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(19)
1: i am agree with Jim. We feel very proud when
we got mail about "22% of enginner in Nasa
are indians". Even, i worked in 2 startup
company and now i am working in MNC. Many of
time, the kind of work outsource in today is
related to quantity, not the quality. Don't
confuse with the term. Quantity means the
work have repetitive kind of job and no scope
for individual enhancement. What you expect
means quality. I worked for fidelity for 6
month. Many a time, i asked to people from
Fidelity USA that why you outsourced to
different Indian IT company when you have
your own IT Development Center in INDIA.
Their Answer is quite and clear "you can't
expect anything from them". you will find a
lot of "Filmi Maniac hero" in Fidelity.
Even in many of MNC, there are lots of character who sitted in Bench for more than 6 month and you can't expect a company will pay for it. When company say "good bye" at their difficult time, you people named it "recession".
When 1000 farmer suicide in a month, did you cry foul? I am not changing the topic. If a mills shutdown, media claims "low productivity, high loses". But when an IT company cleans garbage, then media cry "recession".
Just few question because you bang with reply with facts.
1. HOw many indians are involved in SOurceForge, Apache oe even in linux?
2. We indians are try to learn a technology but we never participitate making a techonology. Please don't talk about Vinod Khosal or Finnacle. I am talking about the technology, not making a technology by using a technology.
In india, people with civil ground become PM even he never heard about "divide and conquer algorithm"..
This is truth.
Even in many of MNC, there are lots of character who sitted in Bench for more than 6 month and you can't expect a company will pay for it. When company say "good bye" at their difficult time, you people named it "recession".
When 1000 farmer suicide in a month, did you cry foul? I am not changing the topic. If a mills shutdown, media claims "low productivity, high loses". But when an IT company cleans garbage, then media cry "recession".
Just few question because you bang with reply with facts.
1. HOw many indians are involved in SOurceForge, Apache oe even in linux?
2. We indians are try to learn a technology but we never participitate making a techonology. Please don't talk about Vinod Khosal or Finnacle. I am talking about the technology, not making a technology by using a technology.
In india, people with civil ground become PM even he never heard about "divide and conquer algorithm"..
This is truth.
Posted by: Shashi - 08:02 AM Feb 19, ' 09
2: 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.
Posted by: nirmal - 12:00 AM Oct 13, ' 08
3: 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 - 12:00 AM Aug 21, ' 08
4: 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.
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 - 12:00 AM Aug 04, ' 08
5: 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.
Posted by: Prithwi Raj Sinha - 12:00 AM Jul 29, ' 08
6: 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
Posted by: mohit - 12:00 AM Jul 29, ' 08
7: 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.
Posted by: AffecEmp - 12:00 AM Jul 29, ' 08
8: 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/
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 - 12:00 AM Jul 29, ' 08
9: 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.
Posted by: Dave T - 12:00 AM Jul 29, ' 08
10: 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.
Posted by: Jim - 12:00 AM Jul 29, ' 08
11: 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 - 12:00 AM Jul 29, ' 08
12: 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.
Posted by: Jim - 12:00 AM Jul 29, ' 08
13: 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 - 12:00 AM Jul 29, ' 08
14: 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!
Posted by: Malik - 12:00 AM Jul 29, ' 08
15: Indian IT market is totally depending on US
market...this is not good for IT
employees..It is shame for all big IT
companies...
Posted by: Vishal Bilgaiyan - 12:00 AM Jul 29, ' 08
16: Today Fidelity ... Tomorrow ??????????????
Posted by: Vasanthavishnu - 12:00 AM Jul 28, ' 08
17: 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
Posted by: AC - 12:00 AM Jul 28, ' 08
18: 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).
Posted by: Pooja - 12:00 AM Jul 28, ' 08
19: It is just pathetic to hear. They may say it
is consolidation. but for employees it has
one meaning, suffering.
Posted by: Jayanth - 12:00 AM Jul 28, ' 08
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