CHAPTER ONE

INTRODUCTION OF THE
SUBJECT
PEOPLE CAN MOVE MOUNTAINS
Americas Erick Weihen Mayer created history on May 25, 2001 by becoming the first blind
person to scale Mount Eerest! Erick at, "2, #ho lost his eyesight due to a degeneratie
disease at the age of 1", set a foot on $,$%$ meter peak along #ith 1& other members of an
e'pedition team after an unsuccessful attempt earlier due to bad #eather conditions! An
hour before Erick, (radford (ull earned a distinction of being the oldest climber to set foot
atop the #orlds highest peak at the age of )5* along #ith his son!
+source, -imes of .ndia, 2)/5/20010
Among the arious factors of production, #hich are used in an organi1ation, human resource
is the most important! -his is because effectie use of physical resources such as land,
machinery, materials, etc! ultimately depends on ho# the human factor is put to good use on
arious operations! -he most effectie and efficient machinery in the #orld #ill not produce
optimum leel unless the people #ho operate the machinery kno# ho# to make it perform at
its best and most importantly, are motiated to make their e2uipment produce efficiently!
1.1 DEFINATION OF HRM:
Human Resource Management (HRM) is a process of bringing people
and organizations together so that the goal of each one is met,
effectively and efficiently.
1.2 NATURE OF HRM:
-he principle scope of 34M can be listed as,
5erasie force
Action oriented
.ndiidually oriented
5eople oriented
6uture oriented
7eelopment oriented
.ntegrating mechanism
8omprehensie function
Au'iliary serices
.nter*disciplinary function
8ontinuous function
1.3 OBJECTIVES OF HRM:
-he principle ob9ecties of 34M can be listed as,
-o help the organi1ation reach its goals!
-o employ the skills and abilities of the #orkforce efficiently!
-o proide the organi1ation #ith #ell*trained and #ell* motiated employees!
-o increase the fullest the employees 9ob satisfaction and self* actuali1ation!
-o deelop and maintain a 2uality of #ork life!
-o communicate 34 policies to all employees!
-o be ethically and socially responsie to the needs of the society!
1.4 IMPORTANCE OF HRM:
5eople hae al#ays been central to the organi1ation and an organi1ations success
increasingly depends on the no!ledge, sills and abilities of employees, particularly they
establish a set of core competencies that distinguish an organi1ation from its competitors!
With appropriate 34 policies and practices an organi1ation can hire, deelop and utili1e best
brains at #ork place, reali1e its professed goals and delier better results than others!
Attract and retain talent
Train people for challenging
roles
Develop skills and
competencies
Promote team spirit
Develop loyalty and
commitment
Increase productivity and
profits
Improve job satisfaction
GOOD HR
PRACTICES
HELP
1.7 GROWTH OF HR IN HR IN INDIA:
:ince the eolution of 34, the field has seen a lot of changes, #hich can listed as,
PERIOD EMPHASIS STATUS ROLES
"#$%&"#'% Welfare management
5aternalistic practices
8lerical Welfare administrator
5oliceman
"#(%&"#)% E'panding the role to coer
labor, #elfare, industrial
relations and personnel
administration
Administratie Appraiser
Adisor
Mediator
;egal adisor
6ire fighting
"#*%&"#+%
Efficiency, effectieness
dimensions added
Emphasis on human alues,
aspirations, dignity,
usefulness
7eelopment 8hange agent
.ntegrator
-rainer
Educator
"##%,s&
on!ards
.ncremental productiity gains
through human assets
5roactie,
gro#th*
oriented
7eeloper
8ounselor
8oach
Mentor
5roblem soler
1.8 SHIFTS IN HR MANAGEMENT IN INDIA:
TADITIONAL HR PRACTICE EMERGING HR PRACTICE
Administratie role :trategic role
4eactie 5roactie
:eparate, isolated from company
mission
<ey part of organi1ational mission
5roduction focus :erice focus
6unctional organi1ation 5rocess based organi1ation
.ndiiduals encouraged, singled out
for praise, re#ards
8ross*functional teams, team#ork
most important
5eople as e'penses 5eople as key inestments/assets
1.9 CONTEMPORAR ISSUES IN HRM:
6ollo#ing can be stated as contemporary issues in 34M,
M!"!#$"#
%$&'()$*+
HRM $" ,$#,
-'(./(0!"1'
/(#!"$2!*$/")
HRM $"
M3A
C,!"#$"#
4/(5./(1'
%'0/#(!-,$1)
HR
-(/.'))$/"!6 !)
