Pitroda
panel had suggested BSNL to cut staff strength by 100,000.
State-run
telecom major Bharat Sanchar Nigam Ltd (BSNL) is on a major recruitment drive
to add 10,000 employees in its sales and marketing division. This will push the
size of the division to 25,000.
It has already redeployed and trained about
10,000 people from other departments for the division and would hire about
10,000-15,000 people in the next one to two years, Chairman and Managing
Director Kuldeep Goyal told Business Standard.

The move is contrary to the recommendation of
the Sam Pitroda committee, which had suggested BSNL to reduce the number of
employees by 100,000 from the current 350,000. The recommendation has been
opposed by staff unions, who say they will go on strike it it is implemented.
BSNL is also in the process of integrating its
operations across the country. The public sector undertaking would implement an
enterprise resource planning (ERP) project at an estimated cost of Rs 400 crore
to integrate all its segments — finance, personnel, marketing, real estate and
others, Goyal said.
“The implementation of ERP will increase our
productivity and efficiency. Further, we will be able to access information
across all segments immediately, as all the processes will be automated,” he
said.
The company had also started giving incentives
to employees, specifically in the sales department, on achievement of targets
within the stipulated time, he added. For the first time, BSNL has set up a
sales division in each of its four business verticals — fixed line, mobile,
enterprise and new businesses.
The company has started to focus more on
marketing activities to regain its lost ground in the 2G mobile space. BSNL
also wants to push aggressively for its 3G mobile and broadband services before
the entry of private companies in this space early next year. It would also try
to increase its retail and distribution footprint across the country.
Industry experts say BSNL has so far failed to
make much of its first-mover advantage in the 3G space. The firm has launched
its 3G mobile services in 450 cities and plans to take it to 750 cities by the
end of this year, with a target of four million subscribers from 1.3 million
presently.
Due to increased competition, BSNL’s market
share has come down to 12 per cent, in fourth position. The company is also
under severe financial strain, as it has given Rs 3,700 crore in pay arrears
and may end 2009-10 (it is yet to declare results) with losses. At the end of
December 2009, BSNL had a net profit of Rs 175 crore, but due to the payout of
arrears on wages of around Rs 3,700 crore, is expected to post losses. It has
also asked for refund of 3G and BWA spectrum fees of about Rs 18,500 crore.
Source: BS 25/7/10