The centre, based in Bangalore, is due to be operational from the middle of 2004. Over the next year, Tesco will, where possible, give those UK IT staff affected the option of taking on a new role elsewhere in the business. To this end, the company has begun a staff consultation.
In a statement last week, Tesco claimed that the creation of the Indian IT centre made UK jobs more secure by helping to support the growth of its business.
The move highlights the growing popularity of offshore outsourcing and setting up IT operations abroad, with companies keen to take advantage of lower labour costs for skilled staff in countries such as India.