Australia's The Iconic outsources customer service jobs to India: Report
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Australia's leading online clothing retailer, The Iconic, has reportedly outsourced its customer service jobs to India.
The Iconic, an online company, has been outsourcing parts of its email customer service to Hyderabad since December, according to 'The Age' report.
However, the number of jobs gone overseas were not disclosed.
The report quoted the company's Managing director Adam Jacobs as saying that there were no redundancies involved in its launch.
However, the report said there could be redundancies to be announced later.
In response to that Jacobs said the redundancies were not related to the Indian offshoring.
"We are looking to reduce our team in Sydney by five to eight roles, which represents a small percentage of our full team," he was quoted as saying.
Jacobs said the latest redundancies were due to a "reduced" need for the customer service team.
"It has reduced due to concerted efforts to create a seamless customer experience, meaning less customers now need to contact us with queries/issues," he said.
The move has raised concerns with Unions NSW secretary Mark Lennon saying that offshoring jobs was an "outrageous decision".
"Companies that cloak themselves in the flag can't then turnaround and shift jobs offshore simply to cut costs," he said.
This week The Iconic raised USD 25.2 million in funding from US equity investor Summit Partners.
The company was launched in October 2011.
In the past, another Australian company, Pacific Brands that manufactures Bonds clothes, also announced relocating its manufacturing to Asia in 2009.
The Iconic employs more than 350 staff in both Sydney and Melbourne, Jacobs said.