Outsourcing causes job losses


Capgemini Energy LP, a partnership formed by utility TXU Corp. and consultants Capgemini America Inc. to handle call centre operations, IT, billing and accounting services, among others, has confirmed that some staff will lose their jobs to overseas companies.

About 2700 TXU employees moved to Capgemini Energy when it was formed in July this year. The company says that fewer than 200 of them will lose their jobs to workers in India and Poland, but there are fears that this is just the first round of a cost-cutting exercise that could continue into 2005. Much will depend on whether Capgemini Energy is able to attract new outsourcing business from other utilities.