Bhutan’s 1st BPO on brink of shutdown

November 25 – The government may have plans to create a high tech habitat in Bhutan by promoting the establishment of, among others, business processes outsourcing companies (BPO), but the country’s first such company may not even make it that far.

Bhutan business solutions (BBS), a medical transcription BPO, established in Thimphu in 2007, is contemplating shutting down after not being able to find a suitable location to relocate its company. The BPO was informed earlier last month by the owner of its present premises, royal insurance corporation of Bhutan limited (RICBL), to relocate by December.

Medical transcription is the process of transcribing voice information dictated by a physician, such as a patient’s medical background, into text format. BBS currently works with physicians based in the USA, where the medical transcription business is being outsourced, due to the cheap costs associated with labour in developing countries.

“We’ll have to shut down,” said the proprietor of BBS, Damchae Dem, explaining that the company originally intended to move into the country’s first information technology (IT) park, Thimphu Techpark, when it commences operations in 2011. “Now, all of a sudden, we don’t know what to do but shut down,” said Damchae Dem, referring to the notice to vacate.

“We’re at a crossroads on whether or not medical transcription in Bhutan will succeed,” added Damchae Dem, who is also the executive chairperson of Pelden group of companies. BBS is a corporate social responsibility initiative of Pelden companies, operated with no profit motive but simply to generate employment opportunities, according to Damchae Dem. Pelden companies has been operating the BPO at a cost of Nu 800,000/month and has spent nearly Nu 30m so far in sustaining BBS, according to her.

“If we succeed in medical transcription, it’ll open up avenues in other areas of BPO,” said Damchae Dem, explaining that medical transcriptionists could easily move into other areas, as their work was highly professional. “We can’t lose this opportunity or let this project fail,” said Damchae Dem, pointing out that BBS had, for the first time, made a profit in October of Nu 10,000.

She added that, with recent increasing interest from other potential clients, the future of BPOs as a profitable and self-sustainable business in Bhutan looked promising.

BBS currently employs around 60 medical transcriptionists. “It’ll be unfair to the youngsters, who’ll be hit the hardest,” said Damchae Dem, referring to the employees whom she described as “exemplary” in their work. She pointed out the company already had plans to recruit 100 more medical transcriptionists in January next year. BBS has requested the labour ministry for assistance.

Labour secretary, Dasho (Dr) Sonam Tenzin, said, although not offering any guarantees, the ministry will work with BBS in finding a solution to keeping it operating. The labour secretary added that, since the IT sector will enhance employment opportunities, the ministry would support private enterprises such as BBS. The secretary pointed out that he was aware that the medical transcriptionists at BBS were highly trained and should not be displaced.

An RICBL official said that BBS needed to move out because RICBL was moving its headquarters to Thimphu. The official said the current space occupied by BBS would become a conference hall as the insurance company has to rent halls, which is expensive. Any extension will have to be considered by RICBL’s managing board, said the official.

Damchae Dem said that BBS understood RICB is a commercial organisation has to minimise costs, adding that her company was now dependent on the organisation’s “compassion”.

Currently, there are three BPOs in the country, CMI (computer management institute) in Phuentsholing, TST in Paro, and BBS in Thimphu. BBS is the only company currently employing workers, with the other two BPOs currently engaged in training.

source: kuensel