-off times (Taylor and Bain, 2010). Employees report pressurised work routines, strict

managerial control and demanding targets rooted in constrictive SLAs (Taylor and Bain,

2005; 2006; Taylor, 2010b; Mirchandani, 2012: 89-95; Noronha and D’Cruz, 2006). Evidence

also exists of authoritarian management practices, even bullying (D’Cruz and Rayner, 2013),

and a democratic deficit in respect of employee voice and representation (Taylor and Bain,

2008; 2010; Taylor et al, 2009).

Studies conducted on HRM in Indian BPO brings out the paradoxical situation of extensive

managerial control, standardized, scripted work-design, surveillance and monitoring being

combined with managerial use of HR practices to promote the organization as a fun place to

work. There are deliberate efforts to create a particular organizational culture through

participation in managerially constructed games and other planned social activities such as

get-togethers, picnics, outings, family days that are organized (Budhwar et al., 2006, 2009a,

Poster, 2007; D’Cruz & Noronha, 2006; Ramesh, 2004). Despite employing HR strategies

such as strategic recruitment, performance management, teamwork and incentivized

remuneration, career management, social activities (Batt et al., 2006; Budhwar et al., 2006,

2009a & b; Thite & Russell, 2010a & b; D’Cruz & Noronha, 2012), startling rates of attrition

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and absenteeism are now seen as the major managerial challenge confronting the BPO

industry (Batt et al., 2009; Budhwar et al., 2009b, Taylor and Bain, 2006a & b; Russell and

Thite, 2008; Thite & Russell, 2010a & b; Sengupta & Gupta, 2012; Das et al., 2013). In tight

labour markets in Tier 1 cities, attrition emerged as a massive problem as agents engage in

job-hopping to leverage better pay and conditions (Das et al, 2013; Deery et al, 2013;

Sengupta and Gupta, 2011). Increasingly, performance management with tougher

performance metrics is implemented often under the rubric of ‘performance excellence’ or

‘process excellence’. D’Cruz and Noronha’ (2012) assess the difficulty of sustaining and

implementing HCM practices under increased competition and complexity of the Indian

context (feudalistic and patriarchal world views, discrimination, favouritism, corruption, lack

of transparency, manipulative behaviours and politicized career development paths). HRM

practices loaded in favour of managerial prerogatives with no consultation with employees

and the organizational agenda of control remaining dominant is highlighted along with other

studies that claim HCM practices enhance the cultural and normative controls underpinning

professionalism in Indian call centres (D’Cruz and Noronha, 2009).

Many other studies have dealt with the cultural paradoxes arising from globalised service

work within post-colonial and gendered contexts (Cohen and El-Sawad, 2007; Mirchandani,

2004; Poster, 2007). How Indian agents constantly negotiate their identities, but also resist,

an imposed identity, ‘being American’, whilst ‘being Indian’, has revealed the complexities

of encounters between remote service workers and western customers. Recently,

Mirchandani (2012) developed the notion of agents performing ‘authenticity work’ as ‘the

bedrock of the transnational service economy’ (ibid: 15). Nath (2011) has explored how,

stigmatised by western customers, agents manage their ‘national identity’ through aesthetic

and emotional labour. Arguably, the emphasis on cultural exchange in this work, however

illuminating, understates the political-economic, technological and organisational elements

that constitute the ‘servicing chain’ which shapes agent-customer interaction.

As Indian graduate BPO employees became integrated into the new international division of

labour, some studies focussed on the dimension of professional-identity of BPO employees.

These studies attempt to project this occupational group of Indian BPO employees as

professionals (Noronha and D’Cruz, 2006, 2009a and b; Vaidyanathan, 2012). This is a

characterization of BPO work during the formative period of the industry growth. In these

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studies, employees’ experiences of work by participating in the transnational business

process and its implications on their work-based identity have been looked at from a

normative dimension. In what ways did changed employment conditions post -crisis modify

employees’ experiences of work and what implications might these have for ‘professional

identity’?

Professional Identity in Indian BPO

The concept of professionalism can be understood to signify a variety of things – collective

pursuits of institutional autonomy and legitimacy; appeals to collective standards for

technical skills and expertise; and normative logic that govern workplace or occupational

behaviour. The expansion of the ‘disciplinary logic of professionalism’ from the governance

of conduct within particular professions to the regulation of employee behaviour in post-

industrial organizations in general have drawn attention of scholars (Fournier, 1999; Evetts,

2003). These scholars note that by instilling ‘professional like’ norms and work ethics,

organizations govern not just productive behaviour but more fundamentally employees’

subjectivities (Fournier, 1999: 293).

