O2 to outsource network management

31 May 2007

Up to 450 jobs at Ireland’s second largest mobile network O2 hang in the balance as the company confirms it is to outsource the management of its network in Ireland.

The news comes within 24 hours of Ireland’s largest fixed-line operator Eircom revealing that 900 jobs are to be cut in the next three years.

It is likely that workers affected by O2’s decision to outsource will be offered the same or similar positions with which ever company has been successful in its bid for the contract.

Likely bidders for the O2 network management deal include HP, IBM, Fujitsu Services, Ericsson, Nokia and Accenture.

A spokesman for the company told siliconrepublic.com that the tender process is in planning stages.

News of the outsourcing strategy emerged following a staff meeting at O2 yesterday.

“Following a strategic review of the business, O2 Ireland has decided to explore the possibility of outsourcing its technology function and will soon issue an RFP (Request For Proposal) to a number of potential suppliers,” the company stated.

“It is important to point out that, should O2 go ahead with outsourcing, all roles concerned would transfer to the selected partner in line with TUPE legislation (Transfer of Undertakings, Protection of Employment Regulations),” he said.

By John Kennedy