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May29
Capita to outsource 300 jobs to India, Union protests

Capita, a premier business services firm in Scotland has informed media that it is going to relocate more than 300 of its jobs to India. The company already circulated the notice among its staff, intimating that their jobs were at risk of redundancy. The company however, (seems like to manage the crisis and bad press) expressed confidence that many of the workers would be redeployed, and that their staff could apply for new jobs in the company.

BBC writes

The Unite union said it was angry that Capita would not give staff in Glasgow a firm commitment that there would be no compulsory job losses.


A spokeswoman for Capita said: "In January, Capita advised all 375 roles in the Wythall site would be relocated either to Glasgow, Mumbai or another Capita site.
"Further consideration has been given to the roles currently operating from the Glasgow site to create accommodation to accept the transferring work from Wythall.
Capita-Insurance-outsourcing-jobs

The average salary of those Capita employees impacted is between GBP15,000 - GBP16,000. The jobs are going to Mumbai, India.

 

I wonder what made Capita take this decision of outsourcing. Only this Tuesday it informed stock market in UK that it performed strongly in the first four months of the year and believes its prospects for the current year and thereafter remain strong.

The company said, ahead of its annual general meeting today, it secured 384 million pounds worth of contracts and renewals in the year to date and that its bid pipeline at Feb. 29 stood at 2.5 billion pounds.

Capita named Life & Pensions, Local Government and Insurance as its most active markets and said it remains encouraged by the progress of opportunities both in and just outside the bid pipeline. LInk

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