Noronha and D’Cruz (2006, 2009a and b) have conducted extensive research on normative

professionalism in the Indian BPO setting. According to them, Indian BPO employees see

themselves as educated professionals having high status. Professional identity embraces

agents’ self-identity, their sense of skill (superior cognitive ability), advanced qualifications

(degrees) and commitment to customer and employer. Amongst ‘the privileges of

professionalism’, job demands are ‘offset by agents’ sense of well-being [which emerges]

from organisational artefacts, company reputations and personal remuneration and benefits

(2009a: 100). The fact that employees work in modern facilities, have professional

appellations (e.g. customer care executive), attractive pay, performance incentives,

promotion possibilities, company-organised fun activities and informal work relationships

contributes further. Employees would often deny problematic elements in their workplaces,

and identify themselves with the management depicting their workplace environments as

the one that met their needs. Noronha and D’Cruz point to the special emphasis that is

given to the discourses of professionalism in Indian call centres and emphasize the

importance of cultural and normative forms of control that are intended to foster strong

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identities with employing organizations and thereby gain agents’ compliance and

commitment to the realization of the organizations agenda. Despite such strategies used by

employer organizations in shaping employee identities, agents moving to other

organizations in instrumental pursuit of better pay and high employee turnover in the

industry is documented (Batt et al., 2009; Budhwar et al., 2006a & b; Thite & Russell, 2010a

& b; Sengupta & Gupta, 2011; Das et al., 2013; Taylor, 2006) that suggest limited success

with such strategies and weakens their strength as a tool of control (Russell, 2009).

Researchers have argued that employees’ compliance to demands of work and adherence

to the cultural practices is no indication of internalization of corporate cultural values

(McKinkay and Taylor, 1996; Thompson and Ackroyd, 1995; Warhurst and Thompson, 1998;

Alferoff and Knights, 2001; Thompson and McHugh, 2002). Many workplace studies have

found that workers exposed to cultural normative controls by management often ‘act out’

their roles (Collinson, 2003 cited in Marks & Mahoney, 2013), maintaining a sneering

distance between their ‘front stage’ and ‘back stage’ selves (Goffman, 1963 cited in Marks

and Mahoney, 2013) meaning their acted out identity being different from their believed-in

identities.

Drawing on interviews with Indian call centre employees in 2007 another study articulates a

different dimension of normative professionalism - professionalism ‘from below’ which

means ‘the appropriation of this concept by employees as an ideal or principle in order to

defend rights they consider intrinsic to their professional identities’… ‘Professionalism is

understood by employees as an ideal that is binding on managers as much as on workers’

(Vaidyanathan, 2012: 211, 213). The study argues that the dominant account of

‘professionalism from above’ (professionalism as a tool of managerial control) is overstated

and attributes employees’ ability to articulate their basic rights owed to them by their

managers and the mobilization potential it has to the ideology of professionalism.

The changed economic environment post-crisis, characterized by restructuring and

transformation in the BPO industry (NASSCOM, 2013; India Today, March 2013) have

increased pressures to reduce cost and maximize profits (India Today, March 2013) which

might undermine the rhetoric of professional identity both as a managerial tool of control

and employees’ means to articulate their rights owed to them. Post-crisis employment

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conditions might contribute to changed perceptions amongst employees and their

articulation of their identities. Diminishing job security and employment durability might

contribute to a sense of dispossession (withdrawal) in employment as had been

demonstrated earlier by ethnographies on deindustrialization (Dudley, 1994; Milkman,

1997; Nelson and Smith, 1999). Consequently, this might lead to a sense of incongruence

between an employee’s self at work and his broader self-concept, his individual beliefs and

norms (Marks and Mahoney, 2013). In the context of Indian BPO, an employee’s self at

work might ‘act out’ not just for the sake of ‘management’ but for the purpose of

maintaining a more general ‘front’ to save their jobs and buy more time before he/she could

plan out something better, more secure and meaningful that is closer to his/her individual

beliefs and norms suggesting that the constructed notion of professional identity among

BPO workers rooted in their employment conditions and experiences may not be an

enduring stable identification firmly embedded in their self-definition.

Methods and Sources

This paper draws on qualitative data gathered from 26 extended semi structured interviews

of the duration of 1 to 2 hours conducted in Pune, Mumbai, Gurgaon and Noida from early

July to end of September 2013. The sample captures the in-depth responses/insights of 13

senior and mid-level managers (with more than 10 years of experience) and also 13 frontline

employees (with an average of 4 years’ experience) on post economic-crisis work and

employment in the Indian BPO industry also reflecting on issues of responsibility,

commitment and professionalism. Considering the sector’s organizational diversity

(Kuruvilla and Ranaganathan, 2008) the sample includes employees from Indian third-party

firms, multinational service providers, in-house operations (‘captives’) and a joint venture,

distributed between call centre and back-office roles. Snowball sampling, more precisely,

respondent driven sampling has been relied on due to politically sensitive nature of the

topic (things related to outsourcing, negative outlook towards BPO work in India) and issues

surrounding organizational access barriers experienced during visit to five of the

organizations (going through three tier high security checks, no permission to carry mobile

or recording device, very strict, uptight and robot-like organizational atmosphere).

