India to face manpower shortage in BPO sector

By siliconindia staff writer   |   Tuesday, 07 June 2005, 19:30 IST
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BANGALORE: Manpower shortage in IndiaÂ’s high potential, high-growth ITES-BPO industry by 2009 is estimated to be 262,000 people, officials said today. ITES-BPO employee base has grown at a compounded annual growth rate of 52.6 percent, from 42,000 in 2001-02 to 3,48,000 in 2004-05, according to NASSCOM estimates. According to NASSCOM (National Association of Software and Service companies), ITES-BPO exports recorded revenues of $ 5.2 billion in 2004-05, a growth of 44.5 percent. The industry body has forecast these exports to grow at 41 percent to reach $7.3 billion in the current financial year (2005-06). At the two-day India ITES-BPO strategy summit 2005 which commenced here today, Planning Commission's Member-Secretary Rajeeva Ratna Shah pointed out that manpower requirement in India in this sector is expected to be 1 million; the workforce would fall short by 262,000. Noting that human resources is the key factor in this industry, Nasscom President Kiran Karnik said an assessment and certification program would be rolled out on a pilot basis soon create employable talent pool with benchmarked-requisite skills, and architect an effective "assessment and certification framework." Because of demand-supply mismatch, there had been "unwanted" salary growth in the sector leading to questions being asked in certain quarters as whether this would be sustainable, Karnik said. "Root cause is the shortage of adequate number of people with right skills," he said, adding, the certification program would enable spread the net much wider to attract people from all over the country, compared to the present scenario of only cities and nearby areas contributing manpower. Nasscom would also shortly unveil an assessment and certification for frontline management with the objective of comprehensively addressing the development needs of the frontline managers of the ITES-BPO industry, he said. "One of the key gaps being faced by the industry is the low level of expertise at frontline (lower-middle) management, in managing and sustaining an ITES-BPO operation. The inexperienced middle and frontline management is one of the key causes of attrition," he said. Karnik also said that NasscomÂ’s initiatives are directed towards making India as a trusted sourcing destination to proactively address customer and regulator concerns about data security and privacy. NasscomÂ’s is exploring the concept of a national skills registry of IT employees in this industry. "This would operate on a shared services model and will be administered by a credible third party. It will respect the individuals right for privacy and confidentiality," he said. According to him, NASSCOM is also advising actively the Ministry of Communications and IT to introduce the required amendments in the existing Information Technology Act.

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