Telstra axes jobs in offshoring drive

Telstra rings in sweeping changes to its operations. Photo: Peter BraigTelstra has flagged it will cut up to 170 jobs as it shifts part of its back office operations to India, amid sweeping changes to the company’s operations.

It comes after a different announcement in May that it would reorganise its operational activities into five groups, three of which – Networks, IT Solutions and Customer Service Delivery – would be new.

It also said in May that those changes would affect about half of its 30,000 strong domestic workforce.But the job cuts announced today are part of a different restructure of operations.

Telstra staff were told of the potential cuts before the plan was made public.

David Burns, head of Telstra’s National Applications Services business, said the restructure and job cuts would affect its National Applications Services unit.

The NAS unit provides customers in government and business with ICT network-based products and services, including managed network services, security, cloud, and video conferencing services.

Mr Burns said the company’s current business model was inadequate and the offshoring needed to occur to promote domestic and international growth.

“Today we are announcing a proposal to establish global delivery centres with industry partners … in India to help us pursue international and growth aspirations for this [NAS] business,” Mr Burns said.

“Whilst no decision has been made to proceed as yet, our announcement today could affect existing Telstra employees,” he said.

If the decision goes ahead, up to 170 jobs would be offshored from October. It would take a period of six to 12 months to complete.

The roles would disappear from all major capital cities, including Hobart and Canberra.

The Indian jobs would in back office operations, including service operations, SLA reporting, business and infrastructure operations, and resource management.

Mr Burns said Telstra’s NAS business unit was identified as a “key growth” area for the telco, with the company having “some success” in its international strategy expanding through South East Asia, winning contracts such as Jetstar, Volvo, Fitness First and FedEx, he said.

It grew by 10.6 per cent in its last reportable period in December 2012, he said.

“So our need to expand our capability and support our growth in Asia is a need for now,” he said.

“We’re expecting to move those 170 roles across [to India], but what that becomes in the future based on growth and other opportunities I don’t have a number to share with you.”

He could not say where in India the jobs would be relocated to.

“We’ve just started to consult with our employees as of today,” he said.

The consultation period with Telstra employees and the union was expected take about three weeks.

Telstra share slipped 8 cents in the hours before the announcement, from $4.83 to $4.75.

They have since recovered slightly to $4.79.

The original release of this article first appeared on the website of Hangzhou Night Net.

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