2e2 extends talks with support staff over Patni outsourcing deal

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2e2 extends talks with support staff over Patni outsourcing deal

Microscope contributor

2e2 has extended the consultation period with support staff to determine whether they transfer en masse, in part or not at all to Indian outsourcing firm Patni.

The initial deadline set by 2e2 to conclude negotiations with employees providing second and third line support ended on 25 July but has been pushed out by another month.

"The process is involved and complex," 2e2 business development director Nick Grossman told MicroScope, "there are questions unanswered so we are still working on it, we are expecting to move forward in whatever shape or form."

He said staff understood why it was considering outsourcing part of its support function but conceded there were some concerns internally about the move and that it was trying to proceed "as quickly as possible".

There have been suggestions that around 150 roles could be at risk but Grossman insisted it was still "too early to talk numbers".

Cost is the number one driver for outsourcing said Anthony Miller, managing partner at analysts TechMarketView but access to skills or even quality improvements could also underpin the decision to move roles offshore.

"Companies can outsource and get the job done better by someone else, particularly if they have more scale in a particular process or activity," he said, "in fact you could argue that cost alone is not a good reason to outsource."

However, Miller warned any company looking to outsource to be mindful that employee attrition rates, particularly in the BPO market were on the increase again, edging toward the heady heights of a doube digit churn each quarter.

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