180 jobs affected by P4U's IT outsourcing

August 27, 2008

Phones 4U outsources IT department to Indian firm Tata Consultancy Services

Phones 4U is outsourcing its IT department to Indian firm Tata Consultancy Services (TCS).

The move will mean the majority of Phones 4U's IT staff will, from October, work for TCS under the same employment terms and conditions.

The move comes alongside plans to restructure Phones 4U's head office compliance and audit departments, putting 60 places at risk of redundancy.

The retailer currently has 1,000 employees at its head office and 200 IT staff, of which 180 will be affected by the outsourcing.

A Phones 4U spokesperson said the cuts are not due to poor performance on the high street.

The spokesperson said: "The business is performing well, although it is difficult on the high street. Despite the tough retail environment, we are out performing the market and are satisfied with our performance.

"Our key reasons for outsourcing are to increase capacity, acquire better access to key skills and create a more flexible IT model. We've put a large investment in IT so we thought that by restructuring we would be more efficient. There will be a consultation in 30 to 60 days."