Shubhreet Oberoi
New Delhi, 27 October 2005
Non-voice in BPOs gains ground over voice processes with 75% growth
It's probably a sign of growing maturity of the Indian BPO market. Non-voice business in the ITeS industry is all set to overtake the traditional voice business. It has already shown an overwhelming growth of 50-75% over the last year. At this rate, the number of non-voice processes will soon surpass the voice processes.
What is driving this change is the global economic scenario, which is forcing companies to outsource more of non-voice to India. Besides, it faces less attrition, offers better margins and technology advancement. This coupled with increasing expertise and increasing level of confidence of international clients has resulted in a sudden spurt of non-voice in India.
Companies reason that moving from voice-based to non-voice processes is crucial for stability of business as it helps to maintain stable margins and keeps attrition under check. Non-voice processes offer better value proposition and the dynamics are not that stringent as in the voice processes. Unlike voice processes, non-voice can have more daytime operations, hence the shifts are easier for the employees. This, in turn, reduces stress levels which companies feel play a major part in controlling attrition.
It's a small wonder then that BPOs are increasing the number of non-voice processes. Take Wipro, for example. Currently, only about 16% of its revenue is accounted by non-voice-based work. The company plans to increase this number to about 40% in a year's time. Similarly, almost 85% of Genpact's third party client work is done through higher margin non-voice processes.
According to Ranjit Narsimhan, CEO & President, HCL BPO: "The increased shift towards non-voice process is a continuous process and this will keep increasing as the industry becomes more mature." He further points out that over a period of time the voice processes shall get commoditised and there would be very little differentiation between one process and another.
Non-voice processes involve higher level of application of knowledge. Further, voice processes are more monotonous and repetitive in nature and hence the attrition levels are higher in voice processes. Currently, the percentage of voice processes in HCL BPO is about 70% and non-voice is about 30%. This distribution will increase in favour of non-voice over a period of time.
Global Vantedge Inc is also planning to increase its non-voice business by 75% in the next one year. People with good subject matter skills and with lesser degree of communication skills can be employed.
New Delhi, 27 October 2005
Non-voice in BPOs gains ground over voice processes with 75% growth
It's probably a sign of growing maturity of the Indian BPO market. Non-voice business in the ITeS industry is all set to overtake the traditional voice business. It has already shown an overwhelming growth of 50-75% over the last year. At this rate, the number of non-voice processes will soon surpass the voice processes.
What is driving this change is the global economic scenario, which is forcing companies to outsource more of non-voice to India. Besides, it faces less attrition, offers better margins and technology advancement. This coupled with increasing expertise and increasing level of confidence of international clients has resulted in a sudden spurt of non-voice in India.
Companies reason that moving from voice-based to non-voice processes is crucial for stability of business as it helps to maintain stable margins and keeps attrition under check. Non-voice processes offer better value proposition and the dynamics are not that stringent as in the voice processes. Unlike voice processes, non-voice can have more daytime operations, hence the shifts are easier for the employees. This, in turn, reduces stress levels which companies feel play a major part in controlling attrition.
It's a small wonder then that BPOs are increasing the number of non-voice processes. Take Wipro, for example. Currently, only about 16% of its revenue is accounted by non-voice-based work. The company plans to increase this number to about 40% in a year's time. Similarly, almost 85% of Genpact's third party client work is done through higher margin non-voice processes.
According to Ranjit Narsimhan, CEO & President, HCL BPO: "The increased shift towards non-voice process is a continuous process and this will keep increasing as the industry becomes more mature." He further points out that over a period of time the voice processes shall get commoditised and there would be very little differentiation between one process and another.
Non-voice processes involve higher level of application of knowledge. Further, voice processes are more monotonous and repetitive in nature and hence the attrition levels are higher in voice processes. Currently, the percentage of voice processes in HCL BPO is about 70% and non-voice is about 30%. This distribution will increase in favour of non-voice over a period of time.
Global Vantedge Inc is also planning to increase its non-voice business by 75% in the next one year. People with good subject matter skills and with lesser degree of communication skills can be employed.
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