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Mphasis' client Santander shifts call centres out of India
Santander, a UK-based financial services firm, has decided to stop outsourcing services to
Mphasis and shift all its Indian call centres for retail banking customers back home.
Santander announced that it is recalling outsourced work from India back to the UK
following complaints by customers over their frustration in dealing with offshore
employees. Santander has hired an additional 500 UK staff to handle the estimated 1.5mn
calls each month. The new staff is fully trained and is now available to take calls. In total,
Santander's UK call centres employ 2,500 staff. Santander is a wholly owned unit of
Spain's Banco Santander S.A. This client contributes 2–3% to Mphasis’ BPO revenue
(~i.e.US$5mn annually) and is not amongst its top clients. This contract is expected to
cease from August 2011 (i.e. from 4QFY2011).
We expect this to have a marginal impact on the company’s earning’s estimate. The stock
is currently under review.
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