TCS to shut Lucknow office, shift operations to Noida
14 July 2017
Information technology major Tata Consultancy Services (TCS) has decided to close its office in Lucknow and shift operations to Noida, near capital New Delhi 33 after it set up an office in the Uttar Pradesh capital.
The company said it will shift most of its projects to Noida by December and redeploy its nearly 2,000 Lucknow employees, which include a1,000 women,
While the company said no jobs will be affected, apprehensive employees have asked the prime minister and state chief minister to intervene and have launched social media campaign against decision
There was no formal communication to the employees from the company, but the decision to close operations from the Lucknow office was communicated orally to team leaders.
''Vice-president Tez Bhatla visited the Lucknow office on Wednesday and informed team managers. That was the only formal communication,'' said a senior employee of the company.
Reports sad TCS failed to renegotiate a lease agreement of its present office at Awadh Park in the Gomti Nagar area of Lucknow, which could have prompted the company to move out.
''The 10-year lease expired in May but it was extended for another 11 months. The company could not agree to the new rent. The builder asked for much higher than the market rate,'' the report quoting a source said.
Employees say while they were aware of the lease problems at the present site, they were assured that there would be no shifting out of the city. Obviously, not all are ready to shift out of the city while some apprehend loss of job.
The employees have written to state chief minister Yogi Adityanath, Prime Minister Narendra Modi and union minister for information technology Ravi Shankar Prasad, requesting them to intervene. They have also launched a social media campaign such as #savetcslucknow# and #savetcsplease#.
''We have asked the PM and the CM to intervene. We don't know about the company's strategy, but if the decision is avoidable it should be taken back. We do not agree with this sudden decision. At a time when we talk of Digital India, the company is not thinking about its employees who have given all their years to it,'' said a TCS employee.
TCS said it was ''only consolidating its UP operations in Noida and there will be no job loss as a consequence,'' rather avoiding to specify reasons why it was not able to function out of Lucknow.
''There have been false rumours and reports being circulated in the media about the company's operations in Lucknow. TCS is working to ensure that employees get opportunities in Noida and other centres across India,'' the company said in a statement.
TCS CEO Rajesh Gopinathan, while Speaking at a function to announce the company's quarterly results in Mumbai, TCS CEO Rajesh Gopinath also clarified that ''there will be no layoffs.''
''We are committed to grow our business in UP and are consolidating operations in Noida,'' he said.
The TCS decision is seen a setback for the state government that has plans to turn Lucknow into northern India's IT hub.
The government announced recently its industry policy to attract investment in UP and allocated Rs40 crore in its annual budget for software education.
Officials of Shalimar group, owners of the building, meanwhile, confirmed that the lease term is ending in May next year. TCS hopes to shift out most operations by December this year.