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Coronavirus pandemic
This Week in AsiaEconomics

Coronavirus: India’s outsourcing firms struggle to serve US, British companies amid lockdown

  • Amid the global pandemic, Western firms are increasingly reliant on business process outsourcing (BPO) functions provided by companies in India
  • But these firms face logistical and technical hurdles amid the 21-day lockdown imposed by Modi – and some employees will lose their jobs

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India’s outsourcing industry was worth US$177 million in 2019, having grown 6.1 per cent from the previous year. Photo: AFP
Kunal Purohit
Rahul Patil works at a call centre, in a crowded room surrounded by hundreds of his colleagues – a dangerous risk as India’s confirmed cases of the novel coronavirus have increased to more than 1,200.

Just days ago, an information technology executive in a building not too far from Patil’s had tested positive. By then, the government was making repeated appeals to businesses to let employees work from home, but Patil – whose name has been changed to protect his identity – and his colleagues were not allowed to do so, or to take leave.

“In fact, the office gave us a letter saying we work for a bank and that the cops must allow us to go to work, despite the lockdown,” he said.

India is on a 21-day lockdown that is set to end on April 14. While many businesses are closed, the rules set out by the administration of Prime Minister Narendra Modi allow essential financial services such as banks to continue functioning. Patil’s employer, a private business process outsourcing (BPO) firm that handles processes such as customer care and data management for domestic and global firms, was trying to exploit the loopholes.
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His firm announced a shutdown only after the Maharashtra government locked down the state – but Patil has been told he will not get paid for these days because the firm will lose out on a lot of business.

Men wearing protective face masks walk to a special service bus taking them to a quarantine facility in New Delhi. Photo: AFP
Men wearing protective face masks walk to a special service bus taking them to a quarantine facility in New Delhi. Photo: AFP
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Such stories are hardly uncommon in India, where the fight to halt the coronavirus update has put a cloud of doubt over one of the country’s signature exports to the world – its outsourcing industry.

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