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October 1, 2013

NU to outsource 200 IT jobs

HBJ File Photo The Northeast Utilities office on Prospect Street in Hartford, one of the company's two headquarters. The other is in Boston.

Northeast Utilities plans to outsource half of its 400 information technology employees to companies based in India over the next six months, the company confirmed Tuesday.

The confirmation comes as rumors have intensified in the past few weeks of the company slashing its IT department as part of a restructuring following its $5 billion merger with NStar in April 2012.

NU will give roughly 200 of its IT jobs to India-based firms Infosys and Tata Consulting Services. Of those, about 40 will remain at NU facilities but rebadged as either Tate or Infosys employees, said NU spokeswoman Caroline Pretyman.

The outsourcing marries the contrasting two IT business models between NU and NStar. The Boston-based NStar was outsourcing most of its IT services while Hartford-based NU kept most of its IT services in-house. After the merger, the company examined the two philosophies for more than a year and decided on Tuesday’s announced model moving forward, Pretyman said.

About 75 percent of the 400 IT employees are in Connecticut, although NU doesn’t have a plan yet on how many to outsource from each location.

The company will offer an enhanced voluntary separate package to IT employees over the next month that includes pay above what the workers would get in a normal layoff scenario, Pretyman said.

After that month, NU will determine which 200 IT employees to keep, 40 to rebadged, and remaining to lay off, Pretyman said.

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