call centres transforming india
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Project On
CALL CENTERSTRANSFORMING INDIA
Submitted To:
DAVE DOUGHTYNBS FACULTY U.K
Submitted By:
ASHISH NIRANJANROLL NO.007 SEC-A
FORE SCHOOL OF MANANGEMENTNew Delhi
INDIA
Business Transformation
Today’s Business World is all about Service to the customers, (24 hrs.
365 days available).
Business is going under tremendous Transformation.
Customers are growing ever more demanding of the services that this
industry offers and in a highly competitive market place, it is only those
organizations who are delivering excellence who will continue to
succeed. This Convention will be offer a crucial learning curve on the
critical success factors which place potential winners in pole position in
the market-place.
Winning Formulae - Is not achieved solely through adopting strategies
which have worked for other organizations - it is achieved through
working with your people and your customers and putting their needs
first - from that winning strategies will evolve and the Convention will
provide a forum for delegates to share knowledge and expertise to help
develop and grow their own organisation.
What is Call Centers?
BOP Business Process Outsourcers (CALL CENTERS)
Companies Outsourcing part Business to other countries in view of low
cost.
Call center is a generic term that covers everything from highly trained
operators responding to telephone calls to outsourcing of back office
work, such as confirmation of airline tickets and processing of
insurance and credit card claims and online solutions,
They are hot, they are happening and they have started dotting the
Indian business landscape. In the process, call centers are attracting a
variety of players - big business houses; small, hole-in-the-wall
operations; foreigners; the serious; the non-serious; the genuine and the
fly-by-night frauds.
According to a recent research report prepared by the International Data
Corporation (IDC), India (today $1.47billion)is poised to register the
highest growth rate in the call center services market in the Asia-Pacific
region during 2000-05.
Present Scenrio: A $1.47 billion sector, 71% growth rate recorded last
year and 336 centers in India
2million Jobs In Six Yrs., Rs. 1,15,200 crores. is expected till 2008
which will be 3% of india`s GDP,
In addition, the study revealed that 65% of the respondent companies
were outsourcing more than one business process
Why Outsource to India?
Availability of a technical talent pool and ample space, presence of a
substantial English-speaking manpower available at low cost, presence
of middle income group, stability of the government, regulatory
environment, employee-transport needs and good quality of
telecommunications infrastructure and time-zone advantages are the
key factors in favour of India.
In order to meet the growing international demand for cost-effective,
customer-oriented call centers, many organizations worldwide are
outsourcing these services from locations like India. India has intrinsic
strengths which can make it a major success as an outsource
destination:
A booming IT industry, with IT strengths recognized all over the
world
The largest English-speaking population after the USA
A vast workforce of educated, English-speaking, tech-savvy
personnel: A boon in a high-growth industry faced with a
shortage of skilled workers
Cost-effective manpower: In a call center operation, manpower
typically accounts for 55 to 60 percent of the total cost. In India,
the manpower cost is approximately one-tenth of what it is
overseas. Per agent cost in USA is approximately $40,000 while
in India it is only $5,000.
Technical support: India graduates about 100,000 engineers each
year. These can be used in call centers for troubleshooting/tech
support as the salaries are dramatically lower than in Europe or
the US.
The Government of India has recognized the potential of IT-
enabled services and has taken positive steps by providing
numerous incentives.
According to the National Association of Software and Service
Companies (Nasscom), the premier trade body of the Indian IT
industry, online services in India are estimated to generate 1.1
million jobs by 2008 and nearly $19 billion in revenue. The call
center business already generates 5.5 million rupees in revenues
and employs 14,000 people in India, adds Nasscom.
The presence of most international technology vendors and solutions
would enable creation of most advanced set-ups in this technology-
intensive segment.
Also Presence of middle calss, growing economy, Govt. wants foreign
exchange,
The attractiveness of India as a preferred location for offshore call
centers has also increased following the recent drop in the the cost of
international leased lines.
India is for client organizations and they deliver quality services at
competitive cost.
IT-Enabled Services Include:
Helpdesk Services and remote troubleshooting of IT-related
queries from clients in the US
Transaction Processing
Accounting Services
Call Centers
Remote Network Management
Service Bureau and Entrepreneur Systems
End-to-end Processing Services with linkage to the parent
company. The entire processing would be carried out in the
facility in India, with a cost quality and service advantage to the
parent organization.