1,!"#' agent
HR 0!"!#'(
!) )*(!*'#$)*)
As stated aboe, one of the challenges faced by 34 managers is that of 3uman 4esource
Management is that of attrition of Employees in (5= and <5= industry!
1.17 EMPLOEE ATTRITION:
DEFINING EMPLOYEE ATTRITION AND ATTRITION RATE:
A**($*$/": >A reduction in the number of employees through retirement, resignation or death?!
Attrition 4ate, >-he rate of shrinkage in si1e or number?!
-here are numerous reasons for the attrition to be high #hich can be categori1ed into t#o
broad classifications! -he first can be coined as Drive Attrition #hich is caused due to
employer@ the second one can be termed as Drag Attrition #hich is caused due to the
employee!
-he attrition rate has al#ays been a sensitie issue for all organi1ations! 8alculating
employee turnoer rate is not that simple as it seems to be! Ao common formula can be
used by all the organi1ations! A formula had to be deised keeping in ie# the nature of the
business and different 9ob functions! Moreoer, calculating attrition rate is not only about
deising a mathematical formula! .t also has to take into account the root of the problem by
going back to the hiring stage!
1.10.1 CALCULATING ATTRITION RATE:
Attrition rates can be calculated using simple formula,
Attrition = (No. of em!o"ee# $%o !eft in t%e "ear& average em!o"ee# in t%e "ear'()**
-hus, if the company had 1,000 employees in April 200%, 2,000 in March 2005, and "00 2uit
in the year, then the aerage employee strength is 1,500 and attrition is
100B+"00/1,5000C20D! (esides this, there are arious other types of attrition that should be
taken into account! -hese are,
6resher attrition that tells the number of freshers #ho left the organi1ation #ithin one
year! .t tells ho# many are using the company as a springboard or a launch pad!
.nfant mortality that is the percentage of people #ho left the organi1ation #ithin one
year! -his indicates the ease #ith #hich people adapt to the company!
CONTEMPORA
R ISSUES IN
HRM
G6/8!6$2!*$/"
A**$*9%'
*/4!(%)
9"$/"
B!6!"1$"#
4/(5:6$.'
C,!"#'%
'0-6/+''
';-'1*!*$/")
M!5' HR
!1*$&$*$')
'*,$1!6
N'4
/(#!"$2!*$/"!6
./(0)
BPO !"%
CALL 1'"*'()
8ritical resource #hich tell the attrition in terms of key personnel like senior
e'ecuties leaing the organi1ation!
;o# performance attrition, .t tells the attrition of those #ho left due to poor
performance!
ATTRITION RATE IN DIFFERENT COUNTRIES ROUND THE GLOBE+
ATTRITION RATE (,'
E: %2D
Australia 2FD
Europe %2D
.ndia 1$D
Global Aerage %2D
REASONS WHY EMPLOYEES LEAVE:
Employees do not leae an organi1ation #ithout any significant reason! -here are certain
circumstances that lead to their leaing the organi1ation! -he most common reasons can be,
Hob is not #hat employee e'pected to be, :ometimes the 9ob responsibilities dont
come out to be the same as e'pected by the candidates! Ene'pected 9ob
responsibilities lead to 9ob dissatisfaction!
Hob and person mismatch, A candidate may be fit to do a certain type of 9ob #hich
matches his personality! .f he is gien a 9ob #hich mismatches his personality, then
he #ont be able to perform it #ell and try to find out reasons to leae the 9ob!
Ao gro#th opportunities, Ao or less learning and gro#th opportunities in the current
9ob #ill make candidates 9ob and career stagnant!
;ack of appreciation, .f the #ork is not appreciated by the superisor, the employee
feels de*motiated and loses interest in 9ob!
;ack of trust and support in co#orkers, seniors and management, -rust is the most
important factor that is re2uired for an indiidual to stay in the 9ob! Aon* supportie
co#orkers, seniors and management can make office enironment unfriendly and
difficult to #ork in!
:tress from oer#ork and #ork life balance, Hob stress can lead to #ork life
imbalance #hich ultimately many times lead to employee leaing the organi1ation!
8ompensation, (etter compensation packages being offered by other companies
may attract employees to#ards themseles!
Ae# 9ob offer, an attractie 9ob offer #hich employee thinks is good for him #ith
respect to 9ob responsibility, compensation, gro#th and learning etc! can lead an
employee to leae the organi1ation!
