Anil
Ambani-owned Reliance Communications (RCom) plans to shift more than
5,500 employees from its call centre functions for post paid,
enterprise, international calling and Reliance India back offices to
third-party business process outsourcing companies.
RCom
chief executive officer Gurdeep Singh confirmed the move. Two persons
aware of the development said deals with existing and new BPO companies
were almost finalised and contracts will be announced in the next three
to four weeks.
India's third-largest mobile
phone company by number of subscribers, RCom had already outsourced
customer services of its pre-paid customers to BPO providers, including
Vertex and Tech Mahindra. Singh did not share the value of contracts
that will be given out to new BPO partners, but analysts say the
contract costs could be anywhere between Rs250 crore and Rs300 crore a
year and will save the company about 10% on current call centre costs.
RCom
will shift employees from Reliance BPO's centres in Navi Mumbai and
Chennai that together account for 3,500 seats in the outsourcing
process. In a BPO outfit, one seat can accommodate two employees who
work in shifts to offer round-the-clock service to customers. That means
the two centres can accommodate almost 1,500 more employees, which
third-party BPOs can make use of.
"This will
improve overall efficiency to serve customers, leaving us to focus on
revenue enhancement. Besides being cost effective, better customer
experience will lead to higher retention of customers. We can then
cross-sell and up-sell higher value products like data packs and 3G to
these customers," Singh said. Ernst & Young's Prashant Singhal said
the company is following the industry norms as most telcos have
outsourced their call centre functions. "For RCom, it will improve their
margin as costs will reduce," he said.
The
company can block capital expenditure that would go into call centre
efficiencies and convert that into operational spends, he said. The
transition of employees will take 30-40 days while impact from
outsourcing on revenue and profits will begin to show after a quarter, a
company executive aware of the development said.
RCom
has been cautiously adopting strategies to pare debt that stands at
more than Rs38,000 crore. Just last week it raised basic rates for both
GSM and CDMA prepaid mobile-to-mobile calls by 33% to 2 paise per second
from 1.5 paise per second, the second time after it increased mobile
call rates by up to 30% for both GSM and CDMA prepaid customers in early
May. It also inked a deal with Mukesh Ambani-owned Reliance Jio
Infocomm to rent out its inter-city fibre optic network for a one-time
payment of Rs1,200 crore.
Singh had told ET
earlier than the company will forge deals for intra-city fibre and
towers. Intra-city fibre deals could bring in around Rs3,000 crore while
tower renting will add another Rs 800-900 crore, media reports
indicated. RCom also intends to sell Reliance Globalcom, which houses
its submarine cable operations across the globe, and is in talks with a
clutch of private equity players for the same. The sale is expected to
fetch about Rs 6,000 crore. To increase its average revenue per user,
RCom is trying to convert voice customers to data customers so that it
can increase the average revenue per user by selling data plans.
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