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Gov u-turn sinks EDS's Indian outsourcing plans

50 staff told to return to India

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Exclusive The Department for Work and Pensions (DWP) has told EDS to cancel plans to outsource government work to India.

The reversal means that 50 of EDS's Indian staff, who had been setting up the firm's Application Development, Applications Maintenance and Support (AMS) activities account, will be required to return to India as work is transferred back to UK-based staff.

An internal memo, seen by The Register, was sent out last week to EDS workers telling them of the sudden DWP decision.

It said: "The DWP informed us yesterday that it does not currently wish us to go ahead with the current plans for AMS Best Shore [off-shore] migrations."

According to the leaked memo, EDS had already made progress in shifting maintenance and support knowledge to locations in India:

"A very considerable amount of work has gone into preparing the Best Shore capability and migration plans across the account team. We shall ensure that where appropriate this work is re-used in the UK, to assist with other future opportunities."

The Register asked EDS why the DWP had changed its mind on outsourcing to India, but an EDS spokesman simply said that it was "company policy not to comment on leaked memos".

The memo also said that "whilst this decision was unexpected we remain committed to using Bestshore going forward to ensure we continue to provide value to the DWP. The DWP is supportive, and has committed to work with us to continue to identify further such opportunities."

The memo ends: "I would also especially like to thank our 50 or more colleagues from India who have been based in the UK away from friends and family for several months."

We've also requested comment from the DWP but it has yet to respond. ®

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