Bangalore/Mumbai: Government-owned airline Air India has, after much hemming and hawing, found a business process outsourcing partner in Sutherland Global Services even as many other potential bidders avoided the five-year contract because the terms were exacting.
Air India postponed its tender by six months to December-end and introduced three amendments to the first draft around November before sealing the about $100 million (Rs 535 crore) deal with US-based Sutherland early this month, according to sources with direct knowledge of the development.
Major BPOs, such as Servion, Serco Global Services, Aegis and WiproBSE -0.41 % BPO that Air-India invited to bid for the contract, had hesitated to take part in the bidding after going through the terms and conditions, said the sources.
Among other things, the BPOs were put off by the thin margins on offer, the financial condition of the loss-making airline and risks associated with taking up government-related contracts, especially after the recent Commonwealth Games in New Delhi, where all contracts are coming under the microscope to check for potential fraud.
11/02/13 Akaniksha Prasad & N Shivapriya/Economic Times
