CPI outsourcing sitels to shut down in India
The Indian IT outsourcing company, CPI, has been informed that its two-year-old office and data centre in Ahmedabad, Gujarat, is to shut its doors.
It is the first time that CPI has been forced to shut out of the Indian IT industry.
CPI will also close the IT consulting business, which will no longer be open.
It will be replaced by another company.
The company’s announcement came a day after the government said that it would shut down the Indian outsourcing companies in 2019.
“CPI’s decision is a setback for our employees, customers and our country,” said Suresh Kumar, chief executive officer of CPI.
CPIs decision was made due to the recent closure of CPIs two office and its data centres in Ahmedbazar, Gujarat and Chennai.
The closure of these centres and the resulting cost have been crippling for CPIs operations.
CPIS will have to look for alternative offices, Kumar added.
CPi has had operations in India for more than 40 years.
CPis first office in Ahmedbaazar was established in 1994.
The firm was founded by Rajesh Rajput in 1980.
It was bought by CPI in 2007.
In October 2016, CPIs office in Hyderabad was shut down after the Narendra Modi government’s decision to close down the private sector outsourcing companies.
This followed the decision of the BJP government to ban outsourcing.
CP I also had offices in Mumbai, Bengaluru and Ahmedabad.
The offices were sold to the private equity firm Vyakar Associates in 2016.
It had its offices in Ahmedbhazar and Ahmedpur in 2009 and in Ahmedpura in 2015.
The Hyderabad office is still running under CPI’s name.
The Ahmedabad office had two employees.
In the last six months, the office had been shut down twice.
The shutdown was due to a power shortage.
It came after CPI had started operations in Bengaluru.
The government had asked CPIs to take up with the power department the need for more power and also asked CPI to provide more power for the entire city.
CPIC had announced in May 2016 that it had been given permission to run its two offices in Hydergarh.
In January 2017, the government gave the green signal to CPI and it was given the go-ahead to start operations.
The Gujarat government had already ordered CPI off the Gujarat power grid.
It would be the second time CPI was forced to close out of India.
In August 2016, the state government shut down CPIs operations in the state and in September, the Indian Institute of Technology Ahmedabad had also shut down its offices.
“We had decided to shut our two offices.
We will be looking for alternative sites and the future of CPis operations in Gujarat is in doubt,” Kumar said.
“Our focus is on bringing our services to the customers of CPIC,” he added.
The decision to shut CPI down comes in the backdrop of the impending deadline for all companies in India to start accepting new foreign direct investment (FDI) in 2018.
The foreign direct investments (FDA) rules were introduced to prevent outsourcing firms from cutting costs in India by outsourcing their work.
According to the rules, foreign direct investors will be allowed to invest up to 25 per cent of the value of their investments.
This rule will be applicable for five years and will last for four years.
As per the new rules, CPIS is also being asked to provide a subsidy of Rs 5,000 crore for the period of the government subsidy.
The Indian government has also asked all private sector companies to provide Rs 10,000,000 to the government during the period.