Nasscom taking BPOs to new towns

By agencies   |   Thursday, 16 March 2006, 08:00 Hrs
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MUMBAI: With the launch of the Nasscom Assessment of Competence (NAC), a national industry standard assessment and competence test, the business process outsourcing (BPO) industry is set to get a boost.

NAC, modeled on the GRE and GMAT tests, would provide BPO companies a reliable mechanism to tap fresh talent from all over the country.

With this new system the Tier II and Tier III cities and the satellite towns would be the major beneficiaries, enabling them to avail of a greater share of the BPO pie. BPO companies have for long ignored smaller cities and towns.

But now, with the twin problems of deficiency of skilled labor and high attrition rates in Tier I cities posing a serious threat, they are looking to venture into new territory. This would open up new avenues of employment for the educated youth of smaller centers.

Young, educated individuals with the requisite skills in the smaller centers can now find employment in leading BPOs of the country. Attrition rates in these centers would be minimal, thanks to fewer alternative employment opportunities in these centers.

A steady supply of skilled manpower would not, in itself, facilitate higher growth of the BPO industry. The provision of top-class infrastructural facilities is equally important. A recent Nasscom/McKinsey report said that the overstressed urban infrastructure poses a major impediment to the growth of the BPO industry.

The need of the hour is for new integrated townships which would absorb a significant proportion of the labor force from the overcrowded cities and at the same time accommodate R&D campuses, call centers and other outsourcing operations of Indian and foreign companies.

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