Thursday, January 31, 2008

IT/BPOs hit by internet crisis

  • India’s thriving outsourcing industry looked for cover as two undersea cables in the Mediterranean that carry data and voice traffic broke down, and net surfers across the country battled a slow network and disruption of services.
  • Trouble began on Wednesday(30th Jan) evening India time after two major undersea cables — SME 4 operated by a global consortium, and the Reliance Communications-owned Flag — snapped after an anchoring ship pulled them up 10 km off the coast of Egypt.
  • Several firms have reported bandwidth declines upto 50%. The Internet Service Providers' Association of India estimated the bandwidth impact at 60%.
  • Large parts of West Asia and India suffered Internet outages. Internet service providers and outsourcing companies took a hit.
  • Employees from across BPO firms like HSBC, IBM Daksh, Barclays, Goldman Sachs, Citi Global, Genpact, 24/7 Customer, Wipro BPO, Infosys BPO, HP and AOL, feel the impact of the rupture was evident at work.

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