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Tags: outsourcing, web development

Hundreds of IT jobs at data services giant Experian will be outsourced from the UK to offshore locations, as part of a cost-cutting response to the liquidity crunch.

The company, which specialises in software services, will cut its IT development staff in the UK, after it said the financial market had proved “exceptionally difficult.”

About half the 400-strong technical workforce in its Information Solutions Division will lose their jobs, including one of the the firm’s three software development teams. Many of the jobs will go to India.

However, 40 UK employees who work in development will be retained to liaise with the offshore company, Peter Brooker, a director at Experian told Contractor UK yesterday.

Redundancy packages, both voluntary and compulsory, will cost a reported £51million, but Mr Brooker refused to drawn on how much IT staff could expect.

The number of total job cuts, which chief executive Don Robert said would number “less than 1000,” will deliver a reported saving of $80m a year, with half that figure expected in 2008. Experian expects to become more flexible as a result.

The offshoring follows Experian reporting organic sales in its credit services division dropping two per cent, as banks made it harder for customers to borrow money in the wake of losses in the US mortgage market.

During the final three months of 2007, the company increased its revenues by 22 per cent and “performed well,” Mr Robert said, despite organic growth slumping by two per cent.

He added: “While trading conditions are not expected to improve in the fourth quarter, our focus is on maximising profitability and we are today announcing a programme of significant efficiency measures.

“These measures will give rise to a non-recurring charge and will bring benefits in 2009…. We continue to invest to take advantage of the long-term growth opportunities and to position ourselves for market recovery.”

Speaking yesterday, Experian said offshoring software jobs does not represents IT being lower down its priorities in 2008.

“The decision to offshore this function [software development] is as a result of our need to increase our IT resources,” Mr Brooker said.

“We have ambitious plans to accelerate the building and delivery of a greater number of new products that will benefit our clients’ businesses and ensure that our business continues to grow and provide further opportunities for our people.

“But we operate in highly competitive markets, so we need to do operate as efficiently as possible. Offshoring the activity [software development]…will enable us to do this”.

Tags: development, it, jobs, Offshore, outsourcing, Software