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March 17, 2009, 12:18 PM ET

Australian University Decides to Outsource Its Entire IT Department

The University of Canberra is axing some 50 information-technology jobs and moving them to India as part of institutionwide cost-cutting measures, The Australian newspaper reports.

University officials said sending its IT systems, administration, and payroll services abroad will save about $5-million over the next five years. Wipro, one of the world’s largest IT outsourcing firms, will take over services beginning this month.

The move was part of reforms that began two years ago that are aimed to reduce the university’s large deficit. Officials said the decision was not related to the economic downturn. In all, 150 jobs have been cut since layoffs began in 2007.

The decision has been criticized by local labor unions, but union officials said they would not strike. Last week, Australia’s National Tertiary Education Union said sending university administrative functions to India was unprecedented. —Martha Ann Overland

Categories: Leadership

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