Tuesday, June 7 2005 14:08 Hrs (IST) - World Time -

Bangalore: Manpower shortage in India's high potential, high-growth Information Technology Enabled Services (ITES)-Business Process Outsourcing (BPO) industry by 2009 is estimated to be 2.62 lakh people, officials said today (Jun 7, 2005).

ITES-BPO employee base has grown at a compounded annual growth rate of 52.6 per cent, from 42,000 in 2001-02 to 3,48,000 in 2004-05, according to National Association of Software and Service companies (NASSCOM) estimates.

According to NASSCOM, ITES-BPO exports recorded revenues of $5.2 billion in 2004-05, a growth of 44.5 per cent.

The industry body has forecast these exports to grow at 41 per cent to reach $7.3 billion in the current financial year (2005-06).

At the two-day India ITES-BPO strategy summit 2005, which commenced in Bangalore today, Planning Commission's Member-Secretary Rajeeva Ratna Shah pointed out that manpower requirement in India in this sector is expected to be 10.03 lakh; the workforce would fall short by 2.62 lakh.

Noting that human resources is the key factor in this industry, NASSCOM's President Kiran Karnik said an assessment and certification programme would be rolled out on a pilot basis soon to help create an employable talent pool with benchmarked-requisite skills, and architect an effective 'assessment and certification framework'.

Because of demand-supply mismatch, there had been 'unwanted' salary growth in the sector leading to questions being asked in certain quarters as whether this would be sustainable, Karnik said.

"Root cause is the shortage of adequate number of people with right skills", he said, adding, the certification programme would enable to spread the net much wider to attract people from all over the country, compared to the present scenario of only cities and nearby areas contributing manpower.

NASSCOM would also shortly unveil an assessment and certification for frontline management with the objective to comprehensively address the development needs of the frontline managers of the ITES-BPO industry, he said.

"One of the key gaps being faced by the industry is the low level of expertise at frontline (lower-middle) management, in managing and sustaining an ITES-BPO operation. The inexperienced middle and frontline management is one of the key causes of attrition", he said.

Karnik also said that NASSCOM's initiatives are directed towards making India as a trusted sourcing destination to proactively address customer and regulator concerns about data security and privacy.

NASSCOM is exploring the concept of a national skills registry of IT employees in this industry.

"This would operate on a shared services model and will be administered by a credible third party. It will respect the individual's right for privacy and confidentiality," he said.

According to him, NASSCOM is also advising actively the Ministry of Communications and IT to introduce the required amendments in the existing Information Technology Act.