Guaging Productivity Of Vendors

The Economic Times of India

BPOs rejig business model to earn more

NEW DELHI: Next time, when a client’s transaction is forwarded to a BPO in India, he might actually end up getting more value on the service offered than he ever expected.

The Indian BPO industry is undergoing a shift in its revenue-generation model to spur more efficiency among the service providers.

From the input-based pricing or FTE (full-time equivalent) model based on per person on hourly basis, the sector is embracing outcome (a client pays a vendor based on the output or outcome) and transaction (vendor will be paid on the number of transactions performed) based pricing models.

“Gauging productivity of providers based on the FTE format was becoming quite difficult. In the new output based model, the effort and success is out in the open for everyone to see. It shall have positive impacts in revenue generation,” said Sameer Chopra, president, Business Process Industry Association of India (BPIAI).

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