Siemens Business Services is to outsource up to 240 jobs to India as part of its National Savings and Investments contract.
The government department outsourced its business service operations to Siemens in 1999. As part of the deal, Siemens has to requested permission from the Treasury when outsourcing. The government has agreed, subject to a number of conditions.
The decision follows 250 admin jobs being moved to India in 2004 as part of the original contract.
Ed Balls, the minister responsible for National Savings and Investments, said: “I am clear that, with the conditions that I have agreed with Siemens, this proposal offers the best possible outcome for all concerned.”
Siemens has guaranteed there will be no compulsory redundancies on the contract for the remainder of its life, until 2014. The firm will offer a £1,500 retraining allowance to any employees who choose to leave as a result of these changes.
Siemens has also agreed to engage in “meaningful discussions” about pay progression with representatives of the National Savings and Investments workforce.
Siemens Business Services employs more than 5,000 people at sites across the country.