Godrej inks outsourcing deal with HP, shifts IT staff

Godrej Industries Limited (GIL), the flagship company of the Godrej Group, has shifted its entire information technology staff to Hewlett Packard (HP), India.

Godrej Industries Limited (GIL), the flagship company of the Godrej Group, has shifted its entire information technology staff to Hewlett Packard (HP), India.

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The move is a part of the outsourcing deal that GIL has signed with HP, for its in-house IT operations. “The IT workforce of GIL have been transferred to HP, and operations have been outsourced to the company. We have not laid anyone off,” said Adi Godrej, chairman of GIL. He declined to give the size of the deal.

Industry sources pointed out that the company would make a significant saving with this deal. Earlier this year, the Future Group had inked a similar deal worth about $150 million (Rs 741.1 crore) with Wipro under which more than 250 employees of Pantaloon Retail were moved to the IT company. GIL and HP have announced a partnership for comprehensive, strategic IT outsourcing and transformation project that would include infrastructure solutions, SAP application services, consulting and outsourced services, Godrej said. Not mentioning the number of people shifted due to the arrangement, he said that the number of employees is small, since they were part of the maintenance team.

The staff would now cease to be on GIL’s payroll and will be working with HP India’s instead.