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Among the 26 participants, four recently finished working in the BPO sector after having

worked for a considerable number of years. Majority of the participants had experienced

working in the sector both prior to recession and after recession. None of the participants

interviewed had less than two years of working experience in the BPO sector. Reliability of

the insights shared by the participants is further strengthened by including employees from

various verticals of the sector (vertical representativeness) and the location of their clients

and end-customers being predominantly the US and UK.

Table 1_ Profile of Frontline Employees Interviewed (Pages 27)

Table 2_Profile of Senior and Mid-Level Managers Interviewed (Page 28)

Semi-structured questionnaires were used to interview people from senior management

and middle management as it allowed flexibility in how and in what sequence questions

could be asked, and how particular areas might be followed up and developed with different

interviewees. For the BPO workers (from both call centres as well as back-office), piloting

suggested that rich, in depth responses could come from starting with broad cues (Van

Manen, 1998). The cues were geared towards issues related to experience of work, working

conditions, pay and incentives, job enrichment, customers, performance appraisals, job

opportunities and career development and corporate culture of the organizations they work

for. The participants yielded rich information on their experience, its contexts, its actors, its

dynamics, nuances and consequences. Where the responses were limited or unclear,

further probing was done to capture their experiences in depth and completeness.

The interviews were all conducted in familiar and comfortable settings and convenient

locations (within or outside workplace) as desired by the interviewees and were recorded

(with the exception of two where notes were taken) with permission from them and the

results of the discussion were transcribed using the guide questions and cues in recording

the responses. Efforts were made to make the interviewees reflect not only on their

personal experiences but also on those of friends and family who work in the BPO sector as

these sectors represent occupational communities of particular types and these networks

act as “sensitive barometers of prevailing local labour markets and working conditions

within and between firms” (Taylor et al., 2011, p. 7).

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Observations during the interview and interesting and insightful experiences of data

collection including access issues were documented in a reflective log book/research diary

that was carried along throughout the field work. The aim was to be ‘able to capitalize on

chance remarks or unexpected events that propel a new line of investigation’ (Bryman 1988,

p. 138). Complementing primary evidence is latest media reportage, NASSCOM reports and

personal notes from NASSCOM BPM Strategy Summit 2013.

Results

Post-Crisis Employment Conditions

The majority of Indian BPO companies (including the captives) are under pressure to reduce

costs and improve efficiencies against the back drop of a sluggish economic climate in

developed markets post 2008. The interviews with senior management and middle

management provide clear testimonies of this. The words they have frequently used

through their interviews such as ‘operating margins’, ‘optimizing costs’, ‘skill gap’, ‘control

costs’,’ tight budgets’, ‘talent crunch’, ‘cost centres’, ‘extra initiative’, ‘extra efforts’, ‘high

churn’, ‘transformation’, ‘lean organization’, ‘performance metrics’, ‘labour costs’ clearly

reflect the uncertainty running through the industry.

Labour Market

The senior and middle management respondent believe that the crisis has altered the

dynamics of the local labour market. One respondent clearly summarises this -

“When I did my MBA…there were five colleges and only 60 seats per college…the people who came to hire us from the campuses had a limited choice…to pick from 300 people. Today the case is different, there are thousands of colleges across India, adding lots of people into the labour pool but you don’t have that many jobs. With companies deciding to move closer to the markets which make business sense for them, more jobs are moving out. So today if you get a job in this sector, you have to start thinking what you will do in the next two years, plan or otherwise you are gone, you are lost in the crowd.” (Executive Director, US owned Captive)

The changed balance of labour supply and demand has given employers the opportunity to

be in a relatively stronger bargaining position.

Work Arrangement and People Management Practices

Senior and mid- level management provide ample evidence of tighter controls and more

demanding work regime in the aftermath of the crisis. The following quotes provide deep

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insights into the people management practices and work arrangements followed in the

industry post crisis.

“Recruitment today is more planned, we believe in creating smaller benches1, we are avoiding employees who frequently change jobs. We look for both attitude and aptitude – the aptitude to learn and attitude to absorb things in a fast changing business environment” (Executive Director, US owned Captive)

“In order to reduce cost, company would move more core centre jobs to centres in India and other places where

you get both skill and cost arbitrage… for us it is more work. We cannot hire more people for increased work – what is done is if there were ten people working on a project, now it will be reduced to seven and the other three will take up the work coming from the core centre…” (Vice President - Operations, UK owned Captive)

“The challenge is on bringing people up the curve with minimum number of days of training… [in order to] reduce the rebooting time… the time that a company has to consider before the employee starts giving profit.” (Head T & D, Indian IT-BPO Company)

“We have objective tracking mechanisms. We cannot afford to show tolerance for non-performance at this time. Performance improvement plans are in place and it is a serious business. At times we have client’s representative who normally has the centre set up experience visiting our site to track on the progress with SLAs.” (Associate Vice President - HR, US owned Global Service Provider)

Changes in work arrangements clearly indicate that improvements in productivity are sought deploying minimum resources possible. Stringent controls are in place to eliminate any scope for discretionary effort by employees.

