Colt - the UK-based telecoms group that provides communications services to businesses - is still shunting jobs overseas as it continues to cut costs.

By the end of the year 15 per cent of its workforce will be based in India taking headcount there to 450 while numbers in Europe will drop to 3,400.

Turnover for the three months to the end of September was up a smidgen to £311.8m compared to the same period last year although pre-tax losses fell over the same period from £35m to £19m.

Even though the telco recently won two major contracts with Commerzbank and Nomura, and a €9m hosting and managed services deal in Spain, the company is still cautious about the future.

"Conditions in the European telecoms markets continue to be challenging," said Colt chief exec Jean-Yves Charlier. ®