Virgin Media O2 UK Outsourcing 700 Roles to Tata CS and Tech Mahindra

Sources have informed ISPreview that broadband and mobile operator Virgin Media (O2) has today notified around 700 staff that their roles are to be transferred to the Indian owned Tata Consultancy Services (TCS) and Tech Mahindra. The move is intended to “better deliver for our customers“, although this could still result in some redundancies.

Just to recap. Last month we covered reports that VMO2 were allegedly in the process of reaching a new agreement with TCS, which was speculated to be worth around £750m over 10-years (here). At the time, it was said that the deal could see the telecoms provider outsourcing some of their IT, such as in application management and infrastructure services, to the Indian company.

The network operator has long worked with TCS as part of an enterprise software integration contract, which was announced back in 2023. The UK is currently also said to be TCS’s second-largest market after the USA and they’re in the process of expanding their UK based workforce to create 5,000 new jobs, although the timeframe for this remains unclear, but it now looks set to be supported by today’s development.

Earlier today sources began to inform ISPreview that hundreds of VMO2 staff had been notified that they were to be transferred under TUPE – Transfer of Undertakings (Protection of Employment) – to Tech Mahindra and TCS. The same sources claimed that no offer of voluntary redundancy had been made for those who don’t want to TUPE. VMO2 has since confirmed the transfer and provided the following statement.

A VMO2 spokesperson told ISPreview:

“As part of our ongoing efforts to simplify how we operate, accelerate growth and better deliver for our customers, we are proposing to enhance our tech and service delivery by expanding our strategic partnerships with leading IT firms Tata Consultancy Services and Tech Mahindra, which will see some of our people move to those organisations in the UK.

Through these partnerships, covering areas like project delivery and platform management, we’ll be able to leverage our partners’ expertise and benefit from access to their global networks, innovative ecosystems and the latest digital technologies.

We are having open and honest conversations directly with our unions and employee representative groups on these plans and will continue to support any impacted individuals throughout this process.”

The development comes only a few short days after VMO2 notified around 300 staff in the Fixed Wholesale and Customer Delivery side of their business that they could be facing redundancy in the near future (here), although the operator is hoping to map many of those into other roles.