NASSCOM sets framework for ITeS-BPO industry

Bangalore, Aug 8: NASSCOM on Tuesday announced a framework for the IT-enabled services (ITES) and business process outsourcing (BPO) services firms to adopt ethical practices and corporate governance.

The framework has a set of principles to be adhered to by member firms voluntarily. It includes employee-friendly policies, safety and security standards, a code of ethics in hiring, corporate social responsibility and industry initiatives.

"The objective is to maintain our leadership position in the global ITeS-BPO industry and consolidate 'Brand India' worldwide by focussing on the specific needs of the burgeoning sector," NASSCOM president Kiran Karnik told reporters here.

Recognising the need for manpower development as the key to growth, NASSCOM will draw up HR (human resource) management guidelines to attract and retain talent and address the attrition issue.

The organisation has introduced an industry standard assessment and certification programme to ensure the transformation of a trainable workforce into an employable workforce. The NASSCOM Assessment of Competence (NAC) will ensure a robust and continuous supply of talent for the industry.

The NAC standard will be applied in tier-two and tier-three cities and towns, to develop them as BPO hubs and nurture job-ready professionals. This is on the lines of a pilot project implemented in Rajasthan recently, where 2,500 people took the test and appeared at the job fair, organised by the state government and the Union department of Information Technology&Communication.

"By the year-end, NAC will be rolled out in other states, including Gujarat this month, Chandigarh and Andhra Pradesh in September, and the North East from Oct to Jan," Karnik said.

Going forward, NASSCOM plans to align NAC in the curriculum of universities and colleges to meet the needs of the sector. The initiative will help ITES-BPO players reduce hiring costs, improve efficiencies, enlarge the candidate pool and stem the escalation in entry-level wages.

NASSCOM has also launched a similar testing and accreditation offering, NAC-Tech, for the IT services sector from this academic year. NAC-Tech will be an industry standard to assess students aspiring for jobs in technology/engineering industries.

The industry body has also set up a National Skills Registry (NSR), a centralised database of employees of the IT services and BPO firms, to verify their credentials with background checks.

"The initiative has received an excellent response, with the registration for the NSR crossing the 125,000-mark in July, of which 60 per cent were done on the web," Karnik noted.

The Indian ITES-BPO segment continues to chart strong year-on-year growth. In the last decade, India has strengthened its leadership position as an offshore destination with an estimated share of 65 per cent of global offshore IT and 46 percent of global BPO.

The addressable market for offshore BPO globally is estimated to be a whopping $150 billion, indicating enough headroom for further growth.

As the leading skill-surplus destination, India will continue to remain in the forefront over the next decade, thanks to the head-start it has in five key areas of competitiveness - abundant talent, quality and scaleable infrastructure, operational excellence, conducive business environment and the growing domestic BPO market.

The Indian ITES-BPO exports grew to $8.4 billion in FY 2006-07 from $6.3 billion in FY 2005-06, while the domestic market grew to $1.2 billion from $0.9 billion in the same period. The sector is providing direct employment to 553,000 this year as against 415,000 in 2006.

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