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Story URL: http://www.silicon.com/research/specialreports/offshoring/0,3800003026,39128077,00.htm

RAC software development motors to India
Outsourcing deal will hit UK staff in its business systems group…

By Andy McCue

Published: Tuesday 22 February 2005

The RAC is to offshore some of its software development to India as part of a restructuring of its IT operations.

The jobs affected are in the business systems division, which supports application design and development for the whole of the RAC motoring group.

A consultation period is now underway for 35 staff in the division who have been told their roles will become redundant as part of the move, although an RAC spokeswoman said some will be offered the option of redeployment to 17 existing vacancies within the company.

The restructure will also see the centralisation of the business systems operation, which currently employs around 125 staff, consultants and contractors across sites at Bescot in Walsall and in Bristol.

These operations will now be consolidated at the Bristol site, with remaining staff being offered the option of relocating.

A spokeswoman for the RAC told silicon.com: "We looked at how to structure it [the business systems team] to be more flexible to meet the needs of the business."

She said that the restructuring does not affect any of the other internal IT operations, including desktop support.

The RAC spokeswoman said a final figure for the restructuring cost will not be known until the consultation period has finished.