Auto parts maker Delphi to outsource 650 finance jobs to India’s Genpact
posted in Outsourcing News and Top Outsourcing deals |Source: www.Iht.com
Since it began its Chapter 11 reorganization in October 2005, it has announced plans to close or sell 21 of its 29 U.S. plants and has sought to cut wages and benefits. The company has persuaded about 20,000 of its 33,000 U.S. hourly workers to accept early retirement and buyout offers.
Delphi said it will spend up to $220 million (€165 million) — including payments to Genpact — by shifting work to the Indian company. Still, Delphi said it expected to save $150 million (€112 million) over the term of the contract.
The shift, Delphi said, also will allow the company to “improve productivity over time by reducing the number and type of unique, non-common systems” and building a “streamlined shared-service organization.”
Piccinin said outsourcing-related layoffs will begin after a judge approves the Genpact deal. U.S. Bankruptcy Judge Robert Drain, who is overseeing Delphi’s Chapter 11 reorganization, is scheduled to consider the matter at an April 20 court hearing.
Genpact provides information-technology services to customers in several industries, including the automotive industry, according to its Web site. It employs more than 27,000 people who deliver services from 26 operations centers in India, China, Hungary, Romania, Spain, the Netherlands, Mexico, the Philippines, the U.K. and the United States.
