It is widely acknowledged that India is the largest democracy and China is the largest communist country of the world. When compared to India, China has already emerged as the dominant global player. It is accounting for more than 50% of world’s import and export growth. It can be aptly named the workshop of the world. China’s success and status as an export powerhouse is built on its strengths of low costs and constant flow of capital, something India can learn from.
China’s membership in the World Trade Organisaton has opened its state dominated economy to imports and also increased exports; lower tariffs have made foreign goods more affordable for the Chinese, opening up huge, untapped markets. (India to learn!)
Contradictions abound in the world of modern political economies. We find China's communists busy extolling the advantages of foreign strategic partners investing in their state-owned enterprises with some stakes in management (India to learn!) According to the Financial Times of November 3, 2005, the Chinese Railways have an aggressive plan of modernization and are reportedly offering significant railway assets for sale to foreign investors. (India to learn!) To woo foreign investors, the Chinese are prepared to go to any extent. A case in point – when there was a problem with providing the required power connection to the unit set up by Sundaram group of India, the Chinese authorities profusely apologized and provided a power generator at their cost to facilitate the unit. (India to learn!)
China was the first to recognize the need to marry market capitalism with the framework of a socialist society. ‘It is glorious to be rich’ proclaimed Chinese leader Deng even as India was still struggling with pseudo-radical control measures, which constrained entrepreneurship with a permit licence raj. (India to learn!) It is perhaps pertinent to refer to the historical fact that China's communists have always been more pragmatic than their dogmatic Indian democratic peers. (India to learn!) Chinese acknowledgement, commitment, drive, and execution of infrastructure projects for overall development are well known. They decide today and virtually get it executed yesterday! (India to learn!)
Chinese prefer to think before speaking. They do not brag and are modest. They are aware that life is not easy. Younger generation Chinese managers perceive their role to be to hire competent workers, set objectives, and expect them to perform. They emphasize that strategy is important in business since they believe that there are lots of opportunities for achievement and growth. (India to learn!) The negotiation process used by the Chinese is dramatically different and they put greater emphasis on respect and friendship, saving face, and group goals. Long-term goals are more important to the Chinese than specific current objectives. (India to learn!)
The Chinese are very meticulous and they come prepared for the negotiation. Since Chinese prefer emotional restraint and saving face, aggressive or emotional attempts at persuasion in negotiations are likely to fail. Instead, the Chinese tendency to avoid open conflict will more likely result in negative strategies, such as discontinuing or withdrawing from negotiations. (India to learn!) The Chinese emphasis on social obligations underlies their strong orientation toward collective goals. Therefore, appeals to individual members of the Chinese negotiating team, rather than to benefit the group as a whole, will probably backfire. (India to learn!) The Chinese are among the toughest negotiators in the world. Patience, respect, and experience are necessary pre-requisites for anyone negotiating in China. For the best outcomes, older, well-qualified, and more experienced people are more acceptable to the Chinese in negotiations. (India to learn!)
Large trade surpluses, rapid export growth, significant FDI inflows, and huge reserve increases are not always signs of economic health. Foreign investments tend to be geared towards producing for the external markets and naturally cluster on the coast. Coastal cities have good transportation links to the world and poor linkages with the mainland. Thus these investments and the rapid export growth tend to widen the economic divide between the coastal cities and the mainland.
China’s economic expansion is increasingly unbalanced, with too much investment in already prosperous coastal regions and too little in the central regions. Therefore, tensions prevail internally with the policy that over-emphasizes foreign direct investment and exports. Comparatively, the Indian experience has been exhilarating. In addition to their major and metro cities, many second rank state capitals and other cities are catching up on the development ladder. (China to learn!)
In China, the export sector is booming; so is the real estate/housing sector. Many other and service sectors lag behind. The health of its banking system is far from satisfactory. The legacies of bad loans to the loss making state owned firms are enormous. The Indian performance in the banking sector has been exemplary. They cleaned up their books way back in the early 1990s. The Indian banking sector is presently robust and comparatively very strong. (Chinese to learn!)
