CHAPTER I INTRODUCTION AND DESIGN OF THE STUDY

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1 P a g e 1 CHAPTER I INTRODUCTION AND DESIGN OF THE STUDY INTRODUCTION Business Process Outsourcing (BPO) is one of the fastest growing segments of the Information Technology Enabled Services (ITES) industry. BPO is a strategy which promotes in a unique way either by putting-in new technology or applying existing technology to improve a process 1. IT-enabled outsourcing services use information technology in the processing and delivery of the services. These services are typically delivered through a telecommunications or data network, or other electronic media. India in the recent years has shown huge developments in the areas of communication, power and software developments. It has already established itself as a global BPO hub and is fast becoming a popular outsourcing destination for major manufacturers across the globe. According to the research report by BPOindia.org, Factor Cost Advantage, Economy of Scale, Business Risk Mitigation, Superior Competency, and Utilization Improvement are the motivational factors helping Indian BPOs to gain importance. Our country is fast emerging as a winner in this outsourcing services hype. Today the US based companies are ranking India to be their first choice as an offshore outsourcing destination. India stands as 1 Research Study conducted by bpoindia.org.

2 P a g e 2 one of the major players in the outsourcing industry, in terms of well educated, talented, low cost and English speaking workforce, excellent IT and networking infrastructure, a fairly stable political scenario, friendly laws and well laid taxes and quality certified software firms. The Research and advisory firm, GARTNER 2, in one of its report shows that by 2010, the Indian BPO companies are expected to double its market share. Indian BPO players, like, WNS, Aditya Birla, Minacs have proved themselves as powerful opponent to Western BPO. The BPO economy in India today is anywhere between $25 billion and $50 billion and growing 30-40% a year. According to NASSCOM-McKinsey 3 report, BPOs employ about 550,000 people, about the same as the IT industry now. BPO employment is growing faster than IT and touches a much wider spectrum of society. The BPO boom has helped developing countries like India in a major way by creating quality job opportunities in turn benefiting the Indian economy. However, BPOs employees experience the events that bring in stress. Stress is a kind of negative emotion that disturbs the normal functioning of a person by affecting his mental and physical health. Stress can waste employees vitality and diminish their personal energy resources. Stress can negatively influence persons attitude and feeling worst about himself. The U.K. Health 4 and Safety Executive define stress as: the adverse reaction of the people under excessive pressure or other types 2 GARTNER Study Report, NASSCOM McKinsey study Report on BPO development, Health & Safety Executive definition.

3 P a g e 3 of demand placed on them. However, long-term or (severe) stress can, result in actual physical and mental illness. This could give rise to the following types of legal complaints; personal injury, constructive dismissal, unfair dismissal, discrimination and disability discrimination; The Irish Health and Safety Authority defines stress as arising; when the demands of the job and the working environment on a person exceeds their capacity to meet them. The E.U. Commission s document, Guidance on work-related stress defines work-related stress as: the emotional, cognitive, behavioural and physiological reaction to aversive and noxious aspects of work, work environments and work organisations. It is characterised by high levels of arousal and distress and often by feelings of not coping. In addition to it, Medical Research 5 has shown that as much as 90 percent of illness, poor health and disease are stress-related. BPOs employees daily experience burnout due to repetitive nature of work and unending nightshifts. The BPO services are ranked high for attrition due to health reasons, for sleeping disorders 83%, Voice loss 8.5%, other problems were ear problems (8.5%), digestive disorders (14.9%) and eye sight problems (10.6%) 6. There is a universal consensus that BPO services and the nature of work is stressful. There is a need to evolve strategies or module to cope up with their work related stressors and thereby 5 David G. Benner, Baker Encyclopaedia of Psychology: Stress, Baker Booklouse, USA, Sep 1987, pg Data quest 'BPO employee survey 2004', Vol XXII No.21, November 15, 2004.

4 P a g e 4 protecting the life of intellectual capital, Indian economy and to retain the reputation of BPOs. STATEMENT OF THE PROBLEM India is fast becoming a major outsourcing hub to the world and already has a booming $ 2.3 billion ITES market. Many organizations like the NASSCOM, BOSTON 7 consulting group and IDC-India have predicted a highly positive development in the industry. Over the last decade and a half India has emerged as a strong provider of IT enabled services (ITeS) to US, European and Asian companies. Governmental agencies from several western countries have also lately begun to embrace IT outsourcing, and much of this business has been directed towards India. As a result, India s ITeS sector has seen meteoric growth in recent times. With the advent growth of the industry there has been a sharp increase in the outsourcing job opportunities in India. Many believe that this would help India to improve its economic and social stability in a major way. However, BPO Workers experience various types of stressors affecting worker s efficiency. Problems at work are more strongly associated with health complaints than any other problems. 8 The BPO services are ranked high for attrition due to health reasons such as sleeping disorders, Voice loss, ear problems, Digestive disorders and eye sight problems. The researcher has made an attempt to understand the extent of vulnerability to stressors experienced by the employees of BPO services, also seeking and advocating the solution for the work related stressors. Hence, a study on the work related stressors of 7 NASSCOM BOSTON group study report, St. Paul Fire and Marine Insurance Company [1992]. American workers under pressure technical Report. St. Paul, MN: St. Paul Fire and Marine Insurance Company.

