Ecommerce giant, Flipkart has outsourced about 300 middle and lower-level employees to an outsourcing firm Serco. Flipkart said, “It has rolled out a generous financial package, including a salary hike, for each one of them.”
This strategic move will render higher figure of revenue-per-employee, as once outsourced, employees don’t show in the company records. According to experts, outsourced employees also don’t get stock options.
Related Article: Flipkart Sets Aside $400 Mn For Buyback From Minority Shareholders
“When a company has too many people on its payroll, it gets difficult to handle from the compliance perspective, for example, PF, insurance, gratuity, etc., takes a lot of effort from the HR perspective.” as Vaibhav Parikh, partner at law firm Nishith Desai Associates told ET.
Lately, Flipkart has been making many strategic hiring. Last week only, it hired IT veteran Ravi Garikipati in a capacity of a newly created position – ‘entrepreneur in residence’ to ensure the success of new and high impact business projects and scale up Flipkart’s new ads initiative. Also, Flipkart launched a mobile app, Seller Hub, to enable its merchants to manage their businesses.
Welcome to Flash Feed, your essential source for breaking news and innovation from around the web – bite-sized and updated all day.