Leading global communications services firm BT Group plc is likely to cut back outsourcing technology related jobs to Indian companies by approximately 15 per cent during the current year. Quoting sources, a business website reports that the London-based telecom multinational is among the largest outsourcers to India. In fact, it has been learnt that as a part of its global policy to lessen costs in general, the UK firm is cutting back on its budgets for IT.
According to a top industry official, who spoke on the condition of anonymity, the BT Group had offshored IT and ITeS jobs to the tune of £900 million to the Indian tech firms in 2009. This year, the volume will be reduced by 15 per cent since the focus at BT Group is on augmented efficiency. He, however, said that there is no possibility of pricing cuts in 2010.
The report further states that during the past years, the BT Group has been vigorously outsourcing work to leading Indian tech firms, including Tata Consultancy Services (TCS), Infosys, HCL, Tech Mahindra, Firstsource and many other companies. Precisely speaking, this UK-based telecom conglomerate works with almost all major software exporters in India and, thereby, is eligible to be termed as the single largest customer or as one among the major clients for all these service providers.
In fact, of the entire amount of £1.2 billion work outsourced by the BT Group every year, approximately 70 per cent is bagged by the IT and ITeS services providers in India. The sources said that the Indian firms employed as many as 20,000 professionals to execute the projects outsourced to them by the BT group.
The report quotes the official as saying that as a part of its policy for the current fiscal, BT Group may perhaps consider effectual deployment and movement of workforce, reshuffling of its vendors as well as reassessing the numerous vendors serving the company. He added that there is also a possibility that BT Group may consider transferring a number of its contracted jobs to second level service providers during this fiscal year.
Source:http://www.sourcingline.com/resources/bt-group-likely-to-cut-back-outsourcing-to-india-by-15
