Falling PC sales forced Dell to shutter tech support centre at Mohali

Venkatesh Ganesh Bangalore | Updated on June 03, 2014

Decision will impact around 900 employees; move causes uncertainty over relocation

PC maker Dell’s decision to shut down its technical support centre at Mohali was largely based on falling employee productivity as a result of slowdown in PC sales coupled with an increasing shift to non-PC business.

Last week, Dell said that it is shutting down its contact centre in Mohali, which used to offer technical and computer-related assistance to US customers. The company said it will transfer the customer support operations to its other support sites located in Hyderabad, Bangalore and Gurgaon. An email sent to around 900 employees on May 9 asking them whether they were ready to relocate to company facilities in other regions has apparently not gone down well with many of them. Employees are unhappy that there has been no communication leading up to this development. Following the announcement, no additional information has been communicated. “There is no clarity from the management on what would be the relocation package offered for us to move and hence we cannot make a decision,” said an employee who cannot be named as he is not authorised to talk to the press.


When contacted, a Dell spokesperson said: “As the company continues to evolve we consistently review and study our operations in an effort to remain competitive, improve our efficiency and most importantly determine where we can add the most value to customers.”

On the issue of compensation or severance package that would be offered, the Dell spokesperson did not comment but said the company will support the employees as per its relocation guidelines. “The email we received is not saying what’s on the table,” said another aggrieved employee, adding that it merely stated that it will offer a severance package for those team members who are in good standing and continue to work at the Mohali site until the ramp down is completed. A Dell spokesperson added that after careful evaluation, if employees chose to leave, the company would offer them a golden handshake . A Dell executive separately told Business Line that falling employee productivity over the last 18 months had prompted the management to shut down this centre.

Industry watchers believe that the fall in productivity was a result of continued sluggishness in Dell’s PC business, coupled with a change in strategy of focussing more on non-PC business, which is changing the company’s employee needs. According to Gartner, worldwide PC shipments totalled 82.6 million units in the fourth quarter of 2013, a 6.9 per cent decline from the fourth quarter of 2012, with Dell lagging rivals Lenovo and H-P.

Published on June 03, 2014

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