More than 60 local staff at services giant CSC have lost their jobs, but the CEO of its Australian operations, Mike Shove, said they were across the company and not simply the result of cutbacks in the defence sector.
Shove told ARN that only 12 or 15 of the redundancies were involved in defence-related work, and insisted that reports claiming otherwise were inaccurate and misleading.
He stressed that the lay-offs represented just 1.4 per cent of its 3700 Australian staff, a number recently boosted by the hiring of 370 last year and a further 42 graduates in the past few months. He also said the company was planning another 80-100 graduate recruitments later in the year.
But redundancies were also made regularly: “As projects finish, there is obviously no particular work for that skill set. We keep people for 4-6 months, waiting to see if we can redeploy. If we can’t then obviously redundancy is the last option,” Shove explained. About 50 of the redundancies were across CSC both in skill terms and geography, he said. Some were involved in legacy programmes such as Cobal programming, but the outsourcer still needed .Net and J2EE-skilled staff.
“As outsourcers do, we re-balance resources on a regular basis,” Shove continued. He said that the company had secured some major contracts recently. They included a $40 million, three-year deal with Anglo-Swiss Xtrata Mining in Queensland, performing applications and infrastructure work. A three-year $22 million per annum deal with insurer Allianz was signed in April.
CSC’s defence contracts included work with the navy, flight simulator sub-contractor work with Kaman Aerospace, plus support contracts for ANZAC ships and Collins Class submarines.