Every call centre will exit India, says Jagdish Sheth

Mumbai: When Prof Jagdish Sheth, an expert on strategic marketing and global competition, speaks, corporations usually listen. He famously espoused the Rule of Three theory which argued that in every industry, the three strongest players dominate, controlling 70-90% of the market. Think what is happening in the Indian airline industry—dominated by
Air India-Indian, Jet-Sahara, Kingfisher-Air Deccan—and you will know what he means. His latest book, The Self-Destructive Habits of Good Companies, lists the reasons why top businesses fail.
In an interview to FE, Sheth, who is also a futurist, says the call centre business in India is not sustainable. “Every company will exit the business,” he says, because of various reasons.
For one, the attrition rate is atrocious. It’s somewhere between 118-120%, which means that “before you train the person, he’s out the door.” Sheth says companies like Delta Airlines or any top telecom company for that matter will ideally want six-eight months training on accent, domain expertise and so forth.
Attrition apart, there are disadvantages like the graveyard shift. On top of this, capital costs in India are high and mounting.
But he also points out that only the call centre companies will exit India, not the back offices.
10/06/07 Sudipta Datta/Financial Express

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Categories: Foreign Jun 2007, General Aviation Jun 2007