Indian BPOs shower bonuses amidst recession

By siliconindia   |   Thursday, 09 April 2009, 15:58 IST   |    9 Comments
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Indian BPOs shower bonuses amidst recession
New Delhi: The downturn-gripped economy did not deter the country's large BPO firms like Genpact, WNS (Holdings) and ExlService Holdings (EXL) from doling out bonuses to their employees. "We have given out bonuses slightly higher than last year to the employees," said Pramod Bhasin, President and CEO, Genpact. According to the President and CEO Rohit Kapoor of EXL, the company has handed out bonuses to its employees as it managed to meet 95 percent of its performance targets despite the headwinds, reports The Economic Times. "The company had used some of its cash to pay bonuses and had also benefited from reduced general and administrative expenses," said Kapoor. The firm's revenue grew 19.5 percent in 2008, as it added 23 new clients and brought down employee attrition. Even Genpact's net income grew to $125.1 million in fiscal year 2008, while its revenue increased 26 percent to $1.04 billion. Most of the IT-BPO service providers have either reduced their salary payouts of employees or lowered the salary hikes, as their clients are increasingly delaying, freezing or lowering their outsourcing spends, in the wake of recession. Bonuses, which are set in the beginning of the financial year, are not impacted so much by the current market conditions if the company has managed to meet its performance targets.