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Wednesday, October 17, 2007

Future of outsourcing industries in India

BPO industries are observing the symptoms of weather change in India. According to a study conducted by a private news channel, the youth is anticipating a better career and life in other alternate sectors, like booming retail sector. Remember that night @ a call center, when Vroom lead and saved their extinction from their jobs. But, now opinion leaders like Vroom are opting out to quit US schedules or overnight work hours. US, it defines our fury as well as ambitions. A lucrative income source to economy from call centers is a source of saving money for western economies. That’s the basic of outsourcing and a win-win situation for both developing and developed economies. Similarly, Apparel export industry is a victim of suffering loss through Rupee Verses Dollar battle.

A vital clarification, there is a difference between importing and outsourcing. A premium product having equity and identification sent overseas is exported, e.g. Indian tea, unique crafts like sola-pith, Ponchampalli Sarees (which are also identified as Geographical Indications). But, a specified product shipped overseas in bulk by virtue of lower processing cost is classified as outsourced by the buyer. Apparel Exports and BPOs are outsourcing industries.

Call center or BPO industry, whether they are draining or damaging brains? An identity crisis for having inherited (Indian) and professional (American) names or speaking 8 hrs fluently in the accent for which one’s tongue was molded during his/her training modules.

Similarly Apparel export houses in North India get garments stitched through a rigorous run of 14-18 hrs at stretch. Here, compliance issues are shadowed under TOPSIA FIRE. (Topsia Tiljala belt in Kolkata is known for its leather tanneries and leather goods export business. As discovered, under extremely harsh working conditions surrounded by toxic chemicals, bonded-like labors are locked in factories where they work. A year ago, one such building caught fire and burnt all those who were locked inside.)

If todays symptoms evolve out into vast realities, the probable scene after 5-6 years would be like –

1. Similar symptoms will be observed for KPOs as we see with BPOs. Most of the today’s BPOs would have been converted to KPOs.

2. BPO industries doing well in smaller towns in India, giving opportunities for a global integration of small town youth. Indeed, professionally.

3. BPO industry flourishing in other SAARC countries like Bangladesh, Nepal, Maldives. Whereas today’s BPO business in Pakistan could observe similar symptoms as in India today.

4. In next 5-10 years telemarketers popping up on your mobile could be possibly calling you either from Nepal, Bhutan or Bangladesh.

5. SAARC ionization of Indian Languages esp. Hindi and Indian English

6. More legal immigration of SAARC citizens to India, supporting manpower requirement in outsourcing business.

7. Apparel export houses extensively catering to domestic players in retail.

8. Retailers outsourcing goods from other SAARC and African countries.

9. Boom in FMCG business with the boom in retail. Perpetual growth of mom and pop stores in India.

10. The sub-continent could emerge out as a self dependent eco-system of intra manufacturing and retailing.

RajeevSrivastava