1.10.2 TRUTHS ABOUT ATTRITION:
.t is difficult to accept #hen organi1ations say they hae 1ero attrition rates! 8ompanies may
hae healthier turnoer rates, ho#eer, there is no such thing as 1ero attrition! -here are
other such facts about turnoer, about #hich most of us are not a#are! :ome of such facts
hae been highlighted belo#,
-urnoer al#ays happens, -his happens because employees keep on moing due to reason
like marriage or further education! Aothing can stop these employees from moing on! :o,
rather than achieing 1ero attrition companies should focus on identifying #hom they #ant to
keep so that they hae healthy attrition rate!
:ome turnoer is desirable, Iero attrition is not desirable mainly because of t#o reasons@
firstly, if all employees continue to stay in the same organi1ation, most of them #ill be at the
top of their pay scale #hich #ill result in e'cessie manpo#er costs! :econdly, ne#
employees bring ne# ideas, approaches, abilities and attitudes #hich can keep the
organi1ation from becoming stagnant!
-urnoer includes costs, -urnoer al#ays includes some costs! 8onsider the cost of
replacing the key employee #ho falls into the category of high performers! -his includes the
costs of recruitment adertisement, referral bonuses, selection, training costs, etc! Moreoer,
turnoer results in loss of time and efforts, lo# productiity, loss of morale, loss of kno#ledge
and so on!
3igh salary doesnt #ork, Most managers assume that a high salary package is enough to
keep employees loyal to their organi1ation! Employees may face other problems like lo# 9ob
satisfaction, lo# engagement leels, no recognition, poor #orking conditions, less support
from superiors and so on! :alaries are not al#ays the solution to attrition! Managers should
try to find out the root cause of the problem and then find a feasible solution!
-he manager can reduce attrition, Managers should take primary responsibility for retaining
their employees! Much of the employees perception of 9ob satisfaction stems from the
relationship they share #ith their immediate superisor! Managers should try to support their
subordinates and gie proper feedback on performance! 34 managers should #ork in
collaboration to make the key employees last in their organi1ation!
4educing turnoer takes commitment, 4educing turnoer takes an inestment in coaching,
deeloping, motiating, mentoring and listening to people! -here should be uniersal
acceptance of the goal of reducing turnoer along #ith top management commitment and
dedication!
1.10.3 BENEFITS OF ATTRITION:
Attrition is not al#ays bad, if it happens in a controlled manner! :ome attrition is al#ays
desirable and necessary for organi1ational gro#th! -he only concern is ho# organi1ation
differentiates good attrition from bad attrition. -he term health attrition signifies the
importance of less productie employees oluntarily leaing the organi1ation! -his means if
the ones #ho hae left fall in the category of lo# performers, the attrition is being healthy!
Attrition rates are considered to be beneficial in some #ays,
.f all employees stay in the same organi1ation for a ery long time, most of them #ill
be at the top of their pay scale #hich #ill result in e'cessie manpo#er costs!
When certain employees leae, #hose continuation of serice #ould hae negatiely
impacted productiity and profitability of the company is benefited!
Ae# employees bring ne# ideas, approaches, abilities and attitudes #hich can keep
the organi1ation healthy!
-here are also some people in the organi1ation #ho hae a negatie and
demorali1ing influence on the #ork culture and team spirit! -his, in the long* term, is
detrimental to organi1ational health!
7esirable attrition also includes termination of employees #ith #hom the organi1ation
does not #ant to continue a relationship! .t benefits the organi1ation in the follo#ing
#ays,
.t remoes bottleneck in the progress of the company!
.t creates space for the entry of ne# talents!
.t assists in eoling high performance teams!
-here are people #ho are not able to balance their performance as per e'pectations,
lack potential for future or need disciplinary action! 6urthermore, as the re#ards are
limited, business pressures do not allo# the management to oer*re#ard the
performers, but #hen undesirable employees leae the company, the good
employees can be gien the share they desire!
:ome companies beliee attrition in any form is bad for an organi1ation for it means that
a #rong choice #as made at the beginning #hile recruiting! Een good attrition
indicates loss as recruitment is a time consuming and costly affair! -he only positie
point is that the reali1ation has initiated action that #ill lead to cutting loss!
1.11 EMPLOEE RETENTION:
Employee retention is a process in #hich the employees are encouraged to remain #ith the
organi1ation for the ma'imum period of time or until the completion of the pro9ect! Employee
retention is beneficial for the organi1ation as #ell as the employee!
Employees today are different! -hey are not the ones #ho dont hae good opportunities in
hand! As soon as they feel dissatisfied #ith the current employer or the 9ob, they s#itch oer
to the ne't 9ob! .t is the responsibility of the employer to retain their best employees! .f they
dont, they #ould be left #ith no good employees! A good employer should kno# ho# to
attract and retain its employees!
