 "Npower outsources to TCS, Capita; 1,460 people to lose jobs")
UK-based utilities firm npower today said it has roped in Indian outsourcing firm Tata Consultancy Services (TCS) and Capita to restructure its customer service activities, resulting in 1,460 job losses.
Following its business review announced in August, npower has proposed restructure of its customer service activities.
"Subject to consultation, the restructure would involve around 1,460 redundancies as more work is performed by leading retail outsourcers Capita and TCS, npower said in a statement.
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The company currently employs 12,000 people with 6.5 million residential gas and electricity accounts.
Under these proposals, customers would continue to be served on the phone by people based in UK call centres and back office functions would be outsourced to India, it added.
Npower's back office administrative activity like checking meter readings would be outsourced to India to TCS.
Over the next eight months, around 1,460 posts would be made redundant as a result, subject to the 60-day consultation programme being undertaking with all affected employees.
It added that enhanced redundancy terms are being offered and there would also be a full package of on-site advice and support.
"I understand that these changes would be incredibly hard for some of our employees and we'll be doing everything we can to support them over the next few months," npower CEO Paul Massara said.
Npower said much of its customer facing work would be outsourced to Capita, which has extensive retail and utility expertise.
About 540 of npower's existing people would transfer to Capita and work alongside its current teams.
People transfering to Capita would still to be based in the North East of England, with the same terms and conditions of employment as before, it added.
Npower would shut down its offices in Stoke on Trent, affecting about 550 employees, while one of npower's three offices in Oldbury would close making around 400 employees redundant.
There would also be a number of redundancies at npower's sites at Rainton Bridge, Sunderland (affecting around 430 employees, subject to consultation) and in Leeds (affecting around 80 employees).