Telecom says reports of job losses through the outsourcing of its IT services are incorrect and it is merely reviewing the services.
The Labour Party on Wednesday said Telecom is conducting a tendering process to outsource between 400 and 1500 hi-tech jobs to other countries.
Labour MP for Dunedin South Clare Curran says the process is well underway and Telecom is seriously considering two tenders.
A document obtained by Radio New Zealand shows Hewlett Packard is tendering for work that Telecom may outsource.
However, Telecom says that, as part of a review, it has received proposals from seven technology companies on ways it can improve IT services.
The Engineering Printing and Manufacturing Union says Telecom's mobile XT network will be more vulnerable if the company outsources jobs.
EPMU spokesperson Joe Gallagher says it would be a disgrace if core communications infrastructure in New Zealand was controlled from other countries.
If the jobs are outsourced, it would take longer for Telecom to fix any problems with the XT network, he says.