Discussing about increased client expectations and its impact on SLAs, one senior management respondent stated -

“Back in 2004, 2005, people were just happy if they ensured that SLAs are met, today as a client my expectation is SLA is a given, you have to meet them, there’s no choice. You don’t have a choice, but I need to see how do you innovate and give me that ten per cent, twenty per cent opportunity. My end client is expecting much more investment from me than they have done.” (Executive Director, US owned Captive)

“It is all the more control centric these days…there is guided workflow that has to be followed… the software tool tracks the SLAs…it generates reports, calculates everything on the operations front, what was the volume of work that came in, what volume of work you did, what was the rate at which you did it. There is allocation algorithms built in to track which work has to be allocated to the agents on a priority basis so that SLA is not breached.” (Product Engineering Head, Indian IT-BPO Company)

“…implementation becomes complex because of the processes. The processes are there for a reason. There’s lot of scrutiny over every single change that we try to bring in the production system. There’s lot of scrutiny. It goes through so many review levels” (Project Manager, UK owned Bank’s Captive)

Recalibrated SLAs will indirectly translate downwards into increased targets for employees and become part of their performance assessment.

Cost Reduction Strategies

The middle management and entry level interviews provided several interesting examples

of cost cutting measures adopted by companies post crisis. Besides allocating reduced

1 Practice of keeping reserve of employees – extra headcount per project who are normally considered inactive.

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budget for employee engagement activities, removal of perks and withholding annual

performance bonuses, companies have gone to the extent of saving in terms of basic things

such as poor quality of tissue papers, reuse of disposable cups and asking employees to get

their own coffee mugs from home.

“…we used to get lot of freebies before, it is all gone now…in place of Cadbury chocolate they now keep the small 5-Star bars that cost less” (Claims Associate, US Captive)

“… my people slog so hard, they stretch their hours at work…I feel bad when I have to take them out for dinner on a small budget. Five years back 300 rupees per person worked fine. I could take them to a decent restaurant. With 300 rupees today where do I take them? My guys understand this. There is not much interest today in going out to eat. They would rather stay home and spend time with friends and family” (Deputy Manager –Operations Support, US MNC)

“Nowadays, they will ask you to bring things from home. Make ‘Biriyani’ at home and bring to the office and have a ‘Biryani’ party. They will arrange competitions and ask you to bring things form home…material for collage making, or for poster competitions.” (Pune2)

The common practice of giving salary hikes to keep employees motivated and bring down

attrition in the industry is being relooked into under the current business scenario. With

‘contract volume falling’, ‘deal durations increasing’ and ‘client decision making taking

longer’, the management feels

“… the hikes will negatively impact the operating margins that are already under pressure and we are struggling to maintain the margins” (Head T & D, Indian IT-BPO Company)

Role of HR Function

Managers, particularly middle management, have been vocal about not receiving adequate

support from the HR Department due to less number of HR people available on the floor

who according to them are preoccupied mainly with “doing basic paper work and ground

work for employees”. They are brought in mostly when a disciplinary action has to be taken

against an employee. Most of the times, no HR person is made available for employees

working in night shifts and this has been a concern raised by many. As one manager said -

“Right now, I have a team of 50 to 60 people working in the night shift. I don’t have the HR guy working in the night. What if someone has an immediate concern or some emergency occurs or there’s some gross misconduct? What am I supposed to do? If I go by the policy, I cannot take certain decisions without the HR being present even if their presence is required for cosmetic reasons” (Operations Manager, US Captive)

Post crisis cost cutting measures adopted by the organizations resulted in reduction in the

number of HR staff. This became clear when respondents explained –

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“When I was in xxx, it’s 2006 I am talking about, we had 1 HR person for 20 employees on the floor. They would talk to us, communicate on a regular basis. They really mentored us. We had easy access to them. It was more personal” (Noida1)

“HR is seen as a cost centre. HR jobs are very difficult to get these days – they are not hiring. This is going to be my fourth year here. I haven’t got any decent hike, it is hardly anything. Its been one and half years I am trying to switch but not got anything yet.” (Gurgoan2)

“When we asked our HR head why we have such a wide ratio of 1 HR for 1000 people, the response we got was we need to ensure it’s a lean organization. The thought process behind this is that when you have a team leader for a team of fifteen and above that you have a manager for a team of forty and then you have an operations manager for a team of hundred, then why do you need HR in the ratio of 1:20 or 1:50?” (Service Delivery Lead, Indian IT-BPO Company)

According to senior management view –

“at the end of the day HR function is driven by the people who run the day to day operations – it is the operation manager, the team lead who has to do it. They know better about the work that is being done, the processes that are being handled. The HR policies to be framed needs understanding of the SLAs as the HR policies get designed around the SLAs. HR only comes with a third-party view here” (Executive Director, US owned Bank’s Captive)

Thus, working conditions in the post crisis period have undergone significant changes in

terms of recruitment, people management practices, rewards and remuneration and the

role of HR function. There is increasing need to adapt to the pressures of the market

demands at the cost of sacrificing workplace democracy.

