IT jobs safe as Npower outsources to Capita and TCS

Energy company npower has confirmed that no IT jobs will be lost as it announced 1,460 UK redundancies and outsourcing of back office functions to India.

Under the restructuring plans, npower is outsourcing call centre work to UK-based Capita staff, and back office administrative functions will be outsourced to India’s Tata Consultancy Services (TCS).

“Please note [the affected] roles are not IT,” a spokesperson for the company told ComputerworldUK.

The restructuring follows a business review that npower announced in August.

Paul Massara, npower CEO, said: “This restructure is necessary if we are to deliver the levels of service our customers deserve. All calls would still be answered in the UK. We would have the flexibility to keep call waiting times down during busy periods and continue to keep costs down so we can keep bills down.”

About 540 npower staff will transfer to Capita under TUPE and work alongside the outsourcer’s existing employees. The staff will continue to be based in the North East of England, with the same terms of employment as before.

Meanwhile, the 1,460 roles being made redundant over the next eight months is due to the outsourcing of administrative activity, such as checking meter readings against customers’ bills, to TCS.

This will lead to the closure of npower’s offices in Stoke-on-Trent, affecting 550 employees, one of the firm’s three offices in Oldbury (400 redundancies) and Thornaby. Redundancies will also affect other npower offices, subject to consultation.

The company currently employs 11,000 people across the UK, with 9,500 in the retail business.

Copyright © 2013 IDG Communications, Inc.

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