By Vipin Agnihotri
Indian BPO industry is continuously witnessing upswing in both attrition and wage inflation. Most of the experts feel that India remains the best alternative at present but China is emerging as an equally good destination. The best part about China is that they are more committed towards education and training as compared to India.
Plenty of international BPO firms are looking at the smaller cities of India in terms of resources. But the irony is that the resources in India are quite limited and not big enough to meet the global demand of big firms. For example, Convergys Corporation has around 12,000 call centre employees and another 1,300 for its software development unit in India but yet they are suffering because of lack of resources.
According to sources, Convergys is looking at the Philippines as an alternative to India. It is worth mentioning in this regard that the company has around 10,000 people in the Philippines and considers it to be on par with India.
In my opinion, trained workforce in India is quite thin at this moment of time. The condition is not going to change until and unless there is going to be active private education initiatives in the country. Manpower crunch is going to pose a big challenge in the near future.
Another significant factor that is hampering the progress of Indian BPO industry is the high expectations of employees. It has been noticed that the young workforce in India expects to get promoted every 6-12 months. Point to be noted here is that in a globally competitive environment, you have to play by the rules and in no other geography do promotions happen so often.
In terms of servicing the domestic market, most of the experts feel that there is more potential in the Chinese market as compared to India. American BPO giant Convergys has no plans to enter India in the HR vertical, as Indian companies are too low-cost to compete against.
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