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BPO Destinations - Why India?
July 2004
The abundant
skilled manpower has made India a target destination for multinationals to back end their operations
in India. India ranks high in areas such as qualifications, capabilities, quality of
work, linguistic capabilities and work ethics, and thus is ahead of
competitors such as China, Philippines, Ireland, Australia, and Canada etc. Indian companies have unique capabilities and
systems to set, measure and monitor quality targets.
In specific BPO
categories, Indian centers have achieved higher productivity levels-for
example, the number of transactions per hour for back office processing, than
their Western counterparts. Also, India is able to offer a 24x7 service and reduction in turnaround times by
leveraging time zone differences. India's unique geographic positioning makes this possible. Many state
governments in India are offering incentives and infrastructure to set up IT enabled
services.
About 100,000 engineers graduate from India every year. Many
of these engineers are employed with call centers for troubleshooting and
providing technical support at salaries that are dramatically lower compared
to the pay scales in the US. The average
monthly salary in India is $400-700
compared to $2,700-2,800 in the US.
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