JSE-listed telecommunications group Telkom has unveiled a number of firms that are set to take over some of its operations as it outsources services and some business elements to unlock further cost efficiencies and improve customer service.
After the conclusion of a “stringent” procurement process, Telkom’s fixed-line call centre operations would be outsourced to WNS, while Barloworld Logistics would be tasked with the management of 25 supply chain warehouses.
Bidvest had been selected to take over internal printing services and Ingram Micro the retail supply chain, while the information technology (IT) legacy systems would likely be managed by ASAJE.
While outsourcing emerged as a critical step in Telkom’s ongoing turnaround, around 1 300 employees would be affected by the Section 197 process, sparking the telecommunications group to engage organised labour, Telkom spokesperson Jacqui O’Sullivan said in a statement on Thursday.
In February, Telkom embarked on the process to send employees to several identified external companies tasked by Telkom to take over the call centre operations and the management of the IT legacy systems, Telkom’s supply chain warehouses and internal printing activities.
While Telkom was required to ensure that staff transferred with the same or better packages and benefits, no formal consultation with unions was actually required.
However, Telkom did plan to shut the doors of some of the 95 Telkom Direct Stores, which were no longer viable, to realise significant cost efficiencies, and had issued the affected employees Section 189 notices.