
News
No Takers for Labor Unions in Indian BPO Sector
(October 18, 2005 - GlobalSourcingNow) - An attempt by one of Indias
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 countrys 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 countrys 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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