NE Utilities Confirms 200 Cuts, Lawmakers Balk

After speculation and rumors of layoffs, a Northeast Utilities executive has finally confirmed that the utility is outsourcing half the work of its IT department, the Hartford Courant reported. David McHale, the company’s Executive Vice President and Chief Administrative Officer, told the paper that half of NU’s 400 IT employees in New England will be impacted. About 70 percent of the company’s IT employees are based in Connecticut, 25 percent in Massachusetts, and 5 percent in New Hampshire.

Northeast-Utilities-ThumbnailIn the next six to seven months, Infosys and Tata Consultancy Services will take over the bulk of the department’s work, the paper said. The two companies will keep about 60 percent of outsourced work in Connecticut. No further details were given as to where the other 40 percent of the work will be done.

Last month, we reported that NU has been working hard to realize anticipated cost savings from its merger with Massachusetts-based NStar, a deal that closed in April 2012. Northeast Utilities’ employees leaked that the Connecticut utility was planning to streamline its IT department by outsourcing hundreds of positions, though at the time the company wouldn’t confirm or deny the reports.

In a statement, Connecticut House Majority Leader Joe Aresimowicz said he was “disappointed, and quite frankly, disgusted that NU is slashing good-paying Connecticut jobs.” Aresimowicz represents Berlin, Conn., where the company is headquartered.

Connecticut state officials and lawmakers are evaluating whether the layoffs are in compliance with the NStar merger agreement. The Boston Business Journal reported that Northeast Utilities laid off about 173 employees in 2012

Comments

  1. BY Fred Bosick says:

    State officials *should* hold them over the fire. Public utilities get permission to operate a monopoly in the public interest, with government abetted easements and cost recovery. The public interest also includes residents having a stake in the continued operation and profitability of their regional provider by having the chance at important and well paying jobs.

    Governments have a stake in keeping their citizens employed. Those who enjoy a franchise given by these entities need to conduct business to that end.

  2. BY Marsha says:

    TCS/Tata and infosys seem to be taking over a lot of U.S. Companies – where are we supposed to work and how do we compete with the lower salaries?

  3. BY joseph says:

    What’s bad for the goose is bad for the gander. And we wonder why we allegedly can’t fill IT jobs in America. Why bother when the Harvard B School people will send your job to India.

  4. BY Outsourced Sam says:

    “State officials *should* hold them over the fire.”

    Really that same (D) people that are telling us American IT workers suck and want to bring in another 100,000 H1Bs?

  5. BY Outsourced Sam says:

    “The two companies will keep about 60 percent of outsourced work in Connecticut.”

    In other words, those H1Bs will come in handy while we insource and have you train them before we lay you off.

    We are we going to start outsourcing management and our politicians? It’s way overdue.

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