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As costs climb, Covergys eyes growth in towns

Rising rentals, increasing cost of transportation and high employee attrition in the metropolitan cities have set outsourcing major Convergys India Services thinking about setting up its new centres in smalltown India.

business Updated: Mar 29, 2010 23:56 IST
Vivek Sinha

Rising rentals, increasing cost of transportation and high employee attrition in the metropolitan cities have set outsourcing major Convergys India Services thinking about setting up its new centres in smalltown India.

“The company’s new outsourcing centre is not going to be in a metropolitan area. We are looking at smaller cities like Chandigarh and Jaipur apart from some other cities suggested by our research team,” Sukant Srivastava, MD & country manager of Convergys India Services told HT. Srivastava said the new centres would be set up after the employee capacity at existing locations in metros was exhausted. “We may actively look at newer locales in 2011,” said Srivastava.

Convergys also plans to ramp up its outsourcing centre at Pune, which would serve as a major centre in future.

Convergys currently employs close to 9,000 personnel in India and is a major player in call centre services.

Expressing concern over the quality of manpower available in the metros, Srivastava said that less than 10 per cent of Indian graduates are employable in the voice-based outsourcing services. “The nuances of english language for a customer in Australia, US or UK are quite different, which need to be understood by a voice-service executive.” He blamed the poor talent pool in India for the flight of jobs from India to countries like the Philippines.

“Though the quality of manpower would not be any better in the smaller cities, low operational costs and attrition rate will work to our advantage.”