Ebookers widens the passage to India

Ebookers widens the passage to India

Summary: Outsourcing its back-office operations overseas has been so successful for ebookers that the company wants to offer the service to other firms

SHARE:
TOPICS: Networking
1
Online travel agency ebookers is planning a major expansion of its Indian-based back-office operations -- an indication that the firm believes the technology sector's passion for outsourcing overseas is far from quenched.

The company said on Monday that its decision last year to outsource its call centre and other back-office operations to India had yielded estimated savings of £1.4m. It now intends to increase the capacity of its business process outsourcing (BPO) facility from today's 600 staff up to 2,000. The unit, which will be renamed Tecnovate, will then take on work from other companies.

"We are now in the process of increasing the size of Tecnovate, our BPO facility," ebookers chief executive Dinesh Dhamija confirmed in the company's half-year results statement.

"This additional capacity will be used to service third party clients. We have already demonstrated our expertise in creating a successful BPO and will now turn it from a cost centre into a profit centre. When combined with the high internet growth of an online travel company, we believe that this gives ebookers a unique position to build on the profit potential of the group," Dhamija added.

The outsourcing of IT services is expected to boom this year, as cash-conscious businesses look for ways to cut expenditure.

It can be a controversial move, though, with some firms reluctant to hand over key applications such as IT security. There are also concerns that the practice could result in significantly less employment for UK-based IT workers.

Topic: Networking

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

1 comment
Log in or register to join the discussion
  • I have been complaining about NTL doing this and making staff redundant in this country. This is a wrong move as this will only widen the gap betweeen the rich and the poor. When you are giving a service you also put money back into the community by employing local people. If you remove this employment and place it in a forign country, Then sooner or later the number of people in the UK can afford to use your services. This then creates less income for the company. Its a two way scheme you have a service to sell, then ship the money out of the country that cannot help you to grow in the long term.

    I say another 12 m onths and liek me members of the public will choose companies that keep things in our country as appoused to using companies that use Indian call centers.

    Don't support companies that ship the jobs out of the UK. If the governemnt keeps allowing this then the companies sahould pay another tax for exporting jobs to help pay for the unemployment they are causing.
    anonymous