Xerox's outsourcing one year later: layoffs

Will outsourcing to an India-based firm help or hurt employees over the long-run?

By , Computerworld |  IT Management, outsourcing

About a year ago, Xerox told some 600 employees, many of them engineers, that their jobs were being
transferred
to an India-based IT services firm.

How has that worked out? Neither company is disclosing detail about what's been going on, but information is
leaking out about some layoffs.

The move by Xerox goes to the heart of the outsourcing debate between President Barack Obama and the 2012
Republican nominee, Mitt Romney.

It involves outsourcing product engineering employees, a skill set often linked to the nation's innovation
capacity, to an offshore firm. Will Xerox's moves result in a net gain or net loss of jobs? The answers may still
be in the future, but one of the people involved has the president's ear.

Xerox's CEO, Ursula
Burns
, is playing a prominent advisory role in the Obama administration as the vice chair of the President's
Export Council as well serving on the President's Jobs Council.

Late last month, a local newspaper, the Democrat and Chronicle, which serves Webster, NY, where
Xerox has facilities, reported that HCL had laid off a small number of staffers. The Xerox-to-HCL job transfers
happened at facilities around the country, but as many as 250 are in the Rochester region.

A Xerox employee who was transferred over, and who provided information only on the condition of anonymity, is
part of a Xerox IT group of 150 people (a subset of the overall larger number of those transferred.) This employee
told Computerworld that this group is now down to about 50 who work on the Xerox account.

About 30 have been laid off; 20 recently, and 10 some months earlier. The others who aren't working on the Xerox
account have been moved to other projects or left through attrition.

HCL, in response to the recent layoffs, said by email that last month "it had eliminated some engineering
services positions that were held by former Xerox employees who were transferred to HCL America about a year ago.
It is a very small number compared to our overall U.S. employee base of about 8,000 and our nearly 90,000 global
employees."

"It is also a small percentage of those initially transferred from Xerox to HCL. While these decisions are
difficult to make, we are working closely with those affected to provide the proper assistance that will ensure a
smooth transition," a spokesman said.


Originally published on Computerworld |  Click here to read the original story.
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