Cognizant Technology Solutions has decided to close its near-shore operations in Limerick, Ireland, which at present employs 50 full time staffers.
The closure of Ireland operations will be carried out in a phased manner over the next one year. The firm's spokesperson said, the work at Ireland operations would be moved to the United States and India.
The firm had in June 2002 acquired the software development resources of a US-based diversified health and well-being enterprise in Ireland.
"The appreciation of 35 percent in the value of the Euro against the US dollar since the facility was acquired has substantially increased the costs of the operation, and has resulted in the company's decision to close it over the course of the next year. Approximately 50 employees will be affected. Cognizant will provide severance packages and outplacement services for all affected employees. All work efforts will be transferred from the facility to Cognizant's operations in North America and India," the company spokesperson added.
Commenting on the development, Francisco D'Souza, chief operating officer, Cognizant said, "We are disappointed that circumstances, in particular the Euro appreciation, have forced this action. Cognizant, nonetheless, remains committed to expanding its delivery capabilities in regions of the world that offer superior and plentiful talent at a competitive cost to serve our clients throughout North America, Europe and Asia."
According to the company executives the decision to close the facility is not expected to impact the company's previously offered guidance on business performance.
"In fact, from January until mid-May 2004, we have added over 1,900 professionals with the majority of them in India. We are well on track to achieve or exceed our target of adding at least 4,000 professionals this calendar year," said R Chandrasekaran, managing director, Cognizant.
Closing door
- Cognizant Technology had started the Ireland operations in June 2002.
- Currently, the outfit has 50 full-time employees.
- The unit's closure will be carried out in phases over the next one year.
- Decision not expected to impact the company's guidance on business performance.
