Barclaycard, Firstsource may ink outsourcing deal

Barclaycard, part of US-based Barclays’ global and retail banking division, is in talks with Firstsource, the Mumbai-based business process outsourcing (BPO) company, for an outsourcing contract.

If successful, Firstsource would take over Barclaycard’s customer service centre in Teesside in northeast England, delivering customer services for credit cards and payment businesses, provided there at present. The Teesside centre of Barclaycard employs 700 people and may have to be absorbed by Firstsource as part of the deal, the size of which could not be confirmed.

“I have today informed our colleagues and union representatives of talks with Firstsource Solutions, and Barclaycard will consult fully with them before a final decision is made later this year. We’ll be spending the next few months talking to Firstsource to see if we can form a partnership,” said Derek Allgood, global sales and service director, Barclaycard.

Details of the partnership, part of Barclaycard’s ongoing programme of improving business efficiency and service to customers, will be announced if and when a final agreement is reached.

However, Britain’s largest employee union, Unite, raised concern over this move. “The decision by Barclaycard to enter into negotiations about the transfer of 700 staff is very surprising and in our view unnecessary. Unite has major concerns that this move is a first step to the offshoring of these roles, which would have a devastating effect on the job market in the (region),” said Rob MacGregor, Unite’s national officer.

Meanwhile, Firstsource announced the setting up of a contact centre in Middlesbrough in UK, which will employ more than 500 people.