Spanco BpO Misses Paying Salaries to Employees
Some time back we have posted about PC Care 247 in Gurgaon not paying salary of employees. Now if newspaper reports are to be believed another BpO company has not paid the salaries for its employees and this is for last 4 month. Unlike the one we talked about last time which was a rather unknown name like PC Care 247 this time it is a well known BpO company Spanco with thousands of employees in more than one city.
|—As per the management of the company they are facing working capital issues due to which salaries are on hold. If the news reports are to be believed the company says they are facing payment issues from the government projects they are working on especially in the power sector. So it appears that the rot in power sector is slowly spreading to other industries also including the vendors that Power companies owned by government have hired. This kind of reminds me what Warren Buffet the legendary investor once said ” There is never only one cockroach in the kitchen”. If the power sector is in trouble it is spreading its problems to other sectors including BpO|
The troubling part in this case is that Spanco is not a small company it employs thousands of people in many cities. Spanco is also listed on Mumbai and National Stock Exchange. Now if these thousands of people are not being paid salaries it will not be very long when a lot of them will be in job market to look for jobs. That will put a lot of pressure on the job market and may depress the wages in the short term. We all know similar thing happened when Satyam employees were leaving in hordes during time of the Satyam financial scam. It is in everybody’s interest that the issue is resolved and employees are paid ASAP.
The other big problem with a large company like Spanco not paying salaries of employees creates bad reputation for the whole BpO sector both for potential clients outside of India and potential bright employees in India. If more companies start missing salaries of employees one wonders how BpO will fare as career choice for future employees.
Please check the link here to read more about the issue in Times of India online by clicking here
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