Presentation by Malcolm Wagget, Chief Operating Officer HSBC Global Resourcing, South Asia

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Presentation by Malcolm Wagget, Chief Operating
OfficerHSBC Global Resourcing, South Asia
September 2, 2005
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Agenda

• Global/Indian ITeS-BPO Industry
• HR Issues Challenges
• Role of Executive Recruiters
• Summary

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ITeS - BPO Industry
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ITeS-BPO in India The Rising
In 2003, 300 of the Fortune 500 employed offshore
resources in 2004, this figure has risen
to 400
33 increase in offshore penetration year over
year
Source NeoIT.Com
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Global Players in India
Research Analytics, Engineering
Shared Services (IT / HR / FA)
Customer Relationship Management
Back Office Processing
Data Entry / Transcription
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Indias Unbeatable Value Proposition

• PQR Productivity, Quality and Rate factor.
• Less than 2 of quality defects.
• Global Quality accreditations.

• Telecom reliability rate of 99.
• World-class offerings as compared to other
  countries.
• Secured environment for businesses to operate in.

Source COPC-QAI study
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Some Compelling Facts

• Indian ITeS-BPO industry
• Contributes to 30 of total technology-led
  exports from India.
• Forecasted to reach USD 7.3 billion in FY06 from
  5.7bn in FY05
• Currently around 400 ITeS firms, mostly in the
  call centre and BPO domains
• 3.48 lakh employees
• Captive units 65 continue to dominate the
  landscape
• BPO offshored to India in FY05 - 165m, up 120
  from 75m.
• Employment in sector to exceed one Million by FY
  07-08

Source NASSCOM
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Indian BPO Sector Growth trends

• Increasing maturity and consolidation
• Growth in multiple vendor and BOT contracts
• Expansion of the services footprint
• Higher value added offerings
• Vendor polarization
• Expanding capacity

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Issues Challenges
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Issues Challenges

• Cost Advantages
• Wage inflation dwindling pricing
• Infrastructure challenges
• Data Security Protection
• Data protection and IP rights issues
• Meeting International standards
• Intellectual Property
• Quality issues
• Meeting customers expectations

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But most importantly..

• People Attraction Retention
• Quality Talent
• Language skills
• Controlling attrition
• Building the right culture
• Proper hiring on time
• Competency building

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HR Issues

• While average attrition rates of 40-50 in the
  industry is very high cost of attrition is 1.5
  times the annual salary
• And the demand for quality talent is galloping
  245,100 people employed in March 2004, vis-à-vis
  171,000 in 03
• The availability of quality talent pool is
  growing at a slow pace at an average, only 6
  out of 100 aspirants are eventually recruited.

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Meeting The Challenges

• Providing a great work environment good and
  instant rewards, bonding programmes, flexible
  working hours and stronger career path.
• Providing access to higher education and ongoing
  learning for the employees.
• A more diverse workforce that includes age,
  experience and perspectives.

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Partnership Approach

• Stronger partnership between the industry and
  Executive Recruitment Consultants.
• Ownership of human talent Recruitment
  Consultants going beyond just placements and
  working closely with industry, to formulate
  long-term retention strategies.

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Role of Executive Recruiters in this scenario

• Strictly adhering to the Code of Ethics and a
  set of Professional Practice Guidelines.
• Being aggressive, but not cannibalistic.
• Providing outstanding service based on quality,
  and integrity of relationships with various
  stakeholders.
• Adopting contemporary best practices that
  exemplify high standards of professionalism.

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Thank YouAny Questions?