By George Anderson
Meijer has decided to outsource 131 jobs, with 81 information technology positions going to a firm in India and 50 call center jobs going to a contractor in Boston.
The company said the decision to outsource the jobs was necessary to keep it competitive.
According to a report in The Grand Rapids Press, the 81 IT jobs eliminated included 55 contract workers and 26 employees. The 26 Meijer employees will be offered jobs in the company and will receive a severance package if they choose to seek other opportunities.
Meijer spokesperson Judith Clark said the company is outsourcing the IT work to Infosys Technologies Ltd. out of Bangalore, India. The company counts Food Lion and Hannaford Bros. among its U.S. clients.
"This work will be offshore, but Infosys will develop and support the technology needs for the stores and the company," she said.
The retailer's call center jobs are going to National Telecommuting Institute Inc. (NTI), which employs people with disabilities to work part-time at home. The company includes the Home Shopping Network, Staples and The GAP as clients.
"A lot of companies are doing similar things, and this is a little bit of a cultural shift for the Meijer family," said Ms Clark. "But this will be good for our company and bring solid cost savings to Meijer and keeps us competitive in our pricing."
Moderator's Comment: Is there a set of Best Practices that retailers considering outsourcing should follow to make sure the transition and eventual shift go as seamlessly as possible? Are there other functions outside of IT and call centers that retailers should consider outsourcing if they are looking to reduce costs or, in other ways, improve performance? - George Anderson - Moderator