University of California outsources jobs to India's HCL Technologies, lays off 49 IT workers

University of California entered into a $50 million contract over five years with HCL Technologies Ltd to do the work.

A US university has come under fire for laying off 49 information technology (IT) employees and outsourcing its work to India-based HCL Technologies Ltd. Struggling to raise revenue and cut expenses, University of California announced its outsourcing plan in July last year.

In its defense, the university said, the move would save the organisation around $ 30 million in a time span of five years.

Underlining the need of job cuts due to the rising cost of technology a university official said, “This was the first outsourcing of University of California.”

In addition to the 49 staff layoffs, another 48 positions that were vacant or filled by contractors were eliminated.

The outsourcing of US Jobs became a hot political issue last year and is believed to be one of the reasons that stormed Donald Trump to power. Lately, many US firms have outsources their jobs to low cost workers in far flung parts of world  to cut their expenses.

Trump has promised to restore lost U.S. jobs and to penalize companies that move factories overseas. Last year, UCSF entered into a $50 million contract over five years with HCL Technologies Ltd to do the work.

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