Project On

CALL CENTERSTRANSFORMING INDIA

Submitted To:

DAVE DOUGHTYNBS FACULTY U.K

Submitted By:

ASHISH NIRANJANROLL NO.007 SEC-A

FORE SCHOOL OF MANANGEMENTNew Delhi

INDIA

Business Transformation

Today’s Business World is all about Service to the customers, (24 hrs.

365 days available).

Business is going under tremendous Transformation.

Customers are growing ever more demanding of the services that this

industry offers and in a highly competitive market place, it is only those

organizations who are delivering excellence who will continue to

succeed. This Convention will be offer a crucial learning curve on the

critical success factors which place potential winners in pole position in

the market-place.

Winning Formulae - Is not achieved solely through adopting strategies

which have worked for other organizations - it is achieved through

working with your people and your customers and putting their needs

first - from that winning strategies will evolve and the Convention will

provide a forum for delegates to share knowledge and expertise to help

develop and grow their own organisation.

What is Call Centers?

BOP Business Process Outsourcers (CALL CENTERS)

Companies Outsourcing part Business to other countries in view of low

cost.

Call center is a generic term that covers everything from highly trained

operators responding to telephone calls to outsourcing of back office

work, such as confirmation of airline tickets and processing of

insurance and credit card claims and online solutions,

They are hot, they are happening and they have started dotting the

Indian business landscape. In the process, call centers are attracting a

variety of players - big business houses; small, hole-in-the-wall

operations; foreigners; the serious; the non-serious; the genuine and the

fly-by-night frauds.

According to a recent research report prepared by the International Data

Corporation (IDC), India (today $1.47billion)is poised to register the

highest growth rate in the call center services market in the Asia-Pacific

region during 2000-05.

Present Scenrio: A $1.47 billion sector, 71% growth rate recorded last

year and 336 centers in India

2million Jobs In Six Yrs., Rs. 1,15,200 crores. is expected till 2008

which will be 3% of india`s GDP,

In addition, the study revealed that 65% of the respondent companies

were outsourcing more than one business process

Why Outsource to India?

Availability of a technical talent pool and ample space, presence of a

substantial English-speaking manpower available at low cost, presence

of middle income group, stability of the government, regulatory

environment, employee-transport needs and good quality of

telecommunications infrastructure and time-zone advantages are the

key factors in favour of India.

In order to meet the growing international demand for cost-effective,

customer-oriented call centers, many organizations worldwide are

outsourcing these services from locations like India. India has intrinsic

strengths which can make it a major success as an outsource

destination:

A booming IT industry, with IT strengths recognized all over the

world

The largest English-speaking population after the USA

A vast workforce of educated, English-speaking, tech-savvy

personnel: A boon in a high-growth industry faced with a

shortage of skilled workers

Cost-effective manpower: In a call center operation, manpower

typically accounts for 55 to 60 percent of the total cost. In India,

the manpower cost is approximately one-tenth of what it is

overseas. Per agent cost in USA is approximately $40,000 while

in India it is only $5,000.

Technical support: India graduates about 100,000 engineers each

year. These can be used in call centers for troubleshooting/tech

support as the salaries are dramatically lower than in Europe or

the US.

The Government of India has recognized the potential of IT-

enabled services and has taken positive steps by providing

numerous incentives.

According to the National Association of Software and Service

Companies (Nasscom), the premier trade body of the Indian IT

industry, online services in India are estimated to generate 1.1

million jobs by 2008 and nearly $19 billion in revenue. The call

center business already generates 5.5 million rupees in revenues

and employs 14,000 people in India, adds Nasscom.

The presence of most international technology vendors and solutions

would enable creation of most advanced set-ups in this technology-

intensive segment.

Also Presence of middle calss, growing economy, Govt. wants foreign

exchange,

The attractiveness of India as a preferred location for offshore call

centers has also increased following the recent drop in the the cost of

international leased lines.

India is for client organizations and they deliver quality services at

competitive cost.

IT-Enabled Services Include:

Helpdesk Services and remote troubleshooting of IT-related

queries from clients in the US

Transaction Processing

Accounting Services

Call Centers

Remote Network Management

Service Bureau and Entrepreneur Systems

End-to-end Processing Services with linkage to the parent

company. The entire processing would be carried out in the

facility in India, with a cost quality and service advantage to the

parent organization.

