NTT DATA BPO’s Automation Revolution: Transforming Low-Skilled Work in India 2023
Over the next two years, NTT DATA’s business process outsourcing (BPO) division plans to increase its personnel in India by double, to 20,000. The BPO division employs about one-fourth of NTT DATA’s 45,000 workers in India.
While it has automated the majority of the low-skilled employment in India over the past six years, the Japanese computer giant is progressively exporting more highly skilled jobs to that country.
We have already automated any low-skilled labour that took place in India five or six years ago, according to Rohit Puri, Group SVP, BPO, NTT DATA. He continued by saying that India has progressed up the value chain and now received high-skilled employment.
He said, “Today, the kind of work that is completed in India may be comparable to that which would have been completed in the US. From a productivity or quality viewpoint, we aren’t seeing a lot of distinction.
According to him, the offshore-to-onshore ratio is currently 80:20. The regulatory constraints or state rules that prevent them from outsourcing the business are the key reason that 20% of the work is located outside of India. Medicaid or Medicare-related employment. Or the client has a legal need that it cannot be completed outside the nation.
He stated, “We have seen a 30% increase in high-skill jobs over the past 2 years,” when explaining the high-skill work that is being done in India. When we provide our clients with B2B services, intelligence-rich, judgment-related procedures are necessary. In India, we are increasingly being given high-end, cognitively challenging tasks.
Puri said, “For instance, certain low-value claims—perhaps $10,000 or $15,000 at most—used to come to India in the past. However, some claims today have reached millions of dollars or even more, such as $500,000 or $600,000. Therefore, such high-end claims require much more in-depth examination before being decided upon and paid for.
One industry where high-end claims are being handled by India is that one.
They also do anti-money laundering and KYC (know your customer) activities relating to banking. “The bank needs to profile a lot of high-profile clients before providing them with the services they want. The sector is also heavily controlled. Therefore, all of that sophisticated profiling, anti-money laundering, and screening is carried out from India. He stated that the efforts had never before been completed in India.
NTT DATA Business Process Outsourcing (BPO), a subsidiary of the global IT services provider NTT DATA, has been at the forefront of transforming low-skilled work in India through automation. As industries continue to evolve in the digital age, the automation of repetitive and low-skilled tasks has become essential for driving efficiency, reducing costs, and ensuring accuracy in business processes. This article explores how NTT DATA BPO is leveraging automation technologies to revolutionize low-skilled work in India, thereby benefiting both the company and the Indian workforce.
Business Process Outsourcing (BPO) in India has experienced significant growth since the late 1990s. Initially, it was focused on providing low-cost labor for simple, repetitive tasks such as data entry, customer support, and back-office operations for global clients. India’s abundant, English-speaking workforce made it an attractive destination for outsourcing, and companies like NTT DATA BPO capitalized on this opportunity.
While BPOs created thousands of job opportunities in India, the nature of work in these facilities often involved repetitive, mundane tasks that required minimal skills. This resulted in several challenges for low-skilled workers, including:
- Monotony: Performing the same tasks repeatedly can lead to employee disengagement, boredom, and decreased job satisfaction.
- Limited career growth: Many low-skilled workers found it difficult to advance their careers within the BPO industry due to the lack of skill development opportunities.
- Health concerns: Prolonged hours of sitting and staring at computer screens could lead to health issues like musculoskeletal problems and eye strain.
- Vulnerability to job loss: As automation and AI technology advanced, there was a growing fear among BPO workers of losing their jobs to machines.
Recognizing these challenges and the evolving landscape of technology, NTT DATA BPO took a proactive approach to address the needs of its workforce and clients. The company began integrating automation into its operations, with the following key elements:
- Process Automation: NTT DATA BPO adopted Robotic Process Automation (RPA) to automate routine, rule-based tasks. This technology allows software robots to mimic human actions, significantly reducing errors and processing times.
- Cognitive Automation: To handle more complex tasks, the company implemented cognitive automation using AI and machine learning algorithms. This enabled the system to learn from human interactions and make decisions, further streamlining processes.
- Skill Enhancement: Instead of displacing workers, NTT DATA BPO focused on upskilling its employees to work alongside automation tools. Workers were trained to oversee and manage automated processes, troubleshoot issues, and handle exceptions.
The automation-driven transformation at NTT DATA BPO has yielded several advantages for low-skilled workers in India:
- Enhanced Job Satisfaction: Automation has relieved workers of repetitive tasks, allowing them to focus on more engaging and challenging aspects of their roles. This has boosted job satisfaction and morale.
- Career Advancement: Workers now have opportunities to develop higher-level skills, such as data analysis, problem-solving, and decision-making, which can lead to career growth within the organization.
- Reduced Health Risks: Automation has minimized the risk of health issues associated with prolonged sitting and repetitive motions, contributing to a healthier workforce.
- Job Security: By upskilling employees to manage automated processes, NTT DATA BPO has created a sense of job security, as workers are seen as integral to the automation process rather than its victims.
NTT DATA BPO’s automation initiatives have not only benefited its workforce but have also resulted in several advantages for the company and its clients:
- Increased Efficiency: Automation has significantly reduced processing times and errors, leading to increased operational efficiency.
- Cost Savings: Lower labor costs, improved accuracy, and reduced employee turnover have resulted in cost savings for the company and its clients.
- Scalability: Automated processes can easily scale to handle increased workloads without the need for proportionate increases in human resources.
- Improved Service Quality: Automation ensures consistency and accuracy in service delivery, enhancing the overall quality of services provided to clients.
NTT DATA BPO’s commitment to transforming low-skilled work in India through automation has not only addressed the challenges faced by its workforce but has also positioned the company as a leader in the BPO industry. By embracing automation, upskilling its employees, and focusing on the well-being of its workers, NTT DATA BPO has set a positive example for the industry as a whole.
This approach demonstrates that automation can be a win-win solution that benefits both the company and its workforce, ensuring a brighter future for BPO workers in India and beyond.
