24 November 2006
A leading government contractor is planning the wholesale relocation of UK jobs to offshore centres – possibly putting hundreds of public sector roles at risk, Public Finance has discovered.
EDS, the giant US-based IT company, is planning to relocate 1,000 UK jobs to European and Indian offshore 'hubs' during 2007, documents obtained by PF reveal.
EDS employs 16,500 permanent UK staff across the public and private sectors and manages major contracts supporting the Department for Work and Pensions and the armed forces. It is not yet clear how many public sector jobs will be involved in the firm's reorganisation next year, although EDS this week confirmed that it is planning to move a substantial number of jobs to offshore centres. It also sought to allay concerns by committing itself to staff re-training programmes.
An EDS spokeswoman told PF: 'We can confirm that, in line with EDS' global strategy and industry dynamics, there may be changes to the way that we deliver some of our services.
'While some activities currently undertaken in the UK may move to alternative locations, a comprehensive programme of re-training and re-skilling will mean that the vast majority of EDS' UK workforce will continue to play a vital role in our success.'
Despite assurances over re-training, the initiative has raised fears among the company's public sector personnel.
Jim Hanson, a senior official at the Public and Commercial Services union, which represents around 1,500 EDS staff, said: 'I would be pretty shocked if sensitive public data went to an offshore centre. But, nonetheless, we have dealt with other contractors that have taken public work abroad, so we're seeking assurances from EDS that won't be the case with its new strategy.'
The PCS and Amicus, which represents many of EDS's private sector staff, are due to meet company executives next week to discuss the reorganisation. The unions want EDS to sign up to a European charter on the use of offshore centres (known as 'offshoring') and the company has committed itself to discussions on the issue.
The internal EDS documents obtained by PF show that the firm is planning the job relocations as part of its 'best shore' strategy for 2007. That programme will see the firm scale down its global offices to a smaller number of large 'hubs' in each continent.
Much of the UK work identified for relocation could be moved to two existing centres in Hungary or India, or to a new hub planned for Poland. EDS has already relocated public and private sector posts to offshore centres this year.
But the new documents, presented to a private seminar in Brussels this month, reveal that a major increase in offshoring is imminent. Hundreds of relocations are scheduled for the first half of 2007 – of 325 posts to be axed from one UK division next year, 280 are expected by the end of the second quarter.
PFnov2006