The monetary policy followed in China is skewed. Internal distortions created by controlled prices for credit, fuel, and the State’s de facto monopoly on land use do simmer. The next stage of China’s development will need to focus on developing domestic consumption and not just exports and foreign direct investment. Indian domestic consumption for that matter is very strong and is still growing. (China to learn!)
Though a formidable economic power in its own right, China has pegged its currency to U.S. Dollar. India follows a market determined exchange rate management policy. Going by the crises so far, the Indian approach is better than the Chinese. (Chinese to learn!)
A very clear message is emerging – indiscriminate support of exports and foreign capital influx will also create economic problems. It could be conceivable that in the long run the Chinese will be less welcoming to foreign direct investment. They will learn to change the present policies. (Chinese to learn!)
Well, we have devoted more space to China and the Chinese. And, yes, they are the leaders of the world as of now. As far as India is concerned, they will have to learn first and foremost to lessen the following frictions, such as the cost and availability of power and other utilities in time and in adequate measure, cost of borrowing, red tape, corruption, heavy taxes, expensive and slow transport, and inflexible labor markets. It is indeed pathetic to observe that in the prevailing business climate India is just above Afghanistan in the entire Asia (World Bank study).
China is presently the workshop of the world (muscle power!). India is leading investments into insourcing (brain power!). Both may have to learn and implement the facilitating factors that provide the competitive advantage to each other in these respective domains. Indians are far ahead of the Chinese in their language proficiency and conduct of business in English. The Indian education system – primary, secondary, and tertiary – may be facilitating this. (Chinese to learn!) The Indian judiciary system provides a level playing field for all, and almost all international laws, convention, and practices are respected and scrupulously followed. Chinese notoriety in the infringement of intellectual property right is well known. In their interest, Chinese will have to set this right at the earliest. (Chinese to learn!)
Politically, Indian politicians will have to take sabbaticals in China to learn the art of modern business acumen to gain superior competitive advantage, and through this, overall economic development, as there is undoubtedly a great deal of ideological difference and distance between the traditional communists in power in China and their Indian comrades wielding power through coalition government. (India to learn!)
It may be easier to list out the lessons for India and China but it may be difficult to learn as they are basically derived from their respective cultural traits. Chinese cannot practice and learn better than Indians, their lessons. And Indians too the Chinese lessons. I am not trying to be pessimistic. But that may well turn out to be a reality.
12/29/2006
India vs. China: where to invest?
India's bragging rights were inconceivable just a few years ago. As recently as June, 2003, The Economist magazine ran a cover story “India v China: a tiger, falling behind a dragon.” In that article, the magazine indicated that in 1980, India's GDP was greater than China's and its per capita income was some 60% higher. Yet by 2003 the situation had reversed, as China's economy soared ahead of India’s and its per capita income was around 50% higher. But in recent years India's economy is rising again and the tiger is making a run at the dragon.
Investor confidence
The sudden interest in India has boosted the country's self-confidence. Grant Thornton, a leading international audit and consulting firm, carried out a survey of business confidence of more than 7000 owners of medium-sized businesses from 30 countries. Surprisingly, India was ranked first, ahead of the G8 economies, China, and Europe's ‘Celtic tiger,’ Ireland. India lags China in the hard infrastructure of roads, airports, and real estate, but it leads in the soft infrastructure of democratic institutions, free press, and an independent judiciary. What other factors favor India?
Banking and finance
India's long experiences with free market enable it to gain significant expertise in lending and raising capital. This is not the case with China, where until recently banks were in business to funnel loans to woeful state-run enterprises. There were no incentives for these loans to be repaid, and now banks are crippled with an estimatedU.S.$213 billion of non-performing loans. In contrast, India's major banks are thriving and ICICI Bank, India's second largest, is considered as one of the best run banks in Asia. More than 6,000 firms are listed on the Bombay Stock Exchange, far outnumbering the number in China and even most major global markets. Furthermore, investors in China's two main mainland stock markets, Shanghai and Shenzhen, have experienced poor returns over the past decade as overpriced stocks flooded the markets. In contrast, Bombay's stock market has been booming.
