Dixons employees remain with firm after collapse of outsourcing deal

Electronics retailer Dixons has shelved plans to outsource jobs to Logica CMG, after failing to agree terms with the IT services provider.

The 210 Dixons employees who were to be transferred to Logica CMG will continue to be employed by the retailer. A 90-day consultation process with the employees has also been cancelled.

Although some staff would have been transferred to Bangalore in India, the majority would have worked for Logica CMG in the UK.

Chief information officer Iain Andrew left Dixons last Monday at the same time as staff were told that the retailer and the outsourcer had failed to reach an agreement.

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In a statement, Dixons said: “We can confirm that we have ceased negotiations.with Logica CMG regarding the potential outsourcing of our internal IS support function. We have been unable to agree terms.”

Logica CMG declined to comment on the breakdown of the deal.