ALLEN & OVERY: up to 50 lay-offs could be announced as document department is moved

Up to 50 support staff at City giant Allen & Overy could face redundancy following the firm's decision last week to outsource its document production department to India (see [2003] Gazette, 11 September, 3)

The firm's operational services head, Steven Chernikeeff, said that the move - which follows a six-week pilot conducted in the sub-continent - would give A&O a 'seven-figure annual saving'.

Of the 85 London document production staff, between 40 and 50 could lose their jobs.

Mr Chernikeeff said that some of those are agents or contractors.

He said the firm would make all efforts to redeploy those who were staff members, rather than lay them off.

Mr Chernikeeff added that numerous consultative staff meetings had been held and representatives appointed for all the shift patterns in the department.

He added: 'We understand that this is a difficult time and we are doing all that we can to make it as smooth as possible.'

A&O has struck a deal with outsource company Office Tiger to set up an operation in the southern Indian city Chennai.

Mr Chernikeeff said the firm had chosen Chennai after investigating a number of other companies in India and South Africa.

Around 40 staff from Office Tiger's 600-strong Chennai workforce will work solely on A&O documents.

He said A&O is not currently looking to outsource any other support departments, but that the firm would continue to examine initiatives which would give it a competitive advantage.

Giles Rubens, a director at legal consultancy Hildebrand, said that intellectual property work is one area already being outsourced by US firms and that entrepreneurs in India are also offering services in outsourcing of litigation discovery.

Jeremy Fleming