This is where Flipkart is transferring hundreds of its employees
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"Flipkart's decision to outsource few roles is a strategic move which will help us scale faster and also grow the partner ecosystem around us," a company spokesman said in an email reply. "We believe that realigning the organisation to business priorities is critical for keeping pace with the dynamic environment that we operate in."
Transferring out noncore employees to the payrolls of a back-office outsourcing company is common practice in the information technology industry.
"When a company has too many people on its payroll, it gets difficult to handle from the compliance perspective," said
Such outsourced employees also don't get stock options, experts said. That the transfers at Flipkart have happened amid a run of high-profile hires seems to be causing some consternation among employees. "Executives have been asked to shift to this new agency right ahead of the appraisal cycle," said an employee who was informed on Thursday about his transfer to Serco, India's thirdlargest BPO. "Mostly these are executives in the lower- to mid-level management," he said, requesting anonymity. Flipkart said it has "rolled out a generous financial package, including a salary hike, for each one of them."
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The company has made several strategic hires in recent months including from
But it also needs to be leaner and nimbler to be able to effectively take on new startups as well as giants like Snapdeal and Amazon that are competing for the same target buyers. Flipkart employs about 33,000 people.
(image credits: Reuters)
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