BPO's Build Talent Pool Through Corporate Social Responsibility Programs
This interesting article notes how Philippine BPO firms, faced with a shrinking talent pool of qualified workers to hire from, are using their Corporate Social Responsibility Programs, especially education focused programs, to access a talent pool for future employment.
With the rising cost of making "raw" grads employable and having to compete in a vicious cycle of poach and be poached BPO's have to look at creative new ways to create a "funnel" of low attrition recruitable talent that is sustainable over the long term.
This is an interesting new twist on the business model of global software firms such as NIIT that also operate their own education arms and actively utilize these divisions to hire new talent.
NIIT's model is a for profit model which does not necessarily buy loyalty of its incumbent employees for tenure which I feel the associates recruited through a CSR program would have.
Think about it, who would you be more loyal to - somebody who charged you for your education or somebody who gave you the education for free?
Tuesday, July 22, 2008
Sunday, July 20, 2008
Outsourcing the Offshore Operations
This recent article in BusinessWeek by Steve Hamm points to the growing trend of "Western companies are increasingly getting away from running their own offshoring operations, handing the jobs over to Indian tech-services specialists".
The article cites the recent $228 million purchase of Aviva's 5,000 strong operation by WNS (which itself was a spin off of British Airways India captive), Infosys acquisition of Phillips Electronics offshore arm and of course the pivotal event of GE spinning out the majority stake of its India operations to Genpact in 2005.
The reasons for this shift are noted to be the increased economies of scale which the offshore outsourcing specialists can bring to bear. The overhead costs of managing an offshore operation which can decimate costs savings of an offshore operation are also a reason for this shift.
Are we looking at the beginning of the end of "offshore captives" as we know them?
This recent article in BusinessWeek by Steve Hamm points to the growing trend of "Western companies are increasingly getting away from running their own offshoring operations, handing the jobs over to Indian tech-services specialists".
The article cites the recent $228 million purchase of Aviva's 5,000 strong operation by WNS (which itself was a spin off of British Airways India captive), Infosys acquisition of Phillips Electronics offshore arm and of course the pivotal event of GE spinning out the majority stake of its India operations to Genpact in 2005.
The reasons for this shift are noted to be the increased economies of scale which the offshore outsourcing specialists can bring to bear. The overhead costs of managing an offshore operation which can decimate costs savings of an offshore operation are also a reason for this shift.
Are we looking at the beginning of the end of "offshore captives" as we know them?
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