IT Firm Tech Mahindra will reduce its business process outsourcing (BPO) headcount by 5,000 in the current year as many tasks get completed through Automation and artificial intelligence. According to Tech Mahindra executives, Automation and emerging AI technologies made it possible for a single person to accomplish multiple tasks; therefore, the company expects job cuts this year. Tech Mahindra has the most strong pipeline of contracts ever as companies look at outsourcing more work. Job reduction is mainly due to Automation and AI.
Business Process Outsourcing(BPO) also known as “Call Centre” division of Tech Mahindra has around 43,000 employees at the end of FY20 and company is reducing its business process services (BPS) headcount by 5,000 to 38,000 in FY 2020-21.
Tech Mahindra BPS division has witnessed 11 per cent growth in the December quarter. Tech Mahindra did not layoff any employee from its Software Services business during COVID-19 pandemic. The company reported job cuts of nearly 2,300 people in its overall headcount in the December quarter and mainly from job losses to the BPS vertical.
According to the C. P. Gurnani, CEO & Managing Director of Tech Mahindra, the company maintained the campuses expecting that eventually up to 40 per cent of the workers will come back to work from offices.
This Tech Mahindra Layoff News came shocking as despite rising revenues, IT major Tech Mahindra is reducing headcount by 5,000.
The company recently reported a 14.3 per cent rise in its consolidated net profit at ₹1,309.8 crores for the December 2020 quarter compared to ₹1,145.9 crores in the year-ago period. In dollar terms, the net profit is up 23.7 per cent sequentially to USD 177.7 million.
Tech Mahindra’s total headcount was at 1,21,901 people, reducing 2,357 people mainly from BPS business from the September 2020 quarter.