Services that EDS New Zealand has provided since 2004 to the US 7/11 chain are being moved to India. The work will now be done by Mphasis, an Indian EDS subsidiary.
Fourteen jobs are affected. An EDS spokesperson says the roles are likely to be disestablished in mid-April when New Zealand will stop delivering the service. EDS was providing a combination of low to mid-level Wintel, Unix and application support services on a 24-hour, seven days a week support contract.
The EDS spokesperson says the current trend is that while some work goes offshore, it "tends to swing in roundabouts when work comes back to New Zealand from offshore clients".
She says industry suggestions that work for General Motors is also going to India are incorrect.
"The work done for GM is around engineering in a range of disciplines, including client-server, web hosting, security and networks. We have a strong focus on SMS and provide that for the entire GM account," she says.
EDS operates a "Best Shore" service delivery initiative, which relocates work between countries in order to achieve a cost-competitive outcome for the client. EDS New Zealand is one of 25 EDS-accredited Best Shore locations around the world.
In 2003, the company attracted a government grant of $1.5 million, which required it to create 360 jobs over three years. The spokesperson says this target was exceeded and that the changes around the 7/11 account do not affect the agreement.