Business information group Experian is to cut at least 200 IT jobs by outsourcing software development to India to reduce the time to market for new products.
“Experian plans to increase its new product development, but needed to speed up that process as well do it more cost effectively and flexibly to manage the peaks and troughs of the work that is being done,” said company spokesman Peter Brooker.
The job cuts, which will affect just over 8% of the company’s software developers working in the information solutions division, will contribute to Experian’s global business optimisation programme aimed at saving £40m a year.
Brooker said that by outsourcing its software development to Perot Systems in Bangalore, the company would be able to access bigger development teams as and when required as well as tap into specialist skills it was finding difficult to source in the UK.
The company, which carries out credit checks on borrowers and advises retailers on marketing, said it was seeking voluntary redundancies as far as possible and was offering staff pay in lieu of notice plus statutory redundancy. The company has also announced a voluntary redundancy programme for senior managers.
Despite the slowdown due to the credit crunch hitting the companies main clients in the banking sector, Experian said its third quarter trading statement published this month shows the company is still showing double-digit growth.