CMS Cameron McKenna's ambitious bid to outsource virtually its entire back office function to Integreon could result in more than half of the firm's London support staff either relocating or being made redundant.

Details of the move, announced earlier this week (24 January), when the City law firm formally launched a consultation on the plans, revealed that 9% of 363 global business services staff will face redundancy, with a further 21% asked to relocate to either Bristol or India.

The majority, if not all, of the redundancies and relocations will affect the firm's 200-strong London support staff. This equates to around 33 positions at risk of redundancy (16% of the office total), with a further 76 (38%) up for relocation. The remainder will transfer to Integreon in London, with the outsourcing specialist taking a floor in Camerons' headquarters.  

The number of those transferring to Integreon has not been confirmed; however, they will transfer on the same salaries and conditions as at Camerons and have been told there will be no changes to their contracts for two years. For the time being, the firm's international business services teams will be unaffected by the outsourcing.

Integreon has paid an undisclosed sum to buy Camerons' existing business services company, with Camerons retaining a nominal financial interest. By structuring the deal as an acquisition, Camerons does not have to transfer the staff under TUPE employment legislation.

In an internal memo sent out on 24 January, Camerons managing partner Duncan Weston said: "The changing legal landscape requires constant innovation in the way we do business. This new approach to our business services will give us the ability to focus on our clients and provide a more sophisticated service."

The outsourcing, which was approved by the partnership in November last year after five months of due diligence, has received a mixed response from the market as more details have emerged.

One partner within the firm said: "People feel very nervous about the outsourcing. Obviously, the support staff who are directly affected are very unhappy about it. Elsewhere, not everyone is convinced that the quality of service will be maintained."

However, the managing partner of a rival City firm said: "It remains to be seen how Integreon handles it in practice, but generally it is the right sort of thing for firms to be doing. The rate pressure we are experiencing will force us to do things differently and this is one way of doing that."

Some rivals have suggested that by not transferring staff under TUPE the firm could be open to litigation from affected employees. However, employment specialist and Fox Williams senior partner Tina Williams commented: "In legal terms, this is a non-event and does not of itself give employees any potential claims. This is because the business services staff is already employed by a service company whose shares are being acquired by Integreon. Therefore, both the identity of the employer and terms of employment remain unaffected.

"The normal rules regarding redundancy (such as fair selection criteria) must be complied with if unfair dismissal claims (against the service company) are to be avoided."

At the time of press, Camerons was expected to inform staff tomorrow (28 January) which departments would  move to Integreon.

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