Experiences and Perceptions of Work Post - Crisis

It is important to put forth at the outset that even middle level managers have been candid

enough to talk about their experiences of work post crisis. They feel that their life has

become more stressful as it is through them that the senior management gets all the ‘nasty

things’ done.

“We are ones in the middle and it is not easy. We are the one who get sandwiched between the top management’s demands and employees’ grievances. The top management will say that they want cost to be reduced by 20 percent in the next six months. Their job is done. Now we are on the line of fire- I have to get this done. My teams will see me as the bad guy. You have to remember these are the people I have to get the work done from. I am responsible for keeping their morale high and keep them going. So what do I end up doing! I take it on me. I sacrifice my hard earned bonus and make sure that they get their incentives. That’s how it is today. I have not received my annual bonus this year but my team has got their incentives at least. I fought for it.” (Operations Manager, US owned Captive)

Sense of Insecurity

Though the immediate impact of the crisis was mostly in the financial service processes as

recalled by one respondent, other service processes also got affected in due course as

employers took precautionary measures and prepared themselves for any eventuality or

just used the situation to their advantage. According to one respondent -

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“… there was a widespread belief among everyone that this is not a good time. Companies cashed on this opportunity, they created that fear in the minds of employees, the message was - not a good time to ask for a raise, not a good time to ask for any allowances, not a good time to complain about your work.” (Pune3)

This explains why some respondents who never experienced job loss or seen layoffs in their

companies lived under that constant fear seeing the changes in the employment conditions

around. This had a huge impact on their outlook towards their job. Many of the respondents

just felt blessed that they had their jobs and reconciled with whatever came their way.

“Many of us are just grateful that we have our jobs…They have stopped giving that kind of perk anymore. I would have liked to have that membership, who would not want the membership of that elite club but its ok. I wouldn’t have anyways had time to go. Long hours at work! where do you have the time? So it is good in a way I think.” (Project Manager, UK owned Bank’s Captive)

“I am lucky in the sense that I get to work on the national accounts, that is you are working on the cream stuff…In a day we have 500 claims to be processed, it is quite high I know…if I have not done it, my team has not done it and then my manager has to answer. So it is our fault if we don’t finish our targets… (Pune4)

However, many respondents did also report of massive layoffs and job losses due to “ramp

up of processes” wherein they witnessed 700 to 800 people losing their jobs at one go. The

sense of insecurity came out clearly through the interviews in general.

Effects of Cost Cutting

The majority of the respondents in the entry level and a little above narrated how they

experience difficulty in managing their expenses with their current “BPO salaries” due to

high inflation and cost of living having gone up in the tier 1 and 2 cities in India. Various

accounts of non-receipt of bonuses, withholding of promotions and cutting down of travel

plans to client sites have been widely reported.

“if I need to go to UK to work with my core team there for three weeks I have to request it four months in advance and the fate of that request completely depends on the top management’s decision. Can you imagine, the project manager’s travel will be approved by the CEO! They do it on purpose so that more and more people rely on the technology. Why do you want to travel and be with them? Do video conferencing….” (Project Manager, UK owned Bank’s Captive)

Even employees who performed well reported of promotions being withheld despite

managers recognizing their efforts. Most of the employees mentioned about the reduction

in the number of internal job postings (IJPs) and how cautious the companies have become

when it comes to hiring people.

“For the last three years or so there haven’t been any IJPs, any promotions, nothing. A person who joined as a team lead three years back is still a team lead even if he is a star performer.” (Gurgaon4)

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“They are hiring for a tech lead. The guy has 12 years of experience. He comes for the interview and the first thing he gets is written test, it is such a difficult written test, most of the people would flunk. So that is how difficult it is to get in these days…” (Assistant Manager, US owned Captive)

Employees also experienced cost cutting within the workplace in terms of various other

things. The dissatisfaction with reduced food subsidies, quality of food supplied by the

vendor and transportation facilities provided were among the most cited ones.

“… they have got a new vendor who is supplying a “thali” [plate of food] for 35 rupees and the quality has gone down considerably” (Gurgaon3)

“… such as they keep the ACs in the cab off for most of the months. They put it on only for three months in the summer. In Delhi, you know how difficult it is to commute without the AC …” (Gurgaon2)

Targets and Work Pressure

There is widespread dissatisfaction among respondents with increased targets and extended

hours at work. Research on BPO work in the pre-recession conditions had focused on shift

timings, extended hours and its impact on employees’ health and work-life balance (Taylor

& Bain, 2006). Testimonies indicate that things have got worse post crisis. Interviews are

replete with respondents reporting working “12 hour shifts” with no overtime and coming

to work on Saturdays to finish their targets.

