Offshoring to cut cost by 40%, claims Reuters

Bangalore | Updated: Oct 8 2004, 05:30am hrs
Reuters, the worlds largest news agency, which officially inaugurated its Bangalore centre for data and editorial support operations, has said that offshoring to India would cut down costs by 40%.

The company which has moved some of its support operations to Bangalore, currently has 340 people providing data support for its products aimed at global customers in financial services. The editorial reference function has been moved from London to Bangalore and employs 20 journalists.

The Bangalore centre supports the companys decision to separate out the news-on-the-ground from the part of the news business that can be done remotely over the internet, such as consolidation of information, said Reuters editor-in-chief, Geert Linnebank. That frees journalists to concentrate on on-the-ground journalism, he said.

Bangalore is one of the four centres which provides this kind of support, the other three being Singapore (where a team of 200 focuses on technical development); Templeton in the UK (with 300 people) and White Plains near New York in the US (with 250 people).

Mr Linnebank indicated that jobs would be coming from London and New York to Bangalore. In the transition period, there would be two groups of people doing the same job, after which the numbers would start to shrink, he said. Around 200 jobs would be moved to Bangalore and 200 more would be created in Bangalore, he said.

In the next one-and-a-half years, the company would have a total strength of

1200-1500, said Mr Linnebank.