Golmuri » Firstsource http://golmuri.com Knowledge Unlimited Wed, 02 Feb 2011 10:09:54 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 Impact of price war in telecom sector http://golmuri.com/learning-center/web/impact-of-price-war-in-telecom-sector http://golmuri.com/learning-center/web/impact-of-price-war-in-telecom-sector#comments Fri, 05 Mar 2010 12:44:00 +0000 rohit http://golmuri.com/learning-center/web/impact-of-price-war-in-telecom-sector
victim of price war

victim of price war


Apart from decline in profits for telecom companies, this price war has also affected the cash rich BPO industry of India. It is seen that because of the declining profits, telcos are reorganizing their contracts with BPOs to get better price points. The cutting edge competition between the telcos have forced them cut their operating expenditures drastically.
Moreover, the volume and revenue per user has reduced against predictions because of people opting for multiple SIMs to make use of the best schemes by various service providers. As a result BPO organizations like Hinduja Global Solutions, Firstsource and others have seen significant dip in their bottom lines in the last quarter. The only party enjoying his war is the consumer. They are just enjoying!
The question is how long will this price war last? Is it time for consolidation as seen in the airline sector a year ago?

Rogues

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