April 24, 2025
15 Minutes
Starting a call center in India requires time and effort. From educating yourself on the legalities of the call center business to understanding the intricate details of call center software and quality analytics operations, it can be challenging to keep track of everything.
Legal formalities, planning strategies to manage the call center, being a great companion for the company, and whatnot take a lot. Let's examine closely and understand what it takes to set up a call center in a result-driven country like India.
Setting up a call center begins with an idea, but on the ground level, there's a detailed legal process for registering your company. The first and foremost step is incorporating the company, during which various details are verified. The next step involves obtaining licenses and permits.
The first and foremost step is Company Incorporation. Company incorporation refers to the legal process used to form a corporate entity. An incorporated company is a separate legal entity recognized by the law.
Setting up a call center in India means handling necessary paperwork and getting the proper licenses. These licenses are essential because they ensure you follow all the rules about telecommunications, data protection, and labour practices. Having the proper permits helps your call center run smoothly and stay within the law, which is critical to providing excellent customer service.
Obtain an Other Service Provider (OSP) license from the Department of Telecommunications (DoT) to legally operate a call center in India. This license ensures compliance with DoT regulations and guidelines for telecommunications services, ensuring that your operations meet legal standards for communication services.
Adhere to India's labour laws, including the Shops and Establishments Act, which governs:
Comply with data protection and privacy regulations under the Information Technology Act 2000, which involves:
Maintain trust and ensure legal compliance in your call center operations by following these regulations.
To truly understand the call center business, it's essential to grasp its core components. Call centers can be categorised into three main types.
Launching a thriving call center in India requires meticulous planning and a thorough understanding of market dynamics. From analysing industry trends and customer needs to crafting a robust business plan, each step plays a crucial role in shaping the venture's trajectory. Following these structured steps, this section delves into the essential components of market research and business planning.
Setting up a call center is like setting the stage for a smooth conversation hub where telecallers can have conversations with customers in ease.
A call center can be started by picking a spot with good connections and skilled people nearby. Then, you decide whether it'll be in a building or the cloud. Finally, you get essential technology like phones and software to keep things running smoothly. Each choice helps ensure your center is ready to handle calls and serve customers well from the beginning.
In India's competitive landscape of call centers, staffing and training play pivotal roles in ensuring operational excellence and customer satisfaction. Let’s explore two essential aspects that can set your call center apart:
Seek candidates proficient with advanced call center systems and technologies while showcasing strong empathy and practical communication skills. Multilingual capabilities are crucial for engaging with a diverse customer base across India. Emphasise individuals who exhibit a natural talent for understanding and resolving customer issues with patience and care.
Once your team is onboard, ongoing training is crucial to keep them sharp and adaptable in India’s fast-paced call center landscape. Create training modules that refine technical skills and deepen their understanding of your company's values and service approach.
Once you've established a strong team and implemented practical training, the following essential focus is maximising operational efficiency. Managing a call center is akin to directing a symphony, where every component must function harmoniously for optimal performance. Achieving this requires strategic planning and solid guidelines.
Maximising operational efficiency goes beyond mere adjustments; it’s about building a streamlined operation where every element works seamlessly together. This involves defining clear objectives to steer your efforts, executing detailed financial planning to ensure long-term sustainability, and embracing a culture of continuous improvement to keep ahead in the market.
Let's uncover strategies to help your call center thrive in the competitive Indian market.
Set clear business objectives and key performance indicators (KPIs). Regularly assess whether your goals remain relevant by considering shifts in customer preferences or market conditions. This adaptability keeps your goals relevant and achievable as external conditions evolve. Flexibility and responsiveness to changing conditions help maintain progress and adapt to new challenges.
In the rapidly evolving call center industry, strategies must adapt to market conditions. Identifying areas where additional support or resources are needed is crucial for executing strategies effectively. Ensuring that you have the necessary resources and support enhances the success of these strategic initiatives.
To stay on track, regularly review financial performance against the budget. Ensuring financial decisions align with strategic objectives is crucial for maintaining focus and driving success. By analysing the financial impact of initiatives, you can optimise spending and enhance overall results. Develop a comprehensive financial plan for scaling operations, including budgeting for growth and expansion.
Implement an accounting system to accurately track daily expenses and significant investments, ensuring adequate financial control. Use expense management software to streamline tracking and reporting, improving accuracy through automation—monitor expenses by projects or departments to assess economic impact and optimise resource allocation.
Regularly analysing revenue streams and profitability is essential for informed business decisions. Track performance metrics to evaluate operational improvements, focusing on top-line revenue, margins, costs, and financial performance across services or client accounts. Effective communication boosts operations and collaboration while addressing customer concerns and improves service quality and efficiency.
Cultivate a culture of continuous improvement in your call center by actively seeking feedback from your team and customers. Empower employees to suggest changes and innovations and use feedback and performance data to make incremental adjustments. This proactive approach enhances operational efficiency, boosts customer satisfaction, and positions your call center for long-term success in the competitive Indian market.
Imagine launching a call center designed for unparalleled success in the digital age—where every customer interaction becomes a strategic advantage. SquadStack’s AI-powered CX solutions revolutionize call center operations with cutting-edge technology that redefines efficiency and effectiveness.
SquadStack has been a game-changer for several Indian companies seeking exponential growth and business success. Upstox, a top investment platform, achieved a 40% increase in its active user base by leveraging SquadStack's sales experts and AI-driven outreach. Choice India was able to slash their customer acquisition cost by 70% with the help of SquadStack's sales experts and robust tech stack. MoneyView also saw significant improvement in its internal team processes and rapid business growth by leveraging SquadStack's telecalling expertise.
To start a call center in India, conduct thorough market research, choose the right type (inbound, outbound, or blended), comply with legal requirements, set up a robust infrastructure, and invest in skilled staffing and training—partner with experts like SquadStack for tech-driven efficiency.
AI integration through platforms like SquadStack enhances productivity by automating routine tasks, optimising agent workflows with predictive analytics, and ensuring personalised customer interactions through natural language processing (NLP).
To ensure high agent retention rates, offer competitive salaries, career advancement opportunities, a positive work environment, and regular training. Recognising and rewarding performance can also boost employee satisfaction and loyalty.
Key KPIs include average handle time (AHT), first call resolution (FCR), customer satisfaction (CSAT) scores, agent utilisation rates, and conversion rates. Tracking these KPIs helps measure performance and identify areas for improvement.
Essential training programs should include communication skills, technical knowledge, customer service protocols, and regular updates on industry practices and technology advancements to ensure staff proficiency and high-quality service.
