News »Browse Articles » Recession hits BPOs, seeks bailout package

Tue, Dec 09, 2008:

New Delhi: The tremors of American recession will soon be felt in India. The $11 billion BPO sector - which gets most of its business from the United States - will bear the brunt. Industry is projecting a cut over 2.5 lakh jobs starting from the first half of 2009.

According to Nasscom, the BPO sector employs 7,00,000 people

President BPO Industry Association, Samir Chopra says, "`Severe job loss is expected because of recession. We are going to request for a fiscal package from the Government but if that doesn`t happen, then there be huge amount of losses in terms of manpower. I think a quarter of a million jobs will go.``

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

Infosys CEO & MD, S Gopalakrishnan says, "`There is a slowdown, no question about it. I think you know 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.

Source:
http://ibnlive.in.com/news/recession-hits-bpos-sector-seeks-bailout-package/8017

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