Product Specific Solutions Include:
Risk Modeling
Data Mining
Actuarial Services
Underwriting Variation Analysis Analytics
Business Solutions
Also,
Outsource to India for technological agility, quality, flexibility, cost
control, time-to-market and competitive advantage.
1. India is a talent-rich country: outsource IT talent
2. India exports software to 95 countries around the world: outsource
expertise in global methodologies
3. India enjoys the confidence of global corporations: outsource high
quality brain-power
82% of the US companies ranked India as their first choice for
software outsourcing
Bill Clinton applauds India's brainpower: says Indian-Americans
run more than 750 companies in America's Silicon Valley. "You
liberated your markets and now you have one of the 10 fastest
growing economies in the world," said President Clinton.
Bill Gates says India is an IT superpower: strikes strategic
alliances with Wipro and Infosys to develop applications on the
Net platform
Jack Welch opens $130 million Technology Center in Bangalore,
GE's largest R&D center outside the US: celebrates 10 years of
GE Medical Systems in India.
4. India Offers Multiple Advantages
Outsource to stay competitive. Leading companies worldwide
realize that to maintain stay ahead, they need to reduce costs,
provide the best quality, use the latest high-tech skills, and be
reliable and innovative
Outsource to a mature industry with world-class systems,
systems and quality
Of the 23 software companies in the world that have achieved
the prestigious SEI-CMM Level 5, 15 of them are Indian.
India will soon have the highest number of ISO-9000 software
companies in the world, according to Nasscom.
5. India has state-of-the-art technologies for total solutions: outsource
turnkey projects Offshore assignments have moved up the value chain -
from data entry to large and complex turnkey projects of 200 to 300
person years.
Applications include:
E-Commerce
Business Process Re-engineering
System Migration
Maintaining Legacy Systems
System Integration
CBI Applicant
"India, US sign deals worth US $6 billion"
"India bid to boost to bilateral economic ties, with Prime Minister
Atal Behari Vajpayee in the US, India and the US have signed five
commercial deals worth US $6 billion for projects in power, e-
commerce and banking sectors."
6. IT is a major thrust area for the Government of India
IT is one of the Government of India's top five priorities.
The National IT Task Force submitted its 108 point Action Plan
to promote IT in the country. The Government of India has
approved the plan and is in the process of implementing it.
A separate Ministry of Information Technology was set up to
expedite swift approval and implementation of IT projects and to
streamline the regulatory process.
Information Technology Act 2000: The Information Technology
Bill that was passed in the Indian Parliament in May 2000, has
now been notified as the IT Act 2000. The IT Bill brings E-
commerce within the purview of law and accords stringent
punishments to "cyber criminals". With this, India joins a select
band of 12 nations that have cyber laws.
Software Technology Parks of India offer world-class infrastructure
and various incentives and concessions to encourage foreign investment
and promote software development in India eg 100% Foreign equity is
permitted and approved under the Automatic Route delegated powers to
The Director STPI, tax holiday until 2010, etc.
7. India has a stable government and is one of the world's 10 fastest-
growing economies
Fifty years of democracy
Economy expected to grow by 5.9 percent in 1999-2000
Indian service sector contributes a massive 51 per cent to India's
GDP. Within this category, the most promising is computer
software export, which grew at an amazing rate of 40-50 per cent
every year during the 1990s.
Excellent investment potential: India ranked third in Asia, just
after Japan and China, in terms of investment potential for the
next 10-year period in a study by the Export-Import bank of
Japan.
Privatization of the infrastructure sector
A convergent network is being created by the intertwining of the ISP,
Telecom, VSAT, Cellular and networking sectors. India's large
business houses and Public Sector Units are working towards creating
greater bandwidth availability.
Guide for creating the best Call Center possible for your
organization.
