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TransWorks to set up $10 mn BPO centre in B'lore

The first phase will be completed by Feb and the facility will be complete by end of next year.

business Updated: Dec 05, 2003 15:48 IST

Unfazed by protests against outsourcing in the West, one of India's leading mid-size back office service providers has decided to invest nearly $10 million on setting up its third facility in the country.

TransWorks, a division of India's diversified business conglomerate Aditya Birla Group, plans to set up its third business process outsourcing (BPO) centre in Bangalore.

"The first phase of the new centre will be completed by February next year and the facility will be completely functional by the end of next year," said TransWorks CEOPrakash Gurbaxani.

"The new centre will have a capacity to accommodate 2,000 professionals. After the completion of the first phase we will hire 700 staffs and the number would be increased in a phased manner over the next 12 months," Gurbaxani told IANS.

"We felt the need for setting up a third facility and substantially increasing staff strength as most of our existing customers are in a ramp-up mode and we are also likely to win new orders in the months ahead."

TransWorks already runs a 400-seat facility in Mumbai and another 450-seat centre in Bangalore.

India's vast pool of English-speaking, cheap manpower, educational system and training programmes have helped transform the country into a global outsourcing superpower.

The rapidly growing BPO industry has turned the country into an electronic housekeeper to the world, taking care of a host of routine activities for multinational giants.

More than a quarter of Fortune 500 companies like General Electric, American Express, British Airways, HSBC and Citibank are shifting their back office operations to India.

Britain's largest insurer Aviva Plc announced on Tuesday that it would create 2,500 back office jobs in India in addition to the 1,200 jobs that had already been transferred here.

India is now beginning to face a labour backlash in the West over outsourcing, which unions argue results in large-scale job losses in their countries.

British phone company BT Group faced labour unrest over its decision to shift call centres to India to cut costs.

The US state of Indiana last month dropped a $15.4 million outsourcing contract for IT services with an Indian software company. The move was part of an initiative launched by Governor Joe Kernan to protect local jobs.

Gurbaxani, however, said the backlash would not have any impact on the revenues of India's money spinning outsourcing firms.

"Outsourcing is being talked about by global corporations a lot more than ever before. Multinational companies today understand the benefits of outsourcing jobs to a low cost destination," he said.

"If a company wants to become truly global in today's competitive world, they have to deliver services across the globe at a very attractive price. And they can achieve this by only cutting costs in some of their processes."

TransWorks, which has clients mainly from the financial services, technology, and insurance sectors, aims to sharply grow its revenue to $15 million in the year ending March 31, 2004, as compared to $6 million in the previous year.

First Published: Dec 05, 2003 15:48 IST