blog 7

http://search.gulfnews.com/articles/print_friendly_version.jsp?global_name=/channels/gulfnews_com/articles/05/09/14/181649.html

Call centres in India face challenges

I used resource-based view for the analysis at industry level. Initially, the performance of the business process outsourcing (BPO) industry was growing at a very fast pace with experienced and educated workers emerging everyday with new jobs. This can be noted from the article where it states that “The infant industry has grown explosively. Youngsters have hopped from job to job. Staff-attrition rates for the industry as a whole have climbed to 45-50 per cent a year”. However, lately the industry has predicted a downfall in the outsourcing industry due to over night shifts and the workers are “put up with abuse and undergo undignified security checks”. As stated in the article, “BPO workers expected to reach 1 million by 2009, a shortfall of 260,000 qualified personnel is predicted” which means that India most valuable resource which is its human capital is being degraded without putting them into the most appropriate use and taking the best out of it. From the Financial capital point of view, we can state that the as workers have started demanding higher salaries now, the financial capital of the industry as a whole and per company is decreasing. Under the present circumstances, I can predict that the hike in salaries will continue to increase as the competition among the qualified call center workers is increasing day by day. From the Human capital point of view, the call centre industry’s human capital has been increasing exceptionally with “Nearly 3 million English speakers graduate[ing] from university every year”. However, call centre firms have been hiring more and more less-qualified workers without even checking their references which reduces the quality of human capital. Moreover, it even raises training costs for training these unqualified workers which decreases financial capital even more. Human capital of the industry as a whole is predicted to be reduced by 2009, facing “a shortfall of 260,000 qualified personnel”. At a certain point of time, the outsourcing industry will have such a large pool of mixed qualified and unqualified workers that eventually the industry as a whole is going to suffer in terms of financial and human capital loss.