The UK is losing call centre jobs to India

Telecoms giant BT has denied reports that Indian workers subcontracted to work for the company in the UK are paid less than their British counterparts.

The Times newspaper reported on Tuesday that software engineers employed by Mahindra BT, a BT joint venture based in Pune, Western India, could be working in the UK for as little as a quarter of the usual wage.

The Communication Workers' Union (CWU) said it was investigating the reports.

"BT's got to be really careful with its reputation," a CWU spokesman said.

Trade union groups have previously clashed with BT over its decision to open new call centres in India rather than the UK.

Rebuttal

But BT said the Mahindra BT employees' full remuneration package was in line with the wages usually paid for software maintenance work in Britain.

"The total package of the Indian sub-contractors working on BT projects is comparable to those of their UK counterparts and well above the UK national wage. They do not lose out," the company said in a statement.

"We are extremely proud of our employment record and of our commitment to corporate social responsibility."

BT added that Mahindra BT subcontractors are typically employed to carry out basic software maintenance, freeing up BT engineers to work on "leading edge developments."

Farmed out

Many of the usual restrictions on Indian nationals working in the UK have been eased for Mahindra BT employees thanks to an inter-company transfer arrangement, the Times reported.

Outsourcing customer service and IT maintenance work to Indian subcontractors is a growing trend in the UK, with many companies attracted by India's low labour costs and highly skilled workforce.

Last year, HSBC chief executive Sir Keith Whitson caused an outcry by suggesting that the bank's Indian call centre staff performed better than their British counterparts.