Grand plans chalked out by the Gujarat government to emerge as a strong player in the IT-enabled services (ITES) business are reportedly facing severe hiccups.
Medical transcription (MT) units, which were the first ones to set up shop in the ITES segment in Gujarat, are lately finding the going tough. It is learnt that some of them may even fold up soon.
The problem of these companies began long back with their inability to find enough people possessing requisite skills and good command over English language. To be able to effectively handle large volumes of incoming business from healthcare companies of US, it is very crucial for these MT units to attain a critical size within the shortest possible time.
With not enough manpower with requisite skills available, all the candidates selected to work as medical transcriptionists have to be imparted vigorous training so as to ensure a minimum standard particularly in the English language.
Avinash Information Technologies Private Ltd (Avintech), considered to be one of the pioneers in the MT segment, is also learnt to have been affected.
This company, which provides offshore services to Heartland, headquartered in Toledo, Ohio, is the largest such MT unit in Gujarat and second largest in India. It had plans to recruit more than 1,500 MTs but even after 14 months of commencing operations, it currently has only 400 medical transcriptionists on its rolls.
Reliable sources speaking on condition of anonymity said that Heartland is learnt to be upset with Avintech for its inability to keep its promise and has lately stopped providing transcription jobs.
Consequently, the company is learnt to be dishing out a whopping Rs 25 lakh per month as salaries to the 400 employees even as the revenue has been zero.
Sources allege that it can afford to do that because Gujarat government in its enthusiasm to promote IT industry had through a government resolution approved reimbursement of a major portion of the salary/stipend of medical transcriptionists/trainees employed by such units.
Efforts to talk to Avintech directors proved futile as none of the directors were there in the office on Monday and this correspondent was told that they would now be available only after June 16.
An analyst, speaking on condition of anonymity, said that some other MT units, despite their small size, are just surviving because of the Gujarat government