5 P a g e 5 employees of Business Process Outsourcing Services (BPOs) in Tamil Nadu has been undertaken with the following objectives. OBJECTIVES OF THE STUDY 1. To understand the work related eustress and distress of employees of BPO services in Tamil Nadu. 2. To study physiological, sociological and home related stressors of BPO service employees in Tamil Nadu. 3. To know the organisational and work related stressors of BPO service employees in Tamil Nadu. 4. To analyse the emotional, behavioural and psychological stressors of BPO service employees in Tamil Nadu. 5. To provide the strategies to cope up with work related stressors of BPO employees in Tamil Nadu. HYPOTHESES OF THE STUDY 1. There is a significant relationship between the physical stressors of the BPO service employees and their work related stressors. 2. There is a significant relationship between the home-related stressors of the BPO service employees and their psychological stressors. 3. There is an association between the educational qualification of the respondents and their various dimensions of stress vulnerability. 4. There is a significant relationship between the home - related stressors of the BPO services employees and their work-related stressors.

6 P a g e 6 5. There is a difference between the number of dependents and their various dimensions of stress vulnerability. 6. There is an association between reasons for leaving the BPO jobs and overall stressors of employees of BPO services. 7. There is a significant relationship between the organisational stressors of the BPO services employees and their work-related stressors. 8. There is a significant relationship between home related stressors of the BPO services employees and their social stressors. 9. There is a significant association between age of the respondents and overall stressors of employees of BPO services. 10. There is a difference between the experience of the respondents and their various dimensions of Quality Work Life. 11. There is a difference between the monthly income of the respondents and their various dimensions of stress vulnerability. 12. There is a difference between the experience of the respondents and their various dimensions of stress vulnerability. METHODOLOGY The researcher identified world renowned and registered top 10 BPO service providers which are highly rated by the reputed organizations like NASSCOM, BPO.org and bpoindia.org. They are CSC 9, WNS Global 10, IBM Daksh 11, Aditya Birla Minacs Worldwide 12, 9 'No.11 Best Performing BPO' 2008 (NASSCOM) and Top 10 Fastest growing Company in India 'According to Dataquest Survey of Top 200' IT companies Ranked 'Top 11 amongst top 50 Global outsourcing vendors for 2009 in Black Books of Outsourcing. 10 NASSCOM ranking: No. 1 BPO Company for the year 2005, NeoIT Global Survey: No. 1 'Best Performing' BPO Company / No. 1 in Human Capital 11 Frost & Sullivan Contact Center Outsourcing Vendor of the Year 2007, Most Respected BPO Company in India(Business World), IBM Daksh tops the 2007 Global Outsourcing Dataquest (annual Top 20 BPO listing) - Ranked as India's No 2 BPO company, NASSCOM Ranked as India's third largest BPO.

7 P a g e 7 TCS BPO 13, Wipro BPO 14, First Source 15, Infosys BPO 16, HCL BPO 17 and EXL Service Holdings 18 which are providing service to the largest extent. These top 10 service providers are also acknowledged by the various professional research organizations in their study report / survey like E-Sat Survey, ASSOCHAM, NASSCOM - McKinsey and GARTNER. All these top 10 BPO service providers are functioning in Chennai as well as across Tamil Nadu. The floor executives and operational managers of all levels working in these top 10 BPO service providers constitute the universe of the study. Table 1.1 Universe and Sample size of TOP 10 BPOs in Tamil Nadu BPO Company Place of the Centres/ Branches BPO service Providers in Tamil Nadu ( Employees work force) Chennai Chengalpattu Coimbatore Trichy Total Employees Centr Emp Centr Emp Centr Emp Centr Emp / Universe Sample Size CSC WNS Global IBM Daksh Aditya Birla TCS BPO Wipro BPO First Source Infosys BPO HCL BPO EXL Service Total Emp World s top BPO providers by the International Association of Outsourcing Professionals. 14 Wipro BPO & Cairn India declared winner at the first annual 'FAO Research Awards of Distinction', 15 Ranked among the top 10 ITES companies by NASSCOM, Infosy is listed among top BPO companies in Dataquest 17 Ranks among the Top 10 ITeS-BPO companies in India (NASSCOM & Dataquest) 18 Among the top 10 best performing BPOs in CMP Media's list, No.1 rising star in the Global Outsourcing list by International Association of Outsourcing Professionals

