Infosys BPO hires from smaller cities to cut costs

As the economic slowdown hit most sectors, cost rationalisation has become imperative for companies to survive. In this exclusive report Sunanda Jayaseelan get us the story of the Infosys BPO in Bangalore and how they are reviewing their HR strategy to save costs.

It maybe a late entrant into the domestic market, but Infosys BPO is hoping to catch up fast. and to do that, it is adopting an aggressive policy to save costs.

Senior VP & Head - Global Delivery, Infosys BPO, Swami Swaminathan said, “If you look at Indian companies, the level of intensity of skills that you require is less and therefore we are able to hire from Tier 3 and 4 cities and get those folks here and the cost is less.

It is hiring employees from tier 3 and 4 towns instead of top cities, and is offering salaries 10-15 per cent lower than its counterparts. It hopes that cut in training costs and lower rentals in smaller towns will add up to 30 per cent cost efficiencies. This is going to be its strategy to expand its presence as well.

CEO, Infosys BPO Amitabh Chaudhry said, “The Indian BPO market will only grow rapidly over the next 5-7years. We expect to double our revenues from this market going ahead especially the SG&A kind of activities will only increase.

This approach seems to be a win-win for both Infosys BPO and the employees....for employees, the carrot is that they will not have to work night shifts. For Infosys BPO, …. it gives them the advantage of hiring employees at a lower cost now who over a period of 24months will be ready to service even international clients.