Cargill to outsource IT infra operations to TCS

Tags: Cargill, TCS, IT
US-based agro processing major Cargill will outsource some of its global IT operations to India's largest software services exporter Tata Consultancy Services (TCS).

The deal by the Minnesota (US)-headquartered firm with TCS will affect 900 jobs worldwide and the transition will be completed in the next 6-9 months.

"There are about 900 employees in our IT Infrastructure department worldwide. Of those employees, some will be retained by Cargill, some will be offered roles with TCS on Cargill account or other accounts, and some will transition out of the company in the next 6-9 months," Cargill Global Head of HR Communications (Corporate Affairs) Lena Michaud told PTI in an e-mail response.

When contacted, a spokesperson for Mumbai-headquartered TCS said: "We do not comment on client specific issues."

Explaining the rationale behind the move, Michaud said the firm has been reviewing its IT infrastructure services to determine whether it should be operated internally or choose a partner who could provide this capability globally that the company needs today and to support future growth.

Cargill informed the employees about its intention to move this work to TCS on Wednesday.

"We will begin a detailed transition planning process to determine when and how work will move to TCS. Once the plan is complete, we expect to spend about 8-9 months executing the transition. Employees will know their individual status by the end of May," she said.

Michaud further said: "We have been communicating openly with our employees about this possibility since last fall, and will continue to support them through the transition."

Employees who are not retained by Cargill or hired by TCS will be eligible for comprehensive outplacement and career development support, severance to lessen the financial impact and other transition benefits, she added.

Severance and other transition decisions affecting employees will be guided by country laws, Cargill policies and its standard processes with workers councils and unions worldwide, she said.

Founded in 1865, Cargill is one of the world's largest privately held company employing 142,000 people in 67 countries. The firm provides food, agriculture, financial and industrial products and services.

In fiscal year 2013 (June-May), Cargill posted sales and other revenues of $136.7 billion and earnings of $2.31 billion.

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