Information technology major Tata Consultancy Services (TCS) has decided to close its operations in Lucknow and shift to Noida after 33 years in Uttar Pradesh’s capital city.
The company will shift most of its projects to Noida, close to the national capital, by this December. At least 2,000 employees, of whom 50% are women, are likely to be affected by the change.
Employees said the team leaders informed them on Wednesday about the company wrapping up operations at the Lucknow centre. They were reportedly asked to accept transfers or look for jobs elsewhere.
But the company said it would ensure the employees are accommodated in Noida or its centres across India.
“Rumours and reports are being circulated in the media about the company’s operations in Lucknow. TCS would like to clarify that it is only consolidating its UP operations in Noida and there will be no job loss as a consequence,” the company said in a statement on Thursday.
The TCS decision is a setback for the state government that has plans to turn Lucknow into northern India’s IT hub.
The government announced recently its industry policy to attract investment in UP and allocated Rs 40 crore in its annual budget for software education.
Many employees have written to Prime Minister Narendra Modi, Union information and technology minister Ravi Shankar Prasad, chief minister Yogi Adityanath and deputy chief minister Dinesh Sharma to persuade the company to stay in Lucknow.
According to a report, the lease of the building that houses the TCS office is set to expire next year and the company is reluctant to renew the contract.
Officials of Shalimar group, owners of the building, confirmed that the lease term is ending.