NEW DELHI: IT services firm Perot Systems has retrenched 100 employees in India, a move seen as part of the companyâ€™s recently-announced initiative to cut 650 jobs globally. However, Perot India officials termed it as a regular measure to get rid of poor performers.
Announcing its third quarter earnings two weeks ago, Plano, Texas-headquartered Perot Systems Corporation, had said that it would cut 650 jobs globally to lower costs. The company had reported lower-than-expected Q3 results and said its contract with Triad Hospitals, which generated $20million revenue in the quarter, was being terminated as the healthcare company had been acquired by Community Health Systems.
Perot had announced that the job cuts, amounting to about 3% of its over 22,000 workforce, would not come solely from the employees working on the Triad Hospitals contract.
The Perot Systems India spokesperson confirmed that the company is retrenching 100 employees. â€œThis is not about job cuts but operational efficiency. As we want to retain top performers, we want to get rid of performers at the bottom. This is not related to the global retrenchment,â€ he said. The retrenchment would be carried out over three months, the spokesperson added.
Perot Systems Corporation provides solutions to clients in healthcare, insurance, commercial and public sectors. It reported revenue of $2.3 billion in 2006. It currently has about 7,500 employees in India across four centres in Bangalore, Pune, Chennai and Coimbatore. The company offers its complete portfolio of business process solutions, consulting & applications, and infrastructure services from its India facilities.
Perot entered the India market through a 50:50 JV with HCL Technologies called HCL Perot Systems (HPS) that was formed in 1996 with a combined capital investment of $4.5 million. In 2003, it purchased HCLâ€™s stake in HPS for a gross purchase price of about $105 million in cash.
Early this year, PC maker Dell announced that it would retrench about 8,800 employees, or about one out of ten employees, globally. CEO Michael Dell termed it as â€œcritical to our ability to deliver unprecedented value to our customers now and in the futureâ€.