Do you feel that the appreciating rupee is an issue that needs to be addressed?
Our strength in services export is derived from business process outsourcing (BPO) and information technology. Between the two, IT companies have a larger margin than BPO. I would imagine that IT companies on an average have a 20-25% margin while a BPO company would have a 10% margin. At the same time, wages are increasing and rents are going up, which have already brought down margins of BPO companies. The BPO model has to be sustained and it is very necessary that we grow this industry because we have large manpower. We have 60% of our youth below 30 and thousands of youth are coming into the job market. I don’t think we can employ them all in the manufacturing sector. Today, a graduate is getting three job offers as soon as he is out of college. Earlier, a graduate would have to hunt for jobs or become a taxi driver.
Deepak Parekh, Chairman of HDFC in Economic Times!
Our strength in services export is derived from business process outsourcing (BPO) and information technology. Between the two, IT companies have a larger margin than BPO. I would imagine that IT companies on an average have a 20-25% margin while a BPO company would have a 10% margin. At the same time, wages are increasing and rents are going up, which have already brought down margins of BPO companies. The BPO model has to be sustained and it is very necessary that we grow this industry because we have large manpower. We have 60% of our youth below 30 and thousands of youth are coming into the job market. I don’t think we can employ them all in the manufacturing sector. Today, a graduate is getting three job offers as soon as he is out of college. Earlier, a graduate would have to hunt for jobs or become a taxi driver.
Deepak Parekh, Chairman of HDFC in Economic Times!
Yep what Deepak has told is absolutely correct! The BPO model has to be sustained - Fine.
ReplyDeleteBut what is this BPO Model?
How many youth are looking out to stay in the SAME COMPANY for a minimum period of 3 yrs? (they may stay in the industry for more years)
The percentage of youth being tapped is only minimal and they are being exploited by the BPO companies quoting "high" wages.
They slog like dogs and break their heart (one of your recent posts)
There should be regulations for these companies in the BPO sectors to be able to "sustain what is necessary to grow this industry"
What is the use if the company (building) alone sustain and the employees keep moving out of the company every three months?
ABPO employee