Product Specific Solutions Include:

Risk Modeling

Data Mining

Actuarial Services

Underwriting Variation Analysis Analytics

Business Solutions

Also,

Outsource to India for technological agility, quality, flexibility, cost

control, time-to-market and competitive advantage.

1. India is a talent-rich country: outsource IT talent

2. India exports software to 95 countries around the world: outsource

expertise in global methodologies

3. India enjoys the confidence of global corporations: outsource high

quality brain-power

82% of the US companies ranked India as their first choice for

software outsourcing

Bill Clinton applauds India's brainpower: says Indian-Americans

run more than 750 companies in America's Silicon Valley. "You

liberated your markets and now you have one of the 10 fastest

growing economies in the world," said President Clinton.

Bill Gates says India is an IT superpower: strikes strategic

alliances with Wipro and Infosys to develop applications on the

Net platform

Jack Welch opens $130 million Technology Center in Bangalore,

GE's largest R&D center outside the US: celebrates 10 years of

GE Medical Systems in India.

4. India Offers Multiple Advantages

Outsource to stay competitive. Leading companies worldwide

realize that to maintain stay ahead, they need to reduce costs,

provide the best quality, use the latest high-tech skills, and be

reliable and innovative

Outsource to a mature industry with world-class systems,

systems and quality

Of the 23 software companies in the world that have achieved

the prestigious SEI-CMM Level 5, 15 of them are Indian.

India will soon have the highest number of ISO-9000 software

companies in the world, according to Nasscom.

5. India has state-of-the-art technologies for total solutions: outsource

turnkey projects Offshore assignments have moved up the value chain -

from data entry to large and complex turnkey projects of 200 to 300

person years.

Applications include:

E-Commerce

Business Process Re-engineering

System Migration

Maintaining Legacy Systems

System Integration

CBI Applicant

"India, US sign deals worth US $6 billion"

"India bid to boost to bilateral economic ties, with Prime Minister

Atal Behari Vajpayee in the US, India and the US have signed five

commercial deals worth US $6 billion for projects in power, e-

commerce and banking sectors."

6. IT is a major thrust area for the Government of India

IT is one of the Government of India's top five priorities.

The National IT Task Force submitted its 108 point Action Plan

to promote IT in the country. The Government of India has

approved the plan and is in the process of implementing it.

A separate Ministry of Information Technology was set up to

expedite swift approval and implementation of IT projects and to

streamline the regulatory process.

Information Technology Act 2000: The Information Technology

Bill that was passed in the Indian Parliament in May 2000, has

now been notified as the IT Act 2000. The IT Bill brings E-

commerce within the purview of law and accords stringent

punishments to "cyber criminals". With this, India joins a select

band of 12 nations that have cyber laws.

Software Technology Parks of India offer world-class infrastructure

and various incentives and concessions to encourage foreign investment

and promote software development in India eg 100% Foreign equity is

permitted and approved under the Automatic Route delegated powers to

The Director STPI, tax holiday until 2010, etc.

7. India has a stable government and is one of the world's 10 fastest-

growing economies

Fifty years of democracy

Economy expected to grow by 5.9 percent in 1999-2000

Indian service sector contributes a massive 51 per cent to India's

GDP. Within this category, the most promising is computer

software export, which grew at an amazing rate of 40-50 per cent

every year during the 1990s.

Excellent investment potential: India ranked third in Asia, just

after Japan and China, in terms of investment potential for the

next 10-year period in a study by the Export-Import bank of

Japan.

Privatization of the infrastructure sector

A convergent network is being created by the intertwining of the ISP,

Telecom, VSAT, Cellular and networking sectors. India's large

business houses and Public Sector Units are working towards creating

greater bandwidth availability.

Guide for creating the best Call Center possible for your

organization.

