Oct 08: A few days back a study conducted by the Global Services magazine of CyberMedia featured five of Indian cities among the top 50 most emerging outsourcing destinations in 2007. But the Indian industrial body ASSOCHAM has recently expressed its concern over the shortage of manpower in BPO industry in the near future.
Associated Chambers of Commerce and Industry of India (ASSOCHAM) is the premier body of chamber of commerce in India and as per its view Indian BPO industry is going to face employee shortage in the next two years as most of young Indians are considering better career in aviation, retail and hospitality industries.
The chamber report points out that the growing BPO market is facing 25-30 percent shortage of manpower and in the next two years the graph may reach to 40%. Various reasons are cited behind this shortage such as the volatile growth in BPO industry and a sense of insecurity in BPO jobs. Youth now finds a better and stable career in ever-increasing hospitality, travel and tourism including the aviation and hotel industry in comparison to BPO.
Though on one hand Indian BPO Industry is booming with increasing number of domestic and multinational companies in the forefront but various reasons do contribute to its erosion. Apart from stringent working conditions in the industry, the concept of job security is much more concerned these days.
With the flowing of new companies along with the merger and acquisition employees feel that a new hand may leave them jobless. Again increasing stress with a complex working life multiplied by a long distance travel further makes it difficult for workers to consider it as a long-term career.
At present aviation, tourism and hospitality industries are offering good package in terms of salary and incentive, as a result it is natural for young Indians to blend to the opposite. However, the government keeping the rate of growth high in different sectors of economy is now planning to come up with better infrastructure for BPO industry in areas out of metro and urban regions.
With the liberalisation of aviation sector there are a number of private air careers are on the air creating a healthy competition atmosphere. The period 2003-2006 has seen a high increase in the number of domestic air travel passengers. The growth of this industry at a pace of 30 percent has also encouraged the Government to establish new airports in major cities and also modernising the exiting ones.
The sector is expected to create over two lakh jobs for flight dispatchers, cabin crew, airline managers, and airport managers by 2012, ASSOCHAM said.
As far as Indian hospitality and hotel industries are concerned both are closely linked with tourism. Hotel industry especially the big ones are not only establishing their branches in new cities with tourism interest but also in foreign countries thereby providing a scope of career abroad. Hotel industry offers jobs like management, sales, marketing, accounting, food and beverage service and many others.
The hospitality of India, a best destination for medical tourism too is certainly contributing momentum to the aviation and hotel industry. In addition the retail sector with the boom of real estate business is expected to create a huge amount of jobs in the next couple of years. Hence a combination of all these along with a rising labour cost may force BPO industry towards a manpower shortage.
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