Startek has been focusing on improving profitability. In the fourth-quarter, it did not renew an low-margin engagement with an Indian telco and has been closing a few centres in the US to move to a work-from-home-agent model.
BPM companies are caught between mobility curbs and client protocol that disallows work-from-home. Experts are of the view that the Indian BPO industry faces significant challenges in the short and medium term due to the Covid-19 related restrictions. Analysts say companies face challenges in organising thousands of computers and internet connections to employees at short notice, impacting work.
The Teaneck, New Jersey-headquartered company said the additional payout for employees in India and the Philippines will be up to the Associate designation level. The company said the payout would be made in the April salary, and would be reviewed each month as the situation required.
Tata Consultancy Services’ Rajesh Gopinathan and Infosys CEO Salil Parekh defended their companies’ move in separate posts, highlighting the need to restrict work-from-home in the case of employees who support critical functions of global clients.
Tech companies may resort to belt tightening moves last used during 2008 financial crisis.
The New York-listed IT services giant follows a September to August financial year and is the first company to make an earnings announcement since the global pandemic began.
The state health department has already rolled out an interactive voice response system (IVRS) that calls people with recent international travel history and are home-quarantined, to check on their health status during the 14-day quarantine period.
PNB Housing is creating new software solutions for its wholesale loans business, specifically to make sure that disbursement of loans and management of the portfolio are easy and risk-controlled.
The spread of the coronavirus is causing issues for IT services companies and they are just beginning to evaluate the impact. IT services experts expect to see more companies seeking waivers as the intensity of the pandemic increases. Analysts said most work, though, was easy to move to a work-from-home model and that contracts had ‘force majeure’ clauses that would allow for it.
Coronavirus outbreak: Tata Sons asks employees to avoid domestic travel, cut down face-to-face meetings
“Please stop all non- essential travel – whether domestic or international, until further notice,” the Tata Sons advisory said. The previous advisory sent earlier in the month, asked employees to discontinue non-essential international travel. The advisory also asks employees to avoid large face-to-face meetings and gathering and to restrict essential face-to-face meetings to 20 people.
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