Lloyds Banking Group could be on the verge of offshoring large volumes of IT work as it starts to consolidate multiple IT systems.
The bank said in its statement today that it would be embarking on developing better IT platforms. It said: “Simplify the Group to improve service and deliver £1.5 billion of annual savings in 2014, through better end-to-end processes and IT platforms.”
Lloyds’ commitment “not to offshore further UK permanent operational roles,” sounded positive given thehuge number of IT jobs that have been cut in the UK and in the light of extensive IT work planned.
But Steve Tatlow at the Lloyds TSB Group union says that “permanent operational” roles at Lloyds Banking Group terminology do not include IT jobs.
He said in fact there is likely to be more offshoring of IT, particularly as the bank attempts to reduce the number of different banking platforms it uses. Because Lloyds has reduced IT staff numbers significantly over recent years it will have to outsource. Obviously offshoring will be an attractive option to a firm trying to cut costs.
Tatlow called for the bank to complete the IT work, which might involve building platforms from scratch, in the UK but because Lloyds has cut so many IT workers he expects the work to be sent offshore.
At the time I wrote this a Lloyds Banking Group spokesman could not confirm how the bank catagorises “permanent operational roles.”