EMCC European Monitoring Centre on Change

National Health Service (NHS)

Company/Organisation:
National Health Service (NHS)

Geographic Location

Country: United Kingdom

Company

Sector: Health / social work
Human health services
86.1 - Hospital activities

Employment Effects

Announcement Date: 22-11-2004
Planned Job Reductions min: 400
Planned Job Reductions max: 400
Type of Restructuring: Offshoring/Delocalisation

Additional Information

The NHS is to move around 400 jobs to India to save costs as part of a part-privatisation of its back-office accounting and purchasing division. IT services firm Xansa is taking a 50% stake in a Government agency that does purchasing and accounting on behalf of the NHS. The firm has guaranteed to cut costs by 20%, potentially saving the NHS £220 million over 10 years. The deal will initially mean the transfer of 230 NHS staff to the private firm. They are based in Bristol and Leeds and are employed by the state-owned group Shared Financial Service Centres, which will become a private company in April under the terms of the deal.