November 10, 2008
The New World Trade Order Under President Obama?
The most exciting and historic election campaign has just ended and Americans have elected their first African-American President. This election has attracted an unprecedented attention from the rest of the world who looked at this as a watershed in America’s role in the world repelled by Bush’s unilateralism and interventionist policies which unfairly made the world perceive America as arrogant yet incompetent despite being the world’s only remaining superpower. Many, including this writer, doubted whether America has changed enough to elect a black as its President. Well America delivered and at least for now, seems to have regained the world’s respect and affection.
August 28, 2007
BPO will boom, say insiders
Although there is constant threat to the BPO industry from
the emerging markets, India will continue to remain strong
Business Process Outsourcing (BPO) has been the most adored
mantra for employers and employees, many of whom are fresh
college graduates from Bombay and other cities. Many
international companies outsource business to other countries
where the labour is cheap.
Call centre jobs such as customer servicing, accounting,
software assistants and even medical transcription are all
outsourced to Tier one cities like Bombay, Delhi, Madras
and Calcutta because of the comparative low labour cost.
The reason India has been attracted in the outsourcing
business is because of the fairly large English speaking
population and highly skilled labour force. However,
countries like China, Philippines, China, Mexcio, Taiwan,
Malaysia and South Korea are not lagging far behind.
As India emerges into the world global market, there is
a constant threat in terms of outsourcing jobs slipping
away from India to overseas countries. Like Sunil
Chandiramani Partner and National Director of Global
Advisory Services of Ernst and Young BPO said, “Emerging
countries like China and the Middle East are entering the
BPO industry but there is no doubt that India is the world
leader for now. Nevertheless, when it comes to the BPO sector,
everyone wants the piece of the big pie.” Chandiramani futher
added “As long as cost equation is similar, emerging markets
will pose a threat to India.” Even Vijay Mukhi who runs
Computer Software Training Institute and is the author of
many IT books said, “The only thing affecting the BPO industry
in India is the raise in salary.” Chandiramani suggested,
“Macro economics in terms of cost competitiveness is imperative
because if we loose in price advantage with the emerging markets
and the rupee keeps on appreciating as it is doing now, then
India might face problems in sustaining the BPO industry.
”Conversely Mukhi said, “India has been ahead of the game in
servicing whereas China has been more geared towards manufacturing.”
Therefore as long as companies expand in areas such as legal
outsourcing and enter Tier two and Tier three cities such as
Hyderabad and Banglore, upgrade their skills while scale up
and maintain quality, then India will head the BPO industry.
”Furthermore, Chandiramani said, “The BPO industry will
continue growing for next seven to ten years and even if there
might be a fall it will only fall by 1-2 percent. The industry
on the whole will not get affected as long as the standard and
efficiency is maintained. Moreover the Indian government is
also very sensitive to the issue. The Chinese will take a
long time to become versatile in English in terms of thinking
in English.” Lastly, according to Mukhi, the next booming
sector for India to emerge or expand in will be High End Business
Process Outsourcing and Research and Development.