BPOs to lose 2.5 lakh jobs
By siliconindia   |   Monday, 08 December 2008, 23:58 IST   |    9 Comments
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BPOs to lose 2.5 lakh jobs
New Delhi: The Business Process Outsourcing (BPO) industry is expected to lose 2.5 lakh jobs as yet another outcome of the global recession. The layoff is likely to take place in the first quarter of 2009. According to Samir Chopra, President, Business Process Industry Association of India (BPIAI), the only gain in this job cut was that the recession would require more companies in the U.S. and the Europe to view outsourcing as a way to cut costs and improve competence. There was a trace of expansion plans taking place in the industry as the time taken for signing up new clients was extended, a result of the recession. It was also said to result in greater consolidation and promote diversification into areas until now considered as non-core activities. Urgent government measures are seen as a boost for the industry, especially for the medium and small enterprises, explains Chopra. Fiscal and administrative measures such as extending tax relief for another 5-10 years and export promotions steps, including market development fund can also be an option, he further said. Chopra also said the terrorist attacks in Mumbai have led to the widespread cancellations of visits and forthcoming international events.

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