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India, once upon a time we were leading rather ruling BPO/KPO markets. In recent past, situations are changed a lot. We are now competing with China, Phillipines, Sri Lanka and so on... Almost all BPO/KPO organizations are struggling to keep their cost down for better margins and provide same value to their customers at reduced costs. Being in a Six Sigma BlackBelt role, I face a question everyday.... What else we can consider for cost reduction? Salaries - We are in competitve world, cannot play with salaries T&E - Yes, upto some extent but we have already worked on that Recuitment & Trainings - Yes, upto some extent but we have already worked on that.. For any people depended organization, above three are the major cost areas. All the companies already worked on these 3 areas and now looking for few more cost junks to concentrate. IT, Accommodation, SEZ units, Transportation, Employee additional allowances etc.. are few more areas which can be looked out. For any cost reduction project, we can think about metrics like Value and Volume. Is there any better metric available to consider? If yes, What could be best suitable metric for cost reduction projects? Lets discuss....