IIPM-The Indian Institute of Planning and Management

US Prez Barack Obama may have bogeyed the outsourcing industry yet again; but the $60 billion Indian outsourcing industry still holds a lot of potential, says Rajeev Sharma, Director, OSource in an exclusive interaction with 4Ps B&M

Analysts predict that the future growth of the industry will have to come from entirely new business districts outside Tier 1 and Tier 2 cities. What’s your take on it?
Yes, especially with the increasing real estate and manpower costs in the Tier 1 and Tier 2 cities, it is inevitable that the future growth will have to come from the Tier 3 cities. The compensation levels are much lower there given the cost of living in these cities. The only challenge is getting the right talent in Tier 3 cities. However, with every passing year, the availability of talent in smaller cities is improving.

Staff shortage is a major bottleneck for the industry. How do you deal with it?
Staff shortage and attrition is the biggest challenge for the outsourcing industry in India today. We’ve been managing staff shortage and attrition in our organisation by following the rule of pyramid and continuously infusing fresh talent at trainee level. We also identify excellent performers and reward them by giving them incentives, promotions and awarding added responsibilities as employees should be involved in critical decision making sessions.

How do you expect this industry to shape up in the coming times?
The cost reduction focus adopted severely in 2009 is expected to increase in 2010, which will further augment the demand for outsourcing services in the market. We intend to expand our client base across industries, focusing on process efficiency and improvements delivered through technology enablement.

Neha Saraiya

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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