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Fidelity to close Gurgaon offshoring unit
By
siliconindia news bureau
New Delhi: In a bid to cut costs of talent acquisition and site maintenance, Fidelity Management and Research Company India (FMR) is shutting down its Gurgaon offshoring facility, reported The Economic Times.
However, FMR will scale up operations in their Chennai and Bangalore centers, which are more cost-effective, said sources.
Close to 80 percent of the people employed are believed to leave by the end of August and the facility will wind up operations by mid-September. The Gurgaon offshoring facility, which employs 350 people, provides back-office information technology support to Fidelity Management and Research Corporation based in the U.S.
The move comes in the wake of a lot of internal bickering within the human resources team at Fidelity FMR India, with one set of people opposing the move.
However, Fidelity India commented on the issue like this, "As part of Fidelity Business Services India's (FBSI) business requirements, FMR India, a division of FBSI, which supports Fidelity's U.S. businesses, has decided to consolidate its operations at Bangalore and Chennai. It continues to be business as usual at Gurgaon for all other divisions of FBSI, including FIL India, another division of FBSI, which supports Fidelity International's UK and European business. This in no way detracts from Fidelity's commitment to India as we continue to invest in and grow our business here. All employees will have the opportunity to work from other locations of FBSI in India and FBSI will provide all possible assistance to help them."
However, FMR will scale up operations in their Chennai and Bangalore centers, which are more cost-effective, said sources.
Close to 80 percent of the people employed are believed to leave by the end of August and the facility will wind up operations by mid-September. The Gurgaon offshoring facility, which employs 350 people, provides back-office information technology support to Fidelity Management and Research Corporation based in the U.S.
The move comes in the wake of a lot of internal bickering within the human resources team at Fidelity FMR India, with one set of people opposing the move.
However, Fidelity India commented on the issue like this, "As part of Fidelity Business Services India's (FBSI) business requirements, FMR India, a division of FBSI, which supports Fidelity's U.S. businesses, has decided to consolidate its operations at Bangalore and Chennai. It continues to be business as usual at Gurgaon for all other divisions of FBSI, including FIL India, another division of FBSI, which supports Fidelity International's UK and European business. This in no way detracts from Fidelity's commitment to India as we continue to invest in and grow our business here. All employees will have the opportunity to work from other locations of FBSI in India and FBSI will provide all possible assistance to help them."
Reader's comments(18)
1
grow up guys. its nothing personal so need not be emotional. no business run for
losses. there is nothing like loyalty when one is working for money. employees
leave companies when they get better opportunities. companies have the right to
expand and downsize based on their business justification. not a single
privately owned company(Except Govt..:-) ) can keep employing its workforce if
not earning profit s. so its time for heads up and not to take IT boom granted
in india.
losses. there is nothing like loyalty when one is working for money. employees
leave companies when they get better opportunities. companies have the right to
expand and downsize based on their business justification. not a single
privately owned company(Except Govt..:-) ) can keep employing its workforce if
not earning profit s. so its time for heads up and not to take IT boom granted
in india.
Posted by:
nirmal
2
Jim,
I'll ONLY say that U are one of the Unlcky person NOT to come across good Indian
Professionals. This does not mean that the value for money on Indian
professionals are NOT more than the UK. Even in the case given in your last
statement; the productivity of Indian professionals is more. 1/6the cost and 5x
the time compare with the UK pro, which leads to 1.2 times the UK pro
productivity. Still we are better than you guys. Try accepting the fact that the
time has gone where you people are NOT challenged for your wrong perceptions and
works. Leave your feeling of supriority and accept the fact of today. NO HARD
feelings dear....
I'll ONLY say that U are one of the Unlcky person NOT to come across good Indian
Professionals. This does not mean that the value for money on Indian
professionals are NOT more than the UK. Even in the case given in your last
statement; the productivity of Indian professionals is more. 1/6the cost and 5x
the time compare with the UK pro, which leads to 1.2 times the UK pro
productivity. Still we are better than you guys. Try accepting the fact that the
time has gone where you people are NOT challenged for your wrong perceptions and
works. Leave your feeling of supriority and accept the fact of today. NO HARD
feelings dear....
