But using skype is a pain and its also not secure so I had to find a way to fix it. Finally I found that you can start pidgin in debug mode using
pidgin -d > ~/debug.log 2>&1
then I tailed the logs and immediately I saw
17:44:44) account: Connecting to account firstname.lastname@example.org/.
> (17:44:44) connection: Connecting. gc = 0x1fc9ae0
> (17:44:44) dnssrv: querying SRV record for mycompany.com: _xmpp-client._tcp.mycompany.com
> (17:44:44) dnssrv: found 1 SRV entries
> (17:44:44) dns: DNS query for '127.0.0.1' queued
> (17:44:44) dnsquery: IP resolved for 127.0.0.1
doing a dig on record shows it was correct
dig +short SRV _xmpp-client._tcp.mycompany.com
10 0 5222 mycompany-im.mycompany.com.
so I was puzzled
finally I saw that my proxy setting in pidgin was some how Gnome proxy. Changing it to no proxy fixed it. See screenshot.
I would have never tried to dig deep and load pidgin in debug mode but I was desperate to fix jabber client and had no other option. Today I learn a lesson that if you are desperate then you could venture into exploring even uninteresting things.