One hundred jobs will be outsourced by the Birmingham City Council to India this year that will be the first example of full off-shoring in the UK by a local authority. Furious reaction came from the news for local trade unions with Unite saying this is only the tip of the iceberg and is going to encourage other councils to cut costs by outsourcing.
The controversy concerns the roles that will be transferred from a joint venture Service Birmingham between the city council and Capita providing both HR and IT support to the local authority. The organisation is vital to the Business Transformation programme of the town hall that aims to make a £1bn modernization and efficiency saving in the next ten year period.
Service Birmingham off-shored 17 back office support roles for IT in April which they maintain did not result in the loss of any Birmingham jobs. There are another 38 jobs that should be transferred in August with 100 expected by the end of the year. Unite is saying that the workers in India have already be recruited and are shadowing the members of the council. Service Birmingham hit back saying only a fraction of its 1,100 workforce would ever be offshore.