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Telstra denies report 1200 jobs to be outsourced

Confirms request for proposal issued as part of Project New restructure

Telecommunications incumbent Telstra (ASX: TLS) has refuted a report that up to 1200 back office jobs will be outsourced overseas as part of a restructuring proposal carried out under it renewal initiative, Project New.

The report, carried in the Australian Financial Review, claims an outsourcing request for proposal was issued this week for finance and accounting positions at the telco. It also claims that vendors such as IBM and HP Enterprise Services are intending to bid for the tender.

A Telstra spokeswoman confirmed that the company is in the market for a request for proposal process for some back of house services, but denied 1200 jobs would be outsourced, but would not comment on how many jobs may go.

“It is very early days and no decisions have been made," she told Computerworld Australia. "The RFP (request for proposal) is an initial step as part of Project New to test the market for some limited back of house functions in terms of what the possibilities could be.”

Telstra’s $290 million business which began last year, will see Telstra restructured around the same local management model employed at Telstra Country Wide in June 2010.

In October 2010, 950 executive and middle management roles were cut at several of Telstra’s capital city offices

At the time, Telstra chief executive David Thodey, said Project New was about simplifying the business and the company would restructure every part of it.

Telstra has previously denied reports a total of over 6000 jobs will be cut over the course of the next three years, but has remained uncertain as to exactly how many will go

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More about: Australian Financial Review, Australian Financial Review, Hewlett-Packard, HP, IBM, IBM Australia, Telstra
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