Northeast Utilities Said to Plan IT Outsourcing
Employees at Northeast Utilities say the Connecticut utility is planning to streamline its information technology department and outsource hundreds of positions, according to the Hartford Courant. While the company wouldn’t confirm whether outsourcing plans are on the table, workers claim that NU could eliminate most of its about 400 IT jobs in New England, including 281 in Connecticut. It’s still not clear how much outsourced work would be sent overseas or to domestic locations. Four employees, speaking with the Courant on the condition of anonymity, said they were told in company meetings that two Indian IT companies were already selected to take over the department’s functions. They also said some of the staff to be let go might be hired by an outside vendor. Responding to questions about possible outsourcing, NU Spokeswoman Caroline Pretyman told the Courant “We have not signed any contracts with any outside firms and are still evaluating next steps.” The company is trying to realize anticipated cost savings from its merger with Massachusetts-based NStar, a deal that closed in April 2012. “Like other companies, as we work to deliver a high level of service to our customers at the least cost, we are evaluating opportunities to streamline and improve IT functions,” Pretyman said. An agreement with state officials requires that job cuts related to the merger be made proportionally between Massachusetts and Connecticut. In 2012, NU faced criticism from Connecticut officials for not reporting job reductions related to the deal. Connecticut’s Attorney General and Consumer Counsel are looking for more answers after receiving close to a dozen complaints about the possible outsourcing plan.