www.skpcrossborder.com April 25, 2004
Your eye to India-centric and International updates
In the news

Good times calling for International Call centres as DoT permits interconnection

The Department of Telecommunications (D.O.T) has recently permitted the use of common infrastructure for domestic and international call centres. Reputed companies with an annual turnover of above $110 mn or a combined turnover of promoters that exceeds $ 230 mn, can now use the same equipment, switches and bandwidth that they employ to service clients say in the US and UK to cater to domestic customers in the day time.

Earlier, the government objected to permitting a call centre handling international calls to tap the domestic market. The underlying belief was that since such call centre companies are allowed to import hardware duty-free, they should not be allowed to use the systems for domestic jobs. Moreover, there government feared that some call centres could start misusing the linkage between the IPLC and the public-switched telephone network (PSTN) to route non-business long-distance calls for domestic customers.

Our Say

The policy changes would permit Indian call centres to offer a diversified service portfolio, that reduces the cost of infrastructure and increases shift utilisation. The new policy would also help to reduce attrition levels in the industry as agents can be shifted between day and night shifts. All in all the changes will help Indian BPOs become internationally competitive as such policies already exist in countries like Philippines, China and Malaysia.

Also, the global practices and customer service delivery processes that Indian agents are picking up, can be used for the benefit of the Indian consumer. By specifying the turnover of the companies that would be allowed such common facilities, the government has tried to keep only credible players in and avoid the misuse of long-distance calls.

 

The government’s move will now provide greater returns on investment (RoI) for companies that invested in international call centres, but were prohibited from using the facilities for the benefit of domestic clients.

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India could soon be a global Research & development hub

India is set to be the globe’s research and development hub with more than 100 companies from across the globe having set up their research centres in India in the past five years. Among these, the biggest would be GE’s centre at Bangalore whose staff strength will soon increase to around 2,400, from the present 1,600, making it the second largest research and development centre of the company in the world.

India's research and development potential comes from its over 250 universities, 1,500 research and development units, engineering colleges and the world's largest chains of publicly funded research and development institutions, all of which remained under-utilised.

Our Say

Innovations are starting to have multiple geographical and organisational sources of technology, with increasingly differentiated and innovation-specific patterns of diffusion. Research and development in high technology industries- like biotechnology, microelectronics, pharmaceuticals, information technology and new materials- have become highly technical. India’s competitive advantage lies in these high-technology businesses, which in turn would depend increasingly on underlying technical skills of the organisation rather than on particular products.

Added to this is the fact that several leading enterprises around the world are eager to build innovation platforms through multi-sourcing of innovations. The trend is also being fuelled by the shortage of research and development personnel in these countries. Companies, therefore, have to bridge the demand-supply gap in skills by outsourcing, thus obtaining high-quality engineers, scientists and designers.
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In the News
Good times calling for International Call centres as DoT permits interconnection
India could soon be a global Research & development hub

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