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Indian ITES/BPO industry has successfully undergone the first phase of evolution and is now in the second phase. The characteristics of this phase are very different from the earlier phases and are discussed in the following sections. In the first phase Indian companies had to face following challenges: -

Challenges in BPO Industry (First Phase)

While outsourcing looks very attractive as a whole, there are some intrinsic risks associated with the basic framework of this BPO model. The issues are discussed in detail in the following section: -

Cultural Difference

Cultural differences between customers and the service providers may be very crucial to meet the service quality levels. Recently Conseco, Indianapolis-based Company, moved its offshore call-centre back to US, citing the cultural differences as the reason.

The Poor Quality of Service

The quality of delivery is very important to justify the shift of job. Many companies are not requiring a service-level agreement that outlines specific service requirements. In December 2003, Lehman Brothers stopped using Wipro Spectramind, for its internal IT help-desk. According to a Lehman analyst, the Indian firm could not provide the level of quality and service Lehman sought for help-desk support.

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* Contributed by -
Vibhor Mittal & Surya Kiran Sharma ,
2nd Year Students,
Shailesh J Mehta School of management, IIT Bombay.