Is Dell pulling out of third party BPOs

New Delhi, Aug 2 | Updated: Aug 3 2005, 05:30am hrs
Dell is slowly withdrawing its tech support processes from third party BPOs in India and moving them to its captive centres at Mohali, Bangalore and Hyderabad, according to sources. The move threatens livelihood of around 3,500 BPO workers involved in third party work for Dell at Wipro BPO, Sitel and EXL Services. Wipro BPO alone has 2,900 employees supporting Dell work. Dell has already exited 100 seats of tech-support processes from EXL Services. Dell itself employs 8,000 people in India.

Though employees are never shunted out in such cases, but they may be asked to go on bench or for further training. But most tend to quit themselves and join other BPOs, as happened in the case of Conseco pulling out of EXL Services. Dell is reportedly opening a huge facility in Gurgaon. If that happens, it may pull out from third party vendors completely in India. Recently, Dell opened a 180,000 sq ft captive facility in Mohali. Speaking to FE from Bangalore, Sandeep Suri, site director, Dell BPO, Mohali said: hiring at the Mohali site is as per plan. Dell plans to up headcount to 1,500 at the Mohali centre by this year end. He did not categorically deny that Dell may pull out of some of its processes from Indian BPOs.

Though hiring at the Dell tech support process in Wipro BPO had been frozen for the last few months, it has been resumed but the number of people undergoing training has been reduced from 150 to just 55 now.

Raman Roy, ex-CEO, Wipro BPO said: I have interacted with the top management of Dell. They have great plans for India. They are looking for buildings in Delhi and Gurgaon. Its in their global stategy to outsource to both captive and third party vendors. But, will Dell continue to follow the same stategy for India It doesnt seem so. As a source in Wipro BPO said: why would you live in a rented house if you have your own house in the same area Earlier, Dell exited its 100-seat tech-support process from EXL Services. But according to EXL, the termination was done from its side and not Dells.

Wipro BPO does both desktop and laptop PC tech support for Dell. Wipro BPO services Dell customers through voice, chat and web based support. Sitel provides only voice based support to Dell customers.