RBS UK IT staff morale down as offshoring takes hold

In the last couple of days I have been contacted by a couple of members of the Royal Bank of Scotland’s (RBS) IT team.

One RBS IT worker told us that the internal jobs board at the bank earlier this week that there were 67 jobs in the technology and services division. But only 6 were in the UK while the rest were in India.

RBS has a lot to do to repay the government after the bail out of the bank. But it seems that UK based workers at the bank are suffering as more and more IT roles are outsourced to Indian service providers.

The bank is making UK IT staff unemployed with the axing of 1,000 technology jobs as part of a cull of 3,500 positions across the company announced earlier this month. It is increasing its offshoring.

The Unite union says RBS plans to offshore upwards of 500 technology roles to India.

RBS said the movement of jobs to locations such as India is a result of its global nature. “As we work to rebuild RBS and repay the taxpayer for their support we continue to streamline our business to ensure that we remain competitive. The movement of roles between countries reflects the global nature of our business and the need to locate our people close to the customers they serve. However unlike many of our competitors we remain committed to our long-standing principle of situating customer contact work within the country or region where the customer is located.”

But RBS sold its retail and commerce business to HSBC in July. Although it said it still has business there. On that same press release RBS said: “India is also one of four key locations globally for Business Services hubs with centres in Mumbai, Delhi and Chennai employing over 8,000 people. Combined, these operations make India one of the largest employment bases for RBS.”

RBS said that a significant proportion of the redundancies, announced earlier this month, across its operations and IT divisions were as a direct result of the EU ruling to sell part of our UK branch network.  It said as a result of having 2 million less customers it will need less back office staff

Back in May a contractor at RBS said the bank was gradually sending more jobs to India.