Posted by:
vikash
3
I think its high time. We Indian should make teams and provide business
solutions and dev support to these Cos. We can charge them and earn rather than
serving them like slaves.
I know these Brits and Amcans can't work with Chinese people. Its not about mass
production (both people and goods), its about brainwork and delivery. Smart work
is what we Indian do unlike chipkoo chinese.
solutions and dev support to these Cos. We can charge them and earn rather than
serving them like slaves.
I know these Brits and Amcans can't work with Chinese people. Its not about mass
production (both people and goods), its about brainwork and delivery. Smart work
is what we Indian do unlike chipkoo chinese.
Posted by:
raj
4
This is the beggining of an end of outsourcing era in India. Now, companies from
foreign countries, including the US and the UK are looking other nations as
their outsourcing hubs such as China and Japan, which are developing fast. The
language advantage that India flaunts is now not an exclusive for them. Other
countries are offering the same capacity on a cheaper rate and better
infrastructure and manpower. Everybody should learn a lesson from this closure
that the BPO industry has come to a position of stagnation and in the near
future would face stiff decline. The climate and infrastructure in Gurgaon could
be the major reasons for the decline apart from costly manpower.
foreign countries, including the US and the UK are looking other nations as
their outsourcing hubs such as China and Japan, which are developing fast. The
language advantage that India flaunts is now not an exclusive for them. Other
countries are offering the same capacity on a cheaper rate and better
infrastructure and manpower. Everybody should learn a lesson from this closure
that the BPO industry has come to a position of stagnation and in the near
future would face stiff decline. The climate and infrastructure in Gurgaon could
be the major reasons for the decline apart from costly manpower.
Posted by:
Prithwi Raj Sinha
5
Fidelity has done a major mistake by causing suffering to employees whihc has
given there evrything to the company for last 5 years . Infidelity in Fidelity
given there evrything to the company for last 5 years . Infidelity in Fidelity
Posted by:
mohit
6
I feel that this is not a layoff where u are given immediate notice and asked to
leave but a graceful exit on part of the company. They are not only providing
compensation that would help employee move on with some other venture but also
providing benefits in case they stick with the firm. Rest IT professionals are
always a victim of economic crisis but they should never relax now that such
scenarios have become common.
leave but a graceful exit on part of the company. They are not only providing
compensation that would help employee move on with some other venture but also
providing benefits in case they stick with the firm. Rest IT professionals are
always a victim of economic crisis but they should never relax now that such
scenarios have become common.
Posted by:
AffecEmp
7
Hi folks...yest that fidelity may have revised its operation in gurgaon ..and
may Indian are not capable as British IT professional ...but one this is still
unchanged
its "There is no alternative of INDIA"... fidelity or infidelity ..people have
to come here in my country INDIA..
http://www.letsnurture.co.cc/
may Indian are not capable as British IT professional ...but one this is still
unchanged
its "There is no alternative of INDIA"... fidelity or infidelity ..people have
to come here in my country INDIA..
http://www.letsnurture.co.cc/
Posted by:
ketan
8
I fear it is time for Indian IT people to learn what we in the US and UK learnet
many years ago... As far as your company are concerned you are " a resource"
and no more important to them than the office photocopier. If anything, you are
less important as photocopiers don't need a salary or cars to the office. When
times are hard companies stay profitable by using less resources and one day
that will probably mean you.
many years ago... As far as your company are concerned you are " a resource"
and no more important to them than the office photocopier. If anything, you are
less important as photocopiers don't need a salary or cars to the office. When
times are hard companies stay profitable by using less resources and one day
that will probably mean you.
