House of Fraser is outsourcing its IT department in Swindon in its second blow to the town in two years.

A Paris-based company – Capgemini UK – is taking on the entire IT department, which employs 70 people in Faraday Road, Dorcan.

And this comes after House of Fraser’s flagship clothing store in Wharf Green was turned into an outlet shop two years ago, much to the dismay of shoppers and traders in the town.

One member of staff, who wished to remain anonymous, said: “It’s crazy.

“At the moment they are saying our jobs are safe and we will just be working for the new outsource company but who is say that is the case in the future?

“We don’t know we if are moving to another base – I cannot see House of Fraser wanting us to stay here as the responsibility has shifted to an external company.

“Swindon is not the centre of the universe so I am guessing over time we will be shipped somewhere else and when we say we won’t go we will get the chop then.

“People are not happy at all about this – outsourcing is always seen as the beginning of the end.”

House of Fraser has handed Capgemini UK a seven-year contact to take over its entire IT operation.

The contract, which begins this month, includes management of datacentre services, applications support and development, service desk and desktop support.

House of Fraser said the deal provided access to a wide range of IT skills and capabilities, a more cost-effective IT support operation and would bring IT procurement and financing benefits.

A spokeswoman for the company said there would be no job losses and, in fact, 11 new roles would be created in the business to handle the Capgemini account.

She was unable to say whether or not the department would leave Swindon.

A spokesman for Capgemini UK said: “About 70 House of Fraser IT staff are expected to transfer to Capgemini and BT from March.”