GSK in IT outsourcing talks
pharmafile | October 23, 2003 | News story | |
GlaxoSmithKline is in talks with suppliers to contract out part of its IT services, potentially putting hundreds of UK jobs at risk.
The confidential talks centre on contracting out services for up to 66,000 desktop systems according to Computer Weekly, which was contacted by a number of GSK staff who had learned about the discussions.
The staff were particularly concerned that suppliers had been told not to rule out moving their jobs overseas and making redundancies. Even if the services are kept in the UK, several of the largest IT suppliers have recently announced plans to cut thousands of jobs.
A spokesman for the company said: "GlaxoSmithKline has long made use of external sources to supply some of its IT requirements. This has to do with raising the quality of our services as well as tackling costs.
"We have asked a number of companies to tell us what they might be able to offer. However, no decision has been made".
When the decision does come it could boost GSK's ailing share price, which has fallen by 30% this year. Outsourcing consultants Morgan Chambers, who last year surveyed FTSE 100 companies on the subject, believe strategic outsourcing can deliver as much as a 5.3% increase in share price.
GSK is now expected to solicit confidential proposals from potential suppliers, but currently has no plans to consult with staff until the New Year.
One of GSK's IT projects recently took top honours in the 2002 Information Management Awards' Best Supply Chain Project and Premier Project of the Year categories.
GSK NetTrade, a web-based supply chain solution, was developed for the company by IT consultancy Gimlet e-Solutions and allows GSK to manage an unlimited number of internal and external suppliers throughout its 250 world-wide locations.
