Fosters picks Wipro for IT outsourcing

update Australian beer and wine giant Fosters Group will outsource much of its internal IT department to Indian outsourcer Wipro, according to multiple sources.

People familiar with the situation said Fosters Group would outsource its IT department to Wipro, with the transition to occur before the end of the year. The move was also tipped in the Crikey newsletter this afternoon.

A spokesperson for the company did not immediately return calls and Wipro Australia could not immediately be contacted, but Foster's said in its annual results presentation that it had established a strategic partnership in the area of information technology, among other arrangements recently signed.

Sources said said Foster's was planning to move its internal service desk to India by November, with the rest of the support teams spread out in different locations.

Several weeks ago an anonymous Crikey tipster claimed the company was getting ready to outsource its IT department to an Indian company. "Estimated 70 Australian IT jobs to go offshore. 25th August is the key date," they wrote.

At the time, a spokesperson for the company confirmed it was conducting what it described as an "enterprise architecture" review that would touch its Business Process and IT department, led by chief information officer Andrew Leyden.

The spokesperson said Foster's had been very open with its IT staff about the review, but had not as yet gone into what the specific options were on the table. They declined to specifically confirm or deny the Crikey allegations as per their normal approach to "rumour and speculation".

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Talkback 12 comments

    Really Anonymous -- 25/08/09

    How's that for an 'iconic Australian brand'?

    Iconic aussie brand..... I dont think so.... Anonymous -- 25/08/09 (in reply to #320242532)

    More Aussie job going off shore....

    Pathetic Anonymous -- 25/08/09

    Lets trash local workers and skills - all to contribute a few extra dollars to the bottom line.

    Bloody Un-Australian Anonymous -- 25/08/09

    Bloody Un-Australian, More jobs going off shore creates more Unemployment. Shame on Fosters. So much for sharing a VB with you Mates.

    Get used to it guys Paul -- 25/08/09

    There is nothing "UnAustralian" about outsourcing. Global delivery of technology services has been common place for the best part of ten years.

    It sucks for those losing jobs, but we exist in a global economy.

    Keep Jobs In Australia Anonymous -- 25/08/09

    The "Un-Australian" part of this story is that the outsourced jobs will be going offshore! I am all for outsourcing and believe it is the right way forward fir most companies. But crikey! Keep the jobs in Australia!

    It still isn't "Un-Australian" Paul -- 26/08/09 (in reply to #320242622)

    Fosters are a listed company and the duty of a listed company is to seek to provide the best return to shareholders. If we want to control jobs/sourcing etc then companies need to be nationalised.

    I agree that the company plays up its Australian identity in marketing, but that doesn't mean that all of its staff have to be based here.

    Despite scare stories, many of the Indian workers are more qualified than the pampered IT workers in Australia who got used to charging a premium for a pretty easy job in the last decade.

    If it can be done to the same quality, for cheaper elsewhere, then the company is duty-bound to pursue outsourcing.

    Go Paul Simon -- 26/08/09 (in reply to #320243802)

    Thanks for the lesson in greed is good Paul. Wall St is obviously your favourite movie.

    That was truly spoken like a 'heartless, pampered managerial shiny **** who has never worked a day in his life'.

    Well done you are a credit to the Liberal bretheren and part of the reason the world is currently, so $%^ked up, financially.

    Go Paul Anonymous -- 26/08/09 (in reply to #320244332)

    Guess, you too should seek to provide the best return to your family. Why not send your childeren (if you have any ) to India so they too can get highly qualified.....

    Re: Go Paul Paul -- 27/08/09 (in reply to #320245209)

    Because I wouldn't want my kids to go into an industry where their skills have become so highly commoditised.

    I am not saying that jobs going offshore is a great result for Australia (obviously it isn't) but this is the financial system we have chosen to pursue.

    Oh and I am neither a Liberal, or in management. I may be a **** but I'm just a realistic one.

    It is nothing new in technology. And I stand by my view that it is technology workers that have become accustomed to being overpaid for work that is no longer as hard as it used to be in the 70s and 80s.

    Get Some Balance Anonymous -- 26/08/09 (in reply to #320243802)

    It is not true that Indians are far better qualified. Having worked in senior consultancy roles for many years I can tell you that.

    The bottom line is that they are cheaper - get it, cheaper. This is normally a decision that impacts the bottomline.

    In fact dealing with Indian outsource firms can carry significant hidden costs, a loss of control of critical systems, makes it harder to adopt new innovative technology approaches and many companies fail to do a proper cost/benefit analysis.

    It also affects the USA Anonymous -- 26/08/09

    It is pretty tyipical as it follows the trail of a company that is getting ready to sell. Get the books in order slashing jobs. They sacked 110 people in USA back in June, this is just another attempt to try to bring down debt.

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