www.skpcrossborder.com Nov 2005
Your eye to India-centric and International updates
Interesting Reads

BPOs can service locals during day

In a move that could benefit mid-sized BPOs, the Department of Telecom has allowed firms, with more than 50 seats, to use their infrastructure during the day, to service local clients. So far, they were only allowed to handle outsourcing for international clients during the night, while the infrastructure would lie vacant during the day.

Insiders hailed the move, as the regulation was a deterrent for domestic companies, to outsource their operations to a local firm. By allowing higher utilisation of the same infrastructure, the amendment is expected to predominantly benefit small call centers, which comprise approximately 20% of Indian BPO industry.

The domestic telecom and banking sectors, which were the first to adopt and move to outsourcing, would be the happiest with this move as they are already burdened with rising costs and a greater emphasis on customer relationship management.

Our Say

Bharti Tele-Ventures, Yes Bank, SBI, Pfizer India and HDFC Bank are some of the companies that already outsource services in India. Earlier, it wasn’t commercially viable for Indian companies to outsource their services to domestic call centers since they clearly weren’t willing to pay the same rates as global clients.

This move will propel call centers to aggressively enter tier-II cities, since they will need to service Indian clients with industry estimates expecting the existing number to more than double in the next 18 months.

However, several players have welcomed this move with caution and skepticism- especially since they foresee issues in using the same infrastructure between their domestic and global clients.

Print this ArticleTop
In the News
Government allows 49% FDI in asset recast firms
Home-bound expats drive relocation industry boom

Interesting Reads
Smooth sailing for cruise ships in the offing
Legal outsourcing opportunities for India
BPOs can service locals during day
New realty norms open the door for VC funds

Quick Links
Software product-specific SEZs to come up near Hyderabad
India’s smaller towns attracting bigger stores
SEZ trading units allowed import of duty-free fuel

India Inc
- Investment briefs
Flextronics to invest $100 m for Chennai park
Apeejay eyes plantations abroad
Shoppers’ Stop zeroes in on niche retail formats
Sun Pharma’s Hungary arm to focus on EU, US push
M&M to set up SEZ in Jaipur
ImaGem opens grading centre in Surat
Same Deutz to invest $10 mn
Seco Tools from Sweden to set up EoU in India
Eurocor to use India as hub

Hope you enjoyed this edition of ‘eye to I’
Please feel free to mail us -
-
any suggestions / comments that would help us enhance this e-supplement
-
requests for further information or advice
-
a request to meet
© 2005 SKP Crossborder Consulting Pvt Ltd Email to a Friend | Unsubscribe | Feedback | Disclaimer