Business relationships
Trust is certainly an important component of any business relationship. However, one aspect of the Chinese culture that is disturbing is the existence of networks of business and social relationships among various parties who are expected to exchange favors regularly and voluntarily, called guanxi. Although it is wrong to interpret this practice as bribery, since these exchanges need not involve money, they can be used to shut out those that do not fit into an approved Chinese social circle. Guanxi, when combined with the corruption that permeates the Chinese economy, could make the creation of a truly competitive economy difficult, if not impossible, to achieve. For India, these social networks and corruption are less of a problem. To be sure, dishonesty still exists in government service, but high level corruption is being vigorously rooted out by a free press, something that is absent in China.
Perhaps the greatest strength of a free market economy is its openness to doing business with anyone who has the qualifications and desire to do a job, regardless of ethnic or social backgrounds. The United States is highly attractive to so many immigrants who have been shut out of opportunities in their own homelands because of its openness. Guanxi combined with the uncertain new laws defining private property and business contracts in a still-Communist China should be a source of concern for investors.
Demography
Perhaps the most positive aspect of India's future is its demography: India is a very young country, while China, because of its one-child policy, is rapidly aging. According to the U.N. demographic Commission, by the middle of this century the most densely populated age group in India will be those aged between the ages of 40 and 50, while in China it will be those aged between 55 and 65. This means that China will soon start to suffer the same problems that Japan, Western Europe, and the United States are experiencing, or about to experience: an excessive number of retirees relative to the working population.
The young have the flexibility to adapt, absorb, conceptualize, and innovate. This is the key ingredient of technological and economic progress. China has a large supply of new workers for private enterprises, but these workers are leaving state-owned enterprises and are older and not as adaptable as the young labor market in India. The late management guru, Peter Drucker, said that demography is the "future that happened." Population trends are not easily reversible, and here the advantage goes to India.
India or China?
With all these points favoring India, the answer to the question, "where should your money go?" may seem like a forgone conclusion: India seems to have the best prospects for investors. As far as the future for investors is concerned, we should bear in mind that there are two issues that an investor needs to take into consideration when deciding where to invest. Firstly, you must size up the prospects of the firm, the sector, or the country. On this point, India scores some high marks. Secondly, you must evaluate the price that you are paying for these prospects. India's investment climate looks ripe for growth, but the markets have recognized this and have pushed stock prices upward. The Sensex 30, India's best-known stock market index and analogous to Dow-Jones Industrial Index, was around the 3300 mark in December 2002 and has now broken through the 10,000 barrier.
A question of value
The price-to-earnings ratio on this index has reached 21, while Chinese stocks on the Hong Kong Stock Exchange are selling for only 15 times earnings, which denotes that India is roaring!
Investor confidence
The sudden interest in India has boosted the country's self-confidence. Grant Thornton, a leading international audit and consulting firm, carried out a survey of business confidence of more than 7000 owners of medium-sized businesses from 30 countries. Surprisingly, India was ranked first, ahead of the G8 economies, China, and Europe's ‘Celtic tiger,’ Ireland. India lags China in the hard infrastructure of roads, airports, and real estate, but it leads in the soft infrastructure of democratic institutions, free press, and an independent judiciary. What other factors favor India?
Banking and finance
India's long experiences with free market enable it to gain significant expertise in lending and raising capital. This is not the case with China, where until recently banks were in business to funnel loans to woeful state-run enterprises. There were no incentives for these loans to be repaid, and now banks are crippled with an estimatedU.S.$213 billion of non-performing loans. In contrast, India's major banks are thriving and ICICI Bank, India's second largest, is considered as one of the best run banks in Asia. More than 6,000 firms are listed on the Bombay Stock Exchange, far outnumbering the number in China and even most major global markets. Furthermore, investors in China's two main mainland stock markets, Shanghai and Shenzhen, have experienced poor returns over the past decade as overpriced stocks flooded the markets. In contrast, Bombay's stock market has been booming.
