The Public and Commercial Services (PCS) union has said that industrial action over Hewlett-Packard’s (HP) plans to offshore 200 jobs cannot be ruled out.

The PCS, which represents 2,000 HP staff in the UK, claims that HP is to cut 200 jobs from sites in Newcastle, Sheffield and Lytham St Annes in Lancashire. These offices provide IT support to the Department for Work and Pensions.

The PCS said the Cabinet Office is considering HP’s proposals to offshore the work to India which are at an "advanced stage". The union added that the outsourcing could begin in August this year and over by November 2011.

The PCS warned that the "false economy" offered only "limited savings on IT" that "would be overshadowed by the costs to the taxpayer". The benefits will only reach the shareholders claims the union.

PCS general secretary Mark Serwotka said, "The government must not allow low-paid jobs to be offshored."

"It will be a disaster for UK workers and the taxpayer and will only ensure that Hewlett Packard’s shareholders reap the benefits."

PCS is consulting its members about the proposals and has not ruled out industrial action.

HP has confirmed that the company has begun consultation on transfer of some roles to India, but has denied that jobs would be cut.

A HP spokesman said that the affected staff would be redeployed into other roles within HP.

The spokesman said, "HP is transforming its global delivery strategy and has continued to improve the quality and cost-competitiveness of services to clients by expanding our global delivery footprint. We have begun consultation on the transfer of some roles to our operations in India."

"We are working to redeploy staff affected into other roles within HP."