UNDERGRADUATE

ASSIGNMENT
SPECIFICATION

Programme: BABS Module Level (3,4,5 or 5

6):

Module: Human Resource Module code: SBLC5000

Management
Contribution to Overall
Assignment 1- 50%
Module Assessment (%):
Assignment 2- 50%
Assignment 1: Case study
Assignment No(s):
analysis
Assignment 2: Individual
Report

Assignment Title(s): The Indian Call Centre Journey

Lecturer: Apsara Hewage Internal Verifier: Dr. Rajendra Kumar

Hand Out Date: 11/06/2018 Submission deadline: 21/08/2018

Feedback deadline: TBC

Referencing: In the main body of your submission you must give credit to authors on whose research your
work is based. Append to your submission a reference list that indicates the books, articles, etc.
that you have read or quoted in order to complete this assignment (e.g. for books: surname of
author and initials, year of publication,title of book, edition, publisher: place of publication).
Disclosure: Please include the following statement on the title page of the submitted assignment, followed
by your name:

I declare that this assignment is all my own work and that I have acknowledged all materials
used from the published or unpublished works of other people. All references have been duly
cited.

Turnitin: All assignments must be submitted to Turnitin unless otherwise instructed by the Lecturer. YES X
Note: the Turnitin version is the primary submission and acts as a receipt for the student. Late
submission of the electronic version of the assignment will result in a late penalty mark. Penalties for NO
late submission: Up to one week late, maximum mark of 50%. Over one week late, Refer. Only the
UWTSD Extenuating Circumstances Panel may grant an extension.

1
Learning Outcomes tested
(from module syllabus)
1. Appreciate the distinction between Human
Resource Management and Personnel
Management by analysing personnel and HRM
models.
2. Understand the impact of personnel, structural
and cultural strategies on organisational
performance.
3. Draw on knowledge from cognate modules to
develop understanding of the practical aspects
of human resources issues confronting
managers.
4. Explore the relationship between corporate
strategy and human resource strategies
Assessment Criteria to achieve each outcome a
student must demonstrate the ability to:
 An individual piece of coursework which will test
the student’s ability to distinguish Personnel
Management and Human Resource Management
practices.
 Case will test the ability of the student in evaluating
the impacts of health and wellness of employees on
organisational performance.
 Case which will test the student’s knowledge about
concepts relating to maintaining health and
wellness of employees and the applicability of
those in real life.
 An individual piece of coursework which will test
the student’s ability to explore the relationship
between the corporate strategy and human
resource strategies in terms of maintaining health
and wellness of employees
Page 2 of 18
 TASK DESCRIPTION – ASSIGNMENT 1 - (50% Individual Case Study)- 2,500 words

BACKGROUND / INTRODUCTION

As an individual, you need to identify the specific HR problems in the Indian Call Centre Industry based on
the case given in Appendix 1 and undertake the Case study analysis.

TASKS& GUIDELINES

In the context of Human Resource Management, analyse the given case in terms of the
following:

 Major issues and challenges in the Indian Call Centre Industry.

 Evaluate the impacts of those issues to the Indian Call Centre Industry and the country.

Guidelines:

 Assignment should be presented in the form of a report and not an essay.

 Assignments will be graded on the basis of:

i. Research done
ii. Analysis of the facts collated
iii. Position taken and
iv. The justification of the position

 All research must be referenced. A Reference List and a Bibliography MUST be attached. Harvard
system of referencing MUST be followed.

Please see marking criteria given in page number 8.

LENGTH REQUIRED
2500 words +/- 10%. Any deviation from this will be penalised.

Page 3 of 18
TASKS
A short summary of the case study scenario 200 words

Explain the Case study background, the statement of the problem,

300 words
research questions and aims and objectives.

Description of the situation (Case Brief) 300 words

Analysis of the case (should be backed by theoretical perspectives

seen from the module) 600 words

Findings from the analysis (should be backed by theoretical

perspectives seen from the module) 600 words

Solutions to the problem and issues. Recommendations (should be

500 words
backed by theoretical perspectives seen from the module)

TOTAL 2500 words

FORMATTING AND LAYOUT

Please note the following when completing your written assignment:

1. Writing: Written in English in an appropriate business/academic style
2. Focus: Focus only on the tasks set in the assignment.
3. Length: 2500 words +/- 10%. Any deviation from this will be penalised.
4. Formatting: Typed on A4 paper in Times New Roman or Arial font 12 with at least 2.5 centimetre space at
each edge, double spaced and pages numbered.
5. Document format: Report
6. Ensure a clear title, course, and name or ID number is on a cover sheet and a references list and bibliography
using Harvard referencing throughout is also provided.
7. Research: Research should use reliable and relevant sources of information e.g. academic books and
journals that have been peer reviewed. The research should be extensive.

