Saturday, January 31
MphasiS axes 200 jobs at Bangalore centre
MPHASIS, the Hewlett Packard (HP)-controlled IT and BPO services firm, has once again issued pink slips to nearly 200 employees at its Bangalore centre.
According to sources, the job-cuts were announced two weeks ago. The lay-off exercise cuts across various levels including mid-level managers. It is estimated that a majority of the employees affected were on the bench while some received the pink slips ostensibly on performance-related grounds.
When contacted, a spokesperson for MphasiS said: “MphasiS has not announced any staff-cuts. MphasiS continues to grow and has posted stellar financial results in 2008-09.” For the seven months ended October 31, 2008, MphasiS had a total headcount of 28,795. Around nine months back, the company had cut around 200 jobs at its Chennai development centre.
According to sources, job-cuts have been an ongoing exercise at the company. It is because MphasiS may be over-staffed, particularly in the cadres of project lead, delivery head and project managers, they reckon.
MphasiS’ operations also include the erstwhile EDS India. Since its takeover by HP, there has been much speculation over the duplication of roles at both the IT services units. Unconfirmed reports have actually said that MphasiS could be looking at reducing its headcount by around 6,000.
Sources said, over a period of time, MphasiS has become more or less the delivery centre for its erstwhile owner EDS and now, HP. It has also been losing some of the smaller clients, which account for a million dollar in revenue or less. Some of its bluechip clients are JP Morgan Chase, Fedex, Merrill Lynch, AIG and Citi.
MphasiS reported a revenue of Rs 1,906.5 crore for the seven-month period ended October 31, 2008, with a net profit of Rs 295.4 crore. Recently, MphasiS also announced that its CEO Jeya Kumar had quit the organisation to join Patni Computers. He has been replaced by Ganesh Ayyar, a long-time veteran with HP. MphasiS was one of the first Indian IT services companies to be acquired by an MNC IT company — EDS.