UK call centre staff told to move to Mumbai to save jobs

ARTICLE BY GOWTHAM

A minister in the David Cameron government has sparked a row by suggesting that Newcastle-based call centre workers who have lost their jobs should relocate to Mumbai.

LONDON:" A minister in the David Camerongovernment has sparked a row by suggesting that Newcastle-based call centre workers who have lost their jobs should relocate to Mumbai.

Rail minister Theresa Villiers appears to tell sacked call-centre workers in Newcastle to relocate to Mumbai in a letter written to Berwick MP Sir Alan Beith.

The opposition Labour party and the unions have described the prospect of staff from north-east England being asked to move 5,000 miles to do the same job in India as "unhinged and unpatriotic".

The row follows the closure of Baron House, a former East Coast passenger call centre, which resulted in the loss of nearly 200 jobs and delivered a major blow to the region's struggling economy, The Independent reported today.

A review of public contracts by the newly-nationalised rail operator meant the existing provider,National Express, missed out to two other companies, one of which, Intelenet ( UK) has operations in Plymouth and Mumbai.

A third of those jobs have now been reportedly exported to India while the rest have been divided between centres in Wolverhampton and Devon.

Villiers sought to reassure Beith that under Transfer of Undertakings (Protection of Employment) Regulations (TUPE), their future was secure. She said: "These staff will be given the opportunity to transfer to the new service providers under TUPE where those services are to continue.

"Staff who are unable to move to the new location will be offered a voluntary redundancy package or alternatives roles within East Coast, where available."

Maria Eagle, Labour's shadow Secretary of State for Transport, dismissed the suggestion as adding "insult to injury". She said: "The buck must stop with Theresa Villiers and her fellow ministers in this Tory-led Government.

"They should be offering support for those who risk losing their jobs rather than making ridiculous suggestions that they move to India." 

A Department for Transport spokesman said: "National Express Services Ltd staff employed at Baron House will be given the opportunity to transfer to the new service provider under TUPE. Exactly how this works will be a matter for the new service provider."

Indian IT cos confident of withstanding downturn PTI

ARTICLE BY GOWTHAM
Even though industries across the country have expressed concerns over the debt crisis in the US, aggravated after the downgrading of its sovereign rating by S&P, Indian IT industry remains confident of withstanding another downturn.

While most agree that there are fears of another recession in the US and a debt crisis in Europe, they also feel it is still early days to know what is coming.

Country's second largest software exporter Infosys CEO and MD Kris Gopalakrishnan says, "It is too early to say. There are fears of another recession in the US and a debt crisis in Europe.

"We were able to react very quickly in the past (2008) when the recession happened. These responses are still fresh in our memory and I believe that the industry will be able to withstand another downturn."

The US accounts for almost 60 per cent of the revenues for the $60 billion Indian IT industry.

Leading industry chambers like CII, FICCI, Assocham and FIEO, which represent companies across the country, have expressed concerns over events in the US economy.

The Federation of Indian Exporters Organisations ((FIEO) chief Ramu Deora said, "The downgrading will lead to further appreciation of rupee against the US dollar which is already facing the heat, thereby blunting our competitive edge.

"The US Government will have to increase taxes to bring in more people under the tax net to curtail its deficit which will further shrink their disposable incomes and may have an impact on India's exports to North America."

He added, "Our worst fear that exports and fourth quarter (economic growth) will be affected may come true."

While most IT companies have expressed caution in the past few months on the European debt crisis and high unemployment in the US, they also remain confident of being able to maintain their growth momentum.

Leading players like TCS and HCL Technologies have posted stellar growth numbers in the past few quarters on the back of steady demand for outsourcing services.

"We think the environment is good in spite of the macro economic uncertainty in different parts of the world.

"Some of the countries are failing in Europe and there is the issue of unemployment in the US, but still I think customers are going with their plans as they had originally intended," said N Chandrasekaran, CEO and MD of country's largest software exporter TCS.

Industry analysts say the companies are watching the situation.

"It is still early to hit the panic button. Companies continue to outsource as they look at multiple factors like operational and cost efficiency. The deal pipeline for most firms seems to be strong and so, companies are confident," they added.