The use of a range of information sources is expected – academic books, peer reviewed journal articles,
professional articles, press releases and newspaper articles, reliable statistics, company annual reports and other
company information. All referencing should be in Harvard style.

Page 4 of 18
 TASK DESCRIPTION – ASSIGNMENT 2–(50% Individual Report)- 2,500 words

TASK

You are required to produce a report, stating the human resource strategies that can be undertaken to
resolve the issues which you identified in assignment 1.

LENGTH REQUIRED

2500 words +/- 10%. Any deviation from this will be penalised.

Your report should typically include:

TASKS
Executive Summary 200 words

Introduction: Background, scope and the purpose of the

600 words
report.

Analysis:
Identify and analyse different types of human resource
strategies in general and according to the given case study
chosen for Task One. You must also critically evaluate 1400 words
possible solutions to solve the problems identified. (should
be backed by theoretical perspectives seen from the module)

Conclusion: the main conclusions/recommendations, drawn

300 words
from the analysis provided.

References: Listing of all sources

TOTAL 2500 words

Page 5 of 18
GUIDELINES

1. Assignment two should be presented in the form of a report, NOT an essay.

2. Assignments will be graded on the basis of:

I. Research done

II. Analysis of the facts collated

III. Position taken and

IV. The justification of the position

3. All research must be referenced. A Reference List and a Bibliography MUST be attached. Harvard system of
referencing MUST be followed.

Please see marking criteria given in page number 9.

Page 6 of 18
FORMATTING AND LAYOUT

Please note the following when completing your written assignment:

1. Writing: Written in English in an appropriate business/academic style

2. Focus: Focus only on the tasks set in the assignment

3. Length: 2500 words +/- 10%. Any deviation from this will be penalised.

4. Formatting: Typed on A4 paper in Times New Roman or Arial font 12 with at least 2.5 centimetre space at
each edge, double spaced and pages numbered.

5. Document format: Report

6. Ensure a clear title, course, and name or ID number is on a cover sheet and a bibliography using Harvard
referencing throughout is also provided.

7. Research: Research should use reliable and relevant sources of information e.g. academic books and
journals that have been peer reviewed. The research should be extensive.

The use of a range of information sources is expected – academic books, peer reviewed journal articles,
professional articles, press releases and newspaper articles, reliable statistics, company annual reports and other
company information. All referencing should be in Harvard style.

Page 7 of 18
 MARKING CRITERIA AND STUDENT FEEDBACK – INDIVIDUAL CASE STUDY 50%
This section details the assessment criteria. The extent to which these are demonstrated by you determines your mark. The
marks available for each criterion are shown. Lecturers use a similar format to comment on the achievement of the task(s),
including those areas in which you have performed well and areas that would benefit from development/improvement.

Awarde
available

Marks
Marks
Common Assessment Criteria Applied

d
1. Research-informed Literature
Extent of research and/or own reading, selection of credible sources, application of appropriate referencing conventions.

20
Use of relevant and credible sources of evidence and literature.

2. Knowledge and Understanding of Subject

Extent of knowledge and understanding of concepts and underlying principles associated with the discipline.

20
Ability to demonstrate the knowledge and understanding of concepts and underlying principles
associated with the subject area.

3. Analysis
Analysis, evaluation and synthesis; logic, argument and judgement; analytical reflection; organisation of ideas and evidence

20
Breadth and depth of critical analysis of the scenario, issues and impacts.

4. Practical Application and Deployment

Deployment of methods, materials, tools and techniques; application of concepts; formulation of innovative and creative solutions to solve problems.

20
Ability to apply relevant theories, models and concepts to the scenario under discussion.

5. Skills for Professional Practice

Attributes in professional practice: individual and collaborative working; deployment of appropriate media; presentation and organisation.

Appropriate use relevant methodologies and high level of professionalism showcased throughout 20
the coursework.

TOTAL 100

Assignment Mark (Assessment marks are subject to ratification at the

Exam Board. These comments and marks are to give feedback on module work Late Submission Penalties (tick if %
and are for guidance only until they are confirmed. ) appropriate)

Page 8 of 18
 MARKING CRITERIA AND STUDENT FEEDBACK – INDIVIDUAL REPORT 50%
This section details the assessment criteria. The extent to which these are demonstrated by you determines your mark. The
marks available for each criterion are shown. Lecturers will use the space provided to comment on the achievement of the
task(s), including those areas in which you have performed well and areas that would benefit from development/improvement.

awarded
available

Marks
Marks
Common Assessment Criteria Applied

1. Research-informed Literature
Extent of research and/or own reading, selection of credible sources, application of appropriate referencing conventions.

