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| 1-Aug-2006 |
| Call Center in India? That's So 2004 |
| Indian outsourcers have begun turning down call center contracts, preferring better-paying deals for processing mortgages, handling insurance claims, overseeing payrolls, and more. Outsourcing powerhouse Tata Consultancy Services Ltd., for instance, has turned away potential clients offering call-center-only work.
In June, Apple pulled the plug on a call center in Bangalore due to the high cost of operating in India. Two months earlier, British utility Powergen cited rising wages when it withdrew from a contract with call center operator Vertex Data Science.
As a result, call centers are becoming a less important feature of the Indian business landscape. In 2000, they represented 85% of the total back-office business; now they are about 35%, according to Nasscom, India's outsourcing industry trade association.
The reason for the shift is simple: profits. Margins for call center work are in the low double digits, but they can top 30% for higher-end tasks, according to Nasscom.
Source: http://www.businessweek.com
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