London based business outsourcing firm Capita has revealed it will be moving thousands of employees' email onto the Microsoft Office 365 cloud.
Some 20,000 employees, all except those handling sensitive government and financial work, will be transferred onto the service by the end of the year, the company has told The Channel.
"The current plans exclude FCA [Financial Conduct Authority] regulated and government businesses which will continue to use on-premises email services," a Capita spokesperson said.
The company has said the move is due to the online cloud based service offering a more cost effective solution and licensing deal.
"Capita will use the technology to improve its own internal productivity and to work more effectively with its clients and suppliers," the spokesperson explained.
The announcement comes after it was revealed that Microsoft has helped the NSA access encrypted communications sent through the company's Outlook and Hotmail services.
As Capita works with a huge number of external companies, in an attempt to answer any worries clients may have about privacy, the company said that Microsoft will host its email data "entirely within the EU", adding that the service "complies with all current data protection regulations".
From the secret NSA documents leaked by whistleblower Edward Snowden it appears that the PRISM data collection programme only collects emails from US servers.