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News : Telkom Names Outsourcing Partners
Johannesburg, S. Africa, March 5, 2015 -- Telkom has named the companies it intends outsourcing various noncore operations to as part of a major restructuring programme it announced in mid-February.
WNS, Barloworld Logistics and Bidvest are among the companies that will take over aspects of Telkom’s business.
On 16 February, Telkom revealed plans to restructure its business, outsourcing noncore operations, rationalising its IT systems and closing retail stores. It said it hoped to improve cost efficiencies in its Telkom Direct stores, in its call centres and in respect of its legacy IT systems. It was also hoping to derive efficiencies by outsourcing its internal printing (including telephone directories), making improvements to supply chain management and reducing its vast property portfolio.
Telkom has decided to outsource its call centres to WNS Global Services South Africa, a business process outsourcing provider established in 2003.
"Telkom has completed a stringent procurement process and has identified WNS as its preferred partner to undertake its call centre operations," the telecommunications operator said on Thursday.
Barloworld Logistics has been identified to take over management of 25 Telkom warehouses in the supply chain area of the business, it said.
"It is proposed that the IT legacy systems will be managed by ASAJE, [while] Bidvest has been identified to take over internal printing services, and Ingram Micro the supply chain in the retail area of the business."
Telkom said that about 1 300 employees are affected by the outsourcing plan. They have already been notified of the company’s intention to engage with organised labour on the issue.
"Companies may initiate outsourcing processes under section 197 of the Labour Relations Act to transfer staff to another company. The law requires that affected staff are transferred with the same or better packages and benefits and no formal consultation with unions is required. Telkom has, however, sought to engage with labour on the outsourcing process," it said.
The company said it is committed to ensuring job losses are avoided.
Posted by Veronica Silva Cusi, news correspondent
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About Telkom South Africa:
Telkom SA SOC Ltd. is a wireline and wireless telecommunications provider in South Africa, and operating in more than 38 countries across the African continent. Telkom is a semi-privatised, 39% state-owned company.
Published: Friday, March 6, 2015