Major Challenges Faced by the India Contact Centres Essay

The purpose of the study is to place the major challenges and seek to offer executable solution / suggestion to the industry. This study will specifically look into

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External and Internal challenges faced by the industry ( SWOT Analysis ).

It will seek to find the challenges faced by frontline officers ( Associates ) and the direction squad.

Once they are identified we will analysis how these factors are impacting the Industry and to what extent.

Finally we based on our recorded observation we will seek offer suggestion to the industry which could assist them get the better of these challenges.

This research will see both primary and secondary informations collected. Subsequently on we will analyze the secondary informations collected through questionnaires / interviews against the primary informations. This will assist us to acquire precise consequences.

Understanding What BPO is?

Companies that are unable to pull off their of import or unimportant maps or applications could be seem engaging or outsourcing their undertakings to third party houses to pull off these maps by the influence of their cognition, engineering or accomplishments. This concern procedure outsourcing influences the of import and unimportant maps of a concern to switch to a 3rd party seller, which would be adept at managing those undertakings, thereby cut downing their load. Outsourcing is termed as offshore-outsourcing if the 3rd party seller is located in another state. The theory of outsourcing itself dates back to the old decennary and is non recent outgrowth. Outsourcing existed in the yesteryear and was chiefly confined to the fabrication industry, during the premier phase of technology-transfer and during the concluding stages of a merchandise life term. Many companies outsource their undertakings or maps because of grounds such as inexpensive labor, decrease in substructure costs and other extra benefits. Even though BPO companies are adept in managing these maps, everything is non all good for them. Today, BPOs are confronting a new challenge that of employee turnover, which would tip the balance of supplying quality service to the clients. Prelude

Preliminary Literature Review

Harmonizing to Deery and Kinnie ( 2001 ), the universe economic system is reassigning itself from the out-dated industrial production economic system to an economic system which is more client focussed and offering knowledge-based service. name Centres with the ability to manage facsimiles, letters and electronic mails, besides known as contact Centres play an indispensable function in today ‘s economic system and so they are increasing in size and Numberss every bit good ( Barnes, 2001 ; Deery and Kinnie, 2004 ). Every client service seller, in order to rule in the market, seek to squash out the best of their abilities to supply the finest client experience to their clients and clients for constructing a strong relationship with them, thereby adding trade name image to themselves.

This would besides assist them to set up a launching tablet for venture into newer markets. As a consequence, many companies bring out their ain division of contact Centres or outsource it to a 3rd party BPO company for presenting proper client service and at the same clip being competitory every bit good ( Crome, 1998 ). Therefore, this type of service economic system creates immense occupation chances and has farther potency ; ten million clients use the phone banking installation and to provide to these demands the demand for client service agents is increasing a rapid gait ( Forsyth, 2004 ).

Indian BPO Industry & A ; Attrition

The thought of “ contact Centres ” or in other words “ Business Process Outsourcing ” BPO has been quickly developing in Asiatic states like Philippines and India. The service industries in these states are demoing an astronomical growing over the last 10 old ages ( Chengappa and Goyal, 2002 ; The Economic Times, 2005 ). Some of the factors act uponing this increased growing and enlargement include the rapid development of the software/IT field and the general entree to quality instruction and skilled endowments. It has besides been suggested that outsourcing saves upto 50 % of the entire costs ( Chengappa and Goyal, 2002, Saini and Budhwar, 2004, Ramchandran and Voleti, 2004 ). Harmonizing to the Indian intelligence media The Economic Times ( 2005 ), India has become one of the preferable finishs for companies outsourcing occupations from developed states like UK, USA, Australia and others.

NASSCOM has besides suggested that more than 400 companies from the luck 500 list have their ain confined units for client service or they may hold outsourced some of their concerns to third party houses holding contact Centres. Consequently, India has about 45 % of the entire outsourcing of organisations worldwide. It has been calculated that if the companies in UK outsources 1000 occupations to India, so the state would be salvaging around ?10 million per twelvemonth and the same can be applied to the USA where outsourcing 1000 occupations can salvage costs up to $ 30 million a twelvemonth ( The Economic Times 2005 ). It would look that this industry would hold an one-year forecasted growing rate of 50 % and therefore has singular potency in developing states like India ( McKinsey, 1999 ; NASSCOM, 2001 ; Shah and Bandi, 2003 ; The Economist, 2004, Sifynews, 2005 ).

