New Challenges for India's BPO

Filed in archive Outsourcing Advisors on August 26, 2007

One of the things that you could expect from growing industries particularly with BPO would be the countless number of challenges that it would have to face even though it had reached "stability" of some sort.

This news article already mentioned some of the things which I mentioned before as the things to face when outsourcing in India. Some of these challenges includes the growing rate of rupee against the dollar, possible low profits and the shortage of available workers in India. Aside from these things, the article also mentioned some other challenges particularly in HR Management. Here is an excerpt from the news piece:

Industry leaders who are setting best practices in Human Resource Management and retention actually pay less than the laggards and are leveraging effective people management practices rather than higher compensation to keep their teams intact. And finally, a reaffirmation of a feeling that most industry watchers have had-captive BPO units average a cost level which is 37 per cent more than third party processors even though the best in class turn in cost data, which is less than the figures of the best third parties.

Of course, most of these findings are based on logical research. Companies that are sure to face these challenges should be prepared and knowledgeable so that they would be able to turn around these disadvantages and make it work for them.