Wage inflation hyped in India: Nasscom

By agencies   |   Thursday, 08 June 2006, 07:00 Hrs
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BANGALORE: India still wears the crown in the BPO industry in terms of cost-competitiveness and labor pool despite competition from countries like China and Philippines stated Nasscom.

At a session on maintaining cost-competitiveness and setting benchmarks in global outsourcing, Nasscom vice-president Sunil Mehta who stated that, “We have found that cost differential of BPO is anywhere between 4-185 per cent lower in India than popularly cited alternatives like China, Philippines, Czech Republic and other countries.”

Entry-level salaries have been observed to rise by 4–7 percent. Other countries are found to be coming to grips with a deficit of mid-level managers.

While Raman Roy, founder and CEO, Access Intellect BPO Services said, “The BPO industry in India was created based on substitution and cost arbitrage. What is happening now is expansion and moving to the next level and in delivering unfulfilled needs in certain segments,” Mehta feared that the off shoring debate could return with the issue of privacy arising in the U.S. with nearly 20 Bills pending in the U.S. Senate to regulate the privacy on off shoring.

Milind Kamat, Global Director-BPO services, TCS, advised Indian BPO Companies to consider Easter Europe and Philippines to amplify tools for language skills and meet regulatory mandates.

On the benchmarks, Mehta said that Nasscom has been focusing on setting standards in data security and HR. to bring in uniformity of standards among companies, Nasscom is all geared to regulate themselves through initiatives such as Self Regulatory Organizations and a code of ethics around data security, HR and data management to accelerate innovation curves.

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