Leidos is joining Disney in outsourcing their IT staff to HCL. It was recently announced that Leidos (US defense contractor formerly known as SAIC) would be outsourcing the majority of the IT staff to HCL. Leidos has notified about 135 employees that they have entered into an agreement with HCL and would be outsourcing their IT staff effective December 1, 2015. A handful of key employees necessary for a smooth transition were retained and rebadged as HCL employees keeping their same pay and location, with the rest being offered the chance to interview for the positions that would be moved from Florida and other locations to Cary, NC. In addition to moving the positions to Cary, NC the newly created positions would be filled by less skilled employees paid at market rate which was estimated to be anywhere from a 20-40% reduction. The contract with Leidos is for 5 years with provisions for several extensions. Language in the contract states that rebadged employees are to be kept for a minimum of 24 months after which they will presumably be gently pushed out the door and replaced with cheaper replacements. Even though HCL is an Indian company, they have created a subsidiary HCL America which Leidos is using to maintain some type of compliance with ITAR and other regulations required to operate in the defense and health sectors.
With the news that Leidos is buying a portion of Lockheed Martin (ISGS) and that portion is along the IT/Cybersecurity/etc... venue... will Leidos reverse this policy or just layoff personnel acquired and replace them with HCL America personnel on their newly acquired contracts.