4etention inoles fie ma9or things,
8ompensation
:upport
4elationship
Enironment
1.11.1 IMPORTANCE OF EMPLOYEE RETENTION:
:o much is being done by organi1ations to retain its employees, #hy is retention so
importantJ .s 9ust to reduce the turnoer costsJ Well, the ans#er is a definitely -.! .ts not
the only cost incurred by a company that emphasi1es the need of retaining employees but
also to retain talented employees from getting poach!
-he process of employee retention #ill benefit an organi1ation in the follo#ing #ays,
-he cost of turnoer, -he cost of employee turnoer adds hundreds of thousands of money
to a companys e'penses! While it is difficult to fully calculate the cost of turnoer +including
hiring costs, training costs and productiity loss0, industry e'perts often 2uote 25D of the
aerage employee salary as a conseratie estimate!
;oss of companys kno#ledge, When an employee leaes, he takes #ith him aluable
kno#ledge about the company, customers, current pro9ects and past history +sometimes to
competitors0! =ften much time and money has been spent on the employee in e'pectation of
future return! When the employee leaes, the inestment is not reali1ed!
.nterruption of customer serice, 8ustomers and clients do business #ith a company in part
because of the people! 4elationships are deeloped that encourage continued sponsorship
of the business! When an employee leaes, the relationships that employee built for the
company are sered, #hich could lead to potential customer loss!
-urnoer leads to more turnoers, When an employee terminates, the effect is felt
throughout the organi1ation! -he unspoken negatiity often intensifies for the remaining
staff!
Good#ill of the company, -he good#ill of a company is maintained #hen the attrition rates
are lo#! 3igher retention rates motiate potential employees to 9oin the organi1ation!
4egaining efficiency, .f an employee resigns, the good amount of time is lost in hiring a ne#
employee and then training an employee and this goes to the loss of the company directly
#hich many a times goes unnoticed! And een after this companies cannot assure us of the
same efficiency from the ne# employee!
1.11.2 EMPLOYEE RETENTION STRATEGIES:
-he basic practices #hich should be kept in mind the employee retention strategies are,
3ire the right people in the first place!
Empo#er the employees! Gie employees the authority to get things done!
Make employees reali1e that they are the most aluable asset of the organi1ation!
Aae faith in them, trust them and respect them!
5roide them information and kno#ledge!
<eep proiding them feedback on their performance!
4ecogni1e and appreciate their achieements!
<eep their morale high!
8reate an enironment #here the employees #ant to #ork and hae fun!
-hese practices can be categori1ed in " leels,
;o#, medium and high leel!
1.11.3 RETENTION MYTHS:
-he process of retention is not easy as it seems! -here are so many tactics and strategies
used in retention of employees by the organi1ations! -he basic purpose of these strategies
should be to increase employee satisfaction, boost employee morale hence achiee
retention! (ut some times these strategies are not used properly or een #orse, #rong
strategies are used! (ecause of #hich these strategies fail to achiee the desired results!
-here are many myths related to the employee retention process! -hese myths e'ist
because the strategies being used are either #rong or are being used from a long time!
-hese myths preent the employer from successfully implementing the retention strategies!
Employees leae an organi1ation for more pay, Money may be the motiating but for many
people it is not the most important factor! Money matters more to the lo# income employees
for #hom its a surial issue! Money can make an employee stay in an organi1ation but not
for long! -he factors more important than money are 9ob satisfaction, 9ob responsibilities and
indiiduals skill deelopment! -he employers should understand this and #ork out some
other #ays to make employee feel satisfied! When employees leae, management tries to
retain them by offering more money! .ssues that are mainly the cause of dissatisfaction are
organi1ations policies and procedures, #orking conditions, relationship #ith the superisor
and salary, etc! 6or such employees, achieements, gro#th, recognition, are the main
concerns!
.ncenties can increase productiity, .ncenties can surely increase productiity but not for
long time! 8ash incenties, olume #ork targets and speed a#ards are old management
beliefs! -hey can generate #ork speedily and in olumes but cant boost employee
commitment! 4ather speed can hamper the 2uality of #ork produced! What really glues
employees to their #ork and organi1ation is 2uality #ork, meaningful responsibilities,
recognition, respect, gro#th opportunities and friendly superisors!
Employees run a#ay from responsibilities, .t is myth that employees run a#ay from
responsibilities! .n Kfact employees feel more responsible if they are gien e'tra
responsibilities apart from their regular 9ob! Employees look for ariety, greater control on the
processes and authority to take decisions in their present 9ob! -hey #ant opportunities to
learn and gro#! Management can assign e'tra responsibilities to their employees and
appreciate them on completion of these tasks! -his #ill induce a sense of pride in the
employee and #ill improe the relationship bet#een the management and the employee!
