Publicly owned electricity distribution business Ausgrid is proposing to send 37 IT jobs offshore as unions step up a campaign to protect their workers' job security.

The United Services Union said Ausgrid management believes it can save $8.5 million a year by outsourcing the jobs to an overseas company.

Ausgrid has flagged outsourcing its IT workers Credit:Louise Kennerley

The company has flagged the loss of jobs and the use of an overseas contractor to provide IT services.

A spokesman for Ausgrid said it is reviewing the delivery of services in its Information and Communications Technology division as part of a "business-wide restructure to reduce non-essential operating costs".