Reliance Communications plans to shed a hefty proportion of its workforce by outsourcing call centre and shared services operations, it emerged on Monday.
The Indian telco is on the verge of signing deals with two third-party service providers collectively worth close to 7 billion rupees (€86 million), the Economic Times reported. As a result, the telco will lose around 6,000 employees from its payroll, the paper said, quoting an unnamed Reliance Communications official.
4,500 of the affected employees work at Reliance's call centre operations, while the remainder are shared services staff, the official said. Once the transition has taken place the telco will be left with significantly fewer than 10,000 employees.
The business areas in question are "highly inefficient" and not adding value to Reliance's bottom line, the paper's source said. Outsourcing those operations will create a more cost-efficient business that will be able to focus on core telco issues, like customer acquisition, sales and marketing, and brand development, he explained.
Meanwhile, a separate anonymous source told the newspaper that Reliance expects to save 2 billion rupees (€25 million) per year in salaries alone.
That amounts to a fair chunk of Reliance's rising staffing costs, which totalled INR3.07 billion (€38 million) in the January-March quarter, up from INR2.13 billion in the same quarter a year earlier, the paper said.