By Andy McCue, 14 January 2004 16:40
NEWS Abbey is the latest UK bank to announce a major offshoring move that will see about 400 call centre jobs moved to India.
The bank announced today that it will close call centres in Bradford, Derby and Warrington, and transfer some current account enquiry operations to a centre in India. The move follows a small-scale pilot that Abbey carried out with Bangalore-based company MsourcE.
The latest changes are part of a wide-ranging review and re-branding of Abbey's operations that began in February 2003, after its disastrous move into the wholesale banking market led to a record annual loss of almost £1bn.
Redundancies will be made, although Abbey said it will work to redeploy and relocate UK staff where possible.
Jeanette Coyle, from the Abbey National Group Union, hit out at the UK government for allowing the flow of UK IT and call centre jobs to India to continue unabated.
"We understand it is a global economy, but we are struggling to understand this," she told silicon.com. "We have to acknowledge this bank is allowed to run its business as it wants but we don't like it."
She said that although job losses are inevitable, the union has managed to secure enhanced measures for its members. These include the guarantee of at least six months advance warning of closures, relocation packages, travel expenses for staff who will have to commute longer distances, and enhanced flexible working.
Abbey also announced the closure of its Edinburgh Scottish Provident customer service operation, with 900 jobs set to transfer to Glasgow.
The move is part of a reorganisation that will see Abbey reduce the number of administrative centres from 40 to just five - in Belfast, Bradford, Glasgow, Milton Keynes and Sheffield. The bank said it will invest £25m during the next three years in IT, training and the working environment.
Luqman Arnold, CEO of Abbey, said in a statement: "We have taken some tough business decisions today that are absolutely necessary to the health of Abbey's future and for giving our customers better service at a competitive price."
Earlier this week, UK building society Nationwide became one of the first companies to declare it will not move jobs to offshore locations such as India because of the wider impact on service and the local communities. Recent research by ContactBabel has also warned of a customer backlash against firms that move jobs offshore.
Comments
There are 12 comments. Join the discussion
1. anonymous
Sounds like yet another good reason to close my Abbey account.
2. anonymous
What a disappointment. As an Abbey customer of 15 years, I was hoping that they would not be so utterly stupid as to follow the trend started by other banks.
Such short-sighted changes will only have a negative impact on the future of the company. Any savings made by moving such operations abroad will be more than offset by customers voting against such practices with their feet.
As I am back in the UK, I will be moving my money and my custom elsewhere.
3. Karen Challinor
"Necessary to the health of Abbey’s future," says CEO...
Well lets see how necessary he thinks customer accounts are as they are closed as a direct result of this action.
4. Craig Golby
Luqman Arnold, CEO of Abbey, said in a statement: "We have taken some tough business decisions today that are absolutely necessary to the health of Abbey's future and for giving our customers better service at a competitive price."
"better service at a competitive price", I think he has missed the boat. All of the comment so far has pretty much admitted that the service is the same or inferior, its the cost savings that are driving people out there.
5. Rob C
Close your abbey accounts, vote with your wallet. Move your accounts to Nationwide a company that cares about customer service and the country in which it milks for the shareholders.
My colleague just said 'well i don't regularly call customer services anyway' ... thats short sighted, the point is that the when you do they will not be as good and besides they are note supporting the economy.
Its just as shame that hundreds of people (the former employees) have to have their lives turned upside down in the process of these companies learning the lesson.
6. anonymous
What are the implications of outsourcing to countries that have no data protection legislation? The eighth principle of the Data Protection Act states, 'personal data should not be tranferred to other countries without adequate protection'.
7. John Ford
So much for 'valuing people as individuals' and acknowledging 'the distinctive contribution each person makes to the success of the business' - Abbey 'Our Policies'. Lets sack 400 of them! The service will be poor (try Dell or Directory Enquiries). Looks like I'll be closing my account and selling my shares. Seems another useless business decision like so many made over the past few years.
8. anonymous
The financial services industry has gone mad. I work for one of the major Uk banks that is on a rolling programme of offshoring. We see the falling standards of customer service provided. We spend all day correcting mistakes made overseas and having to take the flack from customers for it.
9. anonymous
the customer service that is provided by abbey now in the call centres is a joke! a simple balance enquiry has turned into a 15 minute battle with an individual posted half way across the world that doesnt understand english. "abbey" or "shabby" as it is being called now a days is a complete and utter joke!!!
10. anonymous
the stupid abbey bank are destroying my home life - a simple enquiry routed to India goes unanswered because of the umpteen security questions and waste of money trying to get some sense out of them. Must get another account.
11. anonymous
Have you tried the cust service at The Nationwide? Failure to action isntructions. No replies to letters. Call centre can't answer why. Just taking an account away. I have some experience The Abbey call centre is hopeless, but I doubt any of them are any good.
12. Laura H
I had an Abbey account, have done for years but after 5 seperate phone calls to get a replacement card and no joy from someone on the other line not understanding me one bit I gave up!! I have now changed to Natwest as they have UK call centres! much better, I feel Abbey will lose hundreds of customers from their poor judgement of Bussiness changes!! What a good job you did Abbey NOT!