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Poor Management

In 1999, Healtheon opened a software development facility in Hyderabad, India. It had almost 50 employees by the end of the first year and moved into a new 15,000 square foot building. This India service operation closed several years later when the managing director of the facility left. US management decided that it was better off refocusing on the near shore operations to prevent a dilution of focus.

Security Issues

Recent scams in some BPO companies in India where employees used social engineering and other techniques to track various sensitive data of customers. The data was then used for monetary malpractices. These trends have posed security concerns over the Industry credibility.

But Indian companies could face the challenges and have established themselves as the leader globally. But the scenario is changing as other countries are developing competencies in this field.

Initiatives by Companies

Indian companies adopted practices so as to tackle these issues and NASSCOM compared initiatives taken by BPO companies over a period (2000-01 to 2003-04). The comparison was done over some critical operational factors: -