News : Telstra Boosts Offshore Jobs as Locals Cut
Oct 15, 2013 -- More than 10,000 overseas contractors are working for Telstra at the same time as the company slashes jobs at home to help boost profit.
This represents about 26 per cent of the telco's full-time workforce of 38,000, underscoring the extent of an aggressive outsourcing program to tap staff in low-cost countries.
Telstra has made 3157 jobs redundant since the beginning of the year. Last month Telstra outlined details to shed 1100 jobs as part of a national restructure, sparking an outcry by unions.
Among jobs cut are 1100 from its operational department, 605 from its business directories business and another 1552 across the company, including staff in customer services, figures compiled by the Community and Public Sector Union show.
TeleTech and Teleperformance, two Philippine-based Telstra contractors, employ close to 8000 contractors across 10 sites at any one time, according to documents seen by BusinessDay. Contractors are mainly engaged to answer billing, internet and mobile inquiries.
Before the company's annual meeting in Sydney on Tuesday the CPSU has urged Telstra shareholders to pressure the company to stop sending more work overseas and retain local workers.
''Telstra likes to boast that it is creating new jobs, but what it doesn't like to mention is that for the most part these jobs are overseas and were once fulfilled by an Australian worker,'' CPSU organiser Teresa Davison said.
Telstra has defended trimming its domestic workforce, saying offshoring call centre jobs is necessary to give the company flexibility in dealing with changing demand.
''We use a mix of Telstra staff, local agencies and overseas partners to manage our customer calls and service needs and this gives us flexibility in how we meet changing call volumes across the business,'' a Telstra spokesman said.
''While we have proposed that parts of our operations workforce reduce by around 1100 jobs by June next year, we have made other announcements that could see close to 1000 jobs added in other areas.''
The company is shifting its focus from traditional businesses such as fixed-line telephony and Yellow Page business directories to investing in areas such as 4G mobile services, cloud computing and international assets.
The telco has also engaged three Indian contractors to run contact centres that employ nearly 2500 people from four sites in India.
Under the restructure, Telstra's operations will be reorganised into five groups, three of which - networks, IT solutions and customer service delivery - will be new.
Posted by Veronica Silva Cusi, news correspondent
Today's Tip of the Day - Agents Are Still Important!
More Editorial From Telstra
Telstra Incorporated is a global provider of advanced communications services to multinational corporations.
About Community and Public Sector Union:
The Community and Public Sector Union (more commonly known as the CPSU) is a national trade union in Australia.
Published: Tuesday, October 15, 2013