Telecom plans to offshore corporate hosting service

Telecom has approached providers in New Zealand, Australia and the United States to take over the hosting of corporate internet services, says source

Hot on the heels of the troubled outsourcing of many Telecom Xtra services to Yahoo! in Australia, Computerworld understands that corporate web hosting may be next Telecom service to shift offshore.

According to an industry source, who did not wish to be named, Telecom has approached providers in New Zealand, Australia and the United States to take over the hosting of corporate internet services such as domains in March.

The outsourcing would be done as a fully-branded Telecom product, but the provider would handle the infrastructure and service provision, right down to end-user support.

In July, an unknown US company was selected by Telecom to provide corporate hosting services, based solely on it being the cheapest, the source says. Neither the New Zealand nor the Australian providers involved could compete on price with the Americans.

Telecom is neither confirming nor denying that it intends to move its corporate hosting services overseas.

Spokeswoman Lenska Papich says: “Telecom are always looking at initiatives and partnerships that will enable us to offer our customers better products and services.”

Asked if this meant Telecom intends to outsource its small- and medium-enterprise internet hosting services, Papich would only say that at this stage Telecom has nothing formal to say about any specific partnership agreements in the that space.

At the end of September, the National Business Review reported Telecom was shifting broadband service callcentre services to the Philippines and that 85 staff would lose their jobs at Auckland-based provider TeleTech. Telecom said both companies would try and redeploy staff internally where possible. 240 staff employed in-house by Telecom would be unaffected by the move, the company said.

Telecom said it had completed a successful three-month trial using staff in the Philippines.

“It’s becoming part of our business reality that we are having a mix of on- and offshore,” Telecom spokeswoman Sarah Berry told NBR. It is not known how many local jobs will be affected by the offshoring of hosting services.

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