New Delhi: Global iPod major Apple Computers' decision to shut down its new Bangalore centre has sparked an introspection in the Indian Business Process Outsourcing (BPO) industry.
Apple had been at the forefront of the Indian outsourcing market in the recent past. It announced its grand foray into the country and then went packing within a matter of three months.
In between, Apple granted some major outsourcing contracts to Indian companies, including a deal with HCL Infosystems, under which the IT firm was to provide wide range marketing and service support for iPods.
Apple has left the Indian BPO market perplexed and the industry players are groping over possible conclusions.
While the closure of the Bangalore centre, which was estimated to have more than 3,000 employees by next year, has come as a big shock for the industry, Apple's decision to continue with its existing outsourcing contracts to HCL Infosystems and Transworks has come as a solace.
Apple had earlier issued an internal memo that it was shelving its plans for a full-fledged customer support facility in Bangalore.
Apple also has a voice service outsourcing contract with Bangalore-based Transworks since 2004, which is still in effect.
Apple had inaugurated its own customer support operations in Bangalore in a grand ceremony on April 17. After starting with a 30-member team, the Bangalore facility was estimated to employ more than 1,500 workers by the year's end.
While, companies like HCL Info and Transworks have nothing to worry for now, the sacked employees who were part of Apple's grand Indian plans are an angry lot.
A ex-employee said that there was no prior warning and the company suddenly announced one day that their work was going back to the US.
All the employees at Apple's Bangalore centre went through training at Transworks after being recruited, while some of them were about to go to the US for further training when the news of centre closure broke out.
However, what intrigues the industry most is the statement from Apple at the time of announcing the shutdown, which said they have re-evaluated their plans and decided to explore opportunities in other countries.
Apple's CEO Steve Jobs is well known for his aggressive business strategies and whichever country provides him best values, he would go for that, an industry source said.
However, the industry players claim there are really no reasons to worry as Apple has reasserted its faith in the country's outsourcing industry by continuing its contracts to domestic third-party vendors.
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