Management of human resources is really important for the organisations stableness and endurance in the present economic state of affairss ( Schuler and Jackson1999 ; guest et Al 2003 ).In India, direction of Human resources is really critical because of its progressively fast sector growing and the impact it has on the planetary economic system because of its connexions with assorted national and international organisations. However, it could be seen that many of the BPOs established in India have begun confronting newer challenges. Many employees experience emphasis due to workload, public presentation issues, unable to run into client marks etc. as a consequence, workers are largely dissatisfied with their occupations giving rise to high rate of abrasion, even catching media attending ( Walletwatch,2003 ; Singh,2005 ).

Harmonizing to Zarling ( 2006 ), many BPOs have conveyed of a famine of gifted people. Harmonizing to a study of Wall Street Journal and Society of HRM, it was besides determined that about 35 % of professionals are looking for a new occupation and 40 % are inertly on occupation Hunt. Due to improved occupation markets and fluctuating demographics, many organisations are switching their focal point on employee keeping ( Fredric, Finnegan and Craig, 2004 ). Harmonizing to Bond & A ; Smith ( 1996 ) and Earley & A ; Gibson ( 1998 ), Organizational civilization such as occupation satisfaction, committedness, motive of workers, public presentation, teamwork every bit good as employee turnover influences organisational behavior. Therefore it becomes of import for the organisation to recognize the factors that are act uponing the rate at which they gain or lose their employees. Besides, they should detect ways to diminish costs involved in employee choice and preparation by increasing productiveness of the full organisation.

Whenever a worker is non satisfied with his or her current occupation, they are likely to discontinue their bing occupation, if the discovery a new one ( downwind et Al, 2004 ). This premise is taken into history for the employee turnover theoretical account. As a consequence, many employee turnover theoretical accounts are holding committedness and occupation satisfaction as its cardinal focal point ( March and Simon, 1958 ).However, some theoretical accounts ( Mobley, 1977 ; Porter & A ; Steers, 1973 ; Price, 1977 ) have extra variables like “ employee ‘s outlook from the occupation, likely benefits seen by an employee to discontinue an bing occupation, organisational construction, options available in the market, easiness of motion ”.

Research Methodology:

“ It is ever critical to specify a job or an nonsubjective in order to put a way for the consecutive stages of a research ” ( Burns et al 1995 ). What Burns is connoting is that in order to easy plan the program of action, we should develop its aim. Here, we will be discoursing the processs learnt to happen a solution to this research job. For making the aim of happening a solution for the abrasion job in Indian BPO industry and the hurdlings we would confront during this procedure, we would be concentrating more on the attack used to make the aim. Identifying and analyzing the cardinal factors linked with inordinate employee turnover rates in Indian contact Centres would be the chief aim of this survey due to its direct impact on the universe market.

Primary & A ; Secondary informations are two accessible beginnings for informations aggregation. This research work includes both the facets of informations aggregation for the presentation & A ; proof of the subject. Internet, official web sites such as NASSCOM, articles, books & A ; diaries are the beginning of secondary informations aggregation. It is indispensable for the comprehensive apprehension, with mention to the research subject and at the same clip facilitates response to the research inquiry. After a comprehensive apprehension & A ; handiness of equal informations on research subject, as a research worker it was desired to garner empirical informations so as to reexamine the present province of research subject & A ; analyze the apprehension about the subject. The procedure of gather empirical information is referred to as primary informations aggregation. It can be gathered through interviews, questionnaires, focal point groups & A ; observations. Bearing in head the explorative nature of survey the primary research will be questionnaire based attack. The focal point is on BPO industry in peculiar because this industry is one of the few industries in a growing phase in many parts of the universe, including India ( Batt, Doellgast & A ; Kwon, 2004 ; Deery & A ; Kinnie, 2004 ; Morrell, 2006 ; Paul & A ; Huws, 2002 ). In India mean employee turnover rate in BPOs is approx.31 % ( Kelly Services, 2004 ; Roy, Sharma & A ; Bhushan, 2004 ). The study is designed in manner, which will enable to formalize the literature with the current scenario in the industry. The merger of two informations beginnings enabled to present personal position & A ; obtained consequences in a better manner.

Data Collection:

In this subdivision the informations collected from the primary research will be analysed and the consequences will be discussed subsequently on. The treatment will seek to formalize the literature collected for the secondary research against the informations collected from the questionnaire i.e. primary research. This will assist to traverse look into the major grounds for high abrasion rate in Indian BPO sector. To do certain that the informations presented is from a trusty beginning all the contemplations and attention will taken.

