Subex shifts work to India for cost benefits

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Bangalore: Telecom software product company, Subex, has shifted around 20 percent of its work being carried out by its subsidiaries in Europe and the Americas to India. The move made due to the cost advantage and to raise the margins, could affect more than 200 non Indian employees of the company who were 'released' in the last one year. Subex Chairman, CEO and Managing Director, Subhash Menon said that only 20 percent of the total work is now being done onsite, from 40 percent a couple of quarters ago, reports Business Standard. "Earlier, we had a lot of people overseas, which resulted in huge expenses for the company. We are gradually shifting these projects to India for the cost benefit and eliminate these overseas positions," said Menon. During the first quarter ended June 30, Subex had about 1,150 employees in its product business and 170 in the services business. The Bangalore based company, which derives close to 15 percent of its topline from British Telecom (BT), its largest customer, reported a net profit of 35.1 crore in the June quarter from a net loss of 65.6 crore a year earlier. However, its topline dipped 13 percent to 117.6 crore. The company managed to achieve this by bringing down its cost of operations, including employee remuneration. By acquiring U.K. based Azure in 2006 and Canadian firm Syndesis in January 2007, Subex added around 200 to 300 people to its rolls. Besides BT, the company's top 10 clients include Telecom Italia, AT&T, Telstra and Swisscom, which contribute about 85 percent to the company's revenues.