The Hindu Business Line : Rain forces rethink on expansion plans of BPOs in Mumbai

THE July rains in the city may have led some BPOs and call centre outfits to plan moving part of their operations out of the city. But scarcity of land and the investments they have already sunk in will ensure that most of the other corporates even in those areas of the city which suffered severe flooding, will remain where they are, say industry officials and real estate experts.

With the historic rains now a memory several weeks old, corporates are taking stock of their location in this island city. "We had always planned to be a completely Mumbai-based BPO, the talent resource here is definitely better than anywhere; but now our expansion will certainly take place outside this city," said Mr Navnit Narayan, COO of Epicentre Technologies Pvt Ltd.

Epicentre, which is located in Powai and Malad, suffered severely during the rains, with only 30 to 40 per cent of the staff of 1,000 able to turn up during those days. "With 8,200 customers catered to every day, this caused a lot of anguish," said Mr Narayan. The rains might have been a once-in-a-100 years phenomenon, but we think the roads and the drainage systems are not God-made." This has also aggravated the commuting problem of employees who even in dry weather have to endure a 45-minute journey to their workplace from the nearest railway station.

WNS too which has operations in north-east Mumbai is now thinking of giving even more emphasis to ensuring multi-geography operations, according to an open essay written after the rains by its chief, Mr Neeraj Bhargava.

BPO and call centres in the city are located in four clusters in the city — in the suburbs of Malad (Mindspace); the Powai (Hiranandani) and Saki Naka (the worst hit place during the rains); in the Parel area, a low-lying stretch; and Navi Mumbai where the larger operators such as Satyam, Reliance and Wipro have their centres.

Apart from this industry, few other corporates seem willing or able to budge. "We have been be talking to a number of foreign parties who want to enter India. They feel that this could have happened in any city anywhere in the world," said Mr Pranay Vakil, Chairman, Knight Frank India, a real estate consultancy. "BPO guys, of course, cannot afford to put all their eggs in one basket."

But large businesses whose corporate centres are located in Bandra Kurla Complex right on the banks of the Mithi river have made such large investments that they will not move. This is where a lot of large financial institutions such as ICICI Bank, public sector banks, institutions, IL&FS, NSE and others are located, not to mention the giant diamond bourse that is coming up.

These people are just getting their storage and equipment moved out of their basements and getting on with life. "The point is there is no place to go to. Some have spent as much as Rs 50,000 a sq.m. Space is too limited in Mumbai and the city too attractive for people to have a choice," said Mr Murari Chaturvedi, editor of Accommodation Times, a real estate publication.

The 8,000-strong BSE index will lead people to grow their roots even deeper here, said an official with a housing finance company.

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