This toolkit is ideal if you…

are starting a completely new call center

are consolidating two or more call centers

want to upgrade your existing call center to a world-class contact

center

are taking over a call center implementation from someone else

are managing a portion of a new call center implementation

have one call center and need to open a second

are looking for a better understanding of the components of an

effective call center

Toolkit Contents

Getting Started

Business Strategy

Processes

Technology

Human Resources

Facilities

Each aspect is described in detail, with tips for your own successful

implementation. Each section includes:

definitions and examples of concepts being discussed

benefits and implementation issues

checklist to get you started

where to get additional information

sample document outlines (where appropriate)

Job Aids

The toolkit includes checklists, guidelines and templates to make sure

that you are on the right track.

Planning Roadmap

Guides you through the key activities for creating a world-class call

center. Map out the sequence of activities:

The strategy that needs to be defined before contact processes

can be identified.

Process and technology elements critical to the success of your

center

HR and facility guidelines to help you create the best contact

center environment

Master Planning Guide The Master Planning Guide is the answer to

the question “Where do I start?” - planning tables and checklists will

help you identify and keep track of the multitude of activities that must

be done to:

get you started quickly

create the strategy and project plan

provide a master checklist so that you do not overlook key

activities or areas needed for your center

HR Policies : Human resource is the first & foremost point to be

considered HR Dept. should have answers of all the questions asked by

management or by company`s employee.

What to outsource to India?

IT Services

Software development services

Application development and management

Re-engineering

Conversion and migration (across platforms/ languages/

versions)

Data warehousing and mining

Embedded systems

E-commerce applications

Data Entry

Data control audits

Regular reporting of work systems

Data entry software and validation tables

Dispatch of data to the customer

Double keyed data (when required by the customer)

Proof checks

Programming

C, C++, VisualC++, Java, Javascript, Java Beans, Java Server

Pages (JSP), Enterprise Java Beans (EJB), ASP (Active Server

Pages)

Visual Basic

Microsoft Access

Novell Networking

EDI and Integration

Bar Coding and Hand Held Data Collection

DOS, Windows 95/98/2000, Windows NT

Business and Industrial Systems

Support of spreadsheets, word-processing and various 3rd party

applications

PC hardware and services

IT-enabled Services Call Centers

Help Desks - Electronic and voice help desk / Event tracking

software

Bookkeeping or clerical support

Data entry, word processing, mass e-mailing inbound and

outbound communications

e-mail services

Tele-servicing

Telemarketing

Business Process Outsourcing (BPO)

Enterprise Management

Supply Chain Management (SCM)

Customer Relationship Management (CRM)

Back-Office Operations

Accounting: processing accounts payable, accounts receivable or

general ledger

Payroll

Inventory

Hardware maintenance

Internal auditing

Benefits management

Benefits administration

Health & Welfare administration

Defined Contribution/ Defined Benefit administration and

customer service

Health claims administration

401(k) plan record-keeping

Human resources

Asset management and staffing - supplement your existing e-

business staff - access both management and technical assistance

on a long term or monthly basis

Infrastructure

Communications and messaging

Upgrading and configuring message management software

Launching an XML strategy

Integrating e-business messages with CRM, ERP and legacy

systems

Managing change as your e-business programs and business

systems evolve

e-business operations

management and day-to-day operation of EDI infrastructure

creation and management of a new XML strategy

e-marketplace development

ERP integration

communications monitoring

trading partner management

order processing

workflow enhancement, evaluation and benchmarking

application hosting

system implementation and integration

system maintenance

upgrades

backups

disaster recovery

Communications and Networking

Telecommunications

Computer telephony

Internet telephony

e-solutions

Media and Entertainment

Advertising

Film-making

Animation

Printing and publishing

Consulting services

Photography

Web Development Services

Portals

e-commerce consulting

e-business IT consulting

Domain registration

Website design and redesign

Website promotion

Web-enabled applications

Website maintenance

Web hosting

Operations

e-marketplaces

web applications

XML and EDI operations

implementation assistance

security administration

monitoring data traffic

generating activity reports

troubleshooting problems

creating any necessary maps

system support

help desk

Relationship management

Customer Care Services

customer acquisition

customer activation

customer retention

cross-selling/up-selling

inside sales

surveys and polling

Community Management

Managing your ongoing partner relationships

opening e-business channels with new vendors and customers

meeting with partners

defining e-business requirements

establishing the rules of play

educating them on benefits, security measures and day-to-day

procedures

Medical Transcription

Patient history and physical reports

Clinical notes

Office notes

Operative reports

Consultation notes

Discharge summaries

Letters

Psychiatric evaluations

Laboratory reports, x-ray reports and pathology

On-site services

On-site assistance

System setup and testing, software installation

Preventive maintenance

Communications and network testing

On-site and depot hardware repair

These are just samples of several outsourcing services that are available

in India.

