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Core Concerns For Indian Business Process Outsourcing (BPO)

By sachiv, Section Jobs And Careers
Posted on Wed Nov 29, 2006 at 01:33:03 AM EST

Indian BPOs are becoming an integral part of their customers' global supply chain, involving more analysis and decision-making on the part of the offshore workforce, who will therefore need to have a greater understanding of the client's business context. As a result, demand for high-end, industryrelevant skill sets is on the rise. However, this demand is not matched up with adequate supply. The Indian educational system and BPO trainers need to hook onto the changing manpower needs

NASSCOM expects the Indian outsourcing industry to employ more than a million of the country's youth by 2008-09. And the jobs coming in will be much more creative and domain specific with the mounting number of non-IT players hitting the BPO scene. So do you smell some mouth-watering career opportunities out there? Fair enough, after all, one rarely comes across a career combo as this quick money, quick promotion and smart learning curve. However, do not forget what the wise say `Every opportunity is a bundle of openings and blocks'. If you can see the number and variety of career breaks spurring in BPO, you can also not afford to overlook the skill demands that are glued to it. Gone are the days when any graduate with good English speaking skills could walk away with large salary checks every month. Today you have BPOs spanning a plethora of verticals finance, media, healthcare, airlines, telecom, and even real estate. They come to India looking for `integrated service solutions' blending high end research and analysis with customer support. How do you cash upon it, unless you are adequately armed to do proper analysis, research and then provide customer assistance? The business environment around BPO is changing and along with this change, comes the altered demand for employee skills. The issue is, how do you give the industry what it is asking for?

HIGH EXPECTATIONS
Moving considerably ahead of entry-level, voice-based customer support, BPOs in India today work in a different and more complex business environment. The outsourced projects that come to India want much more than just cost reduction. They expect a diversified service from India which will have a direct bearing on the enhancement of revenues and profits of the companies. It calls for a rigid alignment of the company that outsources work with both process and IT improvement models that exist in the outsourced destination. Rule-based processing is likely to underpin much of this work and it will involve more analysis and decisionmaking on the part of the offshore workforce who will therefore need to have a greater understanding of the client's business context. Indian BPOs today are becoming an integral part of customer's global supply chain. Says Nagarajan, founder and COO, 24/7 Customer, "Today, large global corporations are convinced about the quality of work that can be done out of India. Therefore, BPO providers have become an integral part of a customer's global supply chain some of them have developed robust processes and keen domain understanding of their customer's business.

MORE THAN JUST SPEAKING ENGLISH
"While BPO companies are throwing long term career possibilities, people should have the ability to endure the nature of such jobs in terms of shift timing, consistent performance, constant upgradation of knowledge especially in the client industry. Skills that have domain expertise in understanding the nature of the consumer segments are the need of the day.

The existing manpower comprising the ITES-BPO industry today mostly comprises graduates and post-graduates with some subject specialisation. These university pass-outs can make it to entry level jobs with a combo of some innate skills like logical thinking, consistency, problem solving, analytical and team skills, etc; along with some industry-specific dexterities. For instance, customer service orientation would need skills like the ability to listen, manage stress, good language (written and spoken) and computer literacy. But if one were to rise up the ladder, he/she would need to acquire domain specific training linked to international standards. Some of the examples could be in terms of insurance certification, healthcare regulatory standard (HIPAA), accounting standards (US GAAP) etc.

Nagarajan looks for the following in his would-be employees, "In general, a prospective 24/7ite should have good command over the English language, sound analytical skills and the urge to go the extra mile to exceed client expectations. There are many areas in the BPO sector which require specialised knowledge and skills such as R&D, legal outsourcing, financial analysis etc."

Agrees Vineet Shrivastava, BPO business manager, LogicaCMG, "Today, there is more emphasis on domain expertise and global exposure." So as services rise up the value chanin, demand for qualified manpower to do complex jobs rise, and with this widens the role of quality and process and their inter-relations. This in turn spurs the demand for skill in operations, knowledge management, data security etc. Hence the manpower needs to have better knowledge/understanding of the existing/new processes, must be better equipped on quality, and have greater roles responsibilities/tasks.

The BPO industry is choosier and is very importantly on the look out for the `right kind of employee'. The selection processes are getting more scientific with more usage/involvement of technology in hiring the right candidate. More thought is put on getting proper mix for a given job profile and greater role is given to human resource outsourcing firms, who are better able to adapt and implement such tasks for the industry. The industry is now dividing its required skill sets on the basis of verticals/domains and the value that these would generate. Says Tarun Singh, BPO director, Kenexa Technologies, "We are on this track as far both our employees and client is concerned. Hence we have our hierarchy architecture drawn on the basis of domains/skills exhibited and try consolidating the same. Thus I have personally seen a lot of positives from the clients end as well as from the employees and greater clarity in our day to day work visà-vis the goals set."

"click on full story" for read these point...

