Industry News: INDIA
This is where admin uploads all the latest news with regard to the outsourcing industry
When the British were finally expelled from India in 1947, driven out of a country scarred by decades of imperialist rule, they left at least one parting gift: a linguistic legacy that has formed a crucial ingredient in the country’s economic miracle.
English proficiency is hailed as an invaluable foundation in India’s rise to the top of the world’s information technology and knowledge outsourcing industries, fuelling the country’s rapid growth with billions of dollars of business every year and streams of overseas investments into global IT centres such as Bangalore.
Nine-year-old Chinese pupil, Sun Minyi, listens to his teacher during a special English class at Chongming county, north of Shanghai July 12, 2002. REUTERS/Claro Cortes IV
But, as Asian rival China surpasses India’s English proficiency rates for the first time, that advantage over other developing economies looks to have been squandered.
China was ranked one place above India in Education First’s 2011 English Proficiency Index, released last month, the first time India has been beaten by its neighbour and fellow BRIC economy in the international rankings of foreign countries English-speaking abilities.
“It appears that China is poised to surpass India in the number of English speakers in the coming years, if it has not already done so,” the report said.
The implications for India’s future IT and outsourcing prospects aren’t difficult to calculate.
“For the past six decades, India has been coasting on its colonial legacy when it comes to English. But without the systemic changes needed to ensure greater penetration of the language, the advantage has been shrinking,” the Times of India, India’s biggest-selling English newspaper, wrote in an editorial on Tuesday.
As Chinese authorities ramp up English teaching in schools across the country, looking to tap into a growing international outsourcing and IT market, India’s public education sector has been criticised for poor facilities, falling standards and a lack of government support.
“More than ever, English holds aspirational value for the average Indian who views it as a ticket to economic betterment. But on the supply side, both the central and state governments have been sadly lacking,” the editorial added.
“It is time they woke up to this particular side effect of the Indian public education system’s moribund state. There are economic consequences in the offing. India’s far behind China in manufacturing, it could be bested as a services provider as well.”
Malaysia, which has mimicked India’s use of English as a language used by no-one and used by all, tops the Asian region for proficiency, and was placed ninth globally in the rankings, assessed using hundreds of thousands of tests conducted across participating countries.
Writes Education First: “To the extent that China is increasingly driving much of the regional economy, its ability to communicate in English will pressure all of its neighbors to keep pace.”
Having blown its headstart, and in failing to meet the Chinese challenge, India now appears to be playing catch up.
ASSOCHAM study reveals talent crunch, soaring attrition rate might push India behind other BPO giantsBy Administrator | Label: INDIA, BPO
New Delhi: India's Business Process Outsourcing (BPO) sector is facing stiff competition from the likes of Mexico, Philippines, Malaysia, China, Canada and Ireland that are posing a grave threat to the growth of India's BPO sector.
The BPO industry is facing serious challenges vis-à-vis shortage of skilled and educated workers as the attrition rate in India's BPO sector has risen phenomenally at the rate of 55 per cent with a significant visible movement in mid and senior management levels, according to an industry specific analysis of the Associated Chamber of Commerce and Industry of India (ASSOCHAM).
"Although, the BPO sector in India has been very popular since the beginning, as it has opened up plenty of job opportunities and has totted up huge revenue, but the awfully high attrition rate coupled with talent crisis has plagued the sector since the very beginning", said ASSOCHAM Secretary General, D.S. Rawat.
As per the ASSOCHAM analysis BPO-ITes sector has emerged at the top with highest attrition rate of 65 per cent during the course of last two years, giving a serious jolt to India's prospects which was till recently the most sought after BPO destination.
Services offered by the IT/ITes and BPO in the domains of pharma and BFSI (Banking, Financial Services and Insurance) have registered an attrition rate of around 60 per cent. In the domains of retail and IT sector an attrition rate of around 55 per cent has been recorded.
Auto, FMCG, Manufacturing and infrastructure sectors have registered an attrition rate ranging between 45 to 50 per cent. Amongst all the relevant sectors the services offered by the IT/ITes and BPO in the domain of energy sector has recorded an attrition rate of 45 per cent.
"The growing trend of job-switching in the BPO industry might prove to be fatal for the survival and growth of India's BPO sector. Companies these days do not put much focus on enhancing individuals' performance, this might hamper India's rapid ascension on the world economic stage in the long run", said Mr. Rawat.
"Rapid job hops prove to be a disadvantage both for the companies who pay higher wages and those individuals who benefit from higher wages in the short-run, as the rise in package is not keeping up with the rise in knowledge/skill levels of the individuals", added Mr. Rawat.
To establish a substantial lead over competing countries acquiring a larger market share in the BPO sector and to remain globally competitive, India's rising wages must reflect in rising skill levels.
"Rapid job switches amongst professionals have certainly raised the wages but there's hardly any development of expertise amongst knowledge workers which is significant to justify their fat pay cheques globally", further added Mr. Rawat.
If the companies continue to promote job hopping, they would be doing a disservice to themselves and their employees as it translates into huge losses for the company which invests huge amount of money in training new employees.
Rapid increase in job-switching has compelled people to question India's competitiveness in the BPO sector and thus, it is imperative that BPO companies must provide adequate training and work experience to employees, said ASSOCHAM.