Posted by:
Dave T
9
No, I stand by what I said. The issue is also out fault, as company managements
never listen to the developers or business who must work with India IT
individuals -- they look only at numbers and always see "cost" on a high project
level. They never see the cost of when we have to redo all the work because 90%
of the time it comes back wrong, inadequate, inefficient. Granted, there are
some very good Indian chaps I have worked with, but usually, and unfortunately,
that is a very *rare* instance.
never listen to the developers or business who must work with India IT
individuals -- they look only at numbers and always see "cost" on a high project
level. They never see the cost of when we have to redo all the work because 90%
of the time it comes back wrong, inadequate, inefficient. Granted, there are
some very good Indian chaps I have worked with, but usually, and unfortunately,
that is a very *rare* instance.
Posted by:
Jim
10
Jim,
Improve UR knowledge and understanding about the Indians and Indian
Professionals. NASA/ Silicon Valley in US is driven by Indian professionals. Had
it been the case what U say, then ALL the Investors and top line of managers are
fools 2 invest in India and that way U r saying U guys are Fool. Decide R U
foolish or Smart people and finally do not give the statement which does not
make sense at all.
Improve UR knowledge and understanding about the Indians and Indian
Professionals. NASA/ Silicon Valley in US is driven by Indian professionals. Had
it been the case what U say, then ALL the Investors and top line of managers are
fools 2 invest in India and that way U r saying U guys are Fool. Decide R U
foolish or Smart people and finally do not give the statement which does not
make sense at all.
Posted by:
Vikash
11
Thing is, Indian IT is absolute rubbish. Sadly, it's a fact and Fidelity paid a
heavy cost. Sure, Indian IT workers are 1/6th the cost of a UK based employee
-- but it takes an Indian IT worked 5x as long to produce awful code which the
UK worker must fix eventually. Sorry, but it's true.
heavy cost. Sure, Indian IT workers are 1/6th the cost of a UK based employee
-- but it takes an Indian IT worked 5x as long to produce awful code which the
UK worker must fix eventually. Sorry, but it's true.
Posted by:
Jim
12
People...!! GROW UP
You don't perform, you aren't cost competitive, market has better solutions than
what you offer.
What makes you feel that the so called BRAND should suffer for your cost at its
own expense.
No need to be emotional.
Obviously we understand the symbolic and literal meaning of Consolidation used
above, however just think practically.... Its all because of "our" inefficiency,
where the term Our includes the lower, the middle and the top management
equally.
Stop being an emotional fool and move on.
Life's got lot more challenges to offer.
You don't perform, you aren't cost competitive, market has better solutions than
what you offer.
What makes you feel that the so called BRAND should suffer for your cost at its
own expense.
No need to be emotional.
Obviously we understand the symbolic and literal meaning of Consolidation used
above, however just think practically.... Its all because of "our" inefficiency,
where the term Our includes the lower, the middle and the top management
equally.
Stop being an emotional fool and move on.
Life's got lot more challenges to offer.
Posted by:
mayank
13
Well, its all about business! If employees find better jobs then they leave
company and If company finds no work(project) or if it is running below
expectations then it must take steps to recover and compete with the competative
market. Don't be emotional, its all about business and Money honey!
company and If company finds no work(project) or if it is running below
expectations then it must take steps to recover and compete with the competative
market. Don't be emotional, its all about business and Money honey!
Posted by:
Malik
14
Indian IT market is totally depending on US market...this is not good for IT
employees..It is shame for all big IT companies...
employees..It is shame for all big IT companies...
Posted by:
Vishal Bilgaiyan
15
Today Fidelity ... Tomorrow ??????????????
Posted by:
Vasanthavishnu
16
this is not a good sign, IT sector was one doing good. This also shows depending
on US market, how it effects you in big way, Companies should try to have
projects from other countries also to be on safer side and not to be effected
from economy of one country
on US market, how it effects you in big way, Companies should try to have
projects from other countries also to be on safer side and not to be effected
from economy of one country
Posted by:
AC
17
All said and done, this is nothing but playing with employees and their careers.
If such BIG names like Fidelity do this, it is a shame for the big banks & big
names (so called BIG).
If such BIG names like Fidelity do this, it is a shame for the big banks & big
names (so called BIG).
Posted by:
Pooja
18
It is just pathetic to hear. They may say it is consolidation. but for employees
it has one meaning, suffering.
it has one meaning, suffering.
Posted by:
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