India lost 10% of BPO business in 5 years

February 27, 2013

BPO

New Delhi, Feb 27: India has lost about 10 per cent share of the global BPO market in the last five years to destinations like China, the Philippines and Brazil, raising concerns for the USD 20-billion Indian BPO industry.

The pre-budget Economic Survey 2012-13, which was tabled in Parliament today, said India faces stiff competition from several emerging countries in the BPO sector.

It called for information campaigns by the industry to dispel the myths and fears about outsourcing in the developed economies.

Countries like Malaysia, China and the Philippines in Asia; Egypt and Morocco in North Africa; Brazil, Mexico, Chile and Columbia in Latin America; and Poland and Ireland in Europe are emerging as attractive destinations for voice contracts, posing a significant threat to Indian firms, it said.

"According to Nasscom, in the last five years, India has lost about 10 per cent market share to the rest of the world in the world BPO space, most of which is in the voice contract segment," it said.

According to industry body Nasscom, in FY13, IT services would account for USD 50 billion, while Business Process Management (BPM or BPO) and Engineering services would contribute USD 20 billion and USD 10 billion, respectively.

In terms of competition, though China faces challenges like language proficiency, it is making large investments in the mission mode to increase English proficiency.

"Thus, (China) may eventually emerge as a threat to India," it added.

The Philippines, which is the second largest destination for outsourcing, is also a serious competitor having developed both the hardware and software segments of IT.

Outsourcing has become a national issue in many developed countries like the US and the UK, who are supporting the local BPO industry through various means.

"In such a situation, the Indian BPO industry needs to gear up to address the challenges. Information campaigns to dispel the myths and fears about outsourcing needs to be undertaken by the industry in the developed economies," it said.

In the overall IT and IT-enabled services space, new competitors like China, Israel and the Philippines have emerged in recent years.

Between 2005 and 2011, the annual average growth of IT-ITeS services was 69 per cent in the Philippines, 28 per cent in Sri Lanka, 59 per cent in Ukraine, 27 per cent in the Russian Federation, 37 per cent in Argentina and 35 per cent in Costa Rica.

"Even if in some cases the export values are relatively low, the average annual growth of computer services in these economies is well above the average of the top exporters," it said.

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News Network
May 29,2020

New Delhi, May 29: More than 38,000 doctors, including those retired from the Armed Forces Medical Services, have volunteered to help the government in its fight against COVID-19 pandemic, a senior official said on Friday.

On March 25, the government had made an appeal to doctors, including the retired ones, to come forward and join the efforts to fight the pandemic.

"38,162 volunteer doctors, including retired government, Armed Forces Medical Services, public sector undertaking or private doctors have signed up with the government to battle COVID-19 pandemic," the official said.

The official further said Niti Aayog has sent a list of names of these doctors to Ministry of Health and Family Welfare and National Disaster Management Authority (NDMA).

In a statement posted on Niti Aayog's website on March 25, the government had said those who wish to contribute to this noble mission may register themselves through a link provided on the Aayog's website.

"The Government of India requests for volunteer doctors who are fit and willing to be available for providing their services in the public health facilities and the training hospitals in the near future.

"We appeal to such doctors to come forward at this hour of need. You could also be a retired government, Armed Forces Medical Services, public sector undertaking or a private doctor," the statement had said.

It had noted that in case the outbreak leads to a high number of infected individuals, India's public health facilities will face tremendous load to take care of a large number of patients.

Many countries, including the US, Italy, the UK and Vietnam, had also urged retired health workers to come back to work amid the pandemic.

The number of COVID-19 cases in India has climbed to 1,65,799, making it the world's ninth worst-hit country by the coronavirus pandemic.

The Health Ministry on Friday said the death toll due to COVID-19 rose to 4,706 in the country.

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News Network
March 19,2020

New Delhi, Mar 19: Hit hard by coronavirus, budget carrier IndiGo today announced that it will cut salaries of senior employees. IndiGo CEO Ronojoy Dutta, who will himself take a 25% cut in salary, said senior vice presidents and above are taking a 20% pay cut while vice presidents and cockpit crew are taking a 15% pay cut.

With precipitous drop in revenues, the very survival of airline industry is now at stake, Dutta said while announcing the pay cut. "We have to pay careful attention to our cash flow so that we do not run out of cash," Dutta said adding that he knew how hard it was for families to take a cut in "take-home pay".

"With a great deal of reluctance and a deep sense of regret, we are therefore instituting pay cuts for all employees, excluding Bands A and B, starting April 1, 2020," the chief executive officer said. Band A and B are the lowest brackets in salary class, where most of the employees are.

IndiGo's flight operations chief Ashim Mitra had written an email to pilots this morning saying that the economic environment has deteriorated significantly and no airline is insulated from this severe downturn.

"It has become a necessity to initiate some tough calls and we are working on a string of measures that will be shared and implemented over the next few days and weeks," Mitra said.

With countries sealing their borders partially or fully across the world due to the novel coronavirus pandemic, aviation sector has been hit extremely hard as most airlines globally have drastically curtailed their flight operations.

Another budget airline GoAir has already terminated contracts of expat pilots amid curtailed operations due to the coronavirus pandemic.

Citing "unprecedented" decline in air travel, the budget carrier announced it was suspending international operations and offering leave without pay programme to its staff on a rotational basis.

Government-owned Air India may also cut salary of employees by 5% amid its growing financial woes particularly in the wake of the coronavirus pandemic, which has nearly grounded its entire international operations. The reduction will be across the board, according to a PTI report.

The loss-making airline, which is in the process of a second attempt of privatization after failing to get a single buyer nearly two years ago, has already taken some steps such as reduced flying allowances to cabin crew besides withdrawing entertainment allowance to executive pilots, among others.

“Air India is considering a 5 per cent pay cut to its employees as it faces huge financial crisis due to the ongoing coronavirus outbreak, which has brought almost its entire international operations save the US, Canada and a few other markets, to the ground," a source told news agency.

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Agencies
January 15,2020

New Delhi, Jan 15: A Delhi court on Wednesday granted bail to Bhim Army chief Chandrashekhar Azad in connection with the Daryaganj violence case.

The court has ordered him not to hold any protest in Delhi till February 16th.

While hearing the case, the Judge had asked Azad's counsel to read out some of his social media posts.

Advocate Mehmood Pracha, representing Azad, had on Tuesday said that the petitioner was sent to jail without any evidence in connection with anti-CAA protests in Delhi's Darya Ganj area last year.

"I think the court's comments should become a precedent for the country. The Public Prosecutor at the behest of police tried to make this a communal issue. We told the court that the government has a problem with Azad because he made the CAA-NPR-NRC an issue for everyone. 
The Court also sought evidence," Pracha told ANI after Delhi's Tis Hazari court deferred the bail plea of Azad till today.

On Wednesday, the court pulled up the Delhi Police for failing to show any evidence against Azad.

Azad was arrested on December 21 last year after he led a march from Jama Masjid against the Citizenship (Amendment) Act. He was sent to judicial custody till January 18 at Tihar jail.

The Bhim Army chief was charged with rioting, unlawful assembly and inciting the mob to indulge in violence after vandalism in Delhi's Daryaganj area.

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