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Birla opts for Indian BPO

Views 0 Views    Comments 0 Comments    Share Share    Posted 18-05-2009  
Faced with high costs and falling demand, the Aditya Birla group is shifting part of its backoffice operations from Canada to India.Aditya Birla Minacs, the groups BPO firm, has closed down its three centres, with a capacity to house 1,200 people, in Canada. The company downed shutters of units at Pickering, Saskatoon and Chatham in Canada. Aditya Birla Minacs, which was acquired by the Birlas from the Minacs family in Canada in June 2006, is a division of the groups holding company Aditya Birla Nuvo. The company has 12 centres in Canada. BPO and IT business together constitute 13 per cent of Aditya Birla Nuvos total revenues.

In an attempt to consolidate and rationalise costs, we have shifted close to 20 per cent of the 1,200 jobs, or 250 seats from Canada to India after closing three sites, which were proving to be unviable, an Aditya Birla group official told Financial Chronicle. The rest of the jobs have, however, been absorbed in other centres in Canada, he added.

Deepak Patel, CEO, Aditya Birla Minacs, said the focus has shifted to places where the clients want to buy services. We are focusing on highend services in India. We are seeing a growth of 300 per cent in India, he added.

The company, which is looking at sites rationalisation to cut overheads after its fourth quarter revenues in the BPO business declined by 10 per cent to Rs 387 crore, is expanding its India operations. The capacity has expanded by about 600 seats in India,focusing mainly on the telecom and financial services sector. Last month, the company opened a new centre in Chennai.

We have signed nine new clients in the financial services sector. Chennai will be the hub for financial services, said Patel. Baroda centre, which was opened recently, will cater to the telecom sector. Of the planned increase in number of seats to 10,000 globally from the 8,000 seats at present, majority of the 2,000 seats are planned for India. The company plans to open three new centres in Maharashtra and West Bengal, which will be linked to the circle rollout by the group telecom companyIdea Cellular.

The total capital expenditure for the expansion is Rs 150 crore, the official said. To fight the ongoing economic challenge, the company has changed its business model and is now focusing more on its BPO and KPO verticals and less on call centres, which happened to be their prime focus earlier. The voice service has seen a major hit in recent times and is not our area of attention, the official said. The company has reported a 7 per cent increase in turnover to Rs 1,651 crore for the year ended March 31, 2009.

Source:
http://www.bpoavenues.com/BPO/newsdetails.asp?nid=356
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