Jepsen, Katz, Hail Decision To Review NU\’s Controversial Outsourcing Of Information Technology Department

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The state Public Utilities Regulatory Authority agreed Thursday to conduct an official review of whether Northeast Utilities\’ decision to outsource half its information technology department will affect its response to storms and comply with its merger agreement with state officials.

Immediately, state Attorney General George Jepsen and Consumer Counsel Elin Swanson Katz  — who had called on the PURA to scrutinize the controversial plan — hailed the decision.

\”We\’re pleased that PURA has granted our request to open a proceeding to review the full effect that outsourcing information technology jobs at NU could have on the company\’s major storm readiness, response and communication as well as the company\’s compliance with the approved merger agreement,\” the two officials said in a statement. \”We believe this review is critically important, and we look forward to participating in this proceeding.\”

The Courant disclosed NU\’s outsourcing plans in September. The company plans to outsource work from its corporate IT department, which had 280 employees in Connecticut. Courant staff writer Brian Dowling has the full story here concerning Thursday\’s PURA announcement.

Dowling reports that a week ago, one of the two outsourcing firms involved in NU\’s plan, Infosys, agreed to pay the federal government $34 million to resolve allegations of misuse of temporary business visas, the largest fine ever paid in a visa case. NU, whose divisions include Connecticut Light & Power and Yankee Gas, had declined to comment on the settlement and the company\’s use of Infosys as an IT vendor.

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