Business relationships
Trust is certainly an important component of any business relationship. However, one aspect of the Chinese culture that is disturbing is the existence of networks of business and social relationships among various parties who are expected to exchange favors regularly and voluntarily, called guanxi. Although it is wrong to interpret this practice as bribery, since these exchanges need not involve money, they can be used to shut out those that do not fit into an approved Chinese social circle. Guanxi, when combined with the corruption that permeates the Chinese economy, could make the creation of a truly competitive economy difficult, if not impossible, to achieve. For India, these social networks and corruption are less of a problem. To be sure, dishonesty still exists in government service, but high level corruption is being vigorously rooted out by a free press, something that is absent in China.
Perhaps the greatest strength of a free market economy is its openness to doing business with anyone who has the qualifications and desire to do a job, regardless of ethnic or social backgrounds. The United States is highly attractive to so many immigrants who have been shut out of opportunities in their own homelands because of its openness. Guanxi combined with the uncertain new laws defining private property and business contracts in a still-Communist China should be a source of concern for investors.
Demography
Perhaps the most positive aspect of India's future is its demography: India is a very young country, while China, because of its one-child policy, is rapidly aging. According to the U.N. demographic Commission, by the middle of this century the most densely populated age group in India will be those aged between the ages of 40 and 50, while in China it will be those aged between 55 and 65. This means that China will soon start to suffer the same problems that Japan, Western Europe, and the United States are experiencing, or about to experience: an excessive number of retirees relative to the working population.
The young have the flexibility to adapt, absorb, conceptualize, and innovate. This is the key ingredient of technological and economic progress. China has a large supply of new workers for private enterprises, but these workers are leaving state-owned enterprises and are older and not as adaptable as the young labor market in India. The late management guru, Peter Drucker, said that demography is the "future that happened." Population trends are not easily reversible, and here the advantage goes to India.
India or China?
With all these points favoring India, the answer to the question, "where should your money go?" may seem like a forgone conclusion: India seems to have the best prospects for investors. As far as the future for investors is concerned, we should bear in mind that there are two issues that an investor needs to take into consideration when deciding where to invest. Firstly, you must size up the prospects of the firm, the sector, or the country. On this point, India scores some high marks. Secondly, you must evaluate the price that you are paying for these prospects. India's investment climate looks ripe for growth, but the markets have recognized this and have pushed stock prices upward. The Sensex 30, India's best-known stock market index and analogous to Dow-Jones Industrial Index, was around the 3300 mark in December 2002 and has now broken through the 10,000 barrier.
A question of value
The price-to-earnings ratio on this index has reached 21, while Chinese stocks on the Hong Kong Stock Exchange are selling for only 15 times earnings, which denotes that India is roaring!
India vs. China: where to invest?
India's bragging rights were inconceivable just a few years ago. As recently as June, 2003, The Economist magazine ran a cover story “India v China: a tiger, falling behind a dragon.” In that article, the magazine indicated that in 1980, India's GDP was greater than China's and its per capita income was some 60% higher. Yet by 2003 the situation had reversed, as China's economy soared ahead of India’s and its per capita income was around 50% higher. But in recent years India's economy is rising again and the tiger is making a run at the dragon.
Investor confidence
The sudden interest in India has boosted the country's self-confidence. Grant Thornton, a leading international audit and consulting firm, carried out a survey of business confidence of more than 7000 owners of medium-sized businesses from 30 countries. Surprisingly, India was ranked first, ahead of the G8 economies, China, and Europe's ‘Celtic tiger,’ Ireland. India lags China in the hard infrastructure of roads, airports, and real estate, but it leads in the soft infrastructure of democratic institutions, free press, and an independent judiciary. What other factors favor India?
