Telstra, a telecommunications operator based in Australia, recently announced an outsourcing decision that was met with an array of emotions. The cloud services division which is a part of the network applications and services division in Telstra is all set to send nearly 170 jobs abroad to India.
This move was seen as an unnecessary evil by the employees while the company chose to see it as an expansion strategy. The emotions that are ringing through Telstra have echoed through companies since the word outsourcing was first uttered.
Plans of expansion
David Burns, was quoted in The Australian as being supportive of the offshore move as he said, “This is about growth, this is about supporting our clients as they move offshore and supporting our international clients in those markets. We want to be able to support that strategy. We need to be able to scale quickly, we need to be able to meet demand, we need to be able to support customers as they move into that South East Asian region and we need to be competitive as we do that.”
David Burns echoed the sentiments of numerous companies across the world looking to expand business within nanoseconds. Telstra saw a need to expand the network applications and services division and the best route to expansion without affecting the bottom line is through outsourcing. The same sentiments, however, were not reflected in the staff and the union.
The Union voice
Union spokesperson Teresa Davison voiced strong opinions against the move to outsource jobs. Speaking on behalf of the union and the staff, Teresa Davison was quoted as saying, “The union is requesting for more information from management and are urging the company to do everything they can to hang on to talented and dedicated staff.”
The possibility of more job cuts has an already stressed staff on the edge of their seats. The job cuts come on the heels of nearly 900 layoffs this year. With the contact centers in Philippines and a global delivery center in India the company is gearing up to layoff even more employees.
With the union estimating that the company has nearly four thousand employees offshore in offices owned by industry partners, the company employees and the union are deeply unsatisfied at the turn of events.
The current employees in the company are of the opinion that the job cuts are equivalent to a slap across the face. Hard working Telstra employees see the company as being resolutely insouciant towards their dedication and years of service.
Outsourcing – an inevitability
While both parties involved, the company and the employees are right to some extent, is outsourcing the only recourse in the face of expansion and globalization? The worthiness or relevance of outsourcing to individual companies can only be answered by the parties involved and not without personal gain coloring the answer. The hard fact about moving jobs overseas is that it is a business trend that despite the moral consequences involved, rakes in profits for the company.