Capita staff threaten to down tools

IT services giant says Indian outsourcing move will allow it to maintain its edge, as Unite bosses descend for crunch talks

VAR and IT services powerhouse Capita IT Services is facing strike action from 84 of its staff if it does not back down over plans to offshore more work to India and cut UK jobs.

Capita launched an employee consultation process on 30 March over plans to move "limited elements" of its work to its existing Indian operation.

The UK's largest trade union, Unite, will today meet Capita management to demand they halt the move, which it claims will hit UK customers including Prudential Phoenix and Abbey Life.

Unite members voted 4:1 for strike action and 9:1 for action short of strike and the union will see this through if it does not get its way.

David Fleming, Unite national officer, said: "Capita IT staff have voted for industrial action out of anger at Capita's plans to send skilled work abroad. Once the skilled jobs are offshored from local communities, they never return, which leaves a damaging impact on local economies."

Fleming also called on Capita's clients to veto the plans.

In a statement sent to ChannelWeb, Capita said the revised delivery model is necessary to "maintain its strong position in the marketplace, optimise operational efficiency and continue to enhance service delivery to its clients".

"This consultation process is not yet complete and we are disappointed that 84 employees who are members of Unite – two per cent of the entire IT Services workforce – have voted in favour of industrial action," it said.

"We have robust processes in place to ensure that this proposed industrial action will not impact our service delivery to clients."

According to Unite, the dispute centres around four sites in Reading, Craigforth, Birmingham and Bournemouth where 220 staff are employed. The affected sites serve Prudential Phoenix and Abbey Life customers.