This toolkit is ideal if you…
are starting a completely new call center
are consolidating two or more call centers
want to upgrade your existing call center to a world-class contact
center
are taking over a call center implementation from someone else
are managing a portion of a new call center implementation
have one call center and need to open a second
are looking for a better understanding of the components of an
effective call center
Toolkit Contents
Getting Started
Business Strategy
Processes
Technology
Human Resources
Facilities
Each aspect is described in detail, with tips for your own successful
implementation. Each section includes:
definitions and examples of concepts being discussed
benefits and implementation issues
checklist to get you started
where to get additional information
sample document outlines (where appropriate)
Job Aids
The toolkit includes checklists, guidelines and templates to make sure
that you are on the right track.
Planning Roadmap
Guides you through the key activities for creating a world-class call
center. Map out the sequence of activities:
The strategy that needs to be defined before contact processes
can be identified.
Process and technology elements critical to the success of your
center
HR and facility guidelines to help you create the best contact
center environment
Master Planning Guide The Master Planning Guide is the answer to
the question “Where do I start?” - planning tables and checklists will
help you identify and keep track of the multitude of activities that must
be done to:
get you started quickly
create the strategy and project plan
provide a master checklist so that you do not overlook key
activities or areas needed for your center
HR Policies : Human resource is the first & foremost point to be
considered HR Dept. should have answers of all the questions asked by
management or by company`s employee.
What to outsource to India?
IT Services
Software development services
Application development and management
Re-engineering
Conversion and migration (across platforms/ languages/
versions)
Data warehousing and mining
Embedded systems
E-commerce applications
Data Entry
Data control audits
Regular reporting of work systems
Data entry software and validation tables
Dispatch of data to the customer
Double keyed data (when required by the customer)
Proof checks
Programming
C, C++, VisualC++, Java, Javascript, Java Beans, Java Server
Pages (JSP), Enterprise Java Beans (EJB), ASP (Active Server
Pages)
Visual Basic
Microsoft Access
Novell Networking
EDI and Integration
Bar Coding and Hand Held Data Collection
DOS, Windows 95/98/2000, Windows NT
Business and Industrial Systems
Support of spreadsheets, word-processing and various 3rd party
applications
PC hardware and services
IT-enabled Services Call Centers
Help Desks - Electronic and voice help desk / Event tracking
software
Bookkeeping or clerical support
Data entry, word processing, mass e-mailing inbound and
outbound communications
e-mail services
Tele-servicing
Telemarketing
Business Process Outsourcing (BPO)
Enterprise Management
Supply Chain Management (SCM)
Customer Relationship Management (CRM)
Back-Office Operations
Accounting: processing accounts payable, accounts receivable or
general ledger
Payroll
Inventory
Hardware maintenance
Internal auditing
Benefits management
Benefits administration
Health & Welfare administration
Defined Contribution/ Defined Benefit administration and
customer service
Health claims administration
401(k) plan record-keeping
Human resources
Asset management and staffing - supplement your existing e-
business staff - access both management and technical assistance
on a long term or monthly basis
Infrastructure
Communications and messaging
Upgrading and configuring message management software
Launching an XML strategy
Integrating e-business messages with CRM, ERP and legacy
systems
Managing change as your e-business programs and business
systems evolve
e-business operations
management and day-to-day operation of EDI infrastructure
creation and management of a new XML strategy
e-marketplace development
ERP integration
communications monitoring
trading partner management
order processing
workflow enhancement, evaluation and benchmarking
application hosting
system implementation and integration
system maintenance
upgrades
backups
disaster recovery
Communications and Networking
Telecommunications
Computer telephony
Internet telephony
e-solutions
Media and Entertainment
Advertising
Film-making
Animation
Printing and publishing
Consulting services
Photography
Web Development Services
Portals
e-commerce consulting
e-business IT consulting
Domain registration
Website design and redesign
Website promotion
Web-enabled applications
Website maintenance
Web hosting
Operations
e-marketplaces
web applications
XML and EDI operations
implementation assistance
security administration
monitoring data traffic
generating activity reports
troubleshooting problems
creating any necessary maps
system support
help desk
Relationship management
Customer Care Services
customer acquisition
customer activation
customer retention
cross-selling/up-selling
inside sales
surveys and polling
Community Management
Managing your ongoing partner relationships
opening e-business channels with new vendors and customers
meeting with partners
defining e-business requirements
establishing the rules of play
educating them on benefits, security measures and day-to-day
procedures
Medical Transcription
Patient history and physical reports
Clinical notes
Office notes
Operative reports
Consultation notes
Discharge summaries
Letters
Psychiatric evaluations
Laboratory reports, x-ray reports and pathology
On-site services
On-site assistance
System setup and testing, software installation
Preventive maintenance
Communications and network testing
On-site and depot hardware repair
These are just samples of several outsourcing services that are available
in India.
