Research Report On Indian BPO Sector

The project is all about the BPO SECTOR in India and Labour market of BPO sector -  Business process outsourcing (BPO) has emerged as India’s new sun-shine sector and the country is now one of the prominent electronic housekeepers to the world, taking care of a host of routine activities for multinational firms. 

The firms here handle a host of back office work which includes responding to credit card enquiries, preparation of invoices, pay rolls, cheques, reconciliation of daily accounts, writing medical transcriptions, processing applications, billings and collections. 

The boom in BPO activities has prompted policy planners to view this sector as one of the potential avenues to absorb the growing mass of educated unemployed. The escalating possibilities of job creation along with the scope to provide ‘decent employment’ enabled the BPO sector to be showcased as the one, whose promotion is most appropriate, given the bleak factor-endowments of the economy. 

Outsourcing centers in India currently employ 1,71,100 workers and it has the potential to generate direct employment for one million workers in the next five years. Notwithstanding this, of late, there are rising anxieties on the sustainability and credibility of the sector, in terms of job creation and provision of ‘superior’ work conditions. 

Despite, the growing attention on the employment potential of the booming sector, the conceptualization of its long-term implications is still in a nascent stage.

Few of the motivation factors as to why BPO is gaining ground are:

• Factor Cost Advantage
• Economy of Scale
• Business Risk Mitigation
• Superior Competency
• Utilization Improvement

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Project & Presentation

Labour economics seeks to understand the functioning of the market and dynamics for labour. Labour markets function through the interaction of workers and employers. Labour economics looks at the suppliers of labour services (workers), the demanders of labour services (employers), and attempts to understand the resulting pattern of wages, employment, and income.

It is an important subject because unemployment is a problem that affects the public most directly and severely. Full employment (or reduced unemployment) is a goal of many modern governments.

When looking at the overall macro economy, several types of unemployment have been identified, including:

Frictional unemployment — This reflects the fact that it takes time for people to find and settle into new jobs. If 12 individuals each take one month before they start a new job, the aggregate unemployment statistics will record this as a single unemployed worker. Technological change often reduces frictional unemployment, for example: the internet made job searches cheaper and more comprehensive.

Structural unemployment — This reflects a mismatch between the skills and other attributes of the labour force and those demanded by employers. If 4 workers each take six months off to re-train before they start a new job, the aggregate unemployment statistics will record this as two unemployed workers. Technological change often increases structural unemployment, for example: technological change might require workers to re-train.

Natural rate of unemployment — This is the summation of frictional and structural unemployment. It is the lowest rate of unemployment that a stable economy can expect to achieve, seeing as some frictional and structural unemployment is inevitable. Economists do not agree on the natural rate, with estimates ranging from 1% to 5%, or on its meaning — some associate it with "non-accelerating inflation". The estimated rate varies from country to country and from time to time.