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Lloyds Banking Group will transfer nearly 2,000 jobs to IBM as part of an outsourcing agreement worth £1.3bn over seven years, according to the union representing thousands of the bank’s staff.
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According to the Lloyds Trade Union (LTU), which is no longer recognised by the bank, Lloyds CIO Morteza Mahjour gave a presentation and said jobs in UK datacentres will move to the US IT supplier. When contacted by Computer Weekly, the bank would not comment directly but said it is looking to extend the use of cloud computing.
”In a recent presentation, Morteza Mahjour, CIO, confirmed that Lloyds Banking Group will outsource large parts of its IT estate to IBM in a deal worth £1.3bn over seven years. Up to 1,900 IT staff will be outsourced to IBM, and then over a four-year period the work will be offshored,” said the LTU newsletter to members.
“[The deal] was due to be announced in January but negotiations with IBM are taking longer than originally thought. LTU’s expectation is that the IBM outsourcing/offshoring deal will now be announced in the next few days. We also understand that the in-house staff unions – Accord and Unite – have agreed the details of the Tupe transfer,” added the union.
The newsletter said most of the jobs set to be transferred are from Lloyds’ datacentres in Copley, West Yorkshire and Edinburgh. ... ... ... ...
A Lloyds Banking Group statement said: “As we have said to our colleagues, we are considering options to extend use of cloud technology in pursuit of the group’s aim to be the best bank for customers. We do not comment on speculation, and if any decisions are made they will be communicated to our colleagues first.”