Employee Turnover in Outsourcing
Lets kickstart with the much talked about deal in the recent past. The ABN-AMRO outsourcing deal. The deal approximately pegged at $2.2 Billion is spread across 5 companies managing different operations:
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1) IBM--> It will run the bank's main data centers, develop applications and manage bank employees' desktop, laptop and handheld computers.
; I; l7 I3 _' m) C2 c! X" }2) Accenture--> Application Development
+ k( ^' f5 _: s& X! Y3) TCS--> Application Development & Support
: w" N" S) N" e0 c7 B% C6 g4) Infosys--> Application Development & Support* K1 D- N* u( h% q, p
5) Patni Computer Services--> Application Development2 n$ x o, H8 V' p3 I
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Now this has resulted in the following turn-around as far as the employees are concerned:! r: v% n( s, C4 |$ G! m6 b
1) ABN-AMRO is all set to lay-off 1500 people.
9 n8 O9 I7 T3 `4 l) s2) It will retain 1800 full-time IT staff. Transfer 2000 to the five IT vendors.% O p4 a% d$ v
3) In turn with the order in the bag, the IT majors are all set to ramp-up their Indian operations.8 G$ m& v& V( f9 w8 L/ `. t4 r
4) Raw statistics provided tell that amongst this five IT majors the deal has created more than 30,000 jobs in India6 g( l3 H* P+ N6 O6 `8 Z. S4 F
5) A flip side of this has inadvertently resulted in the wage-inflation and attrition rise
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; e5 m$ m# w! o$ v( eAnalysts believe that this is just a tip of the iceberg. More is yet to come. In the coming blogs we will see more case examples and their effects.
