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Offshore Outsourcing World: Outsourcers focus on employee benefits
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Tuesday July 27, 2004 at 2:19AM - Offshore Outsourcing World Staff

Outsourcers focus on employee benefits

As a result of the backlash surrounding jobs reportedly lost due to outsourcing, some companies are now giving greater focus on employee benefits.

Companies like UK banking giant Barclays and American firm Hallmark have highlighted the issue of employee benefits in recent outsourcing deals made.

Both companies stressed that positions [and the people holding them] will be transferred to their respective service providers without loss of benefits or change in salary grades.

Barclays announced a 400 million Euro deal with Accenture that involves IT application and management and the transfer of the former's 900 UK employees over a 12-month period.

Aside from individual consultation with the employees, Barclays also consulted with the UNIFI, Europe’s largest finance sector trade union. The company promsied that the transfer terms will maximise employees’ career options and maintain their employee benefits.

Hallmark Cards Inc., meanwhile, has announced a $230 million deal with Affiliated Computer Systems Inc. (ACS) that will involve data ceter services like networking, desktop support, help desk, technical support and operational services.

Hallmark also reiterated that no jobs will be sent offshore despite the fact that ACS has operations in India. The company promised that all 145 employees who will be transferred to ACS will not see a pay or benefits decrease and that their years of service will be transferred over.

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