Bail us out, 2.5 lakh jobs are at stake: BPOs tell govt

The terror attacks combined with the global slowdown has India's BPO (Business Process Outsourcing) industry worried. They are demanding a bailout package from the government, if that does not materialize the industry may cut over 2,50,000 jobs by the first quarter of 2009.
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Dec 10, 2008, 01.48 PM | Source: CNBC-TV18

Bail us out, 2.5 lakh jobs are at stake: BPOs tell govt

The terror attacks combined with the global slowdown has India's BPO (Business Process Outsourcing) industry worried. They are demanding a bailout package from the government, if that does not materialize the industry may cut over 2,50,000 jobs by the first quarter of 2009.

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Bail us out, 2.5 lakh jobs are at stake: BPOs tell govt

The terror attacks combined with the global slowdown has India's BPO (Business Process Outsourcing) industry worried. They are demanding a bailout package from the government, if that does not materialize the industry may cut over 2,50,000 jobs by the first quarter of 2009.

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The terror attacks combined with the global slowdown has India's BPO (Business Process Outsourcing) industry worried. They are demanding a bailout package from the government, if that does not materialize the industry may cut over 2,50,000 jobs by the first quarter of 2009.

Here is a verbatim transcript of the Sonal Joshi's comments on CNBC-TV18. Also watch the accompanying video. 

The tremors of American recession will soon be felt in India. The USD 11 billion BPO sector which gets most of its business from the United States will bear the brunt. The industry is projecting a cut over 2,50,000 jobs starting from the first half of 2009. According to Nasscom BPO sector employs 7,00,000 people

 

Samir Chopra, President, BPO Industry Association, ''Severe job loss are expected because of the recession. We are going to request for a fiscal package from the government, but if that does not happen then there may be a huge amount of losses in terms of manpower, a quarter of a million jobs will go''

 

The job cuts follow a decline in growth, IT major Infosys predicts a drop of 15% in growth from 30% last year.

 

S Gopalakrishnan, CEO and MD, Infosys ''There is a slowdown and what is happening around the world has had an impact.”

 

Coupled with the slowdown, the devastating attack on Mumbai too has lead to fears that new investments might not come. The companies now want a fiscal package from the government to tide over. Their top demand would be to extend tax relief to the industry for another 5-10 years.

 

Commenting on this, the National Association of Software and Services Companies (NASSCOM) strongly feels it is unlikely to see any job losses in BPO or ITES sector, rather there could be some additions to the jobs.

 

According to the global trade body, BPO/ITES industry has made 1.5 lakh job offers for 2009 in campuses. Thus, NASSCOM feels that outbound voice services may see slower job growth, but there won’t be any lay offs.

 

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