Banking and finance
India's long experiences with free market enable it to gain significant expertise in lending and raising capital. This is not the case with China, where until recently banks were in business to funnel loans to woeful state-run enterprises. There were no incentives for these loans to be repaid, and now banks are crippled with an estimatedU.S.$213 billion of non-performing loans. In contrast, India's major banks are thriving and ICICI Bank, India's second largest, is considered as one of the best run banks in Asia. More than 6,000 firms are listed on the Bombay Stock Exchange, far outnumbering the number in China and even most major global markets. Furthermore, investors in China's two main mainland stock markets, Shanghai and Shenzhen, have experienced poor returns over the past decade as overpriced stocks flooded the markets. In contrast, Bombay's stock market has been booming.
Business relationships
Trust is certainly an important component of any business relationship. However, one aspect of the Chinese culture that is disturbing is the existence of networks of business and social relationships among various parties who are expected to exchange favors regularly and voluntarily, called guanxi. Although it is wrong to interpret this practice as bribery, since these exchanges need not involve money, they can be used to shut out those that do not fit into an approved Chinese social circle. Guanxi, when combined with the corruption that permeates the Chinese economy, could make the creation of a truly competitive economy difficult, if not impossible, to achieve. For India, these social networks and corruption are less of a problem. To be sure, dishonesty still exists in government service, but high level corruption is being vigorously rooted out by a free press, something that is absent in China.
Perhaps the greatest strength of a free market economy is its openness to doing business with anyone who has the qualifications and desire to do a job, regardless of ethnic or social backgrounds. The United States is highly attractive to so many immigrants who have been shut out of opportunities in their own homelands because of its openness. Guanxi combined with the uncertain new laws defining private property and business contracts in a still-Communist China should be a source of concern for investors.
Demography
Perhaps the most positive aspect of India's future is its demography: India is a very young country, while China, because of its one-child policy, is rapidly aging. According to the U.N. demographic Commission, by the middle of this century the most densely populated age group in India will be those aged between the ages of 40 and 50, while in China it will be those aged between 55 and 65. This means that China will soon start to suffer the same problems that Japan, Western Europe, and the United States are experiencing, or about to experience: an excessive number of retirees relative to the working population.
The young have the flexibility to adapt, absorb, conceptualize, and innovate. This is the key ingredient of technological and economic progress. China has a large supply of new workers for private enterprises, but these workers are leaving state-owned enterprises and are older and not as adaptable as the young labor market in India. The late management guru, Peter Drucker, said that demography is the "future that happened." Population trends are not easily reversible, and here the advantage goes to India.
India or China?
With all these points favoring India, the answer to the question, "where should your money go?" may seem like a forgone conclusion: India seems to have the best prospects for investors. As far as the future for investors is concerned, we should bear in mind that there are two issues that an investor needs to take into consideration when deciding where to invest. Firstly, you must size up the prospects of the firm, the sector, or the country. On this point, India scores some high marks. Secondly, you must evaluate the price that you are paying for these prospects. India's investment climate looks ripe for growth, but the markets have recognized this and have pushed stock prices upward. The Sensex 30, India's best-known stock market index and analogous to Dow-Jones Industrial Index, was around the 3300 mark in December 2002 and has now broken through the 10,000 barrier.
A question of value
The price-to-earnings ratio on this index has reached 21, while Chinese stocks on the Hong Kong Stock Exchange are selling for only 15 times earnings, which denotes that India is roaring!
Investor confidence
The sudden interest in India has boosted the country's self-confidence. Grant Thornton, a leading international audit and consulting firm, carried out a survey of business confidence of more than 7000 owners of medium-sized businesses from 30 countries. Surprisingly, India was ranked first, ahead of the G8 economies, China, and Europe's ‘Celtic tiger,’ Ireland. India lags China in the hard infrastructure of roads, airports, and real estate, but it leads in the soft infrastructure of democratic institutions, free press, and an independent judiciary. What other factors favor India?
