This major tech firm to reduce headcount for BPS

Despite rising sales, Tech Mahindra is expected to reduce its headcount for Business Process Services (BPS) by 5,000 to 38,000 in the 2020-21 fiscal year as most of the activities are completed by automation and artificial intelligence. Business executives said that there is a “non-linearity” in sales development and total headcount, as technology makes it possible for a single person to perform several tasks. It should be remembered that the vertical business process outsourcing (BPO), which has its roots in the ‘call centers’ business of the past, is one of the main job drivers in the technology field, where Indian executives manage a variety of processes for overseas customers, mostly across time zones.

Tech Mahindra announced a decline of almost 2,500 employees in its total headcount in the quarter of December and attributed a major part of the work losses to the vertical BPS. “What has happened is I used to have around 43,000 employees at the end of FY20, at the end of FY21, I expect about 38,000 employees in BPS. But that is because the productivity has increased and the revenue has also gone up,” said C P Gurnani, Chief Executive Officer and Managing Director. He added that the same decrease in hiring may not occur in the coming period and the headcount may remain stable even though sales continue to increase.

In the December quarter, the company announced an 11 percent rise in BPS sales relative to the previous September quarter. Gurnani said that at present, everyone is looking at greater productivity and performance and emphasized that the productivity of each employee has improved. He said that each of the workers handles more duties and is helped by an in-house chatbot. Also, he said that the BPS market is a robust one, and the firm is actually looking at the best contract backlog ever as businesses look to outsourcing further jobs.