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Telstra plans to outsource 170 cloud jobs to India

Ericsson is investing in cloud

Australian operator Telstra has announced plans to outsource 170 jobs from its cloud services division to India. The jobs will be primarily moved from the firm’s profitable and growing Network Applications and Services division, and will affect IT and resource management staff.

According to the Community and Public Sector Union (CPSU), the cuts represent a seven per cent reduction in the workforce and will impact staff in most capital cities. Teresa Davison, spokeswoman for the union, said staff are deeply upset, and claimed that customer service will be affected by outsourcing to India.

“This is another slap in the face for hard-working Telstra staff and their customers,” she said. “We have sought more information from management and are urging the company to do everything they can to hang on to talented and dedicated staff. Staff are struggling to understand the business reasons behind offshoring such a profitable and growing part of the company.”

Telstra’s head of Network Applications and Services divisions, David Burns, told local press that the move will enable the operator to expand.

“This is about growth, this is about supporting our clients as they move offshore and supporting our international clients in those markets,” Burns said, according to The Australian.

“We want to be able to support that strategy. We need to be able to scale quickly, we need to be able to meet demand, we need to be able to support our customers as they move into that South East Asian region and we need to be competitive as we do that.”

The CPSU estimates that Telstra now employs more than 4,000 staff offshore, through industry partners.

“There have been 900 job cuts so far this year – and its only July. With a major restructure underway in Telstra Operations, staff fear this figure could easily double,’ said Davison. “We knew Telstra was setting up a contact centre in the Philippines. Now they have announced the launch of the Global Delivery Centre in India. Is there such a thing as a secure Telstra job in Australia anymore?”


One comment

  1. Mimi 10/07/2013 @ 12:38 am

    Only a matter of time before security is breached big time in the Cloud and offshoring wont be so attractive then. Do we really want our personal information offsite? In the hands of who knows? I don’t.

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