Sunday, August 12, 2007

Infosys BPO to lower recruitment standards

In order to keep up with the demand for manpower, the BPO industry is being forced to lower standards.

There were 2,50, 000 engineering graduates last year and the IT/ ITeS industry absorbed about 60 per cent of them.But this is clearly not enough for an industry which is looking to employ over 1.6 million people by the end of the year.

Companies, especially BPOs are now resorting to what could be seen as a lowering of standards, problems the IT industry in India has faced for some time.But now with the demand for manpower escalating way beyond what is available, BPOs have decided to lower recruitment standards.

Typically, only the top six per cent applicants get hired but this may now go up to 15 per cent.This will be compensated by more intensive training.

Genpact for example has decided to increase its training programme by two weeks.''Companies will find ways. I think the fact is that there is enough room within wage inflation and differences between wages of other countries and India. ''This is not going to be a short-term issue. The answer is simple, train and educate a lot more people,'' said Pramod Bhasin, President & CEO, Genpact.

Similar modelInfosys too says it will have to follow a similar model or their profit margins will take a hit.''The people who are excited about the BPO industry, who want to join it and are capable of being hired by it will have to wait as it's not a short term thing. It will take time,'' said Amitabh Chaudhry, CEO, Infosys BPO.

So far most BPOs wanted graduates at the entry-level. Now, companies like Infosys say they can take even those who are not graduates.While this may increase the manpower it is sure to lower standards in an industry that is already facing a shortage of technical know-how and communication skills.

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