General Problems

Setting up a call center - and running it profitably - is not everybody's

cup of tea. Skeptics point out that the large number of call centers

mushrooming all over the country is yet another manifestation of the

Indian businessman's fascination to cash in on the "flavor of the

month". Some time back, it was non-banking finance companies,

followed by courier companies and dotcoms, and then cyber cafes and

broadband service providers. But, as it inevitably happens in such

cases, soon there is a shakeout and only the serious survive.

There are other obstacles too. Adherence to top flight quality is a strict

requirement - something not many Indian players can meet. Properly

understanding the culture and language of the clients is also a key

necessity and hence the best key centers are being run by executives

who have had some kind of working exposure abroad. The working

environment at the local outfits has also to match international

standards and many Western clients have been known to personally fly

to India to inspect the working area, cafeteria and recreational facilities

before signing the all-important contract.

"Just because India has lots of English speaking people, it does not

follow that running a call center is child's play," points out IT

consultant Louis Rolston. "It is not easy to get Indian college kids to

speak in a way that Americans can understand. You also have to

constantly re-train them because if they are worth anything at all, they

will be snapped up by someone else."

And yet, India will remain a key hub for the business, be it serviced

only by the serious, long distance runners.

HR Problems

BPO Companies grapple with manpower optimization: Maintaining

an optimum level of manpower utilisation in BPO(business process

outsourcing)outfits is proving to be difficult. If it was longer sales

cycles earlier,its lack of strong customer references, marketing

expertise and a front end in the international markets that is preventing

BPO firms from maintaining healthy manpower utilisation levels of

70% and up. Costs associated with the human resource account for

roughly 30% of the total cost in a BPO outfit and with the current rate

of attrition hovering around 40%,companies would have to utilise their

manpower efficiently if they have to be competitive. The unbelievably

high growth rates reported by most BPO firms are not likely to last.

Analysts say the increased competition and inability to utilise available

manpower and capacity could impact revenues per seat.

According to estimates gathered by the Indian Express, Bangalore

alone needs more than 8,000-call centre and other executives every

month but what’s available is no more than 2000. Indeed, the attrition

rate in Bangalore BPOs nears 30 per cent, though many companies’

report 60 per cent new workforce every year. While raw graduates need

to be expertly trained--changed accents and names are just the start--the

high pressure environment, repetitiveness, night shifts and cultural

dislocation has become a cause for concern.

Many work partime in call centers,

People are not seeing a stable future plus after some time job looses its

charm, High Health Risk,

Young generation is very moody, they generally follow trend, also very

influenced by friends.

#In such a situation role of Human Resource Policies & Implications of

its strategies play there very very important part.

HR Dept. need to concentrate on Various fields;

Manpower Planning :- In a business world people are very indifferent

Its very hard to judge a person in a single eye, & if a non productive

man is recruited or HR Dept. fails to motivate & directs the persons

efforts, results could be disasterous. In India for such a situation we use

a phrase which means "A bad fish make whole pond polluted in no

time."

According to Geisler "manpower planning is the process- including

forecasting, developing & controlling- by which a firm ensures thet it

has the right number of people & right kind of people at right place at

the right time doing work for which they are economically most useful.

Manpower is not same for everybody & for every level. They can de

differentiated by

National

Sector-Wise

Industry-Wise

Individual unit-based

Culture-wise

Social Enviroment

Firstly,

Recruitment of desired & focused work force with:

Integrity & Honesty with in themselves & to the organisation.

Enough & Can be Motivated

Believe in Team Work

Flexibility with in them & can easily adapt to the working

enviroment

Least Absenttism

Healthy (Should not having any typical diease)

Willing & Acceptable to improvement

Good communication Skills

Mock presentation be taken

Employee Sensing

Other Quality,

Secondly,

Training to be given to the Recruited workforce & Presently Working

groups

Basic Training to be given to all

Every employee should be briefed about the Training modules

See the Training Opportunity need & Seriousness

Refresh & Project wise training

Make the Training more lively, measureable, & result specific

Eliminate un-relevant part from training

Close monitoring & prepare a performance chart of every

employee

which will help in finding the need of training.

