Banks get nervy about their Kiev based services

The political unrest in in the Ukraine is beginning to worry major UK banks that have work carried out in the Easter European country.

I was chatting to a contact who works in banking IT and he told me that although there have not been any disasters banks are a bit nervous.

He said: “I hear whispers that some banks are getting nervous / suffering from the Kiev disruption. No serious issues or outages yet but I would say it’s on the cards. Some firms only have development out there, others have some prod support. I hear some workers are having to rely on remote access and resilience is reduced.”

The Financial Conduct Authority said it is the bank is responsible for the outsourced service providers, so if problems arise the banks will need a plan to act on.

Nearshore locations such as Ukraine are often seen as safer options than farshore locations, with close proximity, the abundance of IT skills and perceived political stability seen as a benefit. The attacks in Mumbai in 2008 made people look at their offshoring policies, but it didn’t scare them off. The Ukraine will now face similar scrutiny.