Banking and finance
India's long experiences with free market enable it to gain significant expertise in lending and raising capital. This is not the case with China, where until recently banks were in business to funnel loans to woeful state-run enterprises. There were no incentives for these loans to be repaid, and now banks are crippled with an estimatedU.S.$213 billion of non-performing loans. In contrast, India's major banks are thriving and ICICI Bank, India's second largest, is considered as one of the best run banks in Asia. More than 6,000 firms are listed on the Bombay Stock Exchange, far outnumbering the number in China and even most major global markets. Furthermore, investors in China's two main mainland stock markets, Shanghai and Shenzhen, have experienced poor returns over the past decade as overpriced stocks flooded the markets. In contrast, Bombay's stock market has been booming.
Business relationships
Trust is certainly an important component of any business relationship. However, one aspect of the Chinese culture that is disturbing is the existence of networks of business and social relationships among various parties who are expected to exchange favors regularly and voluntarily, called guanxi. Although it is wrong to interpret this practice as bribery, since these exchanges need not involve money, they can be used to shut out those that do not fit into an approved Chinese social circle. Guanxi, when combined with the corruption that permeates the Chinese economy, could make the creation of a truly competitive economy difficult, if not impossible, to achieve. For India, these social networks and corruption are less of a problem. To be sure, dishonesty still exists in government service, but high level corruption is being vigorously rooted out by a free press, something that is absent in China.
Perhaps the greatest strength of a free market economy is its openness to doing business with anyone who has the qualifications and desire to do a job, regardless of ethnic or social backgrounds. The United States is highly attractive to so many immigrants who have been shut out of opportunities in their own homelands because of its openness. Guanxi combined with the uncertain new laws defining private property and business contracts in a still-Communist China should be a source of concern for investors.
Demography
Perhaps the most positive aspect of India's future is its demography: India is a very young country, while China, because of its one-child policy, is rapidly aging. According to the U.N. demographic Commission, by the middle of this century the most densely populated age group in India will be those aged between the ages of 40 and 50, while in China it will be those aged between 55 and 65. This means that China will soon start to suffer the same problems that Japan, Western Europe, and the United States are experiencing, or about to experience: an excessive number of retirees relative to the working population.
The young have the flexibility to adapt, absorb, conceptualize, and innovate. This is the key ingredient of technological and economic progress. China has a large supply of new workers for private enterprises, but these workers are leaving state-owned enterprises and are older and not as adaptable as the young labor market in India. The late management guru, Peter Drucker, said that demography is the "future that happened." Population trends are not easily reversible, and here the advantage goes to India.
India or China?
With all these points favoring India, the answer to the question, "where should your money go?" may seem like a forgone conclusion: India seems to have the best prospects for investors. As far as the future for investors is concerned, we should bear in mind that there are two issues that an investor needs to take into consideration when deciding where to invest. Firstly, you must size up the prospects of the firm, the sector, or the country. On this point, India scores some high marks. Secondly, you must evaluate the price that you are paying for these prospects. India's investment climate looks ripe for growth, but the markets have recognized this and have pushed stock prices upward. The Sensex 30, India's best-known stock market index and analogous to Dow-Jones Industrial Index, was around the 3300 mark in December 2002 and has now broken through the 10,000 barrier.
A question of value
The price-to-earnings ratio on this index has reached 21, while Chinese stocks on the Hong Kong Stock Exchange are selling for only 15 times earnings, which denotes that India is roaring!
History of Offshore Software Outsourcing
The history of offshore software outsourcing India is one of the phenomenal growths in a very short duration. The idea of offshore outsourcing and software development has its roots with the competitive edge in the respective industry. During some previous years the meaning of the term Offshore Software Outsourcing has undergone with lots of changes. With starting from the front, the shifting of manufacturing unit to those countries providing significant cheap labor at the era of Industrial Revolution, has taken outsourcing with a new meaning at present world. In today’s world Information Technology has become the backbone of International Businesses.
Offshore Software Outsourcing is the process by which any company hands over part of the work to another organization, and making it responsible for the design and implementation of the enterprise business procedure under obligations of strict guidelines regarding requirements & specifications from the Offshore Outsourcing companies.