Use of relevant and credible sources of evidence and literature.

20
2. Knowledge and Understanding of Subject
Extent of knowledge and understanding of concepts and underlying principles associated with the discipline.

Ability to demonstrate the knowledge and understanding of concepts and underlying principles
associated with the subject area. 20

3. Analysis
Analysis, evaluation and synthesis; logic, argument and judgement; analytical reflection; organisation of ideas and evidence

Breadth and depth of critical analysis of the scenario, issues and impacts.
25

4. Practical Application and Deployment

Deployment of methods, materials, tools and techniques; application of concepts; formulation of innovative and creative solutions to solve problems.

Ability to apply relevant theories, models and concepts to the scenario under discussion.
20
5. Skills for Professional Practice
Attributes in professional practice: individual and collaborative working; deployment of appropriate media; presentation and organisation.

Appropriate use relevant methodologies and high level of professionalism showcased throughout the
coursework. 15

Late Submission Penalties (tick if

Assignment Mark (Assessment marks are subject to ratification at the appropriate)
Exam Board. These comments and marks are to give feedback on module work Up to one-week late %
and are for guidance only until they are confirmed. ) Over one week late

Page 9 of 18
 GUIDANCE FOR STUDENTS IN THE COMPLETION OF TASKS
NOTE: The guidance offered below is linked to the five common assessment criteria above.

1. Research-informed Literature
Your work must be informed and supported by scholarly material that is relevant to and focused on the task(s) set.
You should provide evidence that you have accessed a wide range of sources, which may be academic,
governmental and industrial; these sources may include academic journal articles, textbooks, current news articles,
organisational documents, and websites. You should consider the credibility of your sources; academic journals are
normally highly credible sources while websites require careful consideration/selection and should be used
sparingly. Any sources you use should be current and up-to-date, mostly published within the last five years or so,
though seminal/important works in the field may be older. You must provide evidence of your research/own reading
throughout your work, using in-text citations in the main body of your work and a reference list that is alphabetical
at the end of your work. Please use the Harvard referencing system.

2. Knowledge and Understanding of Subject

Your work must demonstrate the growing extent of your knowledge and understanding of concepts and underlying
principles associated with the subject area. Knowledge relates to the facts, information and skills you have acquired
through your learning. You demonstrate your understanding by interpreting the meaning of the facts and
information (knowledge). This means that you need to select and include in your work the concepts, techniques,
models, theories, etc. appropriate to the task(s) set. You should be able to explain the theories, concepts, etc.
meaningfully to show your understanding. Your mark/grade will also depend upon the extent to which you
demonstrate your knowledge and understanding; ideally each should be complete and detailed, with comprehensive
coverage.

3. Analysis
Your work must contain evidence of logical, analytical thinking, evaluation and synthesis. For example, to examine
and break information down into parts, make inferences, compile, compare and contrast information. This means
not just describing What! but also justifying: Why? How? When? Who? Where? At all times, you must provide
justification for your arguments and judgements. Evidence that you have reflected upon the ideas of others within
the subject area is crucial to you providing a reasoned and informed debate within your work. Furthermore, you
should provide evidence that you are able to make sound judgements and convincing arguments using data and
concepts. Sound, valid conclusions are necessary and must be derived from the content of your work. There should
be no new information presented within your conclusion. Where relevant, alternative solutions and
recommendations may be proposed.

4. Practical Application and Deployment

You should be able to demonstrate how the subject-related concepts and ideas relate to real world situations or a
particular context. How do they work in practice? You will deploy models, methods, techniques, and/or theories, in
that context, to assess current situations, perhaps to formulate plans or solutions to solve problems, some of which
may be innovative and creative. This is likely to involve, for instance, the use of real world examples and cases, the
application of a model within an organisation and/or benchmarking one organisation against others based on stated
criteria. You should show awareness of the limitations of concepts and theories when applied in particular contexts.

5. Skills for Professional Practice

Your work must provide evidence of the attributes expected in professional practice. This includes demonstrating
your individual initiative and/or collaborative working. You must communicate effectively in a suitable format, which
may be written and/or oral, for example, essay, management report, presentation. Work should be coherent and
well-structured in presentation and organisation.

