Dec 062012
–So far biggest problem in BpO industry has been attrition. BpO companies in India have been out of labor trouble, there were many reasons for the same

  • A young work force that believes in making a career and rising the corporate ladder
  • The big problem of Attrition means that employees are never too old in system leading to no formation of any kind of unions etc.
  • Relatively good salaries compared to conventional jobs.

The big problem in BpO industry being the perception in the mindset of people that BpO is not a good career option. But overall most of the BpO companies have had a harmonious management employee relations.


But it seems that those days are either over or the impact of labor unrest in Maruti is spreading to other industries in Gurgaon. It is difficult to say if this is local phenomenon or a signal of more things to come. If the media reports are to be believed BpO Company PCCare 247 , which appears to be a technical support company, has not paid salaries to its 137 employees for last 3 months and the employees have chosen to take on streets. They did a protest in front of the condominium complex where the director of the company lives.  This is a not a new but also not frequent problem in BpO industry. We are sad to learn that employees have to take to streets to bring attention to their  problems.

As per the employees and vendors more than 1 crore ( 180000 USD) is due to them and the company has not paid for last 3 months.

We checked the website of the company PCCare 247 and the first thing we noticed is that it is a free word press hosted site, typically used for personal blogs and not for commercial enterprises. This makes us a little doubtful about the company. A self hosted commercial website will not cost more than 5000 INR even if you go for the best of hosting plan. Actually the website claims it is a blog and we are surprised how they employed 137 people with them while running a blog.

There are 2 challenges in this situation here one is the problem of the employees and vendors who have not been paid their dues for 3 months and the other is the problem of negative publicity for the BpO business specifically outsourced to India. From the website of the company it appears most of their customers are retail customers based out of US. Now the labor unrest due to non-payment of dues is not going to send good signals to potential customers in US whether they are retail or enterprise customers.

This is also a big learning for all potential employees to do a thorough due diligence for the company they plan to  join, I think just like an employer does employee referral check employees should also do a ref check and work atmosphere check to find out more details about the potential employer.

We are planning to do a series on some of these things and would love to hear from you. Please use Contact CafeBpo form to get in touch with us if you would like to contribute content for CafeBpO

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 December 6, 2012  Posted by at 7:45 PM Career In a BPO Tagged with: ,

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