Outsourcing has gained momentum in India only six years
ago. It seems to have struck an instant chord with corporate
giants across the globe owing to the unmatched cost-effectiveness,
the quality of talent and the size of the talent pool in
India. According to McKinsey & Co., global corporations
are generating cost savings in the range of 40-60%, depending
on the process offshore. Human resource costs in India are
70-80% less than those in the US and the UK. The real estate
costs and administrative expenses are low as compared with
developed countries, which have resulted in the additional
cost savings. This is the reason that one out of every four
global MNCs and IT giants outsource their software requirements
to India. Call center and BPO industry has radically transformed
the Indian economy. In its recent report, Nasscom and Crisil
quantified the "multiplier effect" on income generation
and job creation induced by the Indian IT-ITES sector. According
to the report, every rupee spent by the IT-ITES sector translates
into a total output of Rs. 2 in the economy. For every job
created in this sector, four jobs are created elsewhere.
Manpower is the most crucial resource in the high growth
IT-ITES industry in India. It is also the primary factor
for the country's immense success in the overseas markets,
the one key asset that will help India sustain its edge
in the years ahead. According to Nasscom studies, while
around 2,84,000 professionals were employed by the IT-ITES
industry in 1999-2000, the number jumped to one million
in 2004-05. According to Nasscom-McKinsey study, the Indian
BPO industry will be growing at seven times the domestic
GDP in 2009. This contribution is expected to double to
5% by 2010. The sector is expected to directly employ about
2.3 million by 2010.
The BPO and the Call Center industries offer great job
prospects and a good career growth plan to youngsters. Any
undergraduate student with good spoken English skills or
any diploma engineer with good communication skills and
technical skills is rewarded a handsome salary when compared
to any other sector. This has encouraged the younger generation
to seek employment at an early stage. The organizational
structures and policies are encouraging for a performer
since they allow a young executive to become a team leader
within sixth month of his joining the organization.
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