Page 10 of 18
UNDERGRADUATE - COMMON ASSESSMENT AND MARKING CRITERIA
OUTRIGHT FAIL UNSATISFACTORY SATISFACTORY GOOD VERY GOOD EXCELLENT EXCEPTIONAL

0-29% 30-39%* 40-49% 50-59% 60-69% 70-79% 80-100%

Assessment Criteria
1. Research-informed Little or no evidence Poor evidence of References to a Inclusion of a range Inclusion of a wide A comprehensive Outstanding
of reading. reading and/or of limited range of of research- range of research- range of research knowledge of
Literature Views and findings reliance on mostly relevant informed literature, informed literature, informed literature research-
Extent of research unsupported and inappropriate sources. Some including sources including sources embedded in the informed
and/or own reading, non-authoritative. sources, and/or omissions and retrieved retrieved work. Excellent literature
Referencing indiscriminate use minor errors. independently. independently. selection of relevant embedded in
selection of credible conventions largely of sources. Referencing Referencing Selection of relevant and credible the work.
sources, application of ignored. Referencing conventions evident conventions mostly and credible sources. High-level Outstanding
appropriate referencing conventions used though not always consistently applied. sources. Very good referencing skills, selection of
inconsistently. applied consistently. use of referencing consistently applied. relevant and
conventions conventions, credible
consistently applied. sources. High-
level referencing
skills
consistently and
professionally
applied.
2. Knowledge and Major gaps in Gaps in knowledge, Evidence of basic Knowledge is Knowledge is Excellent knowledge Highly detailed
knowledge and with only superficial knowledge and accurate with a extensive. Exhibits and understanding knowledge and
Understanding of understanding of understanding. understanding of good understanding understanding of of the main understanding
Subject material at this Some significant the relevant of the field of study. the breadth and concepts and key of the main
Extent of knowledge and level. Substantial inaccuracies. concepts and depth of established theories. Clear theories/concep
inaccuracies. underlying views. awareness of ts, and a critical
understanding of principles. challenges to awareness of
concepts and underlying established views the ambiguities
principles associated and the limitations and limitations
of the knowledge of knowledge.
with the discipline. base.

3. Analysis Unsubstantiated Some evidence of Evidence of some Evidence of some Sound, logical, Thoroughly logical Exceptional
generalisations, analytical logical, analytical logical, analytical analytical thinking; work, supported by work; judiciously
Analysis, evaluation and made without use intellectual skills, thinking and some thinking and synthesis and evaluated evidence. selected and
synthesis; logic, of any credible but for the most attempts to synthesis. Can evaluation. Ability High quality evaluated
argument and evidence. Lack of part descriptive. synthesise, albeit analyse new and/or to devise and analysis, developed evidence. Very
logic, leading to Ideas/findings with some abstract data and sustain persuasive independently or high quality
judgement; analytical unsupportable/ sometimes illogical weaknesses. situations without arguments, and to through effective analysis,
reflection; organisation missing conclusions. and contradictory. Some evidence to guidance. review the collaboration. developed
of ideas and evidence Lack of any attempt Generalised support findings/ An emerging reliability, validity & Ability to investigate independently
to analyse, statements made views, but evidence awareness of significance of contradictory or through
synthesise or with scant evidence. not consistently different stances evidence. Ability to information and effective
evaluate. Conclusions lack interpreted. and ability to use communicate ideas identify reasons for collaboration.
relevance. Some relevant evidence to support and evidence contradictions. Ability to
conclusions and the argument. accurately and Strong, persuasive, investigate
recommendations, Valid conclusions convincingly. conclusions, contradictory
where relevant and Sound, convincing justifiable information and
recommendations, conclusions / recommendations. identify reasons
where relevant recommendations. for
contradictions.
Highly
persuasive
conclusions
4. Practical Application Limited or no use of Rudimentary An adequate A good and A very good An advanced Outstanding
methods, materials, application of awareness and appropriate application of a application of a levels of
and Deployment tools and/or methods, materials, mostly appropriate application of range of methods, range of methods, application and
Effective deployment of techniques. tools and/or application of well standard methods, materials, tools materials, tools deployment
appropriate methods, Little or no techniques but established materials, tools and/or techniques. and/or techniques. skills.
appreciation of the without methods, materials, and/or techniques. Very good The context of the Assimilation and
materials, tools and context of the consideration and tools and/or Good appreciation consideration of the application is well development of
techniques; extent of application. competence. techniques. of the context of the context of the considered, with cutting edge
skill demonstrated in the Flawed appreciation Basic appreciation application, with application, with extensive use of processes and
of the context of the of the context of the some use of perceptive use of relevant examples. techniques.
application of concepts application. application. examples, where examples, where Application and
to a variety of processes relevant. relevant. deployment extend
and/or contexts; Evidence of some beyond established
innovation and conventions.
formulation of innovative creativity. Innovation and
and creative solutions to creativity evident
solve problems. throughout.

