The Indian Call Center Journey
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Case Details:
Case Code : HROB005
Case Length : 08 Pages
Period : 1999-2001
Organization : -
Pub Date : 2002
Teaching Note : Available
Countries : India
Industry : IT Enabled Services, BPO
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"The call center business appears to be going the dot-com
way with a lot of big names pumping in dough. Ultimately, only the fittest will
survive."
- A Mumbai based call center agent, in 2001.
Call Centers Fare Badly
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In the beginning of 1999, the teleworking industry had been hailed as 'the
opportunity' for Indian corporates in the new millennium. In late 2000, a
NASSCOM1 study forecast that by 2008,
the Indian IT enabled services business2
was set to reach great heights. Noted Massachusetts Institute of Technology
(MIT) scholar, Michael Dertouzos remarked that India could boost its GDP by a
trillion dollars through the IT-enabled services sector. Call center (an
integral part of IT-enabled services) revenues were projected to grow from Rs 24
bn in 2000 to Rs 200 bn by 2010.
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During 2000-01, over a hundred call centers were
established in India ranging from 5000 sq. ft. to 100,000 sq. ft. in area
involving investments of over Rs 12 bn. However, by early 2001, things
seemed to have taken a totally different turn. The reality of the Indian
call center experience was manifested in rows after rows of cubicles devoid
of personnel in the call centers. There just was no business coming in. In
centers which did retain the employees, they were seen sitting idle, waiting
endlessly for the calls to come. Estimates indicated that the industry was
saddled with idle capacity worth almost $ 75-100 mn. Owners of a substantial
number of such centers were on the lookout for buyers.
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It was surprising that call centers were having problems in
recruiting suitable entry-level agents even with attractive salaries
being offered. The human resource exodus added to the industry's
misery. Given the large number of unemployed young people in the
country, the attrition rate of over 50% (in some cases) was rather
surprising.
The industry, which was supposed to generate substantial employment
for the country, was literally down in the dumps - much to the
chagrin of industry experts, the Government, the media and above
all, the players involved. The future prospects of the call center
business seemed to be rather bleak indeed... |
Excerpts >>
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