Bengaluru: Business process management companies are planning to defer promotions and pay increases anticipating sluggish first quarter growth in the wake of the Covid-19 virus outbreak and ongoing lockdowns in many markets including India.Clients of BPM companies in the travel and insurance sectors have been hit badly due to the pandemic. WNS said it would defer employee promotions and increments as it seeks to focus on business continuity now. “At this point of time, we have deferred all discussion on promotions and increments for a few months, but we are holding on to the employees. There are no job cuts or layoffs,” Keshav Murugesh, group CEO of WNS told ET. WNS is also not reducing compensation for its 44,292 employees globally, he added. Analysts said other BPM companies are also taking cost-cutting measures, such as delayed increments and promotions, as they increasingly look to maintain existing contracts with clients. EXL and Genpact did not respond to ET’s queries on the subject. Although WNS reported strong growth in the previous financial year, Murugesh said clients across industry sectors have been impacted and the company was witnessing at least “six months’ pause” in business growth. EXL withdrew its 2020 guidance citing business challenges due to the outbreak. “At this time, the impact of Covid-19 on future revenues, profitability and our overall business cannot be accurately assessed. EXL intends to reassess its annual guidance in April and hopes to have better clarity for 2020 when the company releases its first quarter results,” it had said on March 23.
from Economic Times https://ift.tt/2Y7yRB3
No comments:
Post a Comment