Loading ...The P@SHA-PSEB BPO conference which was held on the 11th of May, 2009, had an analyst from McKinsey & Co – Here is the video of Faraz U Khan, giving his presenation packed with facts and figures about BPO in the region. Faraz was here at the express invitation of TRG, also one of the main sponsors of the event.
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An example is given in the above presentation regarding Aegis. The view for practitioners can be different. In a series of benchmarking studies that I recently conducted of how leading call centre companies handle their own new clients, Aegis was found to be stumbling badly.
The first impression that a call center entrepreneur should have from looking at Aegis is “We can do better.” This is analogous to seeing a famous person’s drawing or painting and realizing that it is easy to do such things better, even if one has never drawn or painted before.
In the results sent to Aegis, two outfits were identified whose sole business model is to siphon customers away from Aegis. The reaction of the promoters and managers of the Aegis call centers? Couldn’t be bothered.
The example given in the presentation of FirstSource is entirely different. The experience of placing voice work at one of their facilities was so well handled that it would make sense for competing companies to recruit FirstSource managers for their own operations.
At FirstSource, the program manager quickly became engaged in the sales process, building confidence and speeding process migration.
One factor contributing to FirstSource’s productivity is a relatively diverse workforce.
Omitted from the conference presentation above is a mention of the failure rate of call centre and BPO companies in India, where InternationalStaff.net’s data shows that only 10% of the companies in operation in 2001 were still intact in 2005. That success rate has since fallen to 5%. It is important to examine the causes of failure so that they can be avoided.
Also omitted from the conference presentation is a mention of significant new client-side reluctance to outsource—anywhere. Several of my colleagues who work as outsourcing project managers have come out with statements over the last six months saying “don’t outsource.” Their reasons have to do with siloing and the cutting of bi-directional communication once work moves. A smart outsourcing services provider could use social media tools to build communication ties and compensate for issues of remote operations.
The above presentation’s data on turnover is over simplified and misleading. It omits issues of internal turnover, which can be more damaging and more frequent than external turnover. It also ignores the plethora of examples of U.S. call centers where turnover is less than 20% per year. Hiring and management practices lead many Indian facilities to have turnover rates in excess of 100% annually.
Once the economic downturn reverses in 2010, many Indian companies will have difficulty recruiting. Some will look to set up operations in Pakistan. Unless Pakistan’s ITeS companies can increase their marketing capacities, we can expect most of the profits from call center and BPO operations in Pakistan will eventually accrue to foreign companies.