After heralding a “continuing cognizance of our social responsibility” (i.e. more local employment) just a month ago (see HCL plays ‘local jobs’ theme as BPO losses mount), fifth-ranked India-based offshore services firm, HCL, is reported to be laying off 270 staff in Northern Ireland with another 155 jobs at risk. The so-called ‘rationalisation’ is a result of a downturn in HCL’s UK call centre business, partly due to clients bringing the work back in-house.
HCL has a decade-long history in Northern Ireland through its acquisition of BT’s call centres. HCL got a bit of a hammering in the media last April (see HCL feels NI call centre pain – but gets a gong!) over proposed cuts in pay and conditions at its call centres, apparently triggered by major clients – among which figure BT and Thames Water – demanding a better deal.
Our Business Process Services research director, John O’Brien, has written much on the trend for offshore call centres returning onshore (see Tide turning for offshore call centres), most recently evidenced by insurer Aviva (see Aviva brings back calls from WNS). If there was any possible positive outcome from HCL’s move, though, it might be to help reduce losses in HCL’s troubled BPO business, which hasn’t made a profit for over two years.