Reviving the Indian Outsourcing Industry

chillibreeze writer — Aniisu K Verghese

‘Is India's outsourcing honeymoon over?’ screamed a recent headline. The article on CNN Money went on to talk about how India's reign as the world's "Outsourcing King" may be slipping, even with its rock-bottom call center costs.

These and other similar press reports and industry soothsayers have begun to announce the death knell for the Indian outsourcing industry’s dream run.

This despite very positive indicators from leading analysts like AT Kearney who project India as a frontrunner in the people, business environment and financial infrastructure themes for doing outstanding work in the outsourcing arena. Infosys, TCS, Wipro, Cognizant and i-flex solutions are some of our well-known globally recognized ‘Made in India’ brands. The Black Book of Outsourcing (Brown & Wilson, Wiley Publishers) recognizes over 8 Indian firms in the World’s Best Managed BPO organizations including HCL, Satyam and Patni. Our exports have risen over the years and 60% of the world’s Fortune 500 firms outsource their IT and business processes assignments to our country.

We boast of a large pool of talent, low labor costs, excellent telecommunication infrastructure, a relatively mature domestic IT industry, an active industry association, quality certifications unmatched in the world and more. Then there are other fascinating developments - for every job created in the BPO industry, five get created in other industries like transportation, catering, house keeping and security. An estimated 875,000 additional jobs worth Rs. 310 million in revenues per year was reported in FY 2004-05. Temporary staffing also saw a boom.

So then what is it that our industry lacks and why is there so much of a brouhaha over losing work to others in the race?

At first glance, the challenges are as clear as glass. Infrastructure deficiencies, rising shortage of quality manpower, saturation of Tier 1 cities and labor issues stick out like a sore thumb.

A closer look reveals the rapid pace of growth, a young workforce loaded with a high spending capacity, and a lack of communication and awareness of the industry’s role in creating competitive advantage has resulted in a deep chasm. To top it all – a spurt in crime and data theft has left outsourcing partners worried about the business implications. There have been reactions to address these concerns at the industry body level but they have been quite reactive.

From a communication standpoint, there is a growing need to claim back our image and reputation as a safe destination for outsourcing.

Here are some recommendations to get back our lost glory and re-invent our image in the global context.

Blend of maturity and youth: While fresh graduates are easy to hire and train, with attrition a serious issue and maturity linked directly to age, it makes sense to make the industry also attractive for the slightly older bracket. Incentives like training and career prospects will help get the best talent from other industries.

Leverage the Indian Diaspora: Let’s tap our best exports and make them ambassadors for our country. Equipping the talented Indian workforce and immigrants abroad with the right information on our industry’s strengths will go a long way in improving the world’s outlook of us.

Regular and consistent communication is critical: The industry should focus on educating its workforce on safe and responsible behavior which will prevent issues like crime and IP theft. For example, industry associates should avoid displaying corporate ID cards in public as it makes one easy prey for criminals. Talking about work related issues to others should be avoided. Emphasis on safe driving and career growth in the industry needs to be articulated. Publish regular reports on steps taken by the industry on its efforts for associates. While interacting with a younger workforce, it also makes sense to involve and integrate their families with what the work demands and how they can cope. Burnouts and occupational issues have been on the rise.

Internal branding for commitment: Associates in the industry are known to change jobs for better prospects and attrition issues are constantly highlighted. This can be controlled by strong internal employee branding practices which help reward and retain the best talent by providing opportunities for growth across functions. Make employees the face of your business – in projecting the image internally and to customers. Inculcating the company’s culture and sensitivities during induction is important for integration.

Learn from global best practices: While we plan to extend our leadership, it makes immense sense to expose our industry to global best practices from nations such as China, Singapore, Canada, the Czech Republic, Brazil, Philippines and Uruguay. The industry bodies should encourage organizations to participate in cross-cultural exchanges for better understanding among its workforces.

And finally, the name game: ‘What’s in a name?’ you might argue. But, by re-naming the call center industry as say the customer center industry or as the customer advantage industry it might be a good start in giving the sector its much needed makeover!

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—About our writer:

Aniisu is an internal communications professional with over 9 years of experience in the advertising and the IT industries. He pens a blog on internal communications. He lives with his wife Wilmmaa in Bangalore, India.

Reviving the Indian Outsourcing Industry

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