Hilton to outsource 36 technology jobs: More reductions expected in call, data centers

Hilton Worldwide notified 36 information technology workers at its Memphis data center this week that their jobs would be outsourced this fall.

The reduction is part of a chainwide plan to farm out certain I.T. functions under previously announced agreements with technology giants IBM and AT&T.

Hilton filed notice with the Tennessee Department of Labor and Workforce Development of plans for a downsizing effective Sept. 30, department spokesman Jeff Hentschel said.

The company informed affected employees Wednesday, said Hilton spokeswoman Tracey Moss.

More reductions are expected in the ranks of call center or data center workers, but Moss said it's too early to tell how many.

"These decisions are now in the hands of our suppliers who manage those work streams," she said. "Until that knowledge transfer has happened, we don't know the impact. We are extremely dedicated to finding them jobs within Hilton Worldwide or within those partners."

Hilton's Memphis operations center supports 10 major brands with more than 3,500 hotels in 81 countries. Memphis gained jobs last year when Hilton Worldwide relocated corporate headquarters from Beverly Hills to Virginia.

Hilton Garden Inn joined other Memphis-based brands, Homewood Suites, Hilton Garden Inn, Hampton Inn & Suites and Home2 Suites; remaining brands are based in McLean, Va.

Updated figures on Hilton's Memphis work force and I.T. presence weren't available, but Moss estimated total employment at 950 to 1,000 people. Four years ago the company pegged its Memphis I.T. work force at 553 people.

"Hilton Worldwide remains committed to the Memphis offices," Moss said.

Hilton and IBM announced in April IBM would handle data center management and monitoring, e-mail, Web hosting and central guest reservation system.

Two weeks ago, Hilton reported a deal for AT&T to provide Wi-Fi and Internet services, including Hilton's "Stay Connected" high-speed Internet service for guests.

Company officials said the partnerships were aimed at work that's outside Hilton's core competency of hotel development and operations.

Moss said it probably would be January before the transition is completed.

The reduction notice came as Hilton officials celebrated Memphis-based brands winning top rankings in J.D. Powers & Associates' customer satisfaction survey. Homewood Suites led extended-stay hotels, and Hilton Garden Inn took first among mid-scale full service hotels.

Hotel industry consultant Chuck Pinkowski of Pinkowski & Co. said some hotel chains have moved call centers off-shore and been unhappy with the results.

It's unclear whether Hilton's current outsourcing would push jobs to other countries.

"There have been problems with that outsourcing," Pinkowski said. "A lot of times you get people you can't understand. I think some of the companies have brought that function back to the United States."

--Wayne Risher: 529-2874

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