MINISTER'S SPEECH

Call Centers present this millennium’s first big deal for India.

Mr. Trehan, Dr.Sen, Mr. John Molnar of Esquire Electronics of USA, Mr. John Williams of Nuera Comm. USA and Mr. Costello of Amcat, USA,

Delegates and friends!

I am indeed very excited at the mind-boggling opportunity that has come at the right time for a developing nation like India. And this opportunity – the Call Center – which was virtually unheard of a year age, today has fired up the imagination of entrepreneurs throughout the country.

Normally, we in the government are slow to react to formulate policy measures in respect of new technologies. But, I’m here proud to inform all of you that the Government of India has already issued detailed guidelines for setting up of Call Centers in India through a Ministry of Communications document of April this year.

The opportunity that I was referring to relate to the effective utilization of the vast amount of skilled manpower generated annually from our universities. A few years ago, it used to be a clamor for our graduates to search for greener pastures abroad. Now, setting up of call center in India is shifting the job positions from overseas countries to India. The WTO agreement, of which India is a signatory, also ensures that such a paradigm shifts does indeed take place.

The Honorable Prime Minister’s recently- concluded visit to the US also focused attention on the vast potential of India providing a most suitable destination for the US companies to outsource services from India. And these services prominently include the ones provided via call centers.

Dr. Sen informs me that he has been successful in persuading three US companies to come to this seminar to assist Indian entrepreneur to set up their call center facilities in India. His own company is establishing a large call center of 300 positions in Noida. I’m told that today 60 companies are doing call center business in India, employing 80,000 staff – called agents, who generate a business volume of Rest.. 1500 Crores.

One prime example that comes to my mind is the GE capital. This US Company at its Gorgon – based facility employs 3,000 agents, has finalized its plan to open prime a Hyderabad facility for an additional 4,000 people. Dell Computers, whose CEO is scheduled to visit India shortly have already firmed up their plan to build a call center at Bangalore. Similarly a host of US hospitals are fruitfully availing the facilities of medical transcription through India – based call centers.

The future is even brighter: by March 2002 alone the estimates of business volume are a staggering Rest... 5000 Crores in India, with players zooming to 300 companies! But, when we look at the figures of the total call center outsourcing market of the developing nations, we realize that we are sitting on a goldmine.

For example, the call center outsourcing market in the US alone was $ 17 billion in 1998. The European figure for this segment is expected to double from $7 billion in 1999 to $ 15 billion in the year 2003. Therefore India with all its factor advantages as outlined by Dr. Sen in his speech is poised to encash this huge lurking opportunity. I’m sure that India will enjoy the first – mover advantage, which no other nation is in a position to catch up with us.

Here, I also want to comment on another related phenomenon: Earlier if you walked through the streets of a busy market in a metro – you would not miss a sign of a computer – training institute. Today, along with these signboards – there are new billboards – inviting you to learn the skills required to become an agent with a call center. What a tribute to the India entrepreneurial spirit as well as business acumen of our entrepreneurial who spot a business opportunity as soon as it appears on the horizon.

We in the Govt., assure all of you, entrepreneurs as well as representatives of foreign companies, present here, that with the positive frame work prevailing in my ministry and other related departments, all encouragement will be proving in setting up more tie ups for call centers.

It is a new type of business creating not only job opportunities but shifting job for developed nation to India and as presented by Dr. Sen, we said to have missed FDI (Foreign Direct Investment) to China.

I am indeed so glad to be present amongst all of you at what I believe is the first such professional seminar solely devoted to the topic of promoting call centers with business arranged by Dr. Sen of SM Telesys Ltd. I consider to be greatly honored to be associated with you and declare the seminar open for deliberations.