5. Skills for Professional Communication Media is poorly Can communicate in Can communicate Can communicate Can communicate Can
media is designed and/or not a suitable format effectively in a well, confidently professionally and, communicate
Practice inappropriate or suitable for the but with some room suitable format, but and consistently in a confidently in a with an
Demonstrates attributes misapplied. audience. for improvement. may have minor suitable format. suitable format. exceptionally
expected in professional Little or no evidence Poor independent Can work as part of errors. Can work very well Can work high level of
of autonomy in the or collaborative a team, but with Can work effectively as part of a team, professionally professionalism.
practice including: completion of tasks. initiative. limited involvement as part of a team, with very good within a team, Can work
individual initiative and Work is poorly Work lacks in group activities. with clear contribution to showing leadership exceptionally
collaborative working; structured and/or structure, Work lacks contribution to group activities. skills as appropriate, well and
largely incoherent. organisation, and/or coherence in places group activities. Work is coherent managing conflict professionally
deployment of coherence and could be better Mostly coherent and fluent and is and meeting within a team,
appropriate media to structured. work and is in a well structured and obligations. showing
communicate (including suitable structure. organised. Work is coherent, advanced
very fluent and is leadership skills.
written and oral); clarity presented Work is
and effectiveness in professionally. exceptionally
presentation and coherent, very
fluent and is
organisation. presented
professionally.

Page 11 of 18
Student Self Evaluation Form
Student name: Student number:

Programme: Year of
programme

Assignment Title:
This section repeats in brief the common assessment criteria detailed on previous pages. The extent to which these
are demonstrated by you determines your mark. Using these criteria, tick the box that best indicates the level of
achievement you feel you have achieved with regard to each of them. Please note that this self-assessment is used
as a developmental tool only and has no impact on the way in which your work will be marked.
Level of Achievement
Common Assessment
Criteria Applied REFER 3rd 2:2 2:1 1st 1st

OUTRIGHT FAIL UNSATISFACTORY SATISFACTORY GOOD VERY GOOD EXCELLENT EXCEPTIONAL

1. Research-informed 0-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-100%

Literature
      
2. Knowledge and 0-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-100%
Understanding of
Subject       
3. Analysis 0-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-100%

      
4. Practical 0-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-100%
Application and
Deployment
      
5. Skills for 0-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-100%
Professional Practice
      

PLEASE COMMENT ON AREAS IN WHICH YOU FEEL PLEASE COMMENT ON AREAS YOU FEEL THAT YOU
THAT YOU HAVE PERFORMED WELL NEED TO DEVELOP

Student’s Name Date

Student’s Signature

Page 12 of 18
Appendix 1
Case Study - The Indian Call Center Journey

"The call center business appears to be going the dot-com way with a lot of big names pumping in dough. Ultimately,
only the fittest will survive."

-A Mumbai based call center agent, in 2001.

Call Centers Fare Badly

In the beginning of 1999, the teleworking industry had been hailed as 'the opportunity' for Indian corporates
in the new millennium. In late 2000, a NASSCOM1 study forecast that by 2008, the Indian IT enabled
services business2 was set to reach great heights. Noted Massachusetts Institute of Technology (MIT)
scholar, Michael Dertouzos remarked that India could boost its GDP by a trillion dollars through the IT-
enabled services sector. Call center (an integral part of IT-enabled services) revenues were projected to
grow from Rs 24 bn in 2000 to Rs 200 bn by 2010. During 2000-01, over a hundred call centers were
established in India ranging from 5000 sq. ft. to 100,000 sq. ft. in area involving investments of over Rs 12
bn.

However, by early 2001, things seemed to have taken a totally different turn. The reality of the Indian call
center experience was manifested in rows after rows of cubicles devoid of personnel in the call centers.
There just was no business coming in.

In centers which did retain the employees, they were seen sitting idle, waiting endlessly for the calls to
come. Estimates indicated that the industry was saddled with idle capacity worth almost $ 75-100 mn.
Owners of a substantial number of such centers were on the lookout for buyers. It was surprising that call
centers were having problems in recruiting suitable entry-level agents even with attractive salaries being
offered. The human resource exodus added to the industry's misery. Given the large number of
unemployed young people in the country, the attrition rate of over 50% (in some cases) was rather
surprising.

The industry, which was supposed to generate substantial employment for the country, was literally down in
the dumps - much to the chagrin of industry experts, the Government, the media and above all, the players
involved. The future prospects of the call center business seemed to be rather bleak indeed.

Notes:
1] National Association of Software and Services Companies (NASSCOM) is the apex body and umbrella
organization for IT Software and Services industry in India.
2] Comprising of content, animation, engineering and design services, back office services, customer
interaction services and transcription and translation services. Call centers were covered under the
customer interaction services domain.

Page 13 of 18
Call Center Basics
In 2001, the global call center industry was worth $ 800 mn spread across around 100,000 units. It was
expected to touch the 300,000 level by 2002 employing approximately 18 mn people. Broadly speaking, a
call center was a facility handling large volumes of inbound and outbound telephone calls, manned by
'agents,' (the people working at the center). In certain setups, the caller and the call center shared costs,
while in certain other cases, the clients bore the call’s cost. The call center could be situated anywhere in
the world, irrespective of the client company's customer base.

