Many organizations across the country are in the process of cost-cutting, and Canada Life is now one among the major players that are having to cut jobs and have opted to outsource to an Indian technology company headquartered in India.
Financial equations are at the core of the outsourcing process. India has a large pool of technological workforce and is also a hub to many leading technological companies, making it very cost-effective for companies that outsource their processes to other countries where labor costs are lower. This directly impacts ROI as well. The outsourcing of work is expected to be taken over by HCLTech, one of the leading technology organizations in India.
Technology has evolved so much over the past 2 to 3 years and is evolving at a faster pace than ever witnessed in the history of technology. In the environment of changing technologies, the demand for the skill set is also evolving, and due to the need for cutting costs and getting the work done at a lower cost, outsourcing becomes the most viable arrangement.
India, being a country with a large pool of technical workforce, who are aware of Canadian culture and are themselves educated in English. There are usually no linguistic hurdles, and businesses get to focus on essential aspects like attention to detail and innovation. Certain departments, such as networking operations and cloud, are expected to be outsourced, and the process of the transition is expected to be completed by July 5, according to reports.
A percentage of the staff will be laid off at Canada Life while those who continue in the organization in the affected departments are expected to be placed in other roles within Canada Life. Some employees may also be offered suitable positions in HCLTech according to reports.
In 2023, the tech sector industry on the whole had to lay off a large number of workers, and the present scenario of high-interest rates makes it harder for businesses to invest in new ventures projecting for expansion. It is not clear at this moment regarding the numbers on how many people will actually lose their jobs and how many people will be placed in other roles within Canada Life or in HCLTech.
Canada Life employed more than 11,700 staff, but at this point, there is no information released on how many people are actually being laid off or how many people have their roles prominent in information technology.
With such news looming in any organization, affected employees look for the opportunity to be rehired within the company. The news of the layoffs is definitely worrisome at the moment.
HCLTech, which is an established organization in India, employs upwards of 224,700 people and is established in nearly 60 countries, benefiting from its digital contributions and servicing around 10,000 clients. The company that began as a startup in 1976 has expanded into IT services, digital operations, cloud, artificial intelligence, cybersecurity, and other areas of technology. The organization is a great company that works with a variety of clients, and they have a wonderful reputation in the industry while working with clients from various sectors.
Outsourcing operations usually take place because of economic conditions; the process benefits the organization to see a better ROI. Besides the lower cost, outsourcing offers access to skilled workforce and timely deliveries to businesses. The result is usually increased efficiency and a better return on investment.
According to reports, Canada Life will retain and invest in the employees who will be moved to other areas in technology.
On the other hand, HCLTech is expected to create an office in Winnipeg, but details on this aspect are not completely available at this moment.
Eighty-five employees were laid off in the year 2020 in Canada Life when, at that time, a partnership took place with IntouchCX, which was at the time called 24-7 Intouch Solutions.
Canada Life as an organization is huge and manages nearly $145.3 billion in segregated funds and mutual funds according to the mention on their website as of 30th June 2023.