Tuesday, July 08, 2014: If reports are to be believed, Reliance Communications plans to cut its current work force of 15,000 people by 37 per cent by the end of July. In a bid to restructure the company, RCom plans to outsource its call centre and shared services operations. The company expects that this restructuring will lead to cutting of costs and provide the much-desired profitability boost.
Rcom will reportedly enter into contracts worth Rs 7000 million with a couple of third-party service providers, for outsourcing its BPO and shared services operations. This outsourcing will amount to job cut of about 6,000 employees.
Out of these, about 4,500 people are a part of company’s call centre operations while the rest are into the shared services teams. A top official from RCom said that post the finalising of outsourcing deals, “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.”
“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,” he added, on the condition of maintaining his anonymity. By outsourcing these services, the company will save Rs 2000 million worth salaries.
