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UK job cuts as HP outsources support to India

20 ex-Compaq staffers face the axe

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HP is to transfer accounting support functions currently conducted by former Compaq staff to India, with the loss of 20 UK jobs.

Affected employees have been asked to train their replacements prior to facing redundancy (if they're unsuccessful in finding alternative jobs within the new HP).

In a statement, HP said the company has concentrated its internal financial services into three Global Business Centres, located in India, Mexico and Spain over the last two years. Now the programme is being extended to include Compaq's internal accounting operations.

"In the UK, approximately 20 employees might be impacted by this integration process and have been notified of the proposal," the company stated.

"HP can confirm that the proposal involves the functions of these individuals being taken over by the Global Business Centre based in Bangalore. This transition would take place during the next three months."

It said the proposal forms part of its July 2002 Workforce Reduction programme (see story here).

HP workers tell us of disquiet over the implementation of the programme, with affected staff told by letter only ten days before they were due to be made redundant. More UK staff may lose their jobs under the outsourcing to India programme, our sources say.

Along with job cuts among contractors, the programme is leading staff to question the quality of support that will be left after their departure.

Their concerns echo those of staff in the numerous companies who've made job cuts during the current IT spending slowdown. HP said that it "regrets the possible impact of this decision on its employees but will continue to drive the internal integration of services and operations as part of the merger process". ®

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