Two HCL clients clash
By Shalini Singh

By any standards of the world, Indian tech major HCL is a successful company.  HCL was launched in 1976 and successfully overcame a number of obstacles in the pre PM Singh liberalization era to grow from strength to strength.  Today, it employs 62,000 professionals in 26 countries looking after many blue chip clients. HCL announced revenue of $915 Million in the last Quarter.

On May 30, 2011, I had reported on how British media group Guardian had outsourced their tech support to HCL. (Article republished below).

Yesterday, (July 10, 2011) was the last working day for iconic British tabloid News of the World.  It was shut down as some of its rogue journalists indulged in criminal activity by hacking into murder victim’s phones as well as the families of British soldiers who had died fighting for their country. If there was one media group that could be credited by bringing down News of the World, it was British media group Guardian.  The Guardian led the attacks on News of the World and other organizations like BBC then picked up the story.

In a twist of fate, HCL provides tech support to both News of the World (and its parent News Corp) as well as the Guardian whose relentless exposes brought down News of the World.

And HCL has been caught up in the public outrage against its client News of the World (and its parent News Corp).  In British Parliament, under privilege, Labour MP Mr. Watson claimed that News Corp had forced HCL to destroy incriminating email data in its outsourced servers located at Chennai.

HCL has released a statement that it ‘did not and has not stored any such data anywhere in the world’ and that they are cooperating with the British police.

The Guardian articles that brought down News of the World can be accessed at this link.

(Techgoss had published the following on May 30, 2011)

HCL: Employees first Union later
By Shalini Singh

By any standards of the world, Indian tech major HCL is a successful company.  HCL was launched in 1976 and successfully overcame a number of obstacles in the pre PM Singh liberalization era to grow from strength to strength.  Today, it employs 62,000 professionals in 26 countries looking after many blue chip clients. HCL announced revenue of $915 Million in the last Quarter.

In the last Quarter, HCL revenues of $915 Million were up 33.5% YoY, Net Income rose 16.5%. Americas Business Grew by 21.8% YoY in Q3 '11

HCL has a policy of Employees First.  And if the following information is anything to go by, the policy may also include Unions after six months.  The following email doing the rounds of Unions in United Kingdom and India gives details of how HCL now works with an official union in UK

“
The board of Guardian News Media Ltd (GNM), publisher of the Guardian, the Observer and guardian.co.uk, met on Thursday July 22, 2010, to decide the fate of staff in its Technology Enterprise Department. At stake were the futures of many of the staff but also, we believe, GNM's employment strategy.

Management has spent the last year concocting a plan to outsource a large part of Technology. By May, 2010, they had whittled a list of eleven possible outsourcing companies down to one – HCL.

They were looking at three options: A) to outsource to HCL B) to cut 25% of the staff and C).An unspecified third solution. Of 82 jobs about 30 would remain with GNM, just over 20 would transfer to HCL in Kings Place and another 30 would be offshored to India. GNM are offering enhanced redundancy terms as an alternative to transferring under TUPE regulations. Many staff with long service would leave rather than transfer to a company they didn't chose to work for. Others won't get the choice if their jobs go overseas. The Guardian media group faced a huge loss of experience, knowledge and dedication.

On July 22, the board voted for the third option. This was essentially a climb down from the original outsourcing proposal due to pressure throughout the business, not least from Unite and the NUJ.

The current proposal is to retain most of the support teams involved in managing the website and getting the paper out – second line support, production support and web systems. A couple of other individuals would also remain with GNM. The service desk would no longer be moved off shore but would be outsourced. And a couple of others would be outsourced but kept in the building. The remainder of the staff who were considered in scope before would see their jobs moved to India.

It works out that five would have the option to transfer to HCL and 16 would have their jobs moved overseas. This is an improvement on the previous situation but the Chapel is still deeply worried about these 21 staff and about the prospect of HCL getting into the building.

HCL were very slow to meet with union, and it took six months to organise a proper meeting! – But finally on May 26, 2011 they met with Mike Eatwell Branch Secretary who did secure union recognition for "The Unite the Union chapel at the Guardian and Observer" staff.

UNITES India had a small contribution in working out this employee friendly deal

Now all the 82 are recognised by HCL as union members of The Unite the Union chapel at the Guardian and Observer. And HCL will work on day to day affairs with the Union.
“