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News : Anil Ambani-led Reliance Communications Plans to Cut Workforce
Kolkata, July 7, 2014 -- Anil Ambani-headed Reliance Communications (RCOM) plans to slash 37 per cent of its 15,000-strong workforce by the month-end by outsourcing its call centre and shared services operations in a bold restructuring move aimed at exiting non-core businesses and cutting costs to boost profitability.
India's telco will shortly ink deals with two thirdparty service providers to outsource its BPO and shared services operations, which will result in some 6,000 employees exiting RCOM's rolls.
Nearly 4,500 of them are currently involved in RCOM's call centre operations while the rest make up its shared services teams. After the outsourcing deals are finalised, "these 6,000-odd employees will migrate to the rolls of the two third-party service providers, which will lower RCOM's employee count to well under 10,000," a top company official told ET. He declined to name the two companies on "confidentiality grounds".
"The BPO and shared services businesses were highly inefficient and not adding any value to RCOM's bottom line, which is why we decided to outsource them and purely focus on core telco issues like customer acquisitions, sales, distribution, marketing and brand building to create a leaner organisation that is more cost-efficient," the official said.
The attempt to cut staff costs is aimed at complementing sales efforts. These will be the second wave of RCOM's outsourcing deals.
The latest outsourcing and staff reduction drive is being anchored by chief executive Vinod Sawhny and human resources head Amit Das. The decision to outsource BPO and shared services operations also stem from the fact that both are support functions and cost centres that scarcely generate any revenue for RCOM.
Posted by Veronica Silva Cusi, news correspondent
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The Reliance (Anil Dhirubhai Ambani Group) is among India’s largest private sector business houses on all major financial parameters.
Published: Tuesday, July 8, 2014