Jobs threatened in Glaxo IT move

DRUGS group GlaxoSmithKline is plotting to farm out its UK information technology provision in a move that could cost hundreds of jobs in the South-East. Glaxo today confirmed that it was discussing outsourcing plans with several IT suppliers, thought to include IBM, EDS and CSC.

A spokesman said: 'We are in discussion with external parties but no decisions have been made.'

Under the plans, codenamed Project Spring, GSK will consider moving some of the desktop tasks overseas. Glaxo has 66,000 desktop units in Britain, for uses such as payroll and scientists' research work. The outside suppliers are expected to enter a formal tender process early in the New Year.

The plans were 'outed' by a small group of Glaxo employees. They contacted the trade magazine Computer Weekly after they discovered the talks but were unable to get any further information or even confirmation of their existence.

The spokesman said the outsourcing was 'for efficiency purposes and for improving services', but that it was too early to comment on the number of job losses.

Glaxo will now be forced to explain its intentions to staff. They may compare the effort the company is making in cutting their jobs with its support for a huge pay increase for the chief executive Jean-Pierre Garnier. Garnier had asked for a package that would have been worth at least £11m a year but a shareholder revolt forced the company to back down.