;oyalty is a thing of the past, Employees can be loyal but #hat they need is an employer for
#hom they can be loyal! -here is no reason for the employee to hop 9ob if he is satisfied #ith
the employer!
-aking measures to increase employee satisfaction #ill be e'pensie for the organi1ations,
-he things actually re2uired to improe employee satisfaction like respect, career gro#th
and deelopment, appreciation, etc! cant be bought! -hey are free of cost! An employee or
management reacts #ell to the employees ideas and suggestions is enough for the
employee to be retained!
CHAPTER TWO
INTRODUCTION OF THE
INDIAN MARKET
SCENARIO
2.1 EMERGANCE OF THE INDIAN IT:ITES SECTOR:
2.1.1 MARKET SIZE:
2.1.1.1 GLOBAL:
-he global .-*.-E: market has generated reenues of E:7 1,"22 billion in 200"! Globally,
Aorth America and Western Europe #ere ma9or market players and together for more than
three*fourth of the global .-*.-E: market! -he E: alone accounted for %&D of the global .-*
.-E: market in 200"! .- serices and (5= constituted the largest portion of the global .-*
.-E: spend, accounting for appro'imately )05 of the total pie!

2.1.1.2 INDIA:
-he .ndian .-*.-E: industry broadly categori1ed into .- serices, .-E:(5= and hard#are
segments! -he industry achieed reenues of E:7 21!5 billion in 6L2 200"! Earnings from
.-*.-E: e'ports #ere E:7 1"!" billion, #hile reenues of the domestic .-*.-E: market #ere
E:7 $!2 billion! At present, the .-*.-E: industry constitutes around 1!)D of the global .-*
.-E: market!
-he segment is estimated to touch reenues of around E:7 F2!% billion in 200F at a 8AG4
+8ompound Aerage Gro#th 4ate0 of 2&!5D! the contribution to the serice sector as a
#hole #ill go up to 1&!%5D in 2010! -he key driers of gro#th include the rapid increase in
.- outsourcing and the rapid e'pansion in the scale and breath of .-*.-E:* (5= offerings by
.ndian endors! -he .ndian .-*.-E: endors focused on improing productiity and moed
up in the alue*chain! While companies proiding .- serices included ne# serice lines,
such as package soft#are implementation, systems integration, 4M7 engineering and
remote net#ork management to their portfolio of offerings, .-*.-E:*(5= companies began
more comple' serices, such as financial research and analytics, actuarial modeling and
corporate and business research!
2.2 REASONS FOR THE GROWT OF THE ITITES SECTOR:
-he ma9or reasons for the phenomenal gro#th of the .-*.-E: segment of the .ndian serice
sector can be attributed to >location adantage? and >people attractieness? factors, and
.ndia scores ery high on both counts! According to a reie# by AA::8=M, the aboe
reasons include si' ma9or factors,
A gro#ing and highly educated English*speaking #orkforce #ith the re2uired
technical and soft skills!
3uge cost adantage
8ompetent management of data security risks
Adoption and maintenance of international 2uality standards
World*class telecom infrastructure
Goernment support
.n general, .ndia has significant geographical adantage due to the time difference bet#een
the E: and Europe and so there is enough feedback time! .n terms of people attractieness,
.ndia has a large pool of highly* trained, English* speaking, lo#*cost labor, #hich adds as an
attraction for off shoring more than anything else!
2.3 BUSINESS PROCESS OUTSOURCING:
2.3.1 OVERVIEW:
=ff shoring is a phenomenon, #herein an enterprise relocates the production of its goods or
serices to arious locations in countries other than the one in #hich it is based! =ff*shoring*
especially that of serices* has become an increasingly iable option for companies looking
to improe their operational efficiencies, bottom lined and business performance! .n fact, to
achiee global competitieness and high profitability, it has no# almost become imperatie
for most of the companies to offshore some of their .- and non* .- (5= serices! -he global
(usiness 5rocess =utsourcing +(5=0 market has undergone rapid transformation during the
last decade and has been adopted as a strategic business solution by leading companies! A
reduction in telecom costs, coupled #ith the increased digiti1ation of serices, is helping
many companies to off*shore their serices!
2.3.2 MARKET SIZE:
2.3.2.1 GLOBAL:
According to Ealueasere, the reenue of global lo#*end outsourcing +(5=0 serices in 6L
200" #as E:7 &!& billion! -his market is e'pected to gro# to E:7 "F!$ billion in 6L 2010!
-his implies a compounded annual gro#th rate +8AG40 of 2)!5D for the sector!
