The University of California at San Francisco announced on Tuesday it laid off 49 employees in its information technology (IT) department. At the same time, the university said it has outsourced the work of the 49 employees to a company with headquarters in India.
The announcement brought to an end a process of one year that has brought much criticism against the public school.
The university said the plan in July of last year would save more than $30 million during the next five years. The University of California educational system, which includes research and healthcare focused UCSF has struggled to increase revenue and to cut its expenses.
Outsourcing and globalization are currently controversial political issues across the U.S., as more companies cut costs through farming work out to workers that are paid less in areas all across the globe.
During his presidential campaign, President Trump campaigned with promises to restore jobs lost in the U.S. and penalize businesses that move their factories out of the country.
This is the first outsourcing done at the public university said a spokesperson who said the layoffs were needed because of the increasing costs of today’s technology.
As well as the 49 layoffs, 48 other positions that had been vacant or filled through contractors were also eliminated.
Last year, Dianne Feinstein a U.S. Senator from California said the university was responsible for keeping jobs in the U.S. and pledged to seek out reforms to stop local jobs from being outsourced.
One of the people who lost his job as a systems administrator said that the decision by the university would hurt its service for medical staff which relies on a secure and smoothly running computer network.
He added that the university was downgrading its services, which resulted in slapping the face of its customers. The administrator had worked in the Bay Area in IT for the past 25 years.
He said that his plans were to look for work, but is worried that the outsourcing of IT related services is becoming a growing trend.
UCSF last year entered into a contract of $50 million over the next five years with HCL Technologies, which is based in India, to do the IT work that the 49 employees as well as others had been doing prior to the outsourcing.