Alcoa, the world's leading producer of aluminum and alumina, plans to outsource 130 jobs, including about 70 IT positions, to an India-based services provider as part of a move to reduce costs.
Outsourcing and India: Complete Coverage
The jobs will move to India over the next 12 to 18 months because they can be performed more efficiently outside, Alcoa said. When completed, the outsourcing will reduce Alcoa's regional work force by approximately 6 per cent, according to Pittsburgh Post-Gazette.
Headquartered in Pittsburgh, Pennsylvania, Alcoa is a $21 billion global company, with more than 480 operating locations in 41 countries.
The transition will result in the elimination of an equal number of positions from the Pittsburgh-based company's North American data centre in Upper Burrell and a business service centre in the region.
Employees were informed of the decision last week in an e-mailed note from Rudolph Huber, vice president of Global Business Services and chief information officer, and Russell Porter Jr., who manages the affected functions in the region, Pittsburgh Post-Gazette reported.
The decision was made after Alcoa completed a study on outsourcing.
A "vast majority" of the affected jobs are already outsourced and are currently being performed by a US-based services provider, Kevin Lowrey, a spokesman for the company told the Computer World.
The only difference under the new arrangement is that the jobs will be handled by an offshore contractor instead of a domestic one, Lowrey said.
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