Npower outsourcing means thousands of job cuts and transfers to suppliers

IT outsourcing

Npower outsourcing means thousands of job cuts and transfers to suppliers

Karl Flinders

Electricity supplier npower is outsourcing customer services and offshoring back-office work to Capita and TCS, affecting about 2,000 jobs.

There would be 1,460 redundancies under the proposed plan, which would also see 560 npower workers move to Capita on Tupe transfers.


Npower wants to consolidate its UK sites and gain flexible capacity to support demand during peak times.

“The proposed changes would save on current customer service costs, at a time of external pressures on energy prices,” said npower.

“This restructure is necessary if we are to deliver the levels of service our customers deserve. All calls would still be answered in the UK. We would have the flexibility to keep call waiting times down during busy periods, and continue to keep costs down so we can keep bills down,” said Paul Massara, CEO of npower.

npower’s offices in Stoke on Trent will close, with 550 jobs affected, as will one of npower’s three offices in Oldbury, where around 400 employees will be made redundant. There would also be a number of redundancies at npower’s sites at Rainton Bridge in Sunderland, and also in Leeds. The company's site in Thornaby will also close, but all roles there will relocate to npower's northern head office in Rainton, with transport support for these employees for three years.

npower also currently owns three offices in Peterlee, where it said there would be no redundancies but some teams would be moved between the Rainton and Peterlee offices.

Mobile operator O2 recently outsourced the management of its customer services centres to Capita in a 10-year deal, expected to be worth about £1.2bn,



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