General Problems
Setting up a call center - and running it profitably - is not everybody's
cup of tea. Skeptics point out that the large number of call centers
mushrooming all over the country is yet another manifestation of the
Indian businessman's fascination to cash in on the "flavor of the
month". Some time back, it was non-banking finance companies,
followed by courier companies and dotcoms, and then cyber cafes and
broadband service providers. But, as it inevitably happens in such
cases, soon there is a shakeout and only the serious survive.
There are other obstacles too. Adherence to top flight quality is a strict
requirement - something not many Indian players can meet. Properly
understanding the culture and language of the clients is also a key
necessity and hence the best key centers are being run by executives
who have had some kind of working exposure abroad. The working
environment at the local outfits has also to match international
standards and many Western clients have been known to personally fly
to India to inspect the working area, cafeteria and recreational facilities
before signing the all-important contract.
"Just because India has lots of English speaking people, it does not
follow that running a call center is child's play," points out IT
consultant Louis Rolston. "It is not easy to get Indian college kids to
speak in a way that Americans can understand. You also have to
constantly re-train them because if they are worth anything at all, they
will be snapped up by someone else."
And yet, India will remain a key hub for the business, be it serviced
only by the serious, long distance runners.
HR Problems
BPO Companies grapple with manpower optimization: Maintaining
an optimum level of manpower utilisation in BPO(business process
outsourcing)outfits is proving to be difficult. If it was longer sales
cycles earlier,its lack of strong customer references, marketing
expertise and a front end in the international markets that is preventing
BPO firms from maintaining healthy manpower utilisation levels of
70% and up. Costs associated with the human resource account for
roughly 30% of the total cost in a BPO outfit and with the current rate
of attrition hovering around 40%,companies would have to utilise their
manpower efficiently if they have to be competitive. The unbelievably
high growth rates reported by most BPO firms are not likely to last.
Analysts say the increased competition and inability to utilise available
manpower and capacity could impact revenues per seat.
According to estimates gathered by the Indian Express, Bangalore
alone needs more than 8,000-call centre and other executives every
month but what’s available is no more than 2000. Indeed, the attrition
rate in Bangalore BPOs nears 30 per cent, though many companies’
report 60 per cent new workforce every year. While raw graduates need
to be expertly trained--changed accents and names are just the start--the
high pressure environment, repetitiveness, night shifts and cultural
dislocation has become a cause for concern.
Many work partime in call centers,
People are not seeing a stable future plus after some time job looses its
charm, High Health Risk,
Young generation is very moody, they generally follow trend, also very
influenced by friends.
#In such a situation role of Human Resource Policies & Implications of
its strategies play there very very important part.
HR Dept. need to concentrate on Various fields;
Manpower Planning :- In a business world people are very indifferent
Its very hard to judge a person in a single eye, & if a non productive
man is recruited or HR Dept. fails to motivate & directs the persons
efforts, results could be disasterous. In India for such a situation we use
a phrase which means "A bad fish make whole pond polluted in no
time."
According to Geisler "manpower planning is the process- including
forecasting, developing & controlling- by which a firm ensures thet it
has the right number of people & right kind of people at right place at
the right time doing work for which they are economically most useful.
Manpower is not same for everybody & for every level. They can de
differentiated by
National
Sector-Wise
Industry-Wise
Individual unit-based
Culture-wise
Social Enviroment
Firstly,
Recruitment of desired & focused work force with:
Integrity & Honesty with in themselves & to the organisation.
Enough & Can be Motivated
Believe in Team Work
Flexibility with in them & can easily adapt to the working
enviroment
Least Absenttism
Healthy (Should not having any typical diease)
Willing & Acceptable to improvement
Good communication Skills
Mock presentation be taken
Employee Sensing
Other Quality,
Secondly,
Training to be given to the Recruited workforce & Presently Working
groups
Basic Training to be given to all
Every employee should be briefed about the Training modules
See the Training Opportunity need & Seriousness
Refresh & Project wise training
Make the Training more lively, measureable, & result specific
Eliminate un-relevant part from training
Close monitoring & prepare a performance chart of every
employee
which will help in finding the need of training.
