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Aug 15, 2006
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High Quality in the Indian Outsourcing Industry

Outsourcing to India is now more about high quality rather than cost. Indian companies are fast scaling up to match or surpass international quality standards and are ensuring that they stay ahead through stable quality systems and continuous quality improvement.

The Indian BPO industry, which previously relied on its cost effectiveness to attract customers, is now under an entirely different dictatorship. Quality is the new buzzword and is dominating business processes and services like never before. Ninety percent of ITES-BPO companies now have specialized quality departments that are responsible for ensuring accurate, reliable services to their customers. The spotlight in Indian centers is now focused on ensuring standards of quality that are at par with, if not superior to their counterparts abroad.

Defining Quality

Quality departments have a straightforward approach to identifying the areas that require quality control. The first step is the identification of parameters that are 'critical to quality'. These parameters almost always include the client's requirements and expectations. Other key factors like accuracy, productivity and turnaround time are also outlined.

Most companies are now also following the process approach. The process approach is a description of the linkages between all the activities that work towards meeting the finest quality standards that have been identified by prevalent quality norms and the client's expectations.

The Indian Advantage

The Indian advantage lies primarily in the educational and technical qualifications of the personnel, who are often more qualified than the people working in the parent locations. A survey conducted in 2002 by NASSCOM (National Association of Software and Service Companies) showed that an India based ITES-BPO center in the banking and financial service sector, performs better than a UK or US based facility on significant factors such as the number of correct transactions/total umber of transactions, total satisfaction factor, number of transactions per hour and the average speed of answers.

The ITES-BPO industries are most sensitive to incorporating internationally accepted standards of quality assurance. The NASSCOM survey also found that 50 percent of Indian companies have implemented varied levels of ISO (The International Organisation for Standardization, which conceives sets of quality management standards) such as ISO 9002, ISO 9001, ISO 9001:2000, ISO 9001:2001.

The survey also says that 45 percent of Indian service providers have certifications like Six Sigma (a disciplined, statistical quality control method that measures the number of defects compared to the opportunities to make defects) and CMMI ( Capabilty Maturity Model Integration - which is a process improvement method that provides a set of best practices that address productivity, performance, costs, and customer satisfaction.). Moreover, a lot of organizations are upgrading their quality standards to from the ISE 9000 to the new ISO 9000:2000, and from the CMM framework to the new CMMI framework.

Quality Lapses - People and Industries

Despite superior performance levels and accreditation from international bodies, India still remains at a disadvantage when it comes to certifications for quality professionals. There are little or no certifications for quality professionals in India, and those that are available are either US or UK based. Although most companies make their employees undergo the processes for these certifications, the lack of an indigenous certification body is being felt, especially due to the scarcity of training centres for quality assurance and control. The only two popular certifications in the ITES industry are the 'Certified Software Quality Analyst (CSQA) and the Certified Software Test Engineer (CSTE). Both these certifications are offered by the Quality Assurance Institute, which is again, an international body. But these too are largely considered inadequate by most authorities.
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