Infosys, TCS bag IT contract from US-based utilities firm
Northeast Utilities, which operates New England's (in the northeastern corner of the US) largest utility system serving over 3.6 million electric and natural gas customers in Connecticut, Massachusetts and New Hampshire, plans to cut 200 jobs over the next six months as it seeks to reduce costs.
"Northeast Utilities is eliminating 200 jobs from its IT department, which has a strength of about 400, and over 40 of these jobs will shift overseas to Infosys and TCS," the source said.
Financial details about the deal were not immediately available.
When contacted, a Infosys spokesperson said: "We do not comment on client engagements."
TCS declined to comment on the matter, saying the company is in its silent period ahead of its second quarter results.
Meanwhile, Northeast Utilities Executive Vice President and Chief Administrative Officer David McHale in a conference call said the utility will cut 200 positions of the total 400 IT-department jobs. Of the jobs being eliminated, 40 will continue working for two partner companies based overseas.
At present, 70 per cent of the total IT workforce of the US firm is based in Connecticut.Shares of TCS rose by over 4 per cent and Infosys inched by around one per cent on the BSE today.
Last week, Infosys and software giant IBM won a 300 million euro (about Rs 2,535 crore) contract to develop the computer system for the UK-based bank Williams & Glyn's.
The bank (Williams & Glyn's), which was dormant for about 30 years, is being revived by UK-based lender the Royal Bank of Scotland Group Plc (RBSG). The bank is part of the RBS Group and is scheduled to launch operations by 2015.