Business Standard reports that Capital One, the world's largest credit card
processing company, and FNX, a US-based financial architectural firm, have
joined the list of US companies which are putting on hold their investment
plans for India following the aircraft attacks on September 11.
Both the companies were planning to set up back-office processing and call
centres in India to take advantage of the low infrastructure cost and cheap
labour available here.
FNX, which provides state-of-the art front, middle and back-office solutions
for the international financial community, had planned to set up its
back-office operations in Bangalore.
Virginia based Capital One, one of the largest issuer of card products
worldwide, had finalised its plans for India. It was in the process of
identifying a suitable location to house its proposed 2.5-lakh square feet
back-office processing centre.
"Investment in call centres, and back offices for banking, finance,
insurance, and infotech-enabled companies recently started showing signs of
picking up. The recent developments will deal a blow to the sentiment," said
a foreign management consulting firm.
It remains to be seen when the two companies will engage in pursuing
overseas operations in India again.
- nriol.com report
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