Telstra says its customers will get better service from Filipino or Indian call centre workers who will take over from many of the 648 staff the telco axed on Thursday.

The managing director of Telstra's Sensis directories business, John Allan, told BusinessDay ''the vendors that we are considering provide services for customers that go beyond our service today, such as 24/7 operations and unique technologies that assist in processing efficiencies, which they do for many directory businesses around the world''.

Job cuts ... Sensis runs the Yellow Pages. Credit:Craig Sillitoe CSZ

Earlier on Thursday, Mr Allan reportedly told union officials that ''Australians will get better customer services from Manila or India. They have better technology and innovation.''

The Community and Public Sector Union spokesman Julian Lee said the comments were made during a meeting with union officials after Telstra announced the job cuts at the ailing Sensis unit.