Call centers date back to the 1970s, when the travel/hospitality industry in the US began to centralize their
reservation centers. With the rise of catalog shopping and outbound telemarketing, call centers became
necessary for many industries. Each industry had its own way of operating these centers, with its own
standards for quality, and its own preferred technologies. The total number of people who worked at the
center at any given point of time were referred to as 'seats.' A center could range from a small 5-10 seat
set-up to a huge set-up with 500-2,000 seats.

The calls could be for customer service, sales, marketing or technical support in areas such as airline/hotel
reservations, banking or regarding telemarketing, market research, etc. For instance, while a FMCG
company could use the call centers for better customer relationship management, for a biotechnology
company, the task could be of verifying genetic databases. (Refer Table I).

Call centers began as huge establishments managing large volumes of communications and traffic. These
centers were generally set up as large rooms, with workstations, interactive voice response systems, an
EPABX3, headsets hooked into a large telecom switch and one or more supervisor stations. (Refer Table
II). The center was either an independent entity, or was linked with other centers or to a corporate data
network, including mainframes, microcomputers and LANs4.

Table I
Benefits of a Call-Center

 Enhances the customer base and business prospects;

 Offers an economical means of reaching diverse and widely distributed customer group;
 Fine-tunes offerings to specific customer groups by specialized and focussed assistance;
 Allows customers easy access to experts;
 Facilitates business round the clock and in any geographical region;
 Allows a company to reduce the overheads of brick and mortar branches.
Source: IBS Center for Management Research

Page 14 of 18
 Table II
Call Center Classification

 Voice call center with phones and computers.

 E-mail call center with leased lines and computers.
 Web-based call centers using internet chat facilities with customers.
 Regional call centers handling calls from local clients.
 Global call centers handling calls from across the world.
Source: IBS Center for Management Research

Notes:
3] Electronic Private Automatic Branch Exchange.
4] Local Area Network (LAN) is a network of interconnected workstations sharing the resources of a single
processor or server within a relatively small geographic area.

Call centers could either be 'captive/in-house' or in form of an 'outsourced bureau.' Captive call centers
were typically used by various segments like insurance, investments and securities, retail banking, other
financial services, telecommunications, technology, utilities, manufacturing, travel and tourism, transport,
entertainment, healthcare and education etc. Outsourcing bureaus were outfits with prior experience in
running call centers. These helped the new players in dealing with complex labor issues, assisted in using
latest technologies, helped in lowering the operating expenses and financial risks. Outsourced bureau
operators were utilized by companies at various stages viz. setting up of the center, internal infrastructure
revamps, excess traffic situations etc.

Indian Call Centers - Myths and Realities

There were many reasons why India was considered an attractive destination to set up call centers.

The boom in the Indian information technology sector in the mid 1990s led to the country's IT strengths
being recognized all over the world. Moreover, India had the largest English-speaking population after the
US and had a vast workforce of educated, reasonably tech-savvy personnel. In a call center, manpower
typically accounted for 55-60% of the total costs in the US and European markets - in India, the manpower
cost was approximately one-tenth of this. While per agent cost in US worked out to approximately $ 40,000,
in India it was only $ 5,000. This was cited to be the biggest advantage India could offer to the MNCs. Apart
from these, the Government’s pro call center industry approach and a virtual 12-hour time zone difference
with the US added to India's advantages.

There were a host of players in the Indian call center industry. Apart from the pioneers British Airways, GE
and Swiss Air, HLL, BPL, Godrej Soaps, Global Tele-Systems, Wipro, ICICI Banking Corporation, American
Express, Bank of America, Citibank, ABN AMRO, Global Trust, Deutsche Bank, Airtel, and Bharati BT were
the other major players in the call-center business. After the projections of the NASSCOM-McKinsey report
were made public, many people began thinking of entering the call center business. (Refer Table III).
During this rush to make money from the call center 'wave,' NASSCOM received queries from many people
with spare cash and space, including lorry-fleet operators, garment exporters, leather merchants, tyre
distributors and plantation owners among others.