“My manager will ask me to come on a Saturday also but I don’t get paid for this…” (Gurgaon4)

“… it is mentioned in the offer letter that if business requires one needs to be available 24/7” (Pune6)

“we have targets like processing 500 claims a day, they will give you two weeks of training and then expect everyone to perform at the same level. They set targets which are not achievable and they know it very well but they will keep pressurizing so that they can milk you as much as they can” (Gurgaon3)

Employees expressed dissatisfaction with how they are never consulted before their targets

are increased. They were unanimous in criticizing their managers’ style of working and this

entailed several interrelated grievances.

“… what I am trying to say is – you increase the target but talk to me first, prepare me for it, just don’t increase from 100 to 300 claims…they would say you should be intelligent enough to understand that you cannot keep processing 100 claims throughout your life.” (Gurgaon3)

“… they don’t have time, they can gradually increase the target but they don’t plan things properly. They should chalk out performance plan for everyone by having one to one discussion but they don’t have the time. They want maximum productivity by putting in minimum effort” (Pune1)

“They will use all management ‘fundas’ [term used mockingly to mean ‘ideas’] – ‘push your boundaries’, ‘stretch your limits’, ‘realize your potential’ but they don’t see that beyond a point you cannot stretch a person’s limits – he will break and collapse” (Pune3)

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Employees narrated various ways they have adopted to cope with the work pressure inside

the workplace. Few took very direct steps that led to negative consequences for them but

majority chose to deal with it in indirect ways.

“I said I am not doing it. You need to tell me why I need to take this extra load… He has started sending negative reports about my performance to senior management and in such cases it so happens that they would take it such a point where either you decide to leave or they ask you to leave” (Delhi1)

“… you should say -of course I will do my best. Never communicate in any way that I have already been taking more targets or this is too much for me. Don’t even mention this to your colleagues or team members – they will go and tell your manager that you were fretting about your targets. The manager will then come back to you in a way that you would not like then” (Gurgaon4)

None of the employees reported of having approached the HR department with their issues

and concerns citing reasons that they “hardly know” their HR person. Many also felt that

their managers would not appreciate them approaching “the HR” as it would reflect on their

managers’ inability to handle things within the team.

Notion of Professional Identity

Earlier studies (Noronha and D’Cruz, 2009a and b, D’Cruz and Noronha, 2006) have argued

that job demands are ‘offset by agents’ sense of wellbeing’ (2009a: 100) which emerges

from organizational artefacts, attractive pay, performance incentives, promotion

possibilities, company organized fun activities etc… Job related strains are absorbed by

employees due to their sense of professionalism cultivated by organizations. However,

employees’ experiences of work post crisis seems to a have altered their perception about

their work and relationships within the workplace. Respondents discussed several aspects of

their work life that suggests that the roles they act out in their organization are dictated by

the need to keep up with the demands of the work post crisis. The pressures to perform and

protect their jobs make them conform to the new rules of the game however unfair they

might seem. Their strategies to cope with the changed conditions at work give rise to

questions about their sense of attachment and identification with their roles under the

current dynamics of the employment relationship.

Instrumental Behaviour

Employee testimonies provide clear evidence that employees understand the insecurity

associated with BPO work. They have either tamed their expectations accordingly or have

started thinking about other alternatives.

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“it is all about - you work and they pay. Don’t go by what they say [such as] it is like a big family and the manager is the father figure, your best buddy. Nothing like that exists… my simple ‘funda’ is don’t expect much from work, that is not your family where you go and seek comfort. It is a war zone for everyone these days … try to see how you can survive and come out of it as less bruised as possible” (Gurgaon4)

Many employees view their current jobs in the BPO sector as “stop gap arrangements

before moving into something better”. They will either go for higher studies or find better

jobs for themselves.

“… the work load is very high and also the seniors are very rude .. I am just putting up with this for the time being. I took up this job to support my stay in Delhi and look for better jobs. I stay with my relatives here and as soon as I get a good job I will move out and rent a flat of my own … I had enough of BPO…” (Delhi1)

“… my project went away, so they asked me go back into calling. The only reason I joined BPO was I knew I had to move to the IT sector. I had just finished my MBA and thought its fine until some good offer came my way. So when the opportunity came I just moved to xxx and many of my friends have done it this way. You join BPO only to get into IT company” (Pune6)

Aware of the ephemerality of their place in the transnational business, employees are instrumental in aligning their interests with the interests of the organization temporarily.

Impression Management

Segregation between self at work and outside work has been a dominant theme that emerged through the interviews. The following testimony excellently summarizes this.

“The moment I step out of work, I switch off the work button. There are two buttons for me – the work button and the life button. You cannot keep both on at the same time … At work switch off your life button and after work just switch off your work button.” (Gurgaon4)

Several examples of employees making effort to manage impression at work and maintain a

more ‘general front’ (Marks and Mahoney, 2013) under the pressures of the management

came up in the interviews.