Methodological Approach

Marshall ( 1998 ) suggested that direction research has four facets & A ; all the four facets have typical aim. The four facets are: Exploratory, descriptive, appraising and prognostic research. For this survey, an “ Exploratory ” research method was taken to analyze Indian service industry ( BPO ). The nucleus ground of taking “ Exploratory research ” was because it helps to place why job or a certain challenge exist and allows researching root cause of it. In this method the information is gathered informally and in a structured format ( Burns & A ; Bush 1995 ). After the designation of the job, it enables the research worker to look into the beginning of job. The attack of scanning the root cause of the job, alternatively of its effects enables the research worker to develop recommendation in order to battle the job at manus Churchill ( 1976 ).

Design of Questionnaire

Based on assorted turnover theoretical accounts & A ; experience with the industry, a questionnaire will developed. This will cover issues related to working conditions, wage and inducements, occupation enrichment, clients, wellness, dealingss with co-workers, commitment degree, public presentation assessments and calling development. All the statements associating to employee turnover, and purpose to turnover, will be considered.

All the inquiries in the questionnaire will be near ended. The questionnaire design is unbroken simple, consecutive forward & A ; it is ensured that no industry based slangs are used so that a layperson can understand & A ; respond to it. This increases the chance of roll uping echt & A ; precise informations from the participants. Furthermore, to increase echt consequences the focal point was to guarantee that the individuality of the participants or organisation is non disclosed, as this research is anon. questionnaire based.

Research Participants

The questionnaire-based survey will be conducted with five 100 “ on-floor ” or “ frontline ” employees, directors, trainers & A ; HR personals across six call Centres. The houses included in the research are planetary outsourcing leader located in India which established their operations in India after 2000. Most of these units are based in and around New Delhi ( NCR Region ), the capital of India.

All the take parting respondents are employed in the houses that serve abroad clients. The major focal point will be on the “ frontline ” representatives & A ; squad directors. The ground for taking them will to acquire indifferent position of their overall satisfaction with organisation and to brood the purposes for the turnover., many new-hire employees leave during the preparation or merely after that, therefore their trainer ‘s positions are critical to the rating procedure and hence, developing squads will be considered. The directors & A ; HR personals provided the positions on operational challenges that contribute to high employee turnover rates.

Datas Analysis:

The empirical survey reflects & A ; analyze on the responses collected from participant. Finally, a comprehensive consequence of primary informations is gathered analyzed against the literature to show the major factor taking to high employee turnover rates in Indian BPO industry. Primary research is of import to formalize the assorted turnover theoretical accounts surveies. The primary informations collected through questionnaires and validates the determined consequence i.e. root causes of abrasion in Indian BPO industry against the empirical literature collected through secondary informations. The consequences will show numerically every bit good as diagrammatically in the signifier of pie charts.

Restriction of Research:

There are some restrictions attached to the primary research. The questionnaire is emailed to participants and their involvement in questionnaire is important, else the responses will be obscure in nature. It could once more be possible that equal figure of responses has non been able to be collected ; due to assorted factors such deficiency of involvement, clip & A ; equal cognition of industry as a participant could be a freshman. This can finally cut down the sample size. The greater sample size provides a clearer image. Other restrictions could be experience of the participants, which may change from single to single and can take to miscellaneous consequences. It is besides possible that certain facets related to the subject which could hold do a difference to this research were missed and have non been included in the questionnaire.


It will foreground the major factors impacting the industry based on primary and secondary research. This will besides include qualitative and quantitative facet of research. In this subdivision I will seek to discourse all the inquiries formulated within the questionnaire and consequences obtained. It will be an in depth analysis of the consequences obtained and importance of the inquiry.


This subdivision will underscore assorted steps that an industry can take to understate the impact of challenges. The consequence of the informations collected, will assist us to explicate the suggestions for the industry based upon assorted employee occupation satisfaction theoretical account, which I will be analyzing during my primary research.


Employee turnover can be a affair of edginess, particularly in todayaˆYs concern universe ( Zarling, 2006 ). It has been found that the costs associated with turnover, which includes recruiting, preparation and other productiveness losingss could be more than 5 % of the full organizationaˆYs running costs ( Waldman, Kelly, Aurora & A ; Smith, 2004 ). The significance of turnover is besides highlighted in the wide research done on employee turnover in organisations ( Hom, Griffeth & A ; Sellaro, 1984 ; Hom & A ; Griffeth, 1991 ; Mobley, 1977 ; Price, 1977 ; Steers & A ; Mowday, 1981 ). It can be seen from many turnover theoretical accounts that displeasure with the current occupation and the handiness of other occupations are the main grounds for turnover. Therefore I consider it as great inquiries which still need to be addressed in developing states. The result will non merely give a bigger position of the image but will besides assist us to happen reply to the originating inquiries.


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