To print: Click here or Select File and then Print from your browser's menu

This story was printed from silicon.com, located at http://www.silicon.com/

Story URL: http://services.silicon.com/offshoring/0,3800004877,39150441,00.htm

BG reshuffle could see 2,000 jobs go to India
Centrica unit may face strike action

By Tony Hallett

Published: Thursday 01 January 1970

British Gas, a division of Centrica, is cutting back on office staff numbers and proposing outsourcing - including some offshoring to India - after the closure of four sites in the north of England.

BG has said it is investing £430m in improved computer systems and in a statement said that "after due diligence and consideration of alternatives, it is now proposed that roles be transferred to India" though there will be "no impact on jobs this year".

The moving of work to India will not affect front-line, customer-facing positions, BG said. It employs around 26,000 staff in the UK at present and will recruit 2,500 service engineers, sales and customer service staff at the same time as it cuts the jobs.

Union Unison has said it will fight the cuts. Strike action has been mentioned as a possible course of action.

A long-running dispute over IT outsourcing by Bradford Council to an IBM-led consortium was finally settled last week. Unions had threatened action over that deal and now experts are calling for greater collaboration between them and employers.

Rory Murphy, director of human resources (HR) sourcing at Morgan Chambers, said: "HR decisions are coming more and more to the fore now in offshoring and outsourcing.

"If companies don't talk to their staff at a very early stage then the whole reason to outsource is undermined."

His advice is for talks to take place early and often and for all sides to "expend enough time to do them properly".

The National Outsourcing Association said in a statement: "The fact that the unions are up in arms about BG's decision signifies that the energy giant may have had problems liaising and negotiating with union officials."

It too pointed to the need for good communication and said offshoring can be good for customers and the strength of the British economy.