Xerox mulls HCL outsourcing deal

Xerox says it is considering outsourcing its global product engineering business to HCL Technologies, in a deal that may further consolidate the Indian software exporter's existing partnership with the global printer and copier company, reports The Wall Street Journal.

According to IT World, Bill McKee, a spokesman from Xerox, says some of the affected Xerox employees may see their jobs transferred to HCL, but how many will be affected is not known.

Xerox has “hundreds of employees” working in product engineering groups in California, New York, Oregon, the Netherlands and the UK, the spokesman adds.

McKee adds that all that's been revealed is that the company is “exploring a partnership with HCL.” It hasn't talked about layoffs, and it's too early to speculate on the impact on the work force.

But a Xerox employee who would be affected by the action and who spoke to ComputerWorld on condition of anonymity says the outsourcing agreement is being done to cut costs.

McKee notes that the HCL partnership is being explored “to help improve the efficiency and effectiveness of our global product engineering operation.

“We have great skills and talent in our organisation, yet we don't have the scale necessary to be a leader in all areas,” he says.