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Asda Outsources IT Jobs To Indian Firm As Cost-Cutting Continues

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Asda has outsourced over 100 employees to an Indian-based supplier, raising concerns about job losses as the chain looks to reduce costs. 

This move affects IT staff working at Asda’s headquarters in Leeds, which employs 5,000 people.

The outsourcing plan was disclosed to staff via email last week.

This was just a day before private equity firm TDR Capital took majority control of Asda. 

The proposal involves moving employees to Tata Consultancy Services, a Mumbai-headquartered firm. 

This change in ownership saw Zuber Issa sell his stake in the supermarket chain.

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It resulted in TDR Capital holding a 67.5 percent stake, Mohsin Issa owning 22.5 percent, and Walmart retaining 10 percent.

Over 130 staff members are currently undergoing the outsourcing consulting process, and the retailer has not ruled out redundancies. c

“TDR Capital have cut millions of hours from the shop floor and now they are cutting the head office functions that support the stores"

The process is expected to be completed by September, heightening fears of job losses.

Nadine Houghton, national officer for the GMB trade union, said: “The outsourcing and offshoring of jobs from Asda’s head office is yet more asset stripping by TDR Capital.

“The GMB believes this first round of job cuts is only the tip of the iceberg, with over 5,000 Asda colleagues employed in Asda House – we expect more announcements like this in the months ahead.

“TDR Capital have cut millions of hours from the shop floor and now they are cutting the head office functions that support the stores. Asda workers are asking what will be left?”

The supermarket giant has not commented on whether jobs will be moved overseas. 

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However, a spokesperson said: “We are building world-class systems in a once in a generation IT transformation – Project Future – to separate Asda from Walmart’s legacy systems.”

“Project Future will deliver a step-change in our data capabilities, our customer experience, and competitive edge. 

“Put simply, it is a key building block of our strategy that will set Asda up for long-term success.

“As part of this process, we have taken the difficult decision to propose some changes to our technology function to ensure we have the necessary skills and capabilities in place to support these new systems.

“We have opened a collective consultation with colleagues impacted by this proposed change and will do all we can to support them during this process that they may find unsettling. 

“We are fully on track to complete the three-year Project Future programme by the end of this year.”

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