PC World owner DSGi has decided not to renew its call centre outsourcing contract with Capita and will instead bring 1,300 staff back in house.
Call centres in Sheffield and Nottingham will return to the DSGi fold on September 2.
The original contract, signed in 2004, is due to finish during April. The pair have signed a six month extension to "ensure a period of smooth transition".
Capita recently began the process of making 42 middle managers redundant.
DSGi spokesman Mark Webb said there are no plans to make further job cuts after the transfer. "The majority of people that will be affected by this change are colleagues from Capita," he wrote in an email. "Subject to Capita’s agreement, we will be looking to transfer as many of these colleagues as possible onto DSGi terms and conditions. All TUPE conditions will apply."
TUPE is the set of regulations governing transfer of employees. They preserve employees' terms and conditions under a new employer.
The call centres handle sales inquiries and after-sales technical support for both PC World and Currys stores. "By bringing the operation in-house we are taking back control of the customer experience, taking responsibility for and owning our relationship with the customer," DSGi said.
The group, already struggling, faces a new challenge this year from Carphone Warehouse's joint venture with Best Buy, the giant US electronics retailer. DSGi plans to directly compete with Best Buy Europe's plans for out-of-town megastores with investment in its own warehouse-style operation.
Capita said the loss of DSGi's large contract would not affect its business. "Current conditions present a healthy flow of opportunities for Capita and the Group is well placed to continue its growth," it said. ®