Pros and Cons of Privatization of VSNL (Videsh Sanchar Nigam Ltd.)

VSNL is a part of TATA Groups and was established in the year 1986. It is a multinational telecommunications company. VSNL was initially an independent government body which was privatized in 2002 under TATA Groups. After its privatization, VSNL has gone through many positive and negative changes. These changes are subjects to be studied.

The first major change is the improvement with a great margin in the management system of the body. This improvement has led to an increase in the profit of the company. It has widened the working area of the company. Even the customer service of the company has also improved. Seeing the benefit of the company, many billionaires have invested in VSNL.

After privatization, VSNL has incurred some flaws too. Interfere of the government has reduced to zero. Since the company has privatized, it has become profit-based and the service of the company has slightly decreased. Even the prices of the service of the company have also increased.

Unlike a government firm, the employees of VSNL are now paid based on their performances. It is heard that the company puts a burden on its employees. Seeing all these, we can say that the privatization of VSNL has mixed effects.