HP looking to offshore Bank of Ireland tech jobs - report

HP looking to offshore Bank of Ireland tech jobs - report

Hewlett Packard (HP) is considering shifting some of the IT functions it manages under its outsourcing contract with Bank of Ireland to offshore centres in Europe and Asia.

Bank of Ireland signed a seven-year $600 million contract with HP in September 2003 following a summer of industrial action - including a 24-hour walk out - in protest at the plans to outsource IT functions and transfer employees to HP.

But according to a Sunday Times report, HP is now considering moving some of the jobs that were transferred to offshore centres following a review of the contract, which is thought to involve a new pricing deal that has cut HP's margin on the agreement.

In an internal document drawn up by HP and dated 10 July, part of which has been seen by The Sunday Times, HP proposes relocating some services to offshore centres in Europe and Asia.

The report says mid-range, mainframe, SAP, unix, NT, web and database services are expected to be moved to Sofia in Bulgaria, while management of networks, which include LAN and firewalls, would move to Bratislava in Slovakia. Messaging would be shifted to Barcelona, while all help and service desk functions would be moved to Bangalore.

Under the terms of the IT contract signed with the bank in 2003, HP agreed to guarantee three years employment for more than 200 staff who transferred from the bank. This deadline expires next April, says the report.

It is thought the offshoring proposal was drawn up by HP as part of a global restructuring scheme, which includes shedding almost 6000 jobs in Europe.

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