Phil Fersht of AMR who attended the recent Nasscom BPO meet at India has couple of reports up below is a summary of his takeaways from the Keynote ( A View From NASSCOM, Part 2: India Building a Full-Scale Services Industry)
Between the Indian outsourcing providers, there is a genuine spirit of collaboration to create a robust environment for India
Som Mittal (Nasscom President) talked about India’s resourcing issues: companies across different industries are now competing for the same talent. He discussed how 85% of the country’s outsourcing services are delivered from seven main cities. Even if companies achieve a split of 60-40 between the Tier 1 and Tier 2 cities by 2018, this still represents a 250% growth for the Tier 1 cities.
Ganesh Nataraj (CEO Zensar) stressed the prime need to focus on developing infrastructure and education reforms for the country’s 700 million people living in the villages and Tier 2 cities, which will provide future sustainability for their industry.
Mr. Bhasin (CEO Genpact) mentioned that wage inflation was now under control, citing a 10% to 12% increase on a $4,000 annual salary being far preferable to the same increase at a much higher wage.
Industry Transformation - "In the long term, business process outsourcing is going to be more focused on providing customers with supplemental managed business services that augment existing functions. There will be less focus on immediate staff displacements and short-term, cost-cutting quick fixes, as companies become more experienced with adopting more customized, knowledge-based services and look to make less dramatic transitions to them. Mr. Bhasin is correct: we are seeing a distinct transformation in the way BPO services are being utilized."