2.3.2.2 INDIA:
According to Ealuesere the .ndian (5= sector #ill increase its share in the global <5=
sector to %5D by 2010, compared to ")D share in 200"! -he .ndian (5= market, #ith
reenue of 2!&$ billion in 200", is e'pected to gro# at a 8AG4 of "0!)D upto 2010! -he
contribution of the (5= sector to the .ndian serices sector #as 0!F1D in 200" and it is
e'pected that by 2010, the contribution #ill be more than double and reach 2!)&D to add to
the oerall serices sector! :hare of the .ndian (5= sector int eh global (5= industry #ill
increase from ")D in 200" to %5D in 2010!
2.3.2.3 SWOT ANALYSIS OF INDIAN INDUSTRY
STRENGTHS
English speaking labor pool
:trong .- background
:uperior serice maturity
:trong goernmental support
8ost competitieness
.ndian domestic market
gro#th
5ositing geographic
-EA.NESS
:mall players
3igh attrition
.nfrastructure
(ureaucracy
OPPORT/NITIES
Moe up the alue chain
Ene'plored markets
Greater share of market
THREATS
Emerging lo# cost nations
4ising cost
(acklash in E: and Europe
-echnology
.ndian educational policy
2.! KNOWLEDGE PROCESS OUTSOURCING:
2.!.1OVERVIEW:
<no#ledge 5rocess =utsourcing +<5=0 refers to the outsourcing of high*end comple' tasks
and processes to speciali1ed serice proiders! -hese include aluation research,
inestment research, patent filing, legal and insurance claims processing, etc! <5= proides
alue to the client through domain e'pertise rather than process e'pertise! .n comparison to
(5=, <5= deliers higher alue to the organi1ations that off shore their domain*based
processes, thereby enhancing (5=s traditional cost*2uality paradigm! -he shift from off
shoring of lo#*end business processes +(5=0 to high*end tasks led to a rapid gro#th in the
off shore <5= industry!
2.!.2 MARKET SIZE:
2.!.2.1 GLOBAL:
Ealuesere predicts that reenues from the <5= market #ill gro# globally from E:7 1!2F
billion in 6L 200", to E:7 1& billion in 6L 2010! -his implies a 8AG4 of %%!5D, for the
global <5= market! -he important gro#th driers of this market are,
3igher saings at the high*end of the alue*chain as compared to the lo#*end and a
scarcity of a highly*trained speciali1ed talent pool in the deeloped countries!
Maturity of processes and the prospect of better margins for kno#ledge*intensie
serices in the lo#*cost destinations!
2.!.2.2 INDIA:
-he .ndian <5= sector #ill increase its share in the global <5= sector to &1D by 2010,
compared to a 5)D share in 200"! -he <5= market in .ndia is e'pected to increase to E:7
12 billion by 6L 2010, reflecting a 8AG4 of %F!5D!
.n 6L 200", the .ndian <5= industry generated appro'imately E:7 0!&2 billion of the total
reenue, contributing about 0!2%D to the .ndian serices sector! -his share is e'pected to
increase to 1!&$D of .ndian serices sector by 2010!
-he E: alone accounts for nearly )0D of the <5= serices off shored to lo#*cost locations!
-he E< and 8anada account for appro'imately a 20D share, #hile the remaining 20D is
shared bet#een the rest of Europe and rest of the #orld!
2." KEY SEGMENTS:
=ut of the estimated opportunity of E:7 1& billion the <5= sector in 2010, the ma9or
reenues #ill come from si' prominent sectors!
2.# GROWTH DRIVERS:
-he significant gro#th of the <5= sector is attributed to seeral factors the demand and
supply side!
2.#.1 DEMAND DRIVERS:
-here are seeral demand*side factors fueling the <5= trend such as,
-here is an incumbent shortage of highly*skilled kno#ledge professionals in the
deeloped nations!
3ence, recruiting the talents for higher*end kno#ledge*intensie sectors is
becoming difficult for enterprise in high*#age countries!
With tighter immigration norms, off shoring of these high*end serices is the
only iable solution for enterprise facing this shortage of highly*trained
speciali1ed labor!
6urther, to remain competitie globally, enterprises need to cut their costs and
reduce the time*to*market for their serices and products!
=ff shoring high*end serices not only ensures these t#o benefits, but also the
intellectual property thus created, rests #ith the buyer of the off shore high*end
+<5=0 serices!
2.#.2 SUPPLY SIDE DRIVERS:
.ndia offers an attractie cost proposition and a highly*skilled talent pool! -hese factors make
it a highly competent and attractie destination for outsourcing! -he ma9or trends in the
.ndian serices market e'pected to drie the <5= sector include,
Economies of scope generated by the entry of many .- companies in the (5= and
<5= sectors!
