DEAL CORNER
THE ripples of the subprime fiasco are being felt in many ways. The business process outsourcing arm of Countrywide Financial in India, CFC India Services, is merging with Bank of America’s nonbanking subsidiary, Continuum Solutions, as part of BankAm’s $2.5-billion global takeover of the loss-making Countrywide.
While there will be job cuts in India post merger, all Countrywide staff will have switch over to the BoA salary structure, said a source. Some of the top management of Countrywide led by expatriate director Tom Jones may have to go.
While BA Continuum MD Avtar Monga is expected to head the KPO segment of the merged entity, Countrywide’s head of operations (India) Gautam Bahai may be given the charge of mortgages, the source said. A BoA spokesperson from Singapore refused to comment.
As in the United States, the BoA will drop the Countrywide name in India. CFC India Services, with its 3,500 seats in Mumbai and Hyderabad, till now was operating as a subsidiary of Countrywide Financial Corporation and was providing processing and infotech related services to Countrywide in the mortgage and related financial services industry.
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