People Play a Key in Productivity Enhancement in BPO

It is important to focus on addressing people's issue in a BPO set up in order to reap the benefits of enhanced productivity. One of the major edges that India offers as a destination for offering remote services in the BPO space is the huge availability of good manpower at lower prices. But if we are not able to keep the manpower happy and motivated we could lose out on that edge, warned experts. This was the conclusion that came out at the BPO seminar organized by leading communication magazine Voice & Data.

Among the numerous manpower issues that the industry is faced with is the huge attrition rates, which is currently at 40 percent. This attrition rate is still lower than in developed countries, which stands at over 80 percent. However, there is concern that the rate of attrition is steadily increasing. What's more is that earlier the attrition was within the industry, however the attrition rate outside the industry has steadily gone up. These are areas of concern, which the industry should address. Besides, it is time for the industry to chalk out a long-term manpower development plan for the sector.

Speaking at the seminar, Datacraft Asia CIS Division General Manager Chris Dew said that since workforce cost contributes to around 50 percent-70 percent of the total cost in a BPO set-up, it is important to contain the attrition rates. Having the employee for a longer duration with the company means higher Rate on Investment (ROI) from the employee. If the employee stays with the company longer, chances are that the person has a better knowledge base, leading to higher productivity and better customer satisfaction. This would lead to increased profitability and reduced cost to the company.

CEO of India Contact Center Advisory Shiv Karan Singh pointed out the need to have benchmarks in all aspects of operations for enhanced productivity. Benchmarking in processes, people management and systems, etc. help the client, achieve higher levels of satisfaction and thus increase business returns. Giving an overview of the global economy and positioning India's BPO services in it, Alan Carroll, Executive Chairman, Caroll Partners International Pacific Rim Forum said that India was favorably placed as an outsourced destination because of the dynamics of the world economy. India being placed in a different time zone is another factor hugely in favor of the country as companies compete to gain an eight-hour advantage over competition through such centers spread across different time zones.

(Cyber News Service)