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Tesco

Tesco, a major UK-based retailer, plans to shift hundreds of jobs in central European operations to its technology support center in Bangalore, India called Tesco Hindustan Service Centre (THSC). This will help Tesco lower costs and gain a competitive advantage over rivals. THSC currently employs 4,500 people providing IT, finance, and other business services supporting Tesco stores globally. The new jobs will focus on supporting Tesco markets in countries like Poland, Denmark, and Hungary.

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441 views

Tesco

Tesco, a major UK-based retailer, plans to shift hundreds of jobs in central European operations to its technology support center in Bangalore, India called Tesco Hindustan Service Centre (THSC). This will help Tesco lower costs and gain a competitive advantage over rivals. THSC currently employs 4,500 people providing IT, finance, and other business services supporting Tesco stores globally. The new jobs will focus on supporting Tesco markets in countries like Poland, Denmark, and Hungary.

Uploaded by

Subhasree Panda
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Assignment

on

International Human Resource Management

“Tesco shifts more jobs to india”

Submitted to: Submitted by:

Capt. A. Nagaraj Subbarao group „8‟


INTRODUCTION

TESCO is a global grocery and general merchandising retailer headquartered in Cheshunt,


United Kingdom. It is the third-largest retailer in the world measured by revenues (after Wal-
Mart and Carrefour) and the second-largest measured by profits (after Wal-Mart). It has
stores in 14 countries across Asia, Europe and North America and is the grocery market
leader in the UK.

TESCO IN INDIA

Tesco Hindustan Service Centre (THSC) is a Bangalore, India-based shared services centre
for Tesco and is the global services arm for Tesco worldwide. It functions as the pulse for the
Tesco group‚ providing key business services for Tesco operations globally. The global
service operations of Tesco HSC are involved in creating and executing strategic initiatives
for Tesco retail stores worldwide. These strategic initiatives cover the IT, Business, Financial
and Commercial aspects, among others, of Tesco operations. The operations cover all internal
and external platforms that drive Tesco’s business, making it one of the world’s most
preferred retail stores.

Tesco is the first major international retailer to have a fully-owned support centre in India.

INTRODUCTION TO TOPIC

“Tesco plans to shift more jobs to its Bangalore unit in India”

TESCO plans to move hundreds of jobs to support its central European operations to India.
The jobs will be shifted to its captive unit in Bangalore, Tesco Hindustan Service Centre
(THSC). It will help the company save costs and gain competitive edge over rivals. The
THSC carries out a host of technology and business-intensive projects to enhance the
operations of the UK-based retail chain's stores worldwide. The centre, which was
established in 2004 and has around 4,500 employees at present, provides IT services, finance,
accounting, design, research and analytics services and processes the payrolls of thousands of
Tesco employees globally.

One of the most successful captive stories in India, THSC handles a majority of Tesco's IT
needs globally. While it supports the company's businesses in several geographies, the main
markets for which THSC provides services are the UK, Ireland and US. THSC will now take
on the additional responsibilities of countries in central Europe like Polland, Denmark and
Hungary etc.

REASONS FOR JOB SHIFTS

Some of the reasons behind TESCO’s shifting their jobs to India can be:-

1. Cost Advantage
2. Competitive Advantage over rivals like Target, Wal-Mart, etc.
3. Stable Political Conditions
4. High Skilled Labour
5. Employees in Europe will have the option of getting retrained to work in other
locations or join other part of the businesses
6. Increasing global competition
7. So that they can concentrate on other tasks which are necessary for the expansion in
other countries
8. Low constraints imposed by the host-government

STAFFING APPROACH

TESCO has implemented polycentric approach of staffing in India. However, expatriates visit
the subsidiary time to time in order to meet the requirements of the headquarters.

Role of an expatriate in this situation:

1. They have the responsibility of describing the details of the work to be done.
2. Routine monitoring of the work progress.
3. Align the organizational needs with the subsidiary.
4. Guide the team in order to achieve their goals.
5. Provide technical assistance if required.
6. To clarify doubts, if any happens during the work process.
7. Transfer of competence and knowledge, between the headquarters and the centre in
India.
8. Management development
ISSUES FOR TESCO IN TERMS OF IHRM

While shifting the jobs to India, TESCO has to take care of the following issues:

1. Recruitment: As TESCO is going to expand its business in other countries they


require more people for their functional support. They need to recruit more people for
their IT assistance. In Bangalore they have currently about 2500 employee strength.
These people are developing software which is necessary to run the retail functions of
the company. Now, they need more people who can concentrate on the markets such
as Polland, Denmark, Hungary, Central Europe, etc., where company wants to expand
its markets.

2. Maintaining core values of the company: This has always been a challenging task
for the global companies to maintain their core culture and values. Even though this
is not so important in this scenario, as TESCO is not in retail business in India, THSC
is the global services arm for TESCO worldwide. Even then also they need to
maintain the reputation of their firm. Any problems with the subsidiary in India can
lead to problems in their global businesses.

3. Aligning the actual requirements with the subsidiary: HR manager needs to


clearly define the job specifications and details. The employees are from the host
country where the company is not in its core business i.e., retail business. Therefore,
company needs to clearly mention their goals and mission to the employees. Unless,
they are clear what they have to do and what is going to be the end use of the software
which they are developing, it will be very difficult for them to meet the actual
requirements.

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