Stories by Tom Pullar-Strecker, BusinessDay.co.nz

Telecom cancels plan to send IT jobs abroad

Telecom will bring back in-house hundreds of information technology jobs outsourced to Hewlett-Packard, ending fears that as many as 1500 jobs might be lost to India.
Spokesman Ian Bonnar said yesterday that a significant proportion of the work outsourced to HP would in future be done by Telecom's Technology & Shared Services division, which is based in Wellington.
Telecom had cancelled a tender that could have resulted in it repackaging and outsourcing that work along with other IT functions, he said.
Mr Bonnar would not comment on a claim by Labour communications spokeswoman Clare Curran that some jobs might nevertheless be lost in the transition, which will take place in the next few months.
One effect of the rethink would be that some work now done for Telecom by HP overseas would be repatriated, he said. "These jobs are definitely in New Zealand."
Hewlett-Packard NZ inherited the Telecom contract through its US parent's 2008 acquisition of EDS. Former Telecom chief Theresa Gattung outsourced many of Telecom's IT functions to EDS in a 10-year $1.5 billion deal in 1999.
Ms Curran was pleased Telecom was "contemplating bringing jobs in-house and keeping them in New Zealand as opposed to outsourcing them" but concerned about the overall impact on jobs.
The Government's "inability to make concrete decisions" about its ultrafast broadband scheme was causing too much uncertainty, she said. "The jobs of hundreds and potentially thousands of New Zealand workers are uncertain."
Mr Bonnar said HP would retain some work and it would be reasonable to expect some HP staff might be offered Telecom jobs.

[]