Sunday, May 20, 2012

What makes Noida preferred BPO destination


With the BPO sector logged in as the fastest growing industry in the country, companies are looking for greater talent pools and locations to expand their operations. According to industry estimates, around 2.5 lakh jobs will be created inIT-BPO sector alone. A hot destination for establishing BPO business due to various reasons, Noida seems to be all geared up to support the seemingly unstoppable growth of the sector. 

Noida is already the fourth largest destination for BPO industry in India with more than 400 IT-BPO companies. In 2008, Noida accounted for 8.6 per cent of the total IT-BPO exports. According to recent data, this industry in Noida created 1.3 lakh direct and 4 lakh indirect jobs. Though there are problems like shortage of power, talent and poor infrastructure, which act as an obstacle, companies have a host of other reasons to establish business in Noida. 
Why Noida?
"The reason why we have set up our company here is that the real estate prices are low as compared to other leading IT-BPO destinations. Also, the low cost of operations make Noida an ideal destination for BPO companies," said Pavan Bagai, president and chief operating officer, EXL. 

The Nasdaq-listed company, approximately employs 18,900 people globally, of which close to 15,000 are in India. The Noida-based BPO EXL Service Holdings Inc, reported a 43 per cent rise in its first quarter revenues to $105 million, up from the same period last year, backed by an increased cash flow from numerous acquisitions. 

"Noida has a rich talent pool, sound infrastructure and its connectivity through Metro within NCR is very good. All this attracts investors towards this place," he added. 

The popularity of Noida among employees is as much but due to some other reasons. "Like me, many people from North India come to Noida and Greater Noida in search of jobs," said Parvesh Kumar, an employee with Vcare Corporation. "It (BPO) is a growing industry that can absorb people in hordes, people readily move here in search of livelihood. I have been working with this company for the past seven years and would like to continue in this industry for the rest of my life." 

BPO-specific education model
According to Nasscom, facilitating the development of BPO-specific education model would increase employability and tap talent pools. Also, as the report mentions, this would help in capturing the huge addressable market of 280 billion in the next five years. 

"It's not only about BPO industry, it's true for all professions. Be it engineering, medicine or any other profession, you need to be presentable. So, either after class 10th or 12th, students should be given an opportunity to develop their soft skills. Also, there should be some kind of short term course, if not full time, to train people according to the requirements of this industry," said Mr. Kaveesh Kapoor, Chairman, Thee Zorba Outsourcing Pvt Ltd, a call centre which has 70 employees in India and an annual turnover of Rs 1.25 crore. 

People working with BPOs feel that time has come when students should start looking at this industry as a career option. "My career in this industry was unplanned," said Abhishek Kumar, an employee with EXL. 

"I joined out of compulsion to work in a big city but I have found in the past two years that it is an industry which is growing at a very fast pace. We have courses for engineering, medicine, IT etc. Similarly, there should either be full time course or training programmes for BPO industry. Some sort of training before people enter this field would take this industry to a new level," he said. 

Training modules
Training will help people in deciding which way to go. "Though both belong to the same industry, requirements for a domestic BPO is different from an international one. Since these two cater to two different cultures, a know-how of technological skills along with the ability to deal with the people of different cultures becomes a must. Also, people working here should be able to cater to different temperaments of individuals and should have the appetite to listen to the problems and solve them," said Jay Singh, who after working in the BPO sector switched to IT. 

"Training will help people decide whether they want to stay here or move to other sector as many people switch in a short period of time due to wrong decisions," he added. 

"I have been running this company for the last nine years and I have seen that those who are not satisfied with their management, medicine or other jobs join BPO company to earn big bucks. Structuring a course specifically for this industry will make this sector more systematic and give stability to employees," added Mr Kapoor of Thee Zorba Outsourcing. 

Doctors, engineers and lawyers are also moving in this industry as it is growing day by day. "We recieve applications from both experienced professionals and freshers. We have hired people who have BPO experience as well as from other sectors. We have employees from diverse professions such as management, accountancy, medicine, law," said Mr Bagai. 

Infra woes
If talent shortage is one problem, lack of supporting infrastructure is another. Power shortage, law and order and women safety are major issues. "It is human tendency to crib about things and it is happening in Noida. We have the best infrastructure in the country. Industrial township of Noida and Greater Noida are well established and we have provided everything for the smooth functioning of the city," said Mangal Sen, General Manager, Noida Authority. Talking about the law and order situation of the city, Mr Kapoor said, "Fault lies with the people as sometimes people engage in unwanted activities and later blame the government," said Mr Kapoor

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