Vodafone responds to job loss ‘speculation’

31 Oct 2006

Vodafone Ireland has dismissed as “unqualified speculation” reports at the weekend suggesting that up to 120 IT workers could be made redundant following a decision to outsource services to IBM and EDS.

Earlier this month Vodafone Group announced that EDS and IBM had been selected as preferred suppliers to manage Vodafone’s applications development and maintenance services on a global basis.

Each outsourcing partner is expected to provide these services on a country-by-country basis. For example, IBM and EDS’s operations in Ireland would pitch to Vodafone Ireland.

A report in the Sunday Times at the weekend suggested that at least 10 IT contractors and 20 permanent staff workers would be directly affected.

Sources close to the company said that negotiations have only begun this morning, no deals have been signed and that it was too early to assess the result of negotiations.

In a statement the company said: “Once Vodafone Group’s negotiations with the preferred suppliers are concluded, Vodafone Ireland will then be able, in the coming months, to conclude negotiations and finalise contracts with its selected preferred supplier.

“To date no contracts have been signed with either partner; consequently, any assumption relating to the outcome of the negotiation process is unqualified speculation.

“Due to the nature of the contract negotiation process, Vodafone Ireland is not in a position to make any further comment on this matter,” the company stated.

By John Kennedy