Training by highly professional people.
Done in proper coordination
Tarining should designed in a manner that it should seek
employees` participation. Plus bring Sense of Belongingness in
the employee to the Organization.
Complete the training with a good note.
Thirdly,
Selection of the right person for the right job, or job disribution.
According to performance Rewards be given
A complete programe outline is to be developed with a great care
& in accordance of requirement,
Time-to-Time Rewards for outstanding performers
Close analysis & evalution of Job, Seeking the right person for
that Job.
Determine Grades
Clear & Easy to understand Salary structure, Rewards, Cut-off
points
Proper Salary Admin. Dept.
Communicate the final programe to employees & managers.
Fourthly,
Build & check on Commitment. Most responsible task assigned to HR
Dept is to get the commitiment of employees. Following is the best way
to motivate an employee to be Committed to the Organisation.
Accroding to Martin & Nicholls the 3 Pillars of Committed workforce
are :-
(1) Sense of Belongingness to the Organisation
This for the employees & can be achieved by
(a) Informing
(b) Involving
(c) Sharing the Success
to the People
(2) Sense of Excitement in the Job
(a) Creating Pride
(b) Creating Trust
(c) Creating Accountability for results
in the People
(3) Confidence in Management Leadership
(a) Exerting Authority
(b) Showing Dedication
(c) Displaying Competence within the People
Fifthly,
Today`s world nearly can be achieved being an individual One has to
work in a Team in nearly every part of life. People achieve big goals by
proper coordination of employees or in a single word Teamwork.
If team puts its efforts one tends to cooperate. Teamwork is best way to
motivate a group towards Organizational Goal.
Requirements of effective Teamwork.
Commitment of team as whole
Competence
Character
Control
Collaboration
Effective & Complete Communication
Coordination
Creat Innovation
Consequence
No Cultural Barriers
Sixthly,
One of toughest yask assign to HR Dept is to Build & Boost up Morale
of employee, & take them to an effective Motivational path. If the work
place is charged with high Morale & Motivation productivity increases,
every hindrance can be overcome in no time. One motivated person can
motivate many.
HR Dept needs to bring trust towards organisation within the
employees Once trust is established them building up morale &
motivation can be done in no time.
Rewards can also be motivating put temporary.
Behaviour of Seniors & Subordinates also influence motivation &
morale.
Good policies & implications can be a good motivator.
These days every working or non working man is a victim of Anxiety,
Irritation, Depression, Mental fatigues, Short temperness many more.....
This all is happening because of work pressure, society pressure etc..
or in a single word STRESS.
A major challenge for HR Dept is to manage such behaviour of people
& this theory is named as Stress Management:-
Employee in a Call Centre are normally working under stress, of shift
working (Graveyard shifts), Continuous exposure to computer & other
harmful radiation devices. There social life got restricted to there
colleges no interaction with the outer world left, very monotonous
working style. All these contributes to Stress to an employee. And
countering all this need a through study & implication of certain
scientific remedies. Some of the suggestion are Yoga, Meditation,
mental games, good healthy food, Library, Extra curricular activities,
Providing physical work out games,
a doctor all the time etc.
A Zestful & Healthy Environment in an organisation can bring
wonderful results.
Problems to India:
Nothing in this world is without a problem nothing is perfect in this
world. Call Centres brings many problems to indians some of them are
discussed above, few more I would like to take Invasion of call centre
brings money to India but also Erosion of Culture is taking place many
youngester are losing there Values, also behavioural changes are taking
place in Call Centre professionals, no interaction with the family left,
forget interaction.
Education level in India is decreasing like In Delhi University there are
70% students taken admission are outside Delhi this Year (Toins)
young generation in metropolitans are just running after money.
Youngs Male or Female are getting more into the habits of Drinking
wine & beers, smoking, falling into the trap of Narcotics.
India is known for its sacred Values & Rich Culture In the rest of the
World, But its all been gettin into mud.
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