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 Home > GOLDBOOK > GOLDBOOK 2006 > BPO TRENDS: On The Anvil
  GOLDBOOK 2006
BPO TRENDS: On The Anvil
CTOs of leading BPO companies share views on technology trends
Sudesh Prasad
Monday, March 06, 2006
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TECHNOLOGICAL CHALLENGES
Sandeep Phanasgaonkar: The BPO companies in India need to maintain a highly consistent infrastructure through optimum redundancy and BCP capability. IT can provide high degree of Info-security cover for operations through policies, prevention, and detection (firewalls, intrusion detection, data encryption and security, access control, virus control, identity management, cyber-forensic investigation). This can drive down IT costs per FTE on a y-o-y basis. Many BPOs will be able to use IT to drive efficiencies and lower costs in customer processes and internal processes in the organization. Many companies, which have completed four to five years of operations, will be in a state of technology refresh and will need to upgrade/replace aging/obsolete equipment and technology.

Atul Davda: Security, of course, is a major technological challenge. We must instill confidence in our customers that we can secure their transactions better than their on-shore IT staff. Right now BPOs do the arm- and leg-work on client systems-application development companies program client systems, and applications integrators integrate and deploy client systems. The client doesn't want a system. The client wants the work done.

So, if onshore regulations permit, and there is no security consideration, and no IPR issues, then BPO players will have the opportunity to own, host, maintain, and enhance application systems to process the data.  The cost benefits and efficiencies will be passed on to the client.

Rajendra Deshpande: Providing cost effective support across multiple platforms, which needs to be developed or accessed at our end, is one of the major challenges for BPO firms in India. Technology consolidation, migration, and effective capacity utilization meant to bring costs down are amongst the other challenges.

Sanjiv Dalal: The main challenge for BPO companies is network uptime for 24x7 operation. The second important challenge is to see to it that the security is not compromised under any circumstances. Lots of dynamic changes are taking place in the network and the challenge is to manage service delivery and make it reliable over a period of time

Atul Davda
sr VP & CTO, WNS Global
Rajendra Deshpande
CTO, Intelenet Global
Sanjiv Dalal
CTO, ICICI Onesource
Sandeep Phanasgaonkar
CIO, Genpact

FUTURE TECHNOLOGIES
Sandeep: Multi-protocol Label Switching (MPLS) networks are being deployed in the BPO sector in a big way because they offer a lot of flexibility, while ramping up. It is a huge difference from running one's own IPLC etc. Moreover, we can run any protocol on it-the voice ERP that includes call recording for analyzing quality of calls, duration of call etc. Call management pieces, and work force management that includes routing of calls to the right skilled person are picking up pace. Computer Telephone Integration (CTI), which has been in the market for some time, and Interactive Voice Response (IVR), which ensures voice menu etc are also popular technologies. Another technology, which is going to come in a big way, is the speech recognition piece and is going to change the voice process over a period of time. VoIP also has a future, provided applications that leverage it are available.

Sanjiv Dalal: Speech recognition is definitely something that we are looking forward to. It has great potential. For example, it can detect conversation and search for specific things and even identify the customers. Managed network services is beginning to take roots in India and we are also looking forward to it

RECENT THREATS AND SECURITY BREACHES
Sandeep: Threats can emerge from technology, people, and process shortcomings. Broadly, security has two parts-security of system and security with respect to people. On the technological front it has to be ensured that data is secure in the system and access to the system is restricted. As discussed earlier, IT can provide high degree of Info-sec cover for operations through policies, prevention, and detection. This should be followed up with rigorous audits and certifications-BS7799 and SAS70 for IT processes and safeguards. Document classification, clean desk policies, clean printer, and printing regulation policies, data encryption for storage and transmission, access control restrictions, sophisticated event correlation identification, regular penetration testing (to prevent internal and external hacking) and ensuring compliance with data security laws of the land (whether it is India IT Act, HIPAA, BASEL2 etc) are some of the technological measures to secure the data.

Rajendra Deshpande: Providing fool-proof data security services in a state-of-the-art BPO facility is a given for any BPO solutions provider. It's important that security culture is instilled and communicated to the critical mass within the organization. This concept should become a part of the organization's culture

Sanjiv Dalal: Security is certainly an area of concern for all of us. We are aware of the vulnerabilities that are there.  We have deployed state-of-the art technology at our facilities to thwart any attempts at breaking into our system. I-OneSource is India's first BPO company to achieve BS 7799:2002 security standards. We are also fully compliant with the UK Data Protection Act. Additionally we have deployed cell phone detector to ensure that no mobile phones are carried inside the workplace.

INFRASTRUCTURE SHARING
Sandeep: Infrastructure sharing by BPO companies will work well between international and domestic call centers of the same company. This will enable them to put in adequate safeguards for security breaches or violation, decide on mode and timing of sharing the infrastructure, and any cost issue that may arise. The penalties for breach are severe, and therefore, it is important that the company takes full responsibility for doing the infrastructure sharing. Over a period of time we expect to see more flexibility and relaxation in the management and usage of infrastructure in BPOs.

Atul Davda: Freedom in the market place would be a welcome change.  Ability to share infrastructure would allow BPOs to improve quality and reduce costs making India Inc more competitive in the global markets.

Sanjiv Dalal: We are in favor of some infrastructure sharing like bandwidth and seat sharing. Government has allowed sharing between international and domestic, but not between two different BPO companies. If it is allowed, we will definitely go for it. It will be a huge cost saving in terms of bandwidth and physical infrastructure cost.

POLICY RELATED ISSUES
Sandeep: Ministry of Telecom/DoT and Nasscom have setup an IT consulting committee comprising members of the BPO industry to facilitate discussion on measures that can be taken to improve efficiency of BPO operations. The committee will meet at regular intervals and take up issues for discussions and resolutions. This should help in resolving policy related issues for technology implementation at BPO companies.

Atul Davda: The continuing deregulation of the telecommunications environment in India will deepen the range of BPO services being provided from the sub-continent.  For example, in the early 1990s the BPO industry was not a viable business even though the networking and telecommunication technology had been in place for decades. Bandwidth prices were too high and availability was low. The prevailing telecommunication policy held back free market place in bandwidth, preventing industry viability.  Since then, multiple service providers in metro, national, and offshore/onshore routes have given BPO operators the ability to offer fail-safe networking, and frankly, made BPO deals worth doing economically.

Today interconnectivity between public and private networks is not allowed in India. One is forced to have several phones on one's desk, each connected to a different network. Technologically, these networks can be connected in a matter of minutes but artificial policy barriers keep companies from doing so. Any policy direction that would increase fiber capacity to our nation, lower the cost of data transport, and remove artificial barriers would enrich the country with employment options for college graduates.

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