North Carolina Firm To Lay Off 30% Of IT Staff After HCL Contract
June 17, 2011
Media reports say that a North Carolina company has laid off workers before singing agreements with an IT service provider from India.
According to an news report by Computerworld, 30% of IT staff are expected to lose their jobs at Dex One, yellow pages print directories-firm, following a contract agreement between the company and Indian offshore firm,
Dex-One, headquartered in Cary, North Carolina, operates an ad network and offers search tools and related products. The firm announced that it has awarded HCL with a contract to reduce operational costs and speed up delivery of digital services/products.
The News & Observer, a local paper, confirmed a reduction in headcount of IT staff at the firm. Nonetheless, approximately, a fifth of the workers who are expected to lose jobs will be rehired by HCL. The paper said that the number of current IT employees was not mentioned and that Dex One representatives were not available for comment.
According to a spokeswoman, HCL has regional offices in Cary with 278 employees.
In similar news, Xerox is also expected to expand its outsourcing contract with HCL This scheme will include Xerox employees who are positioned in the company’s product engineering division.
Xerox commented that it is still early to comment on how the workforce will be affected. However, it is in the process of working out an agreement with HCL about how many employees can be transferred to the Indian outsourcing firm. There has been no comments about lay offs at Xerox, so far.
In 2009, HCL and Xerox inked agreements lasting six years worth $100 million. The contract detailed data center services provided by HCL. Additionally, HCL was slated to operate Xerox centers Europe and the U.S
Previously known as R. H . Donnelly, Dex One had filed for bankruptcy under its former name and resurfaced this year under its new name