call centers in india

Top hindrances for Call Centers in India

“If you have built castles in the air, your work need not be lost; that is where they should be. Now put the foundations under them.”

Henry David Thoreau

In today’s time, customer support professionals are one of the biggest assets of a business. They are the frontline experts who communicate with the distressed and agitated customers to address their complaints, queries, and grievances. A lot is dependent on the customer service professionals as they have the capability to create an exceptional brand image of your business or destroy it completely.

This is why call centers are becoming more & more popular in the business sector today. Nobody wants to take chance with the customer support function anymore. A customer in the United States, when confronted with an issue in the product, picks up the phone seeking assistance. A humble and professional voice answers the phone that tries to address and resolve the issue.

What the customer doesn’t know is that the agent on the phone might be sitting thousands of miles away in a country such as India or allied. Well, India is currently leading the way to be the best outsourcing destination in the world. Companies such as GE, Ford, Apple, Microsoft, and Amazon are outsourcing their business tasks to Indian call centers for a long time now.

But, if you are thinking that the Indian call center industry is all happy and smooth, you are mistaken. Like every good comes with a bit of bad, there are certain issues that are shaking the foundation of call center sector in India too. This blog is going to quickly take a glimpse of these factors one by one:

Top challenges faced by call centers in India:


1.     Employ turnover rate

This is a big one. With a staggering range of 25 – 40%, high employee turnover rate is the oldest bottleneck in the growth of the call center industry in India. No business would want to witness its employees leaving the organization on a constant basis.

When an agent leaves the call center, there are two major setbacks for the business. One is the hampered quality that is caused by the void left by the employee who left and the second is the cost burden that is put on the call centers to hire a new replacement agent.

2.     Negative influence on the health of agents

In India, if you ask a common man his view of the call center sector, you will be surprised to see that one of the biggest industries in India holds a bad image in the market. Why? Mainly because the employees have to work in the night, which is known to cause a number of negative effect on the health of the agents.

Apart from that, the workload on the call center agents is too much and the pressure to handle targets make some of the agents lose their calm a lot of times. Panic attacks, hypertension, digestive disorders, blurred vision, insomnia, backache, and poor immunity are some of the common health strains commonly found in call center agents.

Negative health often leads to constant absenteeism, decreased efficiency, and dropped moral in the call centers.

3.     Too mature market

Indian call center industry is around 2 or 3 decades old. This means that the call centers here are highly specialized and experienced in offering an unparalleled range of services to the customers. However, this experience sometimes gives a hit back to the industry itself.

Since a lot of companies have been associated with the best call centers in India for a long time, the former is also quite familiar with the setbacks that are being experienced by the BPOs. This means that eventually with time, a lot of businesses are thinking to go for much better alternatives.

Mainly because of the less competition these businesses stick to Indian call centers for a long time, but, with other nations like Malaysia, Philippines, and Singapore getting interested in the call center sector, things are changing.

Indian call center industry is currently facing tough competition from these nation’s call centers.

4.     Real estate cost

In the early 21st century, the cost of land was quite moderate in India, which, in turn, leads to low operational costs for the businesses outsourcing their functions. Today, due to economic boom and rapidly increasing prices of land, the tables have turned.

Call centers are paying comparably a bigger amount for premises (rent or purchase cost is high). This is slowly fading off the USP of call center service that was affordability.

5.     The butterfly effect

Since a lot of overseas businesses are outsourcing to Indian call centers, any modification in the foreign nation’s policies also affects the BPO sector in India.

For an instance, a lot of companies in the USA are dependent on call centers in India for their outsourcing requirements. Now, if the American government decides to put a restriction on the nation’s company to limit their outsourcing functions, it does impact the call center industry in India.

Similarly, if some other nation such as Philippines, Malaysia or Singapore eases the entry of foreign companies for outsourcing, then also Indian BPO sector is supposed to be impacted.

Final Takeaway

So, Indian call center sector is facing a series of challenges and it is becoming quite a stringent task to sustain the leading position for outsourcing. If you think there are other challenges for call centers in India, reach us in the comment section. Thanks!

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