Lloyds TSB is to outsource almost half of the programmers in its insurance and telephony division following a three month review to improve IT efficiency.
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The company said 110 programmer roles and an additional 100 IT contractor roles would be outsourced to India to "improve the level of service" its business gets from IT.
The cuts will come from a specific IT department currently totalling 450 staff. The losses will affect offices in London, Cardiff and Manchester and those working in its telephony and insurance divisions.
Lloyds is outsourcing the jobs between Wipro, TCS and Cognizant Technology Solutions, following a review by the company in May of its IT systems. Migration of roles begin this October and will be fully offshored by March 2008.
"All IT staff will be offered voluntary redundancy or the possibility of alternative placement within the company," said a spokesman for Lloyds TSB.
Lloyds TSB first outsourced large amounts of work overseas in 2004 when it opened its first Indian call centre. While some of the jobs have been brought back into the UK following customer complaints, the bank said it did not have plans to bring back office roles such as IT back to the UK.
Union officer John Bancroft of Unite said there was "no business justification for the decision to send work aboard".
Earlier this year, Lloyds TSB cut 245 back office jobs from its Peterborough site.