Page 15 of 18
 Table III
The Indian Call-Center Milestones

GE, Swiss Air, British Airways set up captive call center units for their
Mid 1990s
global needs.
Following increasing interest in the IT-enabled services sector,
May 1999 NASSCOM held the first IT-enabled services meet. Over 600 participant
firms plan to set up medical transcription outfits and call centers.
A NASSCOM-McKinsey report says that remote services could generate $
December 1999
18 billion of annual revenues by 2008.
May 2000 Venture Capitalists rush in. Make huge investments in call centers.
More than 1,000 participants flock to the NASSCOM meet to hear about
September 2000 new opportunities in remote services. Though the medical transcription
business is not flourishing, call centers seen as a big opportunity.
NASSCOM report, indicates that a center could be set up with $ 1 million.
Quarter 4, 2000 Gold rush begins. Everyone, from plantation owners to lorry-fleet
operators, wanted to set up centers.
Most of the call centers are waiting for customers. New ventures still
coming up: capacity of between 25 seats and 10,000 seats per company.
Small operators discover that the business is a black hole where
Quarter 1, 2001
investments just disappear. They look for buyers, strategic partnerships
and joint ventures. Brokers and middlemen make an entry to fix such
deals.
Source: IBS Center for Management Research.

However, most of these people entered the field, without having any idea as to what the business was all
about. Their knowledge regarding the technology involved, the marketing aspects, client servicing issues
etc was very poor. They assumed that by offering cheaper rates, they would be able to attract clients easily.
They did not realize that more than easy access to capital and real estate, the field required experience and
a sound business background. Once they decided to enter the field, they found that most of the capital
expenditure (in form of building up the infrastructure5) occurred even before the first client was bagged.
These players seemed to have neglected the fact that most successful call centers were quite large and
had either some experience in the form of promoters having worked abroad in similar ventures or previous
experience with such ventures or were subsidiaries of foreign companies. The real trouble started when
these companies began soliciting clients. As call centers were a new line of business in India, the lack of
track record forced the clients to go for much detailed and prolonged studies of the Indian partners.

Many US clients insisted on a strict inspection of the facilities offered, such as work-areas, cafeterias and
even the restrooms. The clients expected to be shown detailed Service Level Agreements (SLAs6) , which
a majority of the Indian firms could not manage. Under these circumstances, no US company was willing to
risk giving business to amateurs at the cost of losing their customers. Because of the inadequate
investments in technology, lack of processes to scale the business7 and the lack of management
capabilities, most of the Indian players were unable to get international customers. Even for those who did
manage to rope in some clients, the business was limited. As if these problems were not enough, the
players hit another roadblock - this time in form of the high labor turnover problem.

Agent performance was the deciding factor in the success of any call center. Companies had recognized
agents as one of the most important and influential points of contact between the business and the
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customer. However, it was this very set of people whom the Indian call centers were finding extremely
difficult to recruit and more importantly, retain. In 2000, the average attrition rate in the industry was 40-
45%, with about 10-15% of the staff quitting within the first two months itself. Even though attrition rates
were very high in this industry worldwide, the same trend was not expected to emerge in India, as the
unemployment levels were much higher.

The reasons were not very hard to understand. In a eight-and-a-half hour shift, the agents had to attend
calls for seven-and-a-half hours. The work was highly stressful and monotonous with frequent night shifts.
A typical call center agent could be described as being 'overworked, underpaid, stressed-out and
thoroughly bored.' The agents were frequently reported to develop an identity crisis because of the 'dual
personality' they had to adopt. They had to take on European/US names or abbreviate their own names
and acquire foreign accents in order to pose as 'locals.' The odd timings took a toll on their health with
many agents complaining of their biological clocks being disturbed. (Especially the ones in night shifts). Job
security was another major problem, with agents being fired frequently for not being able to adhere to the
strict accuracy standards. (Not more than one mistake per 100 computer lines.)

Notes:
5] The typical cost of setting up a call center with 100 people worked out to about Rs 50 million in 2000.
This included premises, telecommunication infrastructure, computing equipment and cost of meeting
regulatory requirements including obtaining DoT clearances.
6] SLAs contained the measurable parameters for a call center such as Average Speed of answer (number
of rings before a call was answered), Average Talk Time (time taken to address one query) etc.
7] Scalability indicated the center's ability to increase the number of seats

The industry did not offer any creative work or growth opportunities to keep the workers motivated. The
scope for growth was very limited. For instance, in a 426-seat center, there were 400 agents, 20 team
leaders, four service delivery leaders, one head of department and one head of business. Thus, going up
the hierarchy was almost impossible for the agents. Analysts remarked that the fault was mainly in the
recruitment, training, and career progression policies of the call centers. Organizations that first set up call
centers in India were able to pick and choose the best talent available. The entry norms established at this
point were - a maximum age limit of 25 years, a minimum qualification of a university degree, English
medium school basic education and a preference to candidates belonging to westernized and well-off
upper middle class families. The companies hence did not have to spend too much time and effort in
training the new recruits on the two important aspects of a good level of spoken and written English and a
good exposure to western culture and traditions. However, companies soon realized that people with such
backgrounds generally had much higher aspirations in life. While they were initially excited to work in the
excellent working environment of a multinational company for a few months, they were not willing to make a
career in the call center industry. They generally got fed up and left within a few months when the
excitement waned.

