Despite the ongoing backlash against offshore outsourcing, British companies keen to cut costs are continuing to outsource jobs to low-cost locations like India. Latest to join the bandwagon are banking major Abbey and insurance giant AXA.
While Abbey is moving 400 call centre jobs to India as part of a review to improve customer services and employee conditions, AXA plans to shift up to 230 British jobs to India.
Outsourcing and India: Complete Coverage
The French-owned AXA said 220 jobs would be axed at its general insurance sites in Morecambe and Darlington and 250 other posts would go through efficiency measures at other offices.
From October, Abbey's current account inquiries will be handled by the firm's new call centre in Bangalore, which opened last year. Abbey National Group Union said the transfer of jobs abroad is wrong for employees, customers and Britain.
General secretary Linda Rolph said, "There is an ongoing stampede of jobs leaving Britain like this and the government seems currently unable to stop it.
"This leaves us in an extremely difficult position as it seems only boycotting by the company's customers might change management's minds. But that could be damaging to the employment of our remaining members in Britain and so we would not encourage it."
Trade union Amicus said it was a fallacy that customer service would improve. Amicus national secretary for finance David Fleming said, "If businesses want to offshore then they should be up front about their motives, which are cutting costs not improving services.
"This puts more pressure on the Government to find a political solution to the trend for companies to export UK jobs." Abbey said it currently had more than 40 sites across Britain, and plans to move to fewer, larger centres offering better conditions and opportunities to employees and higher quality services to customers.
The changes are part of a review to plan work around five centres in Belfast, Bradford, Glasgow, Milton Keynes and Sheffield. Abbey said £25m would be invested in IT and training in these centres.
Chief executive Luqman Arnold said: "We have taken some tough business decisions today that are absolutely necessary to the health of Abbey's future and for giving our customers better service at a competitive price.
"We recognise that this will not be welcome news to the people affected, but we have also been able to take away uncertainty for others, and give reassurance that we are investing in our key locations.
"This is not just about cutting costs - it is about delivering excellent customer service and giving our people better tools to do their jobs, better training, better working environments and better career opportunities in our larger centres."
Since the review began last year, Abbey has already announced the closure of seven smaller sites and reduced duplication of activity across different buildings.
Meanwhile, AXA said it will no longer be actively promoting AXA Direct, the division that provides private motor insurance and other personal insurance policies although it will continue to accept new business and service existing customers.
The chief executive of AXA Insurance, Peter Hubbard, said, "We very much regret having to reduce the number of people who work with us. However, through natural attrition and re-deployment it is hoped that the need for any redundancies will be minimal."
The implications of off-shoring will be announced later in the year, but AXA said it was likely to account for up to 230 jobs.
Amicus regional officer Hugh Jones-Glass said, "Amicus is saddened by this news. The union has been fully consulted from the outset and we have worked with AXA to ensure that voluntary redundancies and natural wastage has been maximised to the fullest.
"This news should prompt the Government to enter into urgent talks to develop a strategy to maintain the service sector as a crucial source of employment for the UK."
More from rediff