“… our manager keeps track of things, who is participating, who is not. So you have to participate in the games and events too. They have linked it to our appraisal. Everyone is doing. So I loose points if I don’t.” (Gurgaon5)

“… So he will arrange some event and silly games and put it in his appraisal that he took initiative to make employees bond. He is not even bothered who did what, whether people spoke to each other or not, whether they really enjoyed and had fun … They put in ‘Diya making’ [Indian word for small earthen lamps]competition but I am not interested in in Diya making man! But what do you do, others are doing too. So I just go and try to make some ‘Diyas’ – makes you feel like you are in school. Such silly things they will do without even checking whether someone is really interested” (Pune6)

“I know of people who will participate in the events and will make sure that their manager notices. The same people will go home and say what ‘headache’ is this every month! I think it is wastage of time. People are so tired working long. Just give them that time to spend with their families at home” (Pune1)

Reflecting on this, the manager of a UK owned Banks’s captive said –

“Biryani parties don’t work anymore. Employees expect their managers to maintain regular communication with them during uncertain times, talk to them about the changes happening, advise them on career related

19

issues, or just listen to them. They need to know that we are in this together. These are not school kids, they understand what is happening around.”

The ineffectiveness of cultural-normative controls used by organizations to build employee

commitment and responsibility is further highlighted. Employees’ conformance to

organizational demands and practices is no indication of their commitment to their work.

Individual Values and Beliefs

In general employees find it difficult to identify with BPO work post crisis. Employees’

individual beliefs and opinions clearly reflect this.

“…. Yes, I am part of the BPO but our work is very tech oriented. We develop software for BPO, we are the BPO enablers. Our work is very complex and techies can only do this … we find it difficult to get the techies to come and join us because they get confused as to what they will do in BPO. So we have to explain them in detail about this … I don’t want people to see my ID tag. It says xxx BPO. I put it inside my pocket always” (Product Engineering Head, Indian IT-BPO)

“See, I feel with a degree in software engineering, MCA or MBA, you are wasting your energy here. Anyone can do these jobs. You are not using your education in the right way. Why spend time and money to get your degrees then? Here every one gets treated the same way whether you are an MBA or an intermediate pass. There is no value of your education.” (Delhi1)

“In 2006 when I joined, things were different. People wanted to join this sector….Our whole batch was sent to training to the US for one month right after we joined - all at the company’s expense. The company told that we need to understand the culture of the clients and their way of working… My parents were asked by our relatives and friends how I got the job… Now you will not find this at all. The lure is all gone and the crowd [people working in the sector] is also not good.” (Noida1)

Employees’ individual values and beliefs are clearly in conflict with the formal roles that

they are required to play in the organizations.

Negotiation of Identities

Commenting on the irresponsible/wild and carefree image of Indian BPO employees, senior

management observes that customer facing agents have to wear different masks at

different occasions. They are constantly required to negotiate with their identities for

example when meeting the expectation of the customers they are handling, when trying to

maintain a professional front within the organization, and when trying to maintain an image

in front of family and friends through adopting lifestyle changes. They hardly get an

opportunity to be themselves and this is what makes the young fresh out of college

graduates let loose when they are with their peers. They emphasized the need to shun this

image for improving the general perception of BPO work in people’s minds.

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Senior management expressed concern over BPO work being considered as “rudimentary

work” and feel that society’s “myopic view” in this regard is a major deterrent in developing

employees’ sense of attachment to their jobs.

Though the word professional identity has not been discretely used by employees in their

interviews, their perceptions about work and their observations and assessments in this

context sheds enough light on this influential characterization of BPO work.

Conclusion

The disruptive effects of the 2008 global recession slowed the growth rates in the Indian

ITES-BPO industry and the “industry toiled hard to maintain its growth trajectory”

(NASSCOM 2013, p. 26). Given that the United States and the United Kingdom, combined,

were responsible for 82 per cent of the Indian BPO services, crisis in these economies

inevitably had significant impact. It triggered overwhelming changes in employment

conditions, work organization and social relations in the industry. Employees experienced

increased targets, intensification, tighter controls, and reduction in benefits in the wake of

recalibrated SLAs. Changes in work arrangements made clearly indicated that improvements

in productivity were sought deploying minimum resources possible. The sense of insecurity,

fear of job loss, constricted labour markets and experiences at work changed employees’

perception of work and employment relationship. The post crisis conditions highlighted the

ephemerality of their place in the transnational business, made them realize the transient

opportunities it offers and rendered them incapable of anchoring themselves to their work.

The sense of dispossession in employment is clearly evident through employee testimonies

of work post crisis consequences of which have undermined the rhetoric of ‘professional

identity’. With increasing evidence of organizations not being able to sustain their pre-crisis

period management practices, employees feel more disillusioned and disenchanted from

work. Their conformance to organizational demands and practices should not be mistaken

as their commitment to organizational agenda. As is evidenced in the employee testimonies,

employees at work adopt ‘formal roles that organizational structures demand’ (Marks and

Mahoney, 2013: 14) for the purpose of maintaining a more general ‘front’ to save their jobs

and buy more time before they could plan out something better, more secure and

meaningful that is closer to his individual beliefs and norms. In globalized capitalism,

21

employees navigate and negotiate between the global economic flows and national social

structures cognizant of their temporary place in the transnational business.

