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More job losses on the way as Tata picks up Telstra back office

Hundreds to go in offshoring frenzy

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In a multi-year, $US50 million deal, Indian giant Tata Consultancy Services is to expand its footprint in Telstra’s back office processing.

According to The Hindu Business Line, the deal covers finance and accounting operations, and will replace more than 100 Telstra staff. A Telstra spokesperson contacted by the newspaper said as many as 160 of the company’s staff could be affected, as well as staff in the carriers’ current outsourcing providers.

The carrier has been aggressively expanding its outsourcing activities since last year, when it launched the so-called “Project New”, in a drive designed to save $AU40 million.

Earlier this year, the carrier launched an RFP to various outsourcing companies in India, including existing partners Tech Mahindra and Infosys.

If The Hindu Business Line report is accurate, then the new deal could also impact existing outsourcing suppliers such as IBM and HP (formerly through EDS). ®

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