In this case study, the symptoms that suggest that something has gone wrong are the customer complaints regarding the poor quality services continue to increase with growth of Yakka Tech’s customer service business that has nearly doubled over the past five years, the increasing rate of voluntary employee quit in the contact center which risen above industry average, inter-departmental conflicts due to inability of answering all dissatisfied customer queries, increased number of employees turnover which lead to increased of labour costs due to the cost of recruiting new technical staff and the lower productivity of new employees which also contribute for declined in company’s revenue. The employees also were also de-motivated and also felt that boredom and monotonous in their work.…
Chithelen, I. (2004). Outsourcing to India: Causes, Reaction and Prospects. Economic and Political Weekly, 1022-1024.…
Rai, Saritha. "Indian outsourcing business hits a bumpy road." International Herald Tribune Online. 11 February 2005. 6 July 2005.…
Cost, people, and environment are characterized under competition in the Indian BPO Industry. India ranks first among a host of desirable nations in terms of cost which includes employee cost, infrastructure cost, management cost and the tax structure. It beats all its competitors on the people front as well.…
The BPO industry has been very generous to the young employees in terms of salaries given. With more dispensable income, these youth tend to become experimental and indulge in activities that turn…
In business process outsourcing(BPO), a client's business process is performed by a vendor. Certain business processes of the client…
India is the leading country for offshore outsourcing. The offshore outsourcing industry started in India and it has been able to grow the IT and BPO export sector to $47 billion and capture more than half the offshore outsourcing industry. That is not to say that India does not have challenges or is the best location for every offshore outsourcing effort, but it has an unparalleled history and size. The Americas and Europe are the largest customers for the Indian outsourcing industry and account for 60% and 31% respectively of IT and BPO exports. The largest vertical sectors are financial services (41%), high-tech/ telecom (20%), manufacturing (17%) and retail (8%). In 2009 the IT and BPO export industries employed about 2.2 million people. IT and BPO services outsourcing first started in India in the mid 1980s. The large, English speaking, low-cost workforce was the main attraction. The industry grew rapidly through the 1990s aided by the Internet boom…
S. Ramadorai (Ram) was the current CEO of Tata Consultancy Services. The innovator behind this successful development and his predecessors had built TCS into India’s largest software services outsourcing firm. (Table 2, attached at the end) It began in 1968 as an in- house division of its parent firm, which was a member of the Tata group, India’s largest conglomerate. TCS was the 19th largest software services provider in the world (but was still in the process of striving to be better). But while the software industry was blooming, Ram had another vision in mind to add on to his success, he wanted to enter into the Business Processes Outsourcing (BPO) industry.…
The success story of Indian IT/BPO is attracting a lot of growth opportunities. To achieve it potential the industry is taking an inorganic route to meet its demands. The industry has been much concentrating on the fast growing US market. With the subprime crisis, and the world on the brink of recession, it remains to be seen if the industry will still sustain its rapid growth. Every bad scenario has a built in opportunity in it. Likewise here the recession may prove to be a boon for the BPO’s. The focus on cost reduction is expected to increase, keeping in mind the current recessionary environment. Hence, the mileage will shift towards outsourcing. The future outlook is positive, leading to increased momentum for global sourcing.…
The Indian labor market has always been key in globalization, and has been attractive due to its low wages, and the scientific and managerial talent found in the country. The main issues faced in this case mostly stem from the loss of the tax abatement in India, in addition to the weakening US dollar. Due to these two issues, doing business in India versus other fruitful options like Philippines becomes very expensive. These are major challenges to combat for any firm looking to outsource in India. In India, the infrastructure along with the setback discussed around transportation, puts a strain on the bottom line. The Tax abatement ending in 2009 was the initial cause of the dilemma. India 's transportation and infrastructure costs are here to stay and other countries like Philippines have much more attractive incentives to bring in higher margins for the multinational corporations. The entire flow and boom of bringing BPOs into India has been affected due to this. The top dollar return on investment for a multinational corporation to bring their business into India is no longer there. However, it is there in the Philippines with the same levels customer satisfaction to be achieved. The solution is that if India wants to keep BPO’s around, they need to revisit re-instating the tax abatement as well as figure out ways the government cover the transportation costs. The Indian government needs to do everything they can to prevent these BPO’s from transplanting or just picking up their entire business and relocating to another country. They should place them in a lower tax bracket for them to stay in India. They should cover the costs of transportation as an additional incentive. At the end of the day, it comes down to profitability and return on investment. It has to be worthwhile for these firms to keep their BPO 's wherever they have them.…
C) India’s disadvantage in this market is that a recent study suggests that as early as last year the software and BPO industries would have suffered a labor shortage of about 500,000 workers, if the growth continued; if so the boom in Bangalore would have ended causing firms to shift their software development and BPO activities to other countries. As well as the fact that countries that speak English widely pose new threats to India’s dominance in the field.…
Globalization has been an indispensable part of the recent economic progress made by India. Globalization has played an integral role in the growth of outsourcing IT and business process outsourcing (BPO) services. Over the past decade, both foreign and local companies, have employed India’s highly skilled professionals to service clients in the US and Europe. By capitalizing on India’s lower cost but educated and English-speaking workforce, and utilizing global communications technologies, international enterprises have been able to lower their cost base by establishing outsource knowledge- worker operations in India.…
Hence through this project we look forward to achieve our goal by taking up a case study on selected companies in the IT BPO sector in India.…
* Multi-disciplinary Subject : Management has grown taking the help of so many other disciplines such as Technological engineering , sociology and psychology…
Business process outsourcing (BPO) is a broad term referring to outsourcing in all fields. A BPO differentiates itself by either putting in new technology or applying existing technology in a new way to improve a process.…