Commander denies relocation is a cost-cutting exercise

ASX-listed Commander (ASX: CDR) has denied the decision to move out of its Darling Park headquarters in the Sydney CBD at the end of the year is a cost-cutting exercise.

The troubled IT service provider plans to relocate its HQ to North Ryde in a move that could see more than 100 call centre staff retrenched.

Commander spokesperson, Eveliene Ward, said those workers would be offered positions in its Adelaide call centre and redeployed into other areas of the business where possible. However, she admitted some would be unwilling to make the interstate move and not everybody would be accommodated elsewhere within its operations.

"Not everybody will be open to Adelaide but we hope most will relocate or be redeployed," she said. "We are enhancing our call centre environment [in Adelaide] with new technology that enables us to better forecast call volumes."

Ward said Commander would hire new staff in Adelaide if significant numbers of Sydney call centre staff were unwilling to relocate. Commander also operates a managed services call centre in Canberra, which is unaffected by the reshuffle.

As for moving out of Darling Park, Ward said the lease was due to run out at the end of the year and Commander had been considering its options for some time. The company already has two sites in North Ryde, including one from its Volante acquisition, and although relocating its HQ would reduce costs, she denied this had been the motivation behind the move.

On a brighter note, the Department of Finance and Deregulation has granted Commander a one-year extension on a desktop support contract for more than 250 electorate offices across the country. Believed to be worth $3.8 million per year, with an option for another 12-month extension, the agreement will see Commander supporting 1000 desktops, printers, laptops and servers.