Question: Do you think the major call centre industry in India will still exist in 5 years times?

Answer: Indian call centre industries will be facing serious competition from its competitors in the upcoming years which will create major threats in their existence in 5 years times. Disadvantages: 1. India is having slow growth in market maturity stage because western investors know about their capabilities 2. New rivals are increasing day by day like: Philippines, South Africa, Central and Eastern Europe and North Africa 3.they have shortage of supply of managerial talents which is a major HR problem 4. They have infrastructure problem for example shortage of power supply, water problems 5. Labour cost of India is increasing day by day which is one of major problem 6. Day by day the competition is increasing and new arrivals are coming up with new technology and ideas 7. Attrition is increasing day by day 8. Data security is low in Indian call centre for this reason many important data are losing and it is lowering down the image of Indian call centre 8.The odd working hours which negatively affect health of the employees 9.These Indian call centres are lack of Multi linguistic approach. Comparison: If we think, who are the existing and emerging global competitors of Indian call centre they are the china, Philippine, south Africa, UK, Egypt, Sri-Lanka will name first but the two major competitors for India basically china and Philippine. The major competitive strength for china is its IT market which is considered strongest in the world that is a lack of India. The other advantages are: lower manpower cost (the Chinese workers cost about 15% less than the Indians), infrastructure (china has more comprehensive and reliable infrastructure), extremely low cost real estate and power (this cost is lower than India that is more attractive to the US companies who follows cost cutting approach), proactive government (government is very friendly in this field and fosters English teaching and other skills set). China is also likely to grow through Japanese outsourcing route but India is still offers almost no BPO services in Japan. Beside these advantages they have some disadvantages also that can be the advantages for Indian call centres like, lack of good quality record in software, low English speaking population and less mature. However, china is trying to overcome these drawbacks to beat with India. Besides china, Philippine also have some advantages that can be major threat for India, for instance, Philippines is in a very good position to match Indias current trend of rising wages, high attrition rate and language proficiency ( UN claims that 40 ml fluent English speaker in India where in Philippine it is 60 ml). Moreover their government is more proactive and flexible in this issue. So the required infrastructure for this industry is in a way good than India. A recent news suggest that an Anti-Outsourcing Bill in the US has been passed that can cause alarm to India, china, Philippines or others that the call centre opportunities and contract may be lessen. Conclusion: So far, it is very evident that in the upcoming years Indian call centre industry is surely to face hostile market condition which may even bring its extinction if India does not adopt effective strategies and measures with the changing situation. References: http://www.blog.infinit-o.com/philippines-india-face-threats-call-center-industry/ http://www.callcentrehelper.com/special-report-call-centres-in-the-philippines-2231.htm http://www.call-centers-india.com/threat-from-china.html