One can say that the Business Process Outsourcing is advantageous for both the service buyer and outsourcing service provider, as it help in enabling the offshore outsourcing service buyer to reduce the development costs and increase quality for functional / non core areas with more utilization of the expertise and competencies at maximum length. And now one could see the real advantage for the service organizations from India as the time of maturity, prosper of building core capabilities with certain possibilities by the Offshore Software Outsourcing firms.
Since from the time of globalization in India, exactly from the year 1990 government of India has started programs’ regarding economic reform committed towards liberalization and privatization. Till the starting period of year 1994 Indian telecom sector was under direct control of government and the ownership of units were provided to states with full enjoyment of a monopoly in real market. Further in the year 1999, the New Telecom Policy brought some changes by introduction of Intellectual Property telephony that helped to end monopoly of the state government on international callings. This reduced the heralded of the golden era for the Information Technology Outsourcing, Software Development Outsourcing industry with ushered in a large amount of inbound/outbound call centers & data processing centers.
One year on: BPO security still a concern
It has been just over a year since the murder of Prathibha Srikant Murthy - the Bangalore-based call centre employee who got into a taxi driven by a man she thought had been sent by the company in which she worked.
The crime called into question security measures at call centres, where night shifts and late night pick-ups and drops are common.
While many call centres continue to have strict security, there are others who are still not overtly concerned with the security of employees.
Security guidelines
Within hours of Pratibha Srikant Murthy's murder coming to light in December 2005, BPOs announced immediate changes.
There would be no first pick up or last drop for a female employee and a male colleague or a security guard would always be with her in the vehicle.
Twenty-four hour hotline numbers were started along with background checks of drivers. One year on, Prathibha's employer, HP, says it is still following these guidelines and other BPO majors also say security is still a priority.
"We are paranoid about security and frankly it was a rude wake up call for a large part of the industry. Indirectly we employ more than 1400 drivers, we cover more than 156 000 kilometres - the commute we do on a daily basis. Each one of them go through a police verification. We issue identity cards and reward drivers based on their behaviour," said Romi Malhotra, MD, DELL International Services.
Safety of workers
But while some companies may be taking the issue seriously, security is clearly not a universal concern.
"There is no security provided, I am the last drop. I have to beg the male employees to accompany me to my house. There is no security guard in the van. I have got myself a pepper spray," said an IT Firm employee.
The police say BPOs themselves need to take more responsibility.
"We have been trying our level best to give security and protection and also to brief them about the efforts they have to make from their side," said N Achyuth Rao, Police Commissioner, Bangalore.
The safety of workers in any industry is of vital importance but this perhaps is an industry young and organised enough to actually ensure the safety of its workers.
The crime called into question security measures at call centres, where night shifts and late night pick-ups and drops are common.
While many call centres continue to have strict security, there are others who are still not overtly concerned with the security of employees.
Security guidelines
Within hours of Pratibha Srikant Murthy's murder coming to light in December 2005, BPOs announced immediate changes.
There would be no first pick up or last drop for a female employee and a male colleague or a security guard would always be with her in the vehicle.
Twenty-four hour hotline numbers were started along with background checks of drivers. One year on, Prathibha's employer, HP, says it is still following these guidelines and other BPO majors also say security is still a priority.
"We are paranoid about security and frankly it was a rude wake up call for a large part of the industry. Indirectly we employ more than 1400 drivers, we cover more than 156 000 kilometres - the commute we do on a daily basis. Each one of them go through a police verification. We issue identity cards and reward drivers based on their behaviour," said Romi Malhotra, MD, DELL International Services.
Safety of workers
But while some companies may be taking the issue seriously, security is clearly not a universal concern.
"There is no security provided, I am the last drop. I have to beg the male employees to accompany me to my house. There is no security guard in the van. I have got myself a pepper spray," said an IT Firm employee.
The police say BPOs themselves need to take more responsibility.
"We have been trying our level best to give security and protection and also to brief them about the efforts they have to make from their side," said N Achyuth Rao, Police Commissioner, Bangalore.
The safety of workers in any industry is of vital importance but this perhaps is an industry young and organised enough to actually ensure the safety of its workers.
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