Training by highly professional people.

Done in proper coordination

Tarining should designed in a manner that it should seek

employees` participation. Plus bring Sense of Belongingness in

the employee to the Organization.

Complete the training with a good note.

Thirdly,

Selection of the right person for the right job, or job disribution.

According to performance Rewards be given

A complete programe outline is to be developed with a great care

& in accordance of requirement,

Time-to-Time Rewards for outstanding performers

Close analysis & evalution of Job, Seeking the right person for

that Job.

Determine Grades

Clear & Easy to understand Salary structure, Rewards, Cut-off

points

Proper Salary Admin. Dept.

Communicate the final programe to employees & managers.

Fourthly,

Build & check on Commitment. Most responsible task assigned to HR

Dept is to get the commitiment of employees. Following is the best way

to motivate an employee to be Committed to the Organisation.

Accroding to Martin & Nicholls the 3 Pillars of Committed workforce

are :-

(1) Sense of Belongingness to the Organisation

This for the employees & can be achieved by

(a) Informing

(b) Involving

(c) Sharing the Success

to the People

(2) Sense of Excitement in the Job

(a) Creating Pride

(b) Creating Trust

(c) Creating Accountability for results

in the People

(3) Confidence in Management Leadership

(a) Exerting Authority

(b) Showing Dedication

(c) Displaying Competence within the People

Fifthly,

Today`s world nearly can be achieved being an individual One has to

work in a Team in nearly every part of life. People achieve big goals by

proper coordination of employees or in a single word Teamwork.

If team puts its efforts one tends to cooperate. Teamwork is best way to

motivate a group towards Organizational Goal.

Requirements of effective Teamwork.

Commitment of team as whole

Competence

Character

Control

Collaboration

Effective & Complete Communication

Coordination

Creat Innovation

Consequence

No Cultural Barriers

Sixthly,

One of toughest yask assign to HR Dept is to Build & Boost up Morale

of employee, & take them to an effective Motivational path. If the work

place is charged with high Morale & Motivation productivity increases,

every hindrance can be overcome in no time. One motivated person can

motivate many.

HR Dept needs to bring trust towards organisation within the

employees Once trust is established them building up morale &

motivation can be done in no time.

Rewards can also be motivating put temporary.

Behaviour of Seniors & Subordinates also influence motivation &

morale.

Good policies & implications can be a good motivator.

These days every working or non working man is a victim of Anxiety,

Irritation, Depression, Mental fatigues, Short temperness many more.....

This all is happening because of work pressure, society pressure etc..

or in a single word STRESS.

A major challenge for HR Dept is to manage such behaviour of people

& this theory is named as Stress Management:-

Employee in a Call Centre are normally working under stress, of shift

working (Graveyard shifts), Continuous exposure to computer & other

harmful radiation devices. There social life got restricted to there

colleges no interaction with the outer world left, very monotonous

working style. All these contributes to Stress to an employee. And

countering all this need a through study & implication of certain

scientific remedies. Some of the suggestion are Yoga, Meditation,

mental games, good healthy food, Library, Extra curricular activities,

Providing physical work out games,

a doctor all the time etc.

A Zestful & Healthy Environment in an organisation can bring

wonderful results.

Problems to India:

Nothing in this world is without a problem nothing is perfect in this

world. Call Centres brings many problems to indians some of them are

discussed above, few more I would like to take Invasion of call centre

brings money to India but also Erosion of Culture is taking place many

youngester are losing there Values, also behavioural changes are taking

place in Call Centre professionals, no interaction with the family left,

forget interaction.

Education level in India is decreasing like In Delhi University there are

70% students taken admission are outside Delhi this Year (Toins)

young generation in metropolitans are just running after money.

Youngs Male or Female are getting more into the habits of Drinking

wine & beers, smoking, falling into the trap of Narcotics.

India is known for its sacred Values & Rich Culture In the rest of the

World, But its all been gettin into mud.