12th September 2007

Indian outsourcing Industry : Shortage of Skilled Workers Could Mean Losing Jobs

The shortage of professionals and skilled individuals are as a posing threat to the India’s outsourcing industry. The number of the call centers and the other kinds of offshore organizations are coming up at a fast speed, but the human resource or the employees come to be short in its comparison as most of them are found to be unemployable.

Main deficiency seen in majority of the educated people in India is their poor English. Even the well qualified and experienced people fail to have good hold on spoken and written English. A common example is that they tend to say “hello, how are you? I am in the well and hope you are also in the same well.”

Suggested solution incase of language problem is to hire more experts in English or if possible, get help of a U.S. native to edit the English text on your web site. Although, your site may contain technically correct English, it probably will not read correctly to potential U.S. customers. This could cause potential customers to feel uncomfortable with your future ability to communicate with them regarding a work project and make them disinterested to work with you.

India employs about 350,000 people in the outsourcing industry and adds 150,000 new jobs each year. But filling those vacancies is proving to be a nightmare. At this moment, the industry needs to hire around 9,000 people but can’t find them. This crisis is expected to go even worse in the coming times if the language is not focused.

If the industry fails to recruit workers at reasonable wages, India will lose orders to countries such as the Philippines and China, according to Nass Com. With half of its 1.2 billion people under age 25, how can India possibly be short of workers? The problem is not quantity but quality. Many of the 3.6 million graduates churned out every year by Indian universities are considered mediocre.

The fact is that only about 10 percent to 15 percent of eligible workers are fit for employment in the off shoring industry. Fluency in English apart, employers complained that graduates lacked computer skills, the ability to reason clearly, solve problems, think critically, analyze, work in teams and think creatively.

It is hence concluded that India needs to concentrate on it short comings in order to remain up in outsourcing industry.

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12th September 2007

Hero Group acquires Scotland call centre firm

Source:www.hindu.com

Indian conglomerate Hero Group has acquired Scotland’s biggest call centre firm Telecom Service Centers (TSC) for an estimated 81 million dollars, UK media reports say.

Following the deal, TSC, which has more than 3,000 employees, would be merged with HeroITES - a call centre subsidiary of Hero Group. The new entity would be known as TSC Hero.

According to a UK daily, the deal would enable the merged business to offer customers a multi-site solution, increasing its market potential and growth prospects in its core markets of Europe, Asia and the US.

“We firmly believe there are aspects of the industry that can be handled offshore and we already have experience of working relationships with companies in India and South Africa. Now we will be able to offer a greater offshore capability which will be actually be part of the company and managed by the TSC team,” Chief executive of TSC Ken Hills told FT.

Founded in 1994, the clients of TSC include Vodafone, Hewlett-Packard and HSBC.

The Gurgaon-based HeroITES offers outsourcing services in the voice support, email services, technical support, finance and accounting BPO.

The HeroITES deal marks the end of the involvement of LDC, the mid-marker private equity firm that provided investment for growing the TSC business in 2003, as per a report in another UK daily Telegraph.

It added that HeroITES would not be the first Indian outsourcing firm to run UK-based operations. Both HCL and First Source have large contact centres in Belfast, employing thousands of staff.

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