  • IF INDIA WERE TO EXPLORE NEWER MARKETS

  • GOT TO GO DEEP

  • COPING UP TO THE HIGHEST POSSIBILITY

IF INDIA WERE TO EXPLORE NEWER MARKETS
As of now companies rely on importing employees from the client nations. Many of the industry players are also demanding that BPO trainers have additional English language skills. Informs Tarun, "Foreign language skills are very much an important ingredient of the industry as we move to newer geographies and clients. We have a two pronged strategy to counter this. Off late we have a lot of foreigners coming and working with our employees, here in India. These foreigners are more preferred from those nations where we have our clients or we are prospecting for one. This helps the employees/trainers to better understand their culture and many other nuances. We are also giving preference, recruiting trainers having additional foreign language proficiency. BPO trainers need to have multiple foreign language skills to become more important for the job market and also to be better prepared for a job."

However, to get candidates to reach BPO levels of French or Spanish speaking skills, the cost of training would be too high. The solution to tapping global opportunities from non-English speaking countries could perhaps be globalising BPO companies, whereby Indian BPO companies set up shop in countries like Morocco and Mauritius.

GOT TO GO DEEP
The question is, is the industry getting what it requires? Is our talent pool relevant enough to sustain a competitive edge in this ever growing sector? Yes and no! While the large pool of graduate level English speaking populace make a good choice for the entry level customer support functionalities, much more industry relevant `skilling' needs to be done if they were to cash upon the newer possibilities thrown by the industry. There exists an acute scarcity of professionals who are equipped with the necessary domain knowledge to cater to specific verticals such as banking, insurance, telecom, retail, manufacturing, etc. They also lack traits like global exposure, cultural sensitivity, knowledge of the work environment of clients, and proper experience in information security. Feels Tarun, "Trainers today place a lot more impetus on voicebased training. The trainers are more inclined on giving greater thrust on language but there are a host of other major factors which needs to be addressed. These would be more on the work, etiquettes, ethics and data/information security to mention a few"

As a result the industry is building up its own training resources. Says Nagarajan, "Currently not all training companies have the expertise in BPO training requirements. We find that at best they provide very basic, generic training. Hence at 24/7 Customer has a strong in-house training team."

Most importantly, if the possibilities for India to explore untouched BPO markets are rising, the paucity of personnel equipped with foreign language skills such as fluency in French, Spanish, Mandarin, Japanese, Italian, etc are paralysing the possibility.

Added to this, despite the boom there is no pre-job training on BPO. the current system of education are yet to provide some of the necessary skills for BPO at the graduate/post-graduate level. Resources produced may have a strong conceptual/theoretical background but often lack communication and vocation-specific skills and the creative drive or specific regulatory certifications required by clients in foreign countries.

COPING UP TO THE HIGHEST POSSIBILITY
There are a number of immediate exigencies that the industry should take note of. Proper understanding of the changing industry dynamics and then taking logical step towards attaining the desired manpower is a must. The first logical step here could be reaching out to the right audience, taking BPO jobs to the ones who need it. For instance, the player could look at offering the opportunity to youth from smaller cities who have fewer employment opportunities and who would probably look at the job as a long-term option.

There is also a need to charting out a clear cut desired candidate profile and qualifications. Hire for a balance of jobpersonality fit and likelihood of staying on for a long tenure. Have more suited training design and qualification criteria to become team leaders management skills, team management skills, and understanding of metrics and data analysis.

Further, a majority of the BPO incentives are based on `good performance'. However, the industry is yet to define what really `good performance' is. This definition should be incorporated at agent and team lead levels and design performance appraisal systems in sync with it.

A proper nexus between training institutes, placement agencies and the industry is an important pre-requisite here. Unfortunately till date, we do not even have proper training institutes which can support the growing needs of the BPO industry on a proactive basis. Says Tarun, "In fact it would be good if the industry starts setting certain training best practices and the institutes follow the same to deliver human assets as future human capital. Training institutes need not just have mere expansion in terms of manpower or greater people but need to give more importance on quality of the human capital and the processes it follows." As of now it is the industry that is fulfilling the industry that is fulfilling the need for rigorous training through their in house programmes before the candidates hit the floor. Even experienced employees go through mandatory trainings at regular intervals. More important, the trainers are trained and assessed/monitored by the experts on a very regular basis.

Another immediate need is to contain attrition through a suite of initiatives like enhancing the scope for career development within the company, look for a balanced growth (not just pick up a contract because a customer is willing to offshore), ensure work climate is conducive to a holistic development of a member. Here, campus contact programmes which explain to students on a one on one basis what careers in BPO are all about , seminars at college campuses where some senior students who have made successful BPO careers come and talk about how they made it big in the BPO business need to be initiated to build a long term positive image in the minds of a student.

Taking note of the rising in labour costs, and the pressures on the availability of talent due to rapid growth in demand; NASSCOM designed a framework, which will help industry to actively negate the risks mitigation issues, especially in the area of industry relevant BPO human resource pool. With the motive of making India a trusted sourcing destination and keeping in mind the fact that the key concerns of overseas customers is employee reference check, NASSCOM is exploring the concept of a `National Skills Registry of IT Employees' in this industry. This would operate on a shared services model and will be administered by a credible third party. It has also come up with an executive development programme for assessing and certifying talent with the objective of creating an employable talent pool with benchmarked requisite skills and architecting an effective `Assessment and Certification Framework'. The programme would also take care of frontline management issues like low level of expertise at frontline (lower-middle) management, in managing and sustaining an ITES-BPO operation.

(Source-Times Of India,29/11/06)

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