"Trends in Compensation Management in Indian BPO Sector"


By

Prof. Naresh Patel
Assistant Professor
Pathik B. Variya
Lecturer
Center for Management Studies
Dharmsinh Desai University
Nadiad-387 001
 


* Introduction:

India is a country of outsourcing. It has made India so popular [and for some countries, so notorious too!] that the words like "Bangalorization" comes into existence when it comes to outsourcing of ITeS in India by the western countries. With this sector on a high and hefty demand of manpower, the salaries are bound to rise. A person with good communication skill and fair command over English can easily earn Rs. 10000/- extra per-month by working in a call-center.

* Some Statistics:

Despite the fact that with an expected growth of nearly 28 percent in the financial year 2005-06, scorching growth continues to be the trend this year too, India's money spinning IT-ITeS industry that earns about $36 billion in annual revenues will face rising people costs as its single biggest challenge going forward.

Indian BPO professionals' salary in 2010 will be 15% of their US counterparts. The salary growth rate in India is the highest among the offshoring destinations at 8.7 per cent followed by Vietnam at 7.3 per cent and China, Russia and Costa Rica at 7.2 per cent each.

* Salary in Indian BPOs

Another important factor which attracts MNCs to outsource their work to India is the salary in Indian BPOs and IT industry. Here is a brief summary of salary in Indian BPOs, according to different hierarchies. Besides the salary, Indian BPO employees are paid incentives depending upon many factors like attendance regularity, target achievements etc. Structure of salary in Indian BPOs is as follows.

  • Customer Care Representatives- Rs 8,000 - Rs 15,000 per month Team Leaders- Rs 17,000 - Rs 26,000 per month
  • Managers- Rs 3 Lakhs - Rs 5.5 Lakhs per annum
  • Training Heads- Rs 8 Lakhs - Rs 12 Lakhs per annum
  • Training Managers- Rs 5 Lakhs - Rs 8 Lakhs per annum
  • Trainers- Rs 2 Lakhs - Rs 5 Lakhs per annum

* Reasons for high salaries:

There are some reasons behind this trend. Let us examine some of them briefly:

1. More demand v/s Less Supply: This is the fundamental rule of Economics. The kind professionals required for call-center jobs are available, but not in enough supply. Because, generally these jobs are very awkward [in terms of working hours] and considered as a part time job by many, there is a segment of manpower, which does not prefer to join it.

2. Very few training centers for BPO training: How many B-Schools are there which provide BPO as a specialization? Very few. Also, there are not enough private training center who specializes in imparting such training and preparing such professional who can work in the BPO industry.

3. High Turnover: As we just noted, because there exists very high amount of turnover, the companies try to retain the employees as much as possible by giving them extra money and other facilities, and incentives.

* Future:

Although, it is impossible to predict the future of any industry, looking at the current development of BPO in India, we can say that there will be requirement of more and more trained people in this sector.  So, in short, current picture is rosy enough to attract fresh graduates in this sector.

* Last Words:

Another important point is that not all the people who wish to join this sector needs to be highly qualified. An above average student of graduation can easily get a job in this sector. So, in short, this sector will have to attract and depend upon the young manpower who wish to earn some extra bucks per-month and look to retain some of them.

* References:

1. http://www.physorg.com/news11893.html
2. www.bpoindia.org
 


Prof. Naresh Patel
Assistant Professor
Pathik B. Variya
Lecturer
Center for Management Studies
Dharmsinh Desai University
Nadiad-387 001
 

Source: E-mail August 4, 2006

     

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