Pacific Gas and Electric Co. is cutting some 70 IT jobs and sending them to a contractor based in India. This kind of outsourcing has become commonplace in the IT industry. It has been criticized for years, and there is a lot of talk in Washington, D.C., these days about how to slow it down.
PG&E is sending the jobs overseas as part of a larger restructuring plan to cut costs. The San Francisco Business Times first reported on how the offshoring of jobs to India fits into the plan.
“The focus is really on doing the right thing for our customers and the right thing for the business over the long term. That’s what this is about, and it’s what drove the decision,” PG&E spokesman Brian Hertzog said.
PG&E workers are training their replacements, some of whom are here in the U.S. on H-1B work visas. Hertzog says the jobs are related to older IT applications that PG&E wants to phase out. The H-1B workers are going to learn the ropes for the IT jobs and then send those tasks to workers in India who are far cheaper.