UK-based corporate telecoms provider COLT Telecom has revealed plans to shift a quarter of its workforce to India by 2006 as part of its drive to improve profitability by cutting costs. COLT will begin moving its core business processes, including its secondary network centre and research & development lab, to Gurgoan next year. In a bid to offset a backlash from disgruntled employees, the company has begun offering its European workers the option of transferring to India.
Founded in 1992, COLT Telecom began life as the City of London Telecoms Company. It was formed to provide telecoms services to business users in London, principally the capital’s financial institutions. The company owns an integrated 20,000km pan-European network that directly connects approximately 10,000 buildings in 13 countries, with 32 metropolitan area networks augmented with a further 42 points of presence across Europe and eleven Internet Solution Centres. However, price erosion and rising costs hit COLT hard in 2004 and shares in the company fell by more than 55% during the year. In the wake of the poor performance, COLT outlined its ‘Future in Focus’ plan which is aimed at improving profitability and re-establishing the firm as one of Europe’s top business services players.