8 P a g e 8 The study is designed to collect data from a sample size of 400 respondents who are selected under proportionate stratified simple random sampling techniques. In order to retain objectivity, every attempt was made to take an unbiased sample. A well structured questionnaire was prepared and used to collect primary data considering 10 parameters other than personal information for calculating the employees Vulnerability to stressors: Personal Information relates to Personal profile, Company culture, Job content/growth, Career advancement, Training, Salary and compensation and Performance Appraisal system The other parameters are various Dimensions of Stressors namely Emotional, General Behavioural, Psychological, Physiological, Organizational, Work-related, Home related and Sociological stressors, Reasons for leaving work and Quality Work Life. A process of cross-checking was highly established to ensure the authenticity of the data and the reliability of the interviews. Every effort was also made to ensure that the management of the company did not influence the employee responses. It is an exploratory study. The research study covers the period from 2006 to 2009 and a detailed pilot survey was undertaken by the researcher. The pilot study had increased the researcher to restructure the questionnaire; it identified the defects in the questionnaire and helped the researcher to add as well as to remove the questions in the

9 P a g e 9 questionnaire. The researcher collected reviews and secondary data from various sources such as research study, survey report, magazines, News papers, bulletin, annual reports, internet and books. STATISTICAL TECHNIQUES The researcher had applied the relevant standard statistical tools to analyse the multivariate variables by using, Cross tabulation, Rank order of various illness, five point scale measurement, mean, median, standard deviation, Inter Correlation matrix, Chi Square Test, One way ANOVA and Non parametric Wilcoxon Mann Whitney U test. Besides percentage analysis is made to exhibit the results with the help of pictographic presentations wherever required. SCOPE OF THE STUDY: The study covers the analysis of different dimensions with varied nature of problems (Emotional, General Behavioural, Psychological, Physiological, Organizational, Work-related, Home related and Sociological stressors) of employees of Business Process Outsourcing services in Tamil Nadu. It explores the sources for increasing the global competitiveness of outsourcing services as well the protective work environment of BPOs employee working in Tamil Nadu State. This study reveals the relationship between the profile of the respondents and the different dimensions of stressors experienced by the BPOs employees in Tamil Nadu. It helps to understand the highlights of suggestive measures enabling the quality work life and satisfaction measures to overcome work stress busters, and promoting innovative measures.

10 P a g e 10 LIMITATIONS OF THE STUDY: 1. This study ignored unregistered, medium and small scale BPO service providers as they involve in secondary level contracts. 2. The study ignored the BPO companies rendering services only at the regional level. 3. The BPOs Companies established at the rural areas were not covered. 4. The application of present study cannot be substantiated with other BPO companies operating in different states and other places. ORGANISATION OF THE THESIS: The thesis is organized into the following six chapters. CHAPTER I: INTRODUCTION AND DESIGN OF THE STUDY The first chapter presents the introduction, status of Business Process Outsourcing Services at the regional, national and international level, Common problems and problems pertinent to work related stressors faced by the employees of BPOs, statement of the problem, objectives, hypotheses, methodology, Scope, limitations of the study and organization of the thesis. CHAPTER II: PROFILE OF THE STUDY AREA In the Second chapter deals with the profile of the study area, as well as the profile of Top 10 BPO services in Tamil Nadu state are outlined.

11 P a g e 11 CHAPTER III: CONCEPTS AND REVIEW OF LITERATURE The Third chapter deals with the concepts and review of related literature. CHAPTER IV: PROSPECTS OF BPOs AND ITS POLICIES FOR HEALTH CARE The fourth chapter deals with prospects of BPOs and its policies for health care. CHAPTER V: ANALYSES AND INTERPRETATION OF DATA The fifth chapter deals with the analysis and interpretation of the parameters framed and the dimensions of each parameters (Personal Information, Company culture, Job content/growth, Career advancement, Training, Salary and compensation, Performance Appraisal system, various stressors, reasons for leaving at work and Quality Work Life experienced by the employees of Business Process Outsourcing Services in Tamil Nadu. CHAPTER VI: SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSION The sixth chapter exposes all findings of the study, suggestions and conclusion. This chapter also includes action plan and recommendation to the BPO service providers (employers) and the Government. The next chapter deals with the profile of the study area, as well as the profile of Top 10 BPO services in Tamil Nadu state.