(5= companies moing up the alue*chain
=ff shore serice endors are gaining significant maturity as #ell as pro9ect
management and domain e'pertise, thereby moing up the alue*chain!
Aailability of all types of serices through a single endor
With the entry of many (5= companies into proiding <5= serices, clients
can get the entire range of solutions and serices portfolio, #hich #ill help
#ard off competition from serices proiders in other emerging lo#*cost
destinations!
ATTRITION RATES IN DIFFERENT SECTORS:
6ollo#ing chart sho#s attrition rate in different sectors in .ndia,
CHAPTER THREE
INTRODUCTION OF THE
COMPANY
3.1 HISTORY:
A1ure #as founded in 1FF1 as an .-/84M training and :oft#are 7eelopment company
and in the period 1FF1*2000, it trained more than )0,000 students across arious A1ure .-
-raining .nstitutes!
.n the year 2000, A1ure entured into the (5= business facilitated by promoters #ith
more than 15 years of outsourcing and serice industry e'perience!
3.2 AZURE TODAY:
A1ure en9oys the reputation of being the first and the largest (usiness 5rocess
=utsourcing +(5=0 center in the state of Gu9arat in #estern .ndia! -oday, A1ure is a 2100
people company #ith its <no#ledge 8enters spread across three locations in .ndia and one
in 8hina!
A1ure has a proen track record of :ourcing and -raining of e'cellent 2uality human
resources on a large scale o#ing its training background! =ne of the reasons #hy clients
prefer to #ork #ith A1ure is because of its retention leels! A1ure has a record of retaining
more than F0D of its senior management in the last ) years and an aerage attrition of 1$D
for associates/interie#ers as compared to )0*&0D in the industry
A1ure is an .:= 2&001 certified company #ith (:&&FF .- :ecurity 8ertification! A1ures
serices proide the best alue for money to clients o#ing to its lo# cost of operations in
Ahmedabad +&0D lo#er cost than preailing costs in E:/Europe and "0D lo#er cost than
other metro cities in .ndia0 and efficiency ma'imi1ation achieed through automation of
processes and effectie usage of .nformation -echnology +.-0, made possible due to its
strong background in .- and an e'perienced .- team!
What clients appreciate about A1ure is its 5rocess =riented approach in proiding
serices by meticulously planning the #orkflo# and support systems, setting the right
benchmarks for 2uality and deliery and using technology as a backbone to proide faster,
better and cost*effectie serices to clients!
3.3 COMPANY VISION: >-o be a leading proider of financial serices and
kno#ledge based serices to a global clientele by offering alue through innoatie use
of technology and harnessing the highest potential of its people?!
3.! MILESTONE:
Y$%&'P$&()* K$+ E,$-./
1001 :tarted as an .- -raining 8ompany@ :etup arious .- education institutes
across the state of Gu9arat, .ndia
100#2000 Ao*1 .- -raining company in the :tate@ -rained )0,000 students across "0
A1ure .- institutes
2000 :et up a 500 seat Global 8ontact center to proide Market 4esearch and
6inancial :erices to 6ortune 500 companies
2003 Added Mortgage 5rocessing and Mortgage =rigination :upport serices@
6irst multi*country, multi*lingual (2( Market 4esearch 5ro9ect e'ecuted
successfully
200! E'pand M4 capabilities to include :urey 5rogramming, 7ata 5rocessing@
8onducted more than "0,000 #eb and phone interie#s
200" Added 2 6ortune 500 companies as key clients #ith long term contracts@
6inancial serices e'pansion to E<, Europe and Australia@ E'panded
multi*lingual capability to coer 12 international languages
200# .:= 2&001 certification@ A1ure bags financial serices contract from one of
the top 5 global financial companies @ (ags large .- solutions contracts
2001 ;aunched 8hina office in Guang1hou@ -ook %FD stake in 8iti1ens
6inancial Mortgage@ 4anked among the top .-E: companies by 7un M
(radstreet +7M(0@ ;aunches .- solutions company, :uccess 8raft
2002 200$ A1ure #ins >(est 8ustomer 4esponsieness 5ractice? a#ard
instituted by Aaya Global 8onnect, ad9udged by Ernst M Loung and
A8Aielsen@ :etup 100 seat facility in 5hiladelphia, E:
3." AZURE CORE VALUES:
A1ures core alues include,
.ntegrity
4esponsieness
Effectie use of technology
-ransparency
5rocess orientation and discipline
3.# AZURE CAPABILITIES:
A1ures capabilities include,
01!ti Re#on2ent
Age*groups, cultures etc!
