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No Takers for Labor Unions in Indian BPO Sector


(October 18, 2005 - GlobalSourcingNow) - An attempt by one of India’s most prominent trade union to form a labor union to encompass BPO and call center workers under its fold has failed to take off. However, Gartner terms the move as a sign of the sector reaching its maturity.

The Call Centers Association of India (CCAI) has declined to be a part of the union proposed by the Centre of Indian Trade Unions (CITU), terming any such move to be not in line with international business norms. CCAI officials also added that any such move would have a negative impact on the country’s image as a favorite outsourcing destination.

However, Craig Batty, VP and Chief of Research, Gartner Group, is of the opinion that such a move implies that the local BPO industry has reached a matured state. Batty said that formation of unions are usually seen in industries reaching its optimal levels. He added that such a move could actually help in bringing additional advantages to the sector.

According to NASSCOM, an apex body of Indian IT and ITeS service providers, the sector is not in need of such unions, as not only the wage structures are good, but employ concerns are also swiftly addressed. Many industry experts also expressed the same opinion terming any such move to be detrimental to the overall industry.

The Indian BPO sector currently employs close to 350,000 people and plays an important role by contributing close to 3.5 percent of the country’s GDP.

(Comment from O2P: This is an interesting development that may one day impact the outsourcing industry in the Philippines. It is very important that the industry regulate itself, and in all cases, abide by both the spirit and the letter of the law and the accompanying labor code. Another job for BPA/P, the industry association.)



 

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