TCS's exit from Lucknow to dent CM Adityanath's 'Brand UP' mission

IT major is in the process of consolidating its operations in Uttar Pradesh

Within days of the Yogi Adityanath cabinet approving the new industrial policy for Uttar Pradesh, the information technology major Tata Consultancy Services (TCS) has declared that it would wind up operations of its Lucknow unit. The news of the IT major’s exit could well deal a severe blow to the Adityanath-led state government that is trying to promote ‘Brand UP’.    

The UP government had, on July 4, cleared the state’s new industrial policy aimed at achieving industrial in economic development in the region. As part of its efforts for improving its credentials on these two aspects, the state government has lined up a series of policy measures that would pave the way for various industries, including the textile, IT and pharmaceutical sectors to grow in UP.  

However, the recent of TCS is going to cast a shadow on the UP government’s efforts to attract investments in regions beyond Noida and Greater Noida in the state. The walkout is also likely to dent plans of increasing investment for various IT project in Tier-II and Tier-III towns.

At present, the Lucknow unit, which has been operating on rented premises for the past ten years, employs around 2,000 people working as engineers and support staff.
 

TCS, on its part, has responded by saying that the exit is part of its efforts aimed at consolidating its business by shifting operations to other units in Noida and Indore, among others.  

Meanwhile, workers remain anxious over job losses in the wake of automation and the increased preference of Artificial Intelligence (AI), cloud services on the part of the IT firms. Relocation, thus, adds to their woes as this would entail job losses for many who would choose to stay back in Lucknow. 

The company has asked its engineers, working at the unit, to complete their projects by October so that operations could be stopped in December, which when the lease expires.

TCS, which has been functioning in the state capital for the last almost 33 years, was among the first home-grown IT majors to set a footprint in the state.

A delegation of TCS employees has already met CM Adityanath on two occasion so far. Workers have urged the CM to intervene in the matter and reverse the management’s decision of winding up its Lucknow unit.

TCS employees have also been posting developments across several social media platforms to garner support to their cause and campaign titled-‘Save TCS Lucknow’.

CM Adityanath has assured TCS workers that he would speak with the company’s management to resolve the issue.