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Tatas plan foray into call centre business
Times of India — October 8, 2000

The Tata group is entering the call centre business. In addition to generating revenues, the business is intended to absorb employees laid off by group companies in the process of restructuring.

Confirming the move, chairman of Tata Sons, Ratan Tata said that group companies are assessing options at this level.

He said that Tata Steel, which is currently going through a restructuring exercise, is seriously considering setting up call centres in Jamshedpur to redeploy excess staff. While the modalities are being worked out, it is learnt that the group is talking to US-based Cincom Corporation to source software for the purpose. Plans are afoot to start a call centre with 5000 seats in the first phase, a top official said.

Call centres are units that address customer grievances over phone or online on behalf of companies.

In developed countries, products and services are also sold over telephone from call centres.

In fact, certain other Tata group companies are also considering setting up call centres. They believe that this way, the process of becoming lean would be less painful for the workforce, the source said. It is learnt that the group may look to redeploy nearly 20,000 people after restructuring.

TISCO, with its various subsidiaries, is to retrench around 25,000 employees out of its existing strength of around 75,000. Many of the employees to be retrenched are educated and English-speaking – making them eligible for work at a call centre. They will, of course, need a brief period of training for the business such as picking up American accent and slang. The source said the Tatas may also set up a call centre training facility.

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