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July 22, 2011 -- Telstra will push ahead with cost-saving initiatives under its Project New efficiency program, which could include further outsourcing after yesterday agreeing to send almost 300 jobs to India.

Telstra broke the news to staff that about 160 of its own employees as well as more than a hundred agency providers would have their tasks taken over by workers from two Indian-based IT services suppliers.

Its understood the tender has been given to Tata Consulting Services (TCS) and IBM India.

The telecoms provider has had a tender in the market for at least nine months for third-party service providers to supply administrative functions such as capital expenditure accounting and account activation.

"As a result of a long-standing tender, some administrative back of house functions are proposed to be performed by industry partners based overseas," a Telstra spokesman said.

"This would affect a number of Telstra employees and the workload of current industry partners, who currently perform the functions."

Telstra will discuss the outsourcing proposal with unions before proceeding with the job cuts and it is believed the telco may try to find other positions for some of the workers.

"We regret that employees may be affected by these proposed changes and if the proposal goes ahead we will do all we can to minimise this impact," the spokesman said.

Under Sol Trujillo, Telstra undertook an aggressive restructuring program to slash 12,000 jobs over five years.

While the telco no longer has a publicised target of staff cuts, it is understood that the Project New program has a wide mandate to examine each section of the company to find ways to lower costs.

It was reported this year the company had contemplated cutting as many as 1200 positions as part of a rationalisation of back-office IT functions.

Telstra recently underwent a major senior management reshuffle and some industry observers speculated that could trigger a further wave of staff restructuring given the consolidation of some divisions within the telecoms provider.

Under the widespread management reshuffle that will take effect from next month, Telstra will unify all of its sales and retail customer service workforce into a single business, which will make it the largest division in the company.

The restructure, which was made in expectation of the group's imminent separation of its retail and wholesale divisions under the federal government's National Broadband Network plan, will prioritise customer service staff which indicates more administrative functions could be outsourced.

Posted by Veronica Silva Cusi, news correspondent
Source: http://www.theaustralian.com.au

About Telstra:
Telstra Incorporated is a global provider of advanced communications services to multinational corporations.