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8.1.5 IP Technology Being Preferred to Traditional Circuit Based Network

Now Voice on Internet Protocol (VoIP) seems to be making an indelible mark on the BPO arena. Some Indian call centers are trying this untested territory and migrating to the IP infrastructure. Traditionally call centers have used voice networks based on TDM (Time Division Multiplexing) which is circuit based.
Reliability is the prime reason for shifting to IP baser networks. For e.g. If there are 20 circuits, each circuit carries a certain number of calms .In case the circuit fails in the traditional phone type network .the calls carried on that circuit are lost and that means customer distress. However in case the circuit fails in an IP based network the messages are routed through another circuit. IP-based infrastructure offers easy scalability and allows flexibility of configuring the network. While initial investments are not necessarily lesser in IP based networks, the overall investments would be lesser due to scalability and flexibility .IP technology offers the benefit of easy scalability, convenient configurable networking flexibility and easier infusion of software intelligence.

8.2 Measures Being Taken to Battle Attrition

Attrition is one of the long continuing concerns of the BPO sector. Firms are trying to beat this concern in several ways. One such measure is entering non-poaching agreements. These kinds of agreements ensure that the companies involved do not hire people from another, the advantage that this kind of arrangement holds for the BPO companies is that they get to retain the experienced employees and as such save costs incurred in churn management of the employees. Moreover the best talent is not lost to the competitors.

8.3 Financial Analysis of the Indian BPO Sector

8.3.1 BPO Sector Destined to be a High Growth Business

The sector has grown at a rate of 59% in FY'03 and its growth rate is likely to be 54% in FY'04. Some companies like HCL BPO, Spectra mind have had a more that 200% growth in FY'03. This rate of growth is one reason why many IT companies as well as companies diversified across many industries are entering the BPO space.

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* Contributed by: -
Priyanka Ghosh & Alvika Derhgawen,
PGDIM, IM-11,
NITIE, Mumbai.