The decision by Tesco to outsource some head office roles to Bangalore is likely to save a lot of cash, but it is also likely to cause a lot of anxiety to the staff whose jobs are under threat.

'A highly competitive environment' prompted the move, according to an email sent by business change manager David Chamberlain.

Hundreds of thousands of jobs in IT and finance have been created in India as a result of outsourcing over the past 10 years, but some UK businesses such as Orange, E.ON and LloydsTSB have now brought staff back to the UK in order to improve customer service.

And while Tesco's customers won't be aware of any changes, suppliers might now be forgiven for wondering how their working relationship with the Tesco trading team will change.

Tesco won't say how many jobs are at threat, but it's the administration team that supports the buyers that's being transferred.

It seems unlikely suppliers will soon be flying to India to conduct meetings with buyers. But you can forgive them for wondering where the exodus to India will end.

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