01!ti Ling1a!
=er 15 languages are spoken
01!ti 0e2i1m
5hone, Web, E*Mail, 5rint, 6a' and 6ace*to*6ace
01!ti Geogra%"
F0 8ountries across Aorth America, Europe, Asia, Australia and Africa
01!ti Pro3e##
:urey 5rogramming, 7ata 8ollection, 5rocessing, Analytics, 5resentation
01!ti In21#tr"
.- M -elecom, 3ealthcare M 5harma, 6M8G/8onsumer Goods, (6:., 4etail M
Manufacturing, Media, =thers!
3.1 AZURE ADVANTAGE:
o & years of e'perience in proiding <5= and (5= serices!
o 1500 seat infrastructure across Ahmedabad, Guang1hou and 5hiladelphia #ith 2100
people !
o :ering &5 plus countries in 12 languages!
o 5roen track record in proiding 6inancial :erices and <no#ledge :erices!
o 8urrent clients include three 6ortune 500 clients and large financial serices companies!
o :tate*of*art technology setup including dedicated priate data and oice links to E: #ith
technology solutions from Aortel, .(M!
o :trong focus on processes and systems for efficiency and effectieness in client deliery!
o 8omprehensie business contingency and disaster recoery model!
o 7edicated 2uality resources for each pro9ect and process!
o -raining and #orkshops conducted by industry e'perts!
3.2 SERVICES:
(asically, A1ure facilitates its clients #ith four basic serices, includes,
o <no#ledge :erices, A1ure is dedicated to supplying superior kno#ledge serices solution
to their clients! N6rom :trategy to :olution encompasses A1ures approach to deeloping
long term relationships #ith their customers and understanding the needs of people, the
challenges of comple' business processes and the opportunities presented by technology!
A1ureOs success is highly leeraged on the capabilities of their team and each member of the
team is chosen carefully to be able to assist in deliering results!
A41re5# gam1t of 6no$!e2ge #ervi3e# in3!12e+
Market 4esearch
E2uity 4esearch
o 8ustomer 8are :erices, .nbound 8ustomer 8are
(:A;*8ustomer 8are :erices, (harat :anchar Aigam ;imited +(:A;0 the largest
public sector undertaking and telecom serice proider in .ndia +6i'ed ,8ellular and
(road (and0 haing net #orth of 1%!"2 billion P, infrastructure #orth 22!&% billion
P,net#ork of oer %5 million phone lines in 5000 to#ns, oer 20 million cellular
connections reerts back to A1ure to outsource its 8ustomer 8are :erices!
A1ure on its part #ill use its e'pertise and state of the art infrastructure and the best
in its class 84M tools to atleast meet the (:A; re2uirements if not surpass them!
-he (:A; diision #ill #ork on 2%B")5 and #ill be 150 strong offering serices in "
languages, English, 3indi and Gu9arati! As Gu9arat is an important destination for
(usiness and -ourism, all efforts are being made to see there are alteast " 8:4:
fluent in languages like Marathi, -amil, and -elugu!
5anasonic -ough books, 5anasonic launched its premium product in the laptop
ertical in .ndia and the helpdesk number lands at A1ure! -he 9ob of the 5anasonic
-eam is to handle inbound call 2ueries and also follo#*up #ith information re2uested
by the potential clients!
o 6inancial :erices,
A1ure is a leading proider of financial serices like mortgage processing, loan
origination, finance M accounting M collections! A1ure has the necessary kno#ledge on the
#orking of the financial serices industry!
A1ures clients get the adantage of seamless integration of cutting*edge technology
and a highly trained human capital!
A1ure is committed to deliering all the financial serices you need in one place, #ith
the personali1ed attention you desere!
A41re5# arra" of finan3ia! #ervi3e# in3!12e#+
Mortgage 5rocessing
;oan =rigination
6inance M Accounting
8ollections
o .- :erices,
AIE4E is backed by e'perience in arious erticals, domains, technology practices
and :7;8 methodologies! -he focus is on building solutions that enable and empo#er
customer serice, #ork flo# automation and marketing processes, by leeraging telecom
and internet!
AIE4E has been proiding all round support, consultancy and solutions to the <5=,
-elecom, (6:. and .nternet industry! .t brings to the table in*depth understanding of the
respectie domains and inaluable years of soft#are deelopment e'perience!
A41re offer# IT ena7!e2 #ervi3e# for+
-elecom and .5
Enterprise :olutions
Market 4esearch
6inancial :erices
Web/Application 7eelopment