Call Centres Set to Benefit From Cheaper Bandwidth in Kenya

Call centres are set to benefit from official subsidies to ease the high cost of bandwidth, helping them to compete against global rivals on an equal footing.

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East African Local Authorities plan to implement eGovernment

Local Authorities in East Africa are planning to implement Information and Communication Technologies in an effort to increase efficiency of their operations in service delivery to the citizens.

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Turnaround: From cost centre to profit centre

Contact centres are in a unique position to contribute to revenue generation, but how can this be leveraged?

India’s Billion Dollar question

For how long can the global outsource leader maintain profitability?
India, the world’s leading software outsourcing destination, makes almost four-fifths of its annual R288 billion revenue from software and back-office transactions from exports, with the US accounting for at least half of the sales of the top firms, like Satyam and Wipro, said Neels van Tonder, CEO of UCS Software Manufacturing (UCSSM).

“While the Indian outsourcing market remains exceptional,” said van Tonder, “the outsourcing industry is left with a preponderance of US dollar revenue – with local spending remaining denominated in rupees. One of the challenges India is facing is that white collar salaries are increasing rapidly – and they are paid in rupees. Costs are set to rise dramatically in the short to medium term.”

Van Tonder said that due to the favourable exchange rate, in relation to the USA, Indian software firms are showing some very high net-profit margins at the moment. But spiraling costs need to be addressed.

Speaking in the press recently, Ed Cohen of Satyam Computer Services, India’s fourth-largest software exporter, said his company is looking at ways to “rebalance the business portfolio”.

For the industry overall, rebalancing India’s business portfolio will entail seeking additional business in Europe and Asia-Pacific. But Cohen believes the home market is also offering more opportunities.

As rapid economic growth accelerates (India’s GDP grew by 9.3% in the quarter to June this year), capacity shortages are created across the Indian economy. But the under-developed market for technology sales is starting to look more buoyant.

Tata Consultancy Services, India’s market-leader, notched up a $140 million deal in early September with state-controlled telecommunications company, Bharat Sanchar Nigam. Indian companies also believe that large outsourcing deals are also on the cards from Indian banks and railways.

Van Tonder said this trend will “go a long way” towards counter-balancing the high reliance on business conducted with the United States. “I also think Indian companies are going to have to start looking at what work they take on. Sure, they are regarded as a cheap outsourcing destination, but taking on contracts that really strip out margins is not advisable – and I think many firms are going to be more weary of the bottom-dollar jobs so many are now engaging in. The days of Indian companies doing work for $10 or $20 dollars an hour, are probably going to be on the decrease in the very near future. India has to start looking at its growing lack of capacity and its increasing costs.”

Dark side of Indian call centre success

By Andy Mukherjee

Shyam Mehra (26) is a self-professed loser in New Delhi. When he dons a phone headset each night, though, he becomes a polite troubleshooter for Americans angered by home appliances.

So goes One Night @ the Call Center, a novel by Chetan Bhagat.

More than 400 000 people work in Indian call centres. A customer service job is an easy route to $300 (R2 200) a month and a three-pizzas-a-week lifestyle.

But many young agents loathe the surveillance, which would put a high-security prison to shame. Some can’t get used to abusive customers; others fail to adjust to working at night.’ More…