Customers of CSC, the global IT services firm, have been warned to keep on alert over service levels after the company put itself up for sale and announced 5,000 job losses around the world.
The IT services company, which has contracts with the NHS, Whitbread and British Nuclear Group, last week announced a restructuring programme which would see 5,000 job losses over the next two years, mainly in Europe.
Phil Codling, senior analyst with Ovum said, “CSC's employees have been through a lot in the past six months. These announcements can only add to their feelings of concern and insecurity, particularly in Europe. That's a situation that can't go on for long if CSC is to retain and motivate its staff.”
He said CSC customers should be particularly alert to service levels and motivation on their contracts, although the same applied to a number of IT services companies going through transition.
In August last year, the UK arm of CSC signed an agreement with Amicus, the UK's largest private sector union, that promised no compulsory redundancies and commitments to invest in the skills of its UK staff. The US-based services company employs 10,000 people in the UK.
The agreement formally commits CSC to full, early consultation with Amicus on its globalisation strategy, with the supplier promising that its global sourcing activity will not lead to compulsory redundancies in the UK.