A consistently high attrition rate affected not only a center's profits but also customer service and
satisfaction. This was because a new agent normally took a few months before becoming as proficient as
an experienced one. This meant that opportunities for providing higher levels of customer service were lost
on account of high staff turnover.8

Future Prospects

The Indian call center majors were trying to handle the labor exodus through various measures. Foremost
amongst these was the move to employ people from social and academic backgrounds different from the
norms set earlier. Young people passing out of English medium high schools and universities and
housewives and back-to-work mothers looking for suitable opportunities were identified as two of the
biggest possible recruitment pools for the industry. Such students with a good basic level of English could
be trained easily to improve their accents, pronunciation, grammar, spelling and diction. They could be
trained to become familiar with western culture and traditions. The housewives and back-to-work mothers'
pool could also be developed into excellent resources. This had been successfully tried out in the US and
European markets, where call centers employed a large number of housewives and back-to-work mothers.
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Another solution being thought about was to recruit people from non-metros, as people from these places
were deemed to be more likely to stay with the organization, though being more difficult to recruit and
expensive to train.

Even as the people and infrastructure problems were being tackled, a host of other issues had cropped up,
posing threats for the Indian call centers. The promise of cheap, English speaking and technically aware
labor from India was suddenly not as lucrative in the international markets. A survey of Fortune 1,000
companies on their outsourcing concerns showed that cost-reduction was not the most important criterion
for selecting an outsourcing partner. This did not augur well for a country banking on its cost
competitiveness. Also, China was fast emerging as a major threat to India, as it had embarked on a
massive plan to train people in English to overcome its handicap in the language.

8] Some sources claimed that a high turnover at a call center was actually not that bad. In his report, John
Carver, Call center manager, Bank of Montreal, MasterCard Division, mentioned that in the call center
business, turnover is 'celebrated'. He said, "The higher, the better. It's part of our Culture. When we hire
into our call center we hire people looking for a career, not just in the call center, but anywhere in our bank.
We recognize that many have higher ambitions, and that they are applying for a call center agent position
because they see it as a door opener. I talk with each new hire class and let them know we are OK with
that, and that we are here to give them a start, an entry into the Bank of Montreal. We give them a fantastic
grounding in sales and service in the card business, where they master negotiation and communication
skills, and then send them on their way." He added that new agents brought positive attitudes to the center
and posed fresh challenges for the training group.

In February 2001, Niels Kjellerup, editor and publisher of 'Call Center Managers Forum' came out strongly
against India being promoted as an ideal place to set up call centers. He said:

"The English spoken by Indians is a very heavy dialect - in fact, in face to face conversations, I found it very
difficult to understand what was said. How will this play out over the telephone with people much less
educated that my conversation partners? The non-existent customer service culture in India will make
training of reps mandatory and difficult, since such a luxury as service is not part of everyday life in India.
The infrastructure is bad, no, make that antiquated: The attempts by a major US corporation to set up a
satellite link has so far been expensive and not very successful. Electricity infrastructure is going from bad
to worse - in fact during my stay at a 5 star hotel and at the corporate HQ of a big MNC, we had on average
7 black-outs a day where the generators would kick in after 2-3 seconds. The telephony system is analog
and inadequate. It took on average three attempts just to get a line of out my hotel. The telecom market is
not deregulated, and international calls are very expensive.

The business culture and the mix of Government intervention will be a cultural shock for Western business
people with no previous experience. Add to this a lack of a call center industry and very few people with call
center experience which makes it very hard to recruit call center managers with a proven track record."

Despite the mounting criticisms and worries, hope still existed for the Indian call center industry. Analysts
remarked that the call center business was in the midst of a transition, wherein only the fundamentally
strong players would remain in the fray after an inevitable 'shakeout.' Unlike other industries, the shakeout
in this industry was not only because of an over supply of call center providers, but also because of the
quality of supply offered. In spite of the downturn, the call center business was considered to hold a lot of
potential by many corporates.

With the US economy facing a slowdown, the need for US companies to outsource was expected to be
even higher. The Reliance group was planning to open call centers in 10 cities across the country. Other
companies including Spectramind and Global Telesystems planned to either enter or enhance their
presence in the business.

Whether the dream of call centers contributing to substantial economic growth for India would turn into
reality was something only time would reveal.

Source: icmrindia. 2002. The Indian Call Center Journey. [ONLINE] Available at:
http://www.icmrindia.org/free%20resources/casestudies/Indian%20Call%20Center%20Journey1.htm. [Accessed 11
May 2018].

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