TCS has settled the rumors by confirming to shut down its operations in Lucknow soon. TCS in a statement said, “We are consolidating our UP operations. There have neither been any job losses nor have we asked anyone to quit”. The company has asked its 1,000 old employees to either shift to its centers in Indore, Noida or other facilities in the country, as a part of the consolidation of its UP operations. Apart, the company is also setting up a large BPO operation in Varanasi next year, some of these staff could be absorbed there.
The employees in Lucknow were briefed about the development on Wednesday, regarding which they have posted a letter to UP chief minister Yogi Adityanath and Prime Minister Narendra Modi for their intervention. A group termed as SaveTCSPlease has drafted the letter which claims that around 2,000 employees, half of them are women, will be affected by the shift from the company.
In regards to the letter, the company has announced to retain only 300-400 employees in the Lucknow premises and most of the existing projects will be transferred to the upcoming premises in Indore. The employees have claimed that they are being forced to transfer to the other cities. At the same time, TCS has maintained that there is no job loss.
IT firms such as TCS, Infosys, HCL Technologies, Wipro and Tech Mahindra are facing multiple challenges such as technology shifts towards cloud and digital, growing automation under which they are trying to cut costs and maintain profitability in an uncertain environment.