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Video conferencing gains as cos trim travel costs

Shamik Paul

Bangalore, Sept. 5

As many companies try to cut down on expenses, video conferencing is becoming a preferred alternative to corporate travel.

IT major Tata Consultancy Services said it has asked employees to use IP telephony, video conferencing and other Web 2.0 communication tools more extensively and travel only when there is a need. This initiative is a part of its efforts to reduce non-salary costs, which include costs related to travel and communication, said Mr K. Ananth Krishnan, Chief Technology Officer, TCS.

Wipro Ltd has also stepped up the use of video conferencing. It can save about 20-30 per cent travel cost, said Mr Sudip Nandy, Chief Executive, Communications Media and Technology Business, Wipro Technologies. Most of Wipro’s offices are equipped with this facility, he added.

However, increase in fuel costs and the economic slowdown are not the only reasons behind the success of video conferencing.

Video conferencing has now become an integral part of communications strategy in India, said Mr Dinesh Sehgal, Regional Director for India, Sri Lanka and Bangladesh, Tandberg, a video conference systems company.

Infosys Technologies Ltd said it focuses on the use of technology such as voice and video conferencing to increase productivity. Optimising expenditure is a continuous activity at Infosys, and has nothing to do with the external business environment, it added.

Satyam Computer Services Ltd also said it has been using teleconferencing for over a decade now. It is more to do with the company’s culture rather than cost saving, it added.

Many Indian companies are trying to become greener and are reducing their carbon footprint by reducing corporate travel. This has led to the adoption of video conferencing solutions, said Mr Sehgal.

However, inflation and the slowdown in the US economy have, to an extent, helped in the adoption of this trend, he said. He said air travel had become more expensive, and the turmoil in the global and Indian financial markets had forced some companies to have strict restrictions on executive travel.

Recently, the Confederation of Indian Industry together with Cisco and Tata Communications set up four pay-per-use telepresence facilities at its offices in Bangalore, Chennai, Hyderabad and Chennai. Mr Vikram Tiwathia, Consultant, CII, said it is essentially a service for its member companies. The members would be charged concessional rates, he said. The Chennai and Bangalore centre are functional.

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