Vodafone jobs 'at risk from outsourcing'
31-10-2006
by Silicon.com

Up to 120 IT workers could be made redundant as a result of Vodafone's recent decision to outsource application development and maintenance services.

According to a report in The Sunday Times, the jobs could be axed from Vodafone's Irish operations, with 100 back-office IT contractors and 20 permanent members of staff targeted.

Everything is still subject to negotiation. The newspaper, citing "sources", reports the 120 are not thought to be getting offered a transfer deal to either outsourcer.

Vodafone first announced the impending outsourcing deal in early October, with EDS and IBM selected as preferred suppliers.

While no figure was put on the deal, Vodafone has said it expects to save 25 percent to 30 percent as a result of the decision to outsource maintenance services and application development. It spent STG560 million on both last year.

Speaking when the deal was first announced, Vodafone said it would be concluded "in the coming weeks". However a spokeswoman for the operator today told silicon.com the contract has not yet been signed.

The spokeswoman added: "Everything is still subject to negotiation."

Jo Best writes for Silicon.com.

Reprinted with permission from Silicon.com