To the extent that there was validity in the notion of professional identity amongst

employees in Indian BPO sector (Noronha and D’Cruz, 2009; Vaidyanathan, 2012) pre-crisis,

current employee perceptions challenge this characterization.

This paper makes important contributions. This study is an attempt to establish how ‘macro

levels of political economy’ are connected to ‘micro-level of everyday [work] life and its

meaning’ (Marks and Mahoney, 2013: 5). The empirical focus of this paper has been on the

post crisis work and employment in Indian BPO industry. Results of earlier studies are based

overwhelmingly on pre-crisis research data except for D’Cruz and Rayner’s (2012) study of

bullying. The experiences of Indian BPO employees, mostly call-handlers, have been

documented in these studies. The current study includes both agents and back office

employees in the sample. Empirical inquiry into professional identity of Indian BPO workers

is at a nascent stage and this study represents one of the first attempts to examine it under

post crisis conditions.

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Respondent Sex Age Degree Position/Role Years in Co.

Years in BPO

Company Type

Back Office/Call

Centre

Sector Work /Tasks Market

Pune 1 F 26 PGDM (Finance)

Team Lead - (recent)(Floor Management)

3 4 US/India Joint

Venture

BO FS Administration – Quality reporting to Clients

US

Pune 2 M 27 PGDM (Finance)

Deputy Manager (Operations Support)

2 5 US MNC BO Integrated IT &

Business Services

Asset Mgmt. Services US

Pune 3 M 37 M.Com Financial Analyst (currently an

entrepreneur)

n/a 8 Worked with Indian and Global Third-party

Service Providers

BO FS Customer Services UK

Pune 4 M 25 MBA Senior Process Associate

2.5 2.5 KPO – US Captive

BO Insurance Brokerage and Risk

Management

Insurance Processing US and UK

Pune 5 F 24 MCA (Masters in Computer

Application)

Customer Support Executive

1.5 3 US MNC CC Technical Support US

Pune 6 F 29 MBA (Mktg.) Process Executive n/a 1.5 Worked for Indian Third

Party Service

Provider

BO Telecom Business Support UK

Gurgaon 1 F 26 B.Com Quality Evaluator(Floor Management)

3 3 Global Third-party

Service Provider

CC Telecom, Healthcare,

IT

Customer Services – Billing and Technical

Support

US

Gurgaon 2 F 27 PGDBM (HR) Human Resource Business Partner

(Floor Management)

3 5 Global Third-party

Service Provider

CC n/a HR – People support function

US

Gurgaon 3 M 27 Network Engineer

Claims Associate 2 5 US Captive BO Medical Insurance

Insurance Claims Processing

US

Gurgaon 4 M 26 BA Claims Associate 2 4.5 US Captive BO Medical Insurance

Insurance Claims Processing

US

Delhi1 M 25 Diploma Software Engineer

Customer Support Agent

2 2 Third- party Service

Provider

CC Retail, Technical Support

Customer Services Domestic

Noida 1 F 28 B.Sc Customer Support Executive

n/a 3.5 Indian Third-party

Service Provider & US Captive

BO and CC Supply-chain

Procurement, Tech

support

Customer Services US

Noida 2 M 28 B.Com Team Lead n/aIndian

Third-party Service

Provider

BO and CC Telecom Customer Services UK

Table: 1 Profile of Frontline Employees Interviewed

27

Table 2: Profile of Senior and Mid-Level Managers Interviewed

Title & Sex Organization Type Market Served Vertical Sector(s) Back Office/Call Centre Location

Associate Vice President (M)

Global Service Provider (US owned)

US and UK Diverse BO and CC Pune

Head, Training (M) Indian IT-BPO Company US, UK and Europe Diverse BO and CC Pune

Product Engineering Head (M)

Indian IT-BPO Company US and UK Diverse BO and CC Pune

Service Delivery Head (M)

Indian IT-BPO Company US, UK and Europe Diverse BO and CC Pune

General Manager (F) Indian IT-BPO Company US and UK Diverse BO and CC Mumbai

Vice-President (Operations) (M)

Captive (UK owned) Multiple Geographies FS and Technology Solutions BO Pune

Executive Director (M) Captive (US owned) Multiple Geographies Banking and FS BO Mumbai

Operations Manager (M)

Captive (US owned) US and UK FS Mainly BO Pune

Operations Manager (M)

Indian IT-BPO Company US and UK Diverse BO and CC Noida

Development Manager (M)

Captive (UK owned) UK Banking and FS Mainly BO Gurgaon

Project Manager (M) Captive (UK owned) UK Banking and FS Mainly BO Gurgaon

Transition Manager (M)

Joint Venture (US owned Custodian Bank and India’s IT &

Technology Company)

US FS Mainly BO Pune

Assistant Manager Captive (US owned) US and UK FS Mainly BO Pune

28