Investment bank Goldman Sachs has become the latest
blue-chip company to move part of its IT operations to India to
reduce costs.The bank said it will relocate part of its IT
and administrative operations to an Indian centre which is due to
begin operations by the end of 2004, employing around 250 IT and
administration staff.
The move by Goldman Sachs illustrates how
offshore outsourcing to countries such as India, where labour costs
are cheaper, has become a mainstream option for large companies
wanting to cut IT costs.
The bank joins companies such as Aviva,
Somerfield and BT, which have relocated IT operations overseas.
Last week, supermarket giant Tesco announced it would develop its
own IT centre in India.
However, the trend for offshore outsourcing
has attracted mounting opposition from unions, who have threatened
strike action if offshore deals create compulsory
redundancies.
Analyst firm Ovum Holway predicts up to 25,000 UK IT job losses
in the next four years through offshore deals. Most job losses to
offshore outsourcing so far have been in call centres, but UK IT
leaders warn that more senior staff will be at risk in the
future.