By Julian Goldsmith, 9 August 2007 16:26
NEWS
Following a review which started in May of this year, Lloyds TSB is to outsource up to 110 IT roles, both staff and contractors, to offshore locations.
The bank said from October this year a total of 100 permanent roles within Lloyds TSB Group IT will be outsourced to three companies - Tata Consultancy Services (TCS), Cognizant and Wipro - with a further 110 contractor roles also affected.
As part of an agreement with the workers' union, the bank has guaranted all affected staff the offer of another role within the group alongside a training bond worth £2,000.
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The bank is also opening up the opportunity for voluntary redundancy to all IT staff. A statement from Lloyds TSB said: "We fully expect to be able to manage the small reduction in permanent staff numbers through voluntary redundancies - and we have an extremely strong track record in this area."
Lloyds TSB Group IT director Darryl West said in a statement: "As a result of a review we've been carrying out over the past few months, we have decided to outsource a small number of roles within our IT division, the majority of which are currently held by contractors. Our permanent staff will all be guaranteed the offer of another role within Lloyds TSB and to help this process we are also offering staff across IT the option of voluntary redundancy."
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The National Outsourcing Association said that organisations have to tread carefully with offshoring, and that careful and thorough negotiation with the unions and staff is required.
It said: "It would appear that Lloyds has managed to clear this obstacle. The bank has negotiated an agreement with Unite to offer alternative positions to all staff but not all these jobs are in IT, which will mean re-training old IT staff to fit new roles. Although Lloyds is trying to the do the right thing, staff may feel demoralised and their trust in the organisation somewhat diminished."
Comments
There are 4 comments. Join the discussion
1. Chris Stevens
Another clear message from the UK Banking industry that Information Technology is not a suitable career path in the UK, i.e. why bother learning new skills. Like the "training vouchers" idea is going to make up for the lack of management commitment.
The Directors would much rather import those services previously provided that from within the UK.
We used to have a manufacturing industry in this country until it was replaced in imported goods.
Congratulations LTSB!
2. Sarah
So they can find billions to sponsor 2012 but not a little less (!) to show their support for the IT industry by keeping their UK IT staff.
Next time I meet my LTSB account manager I am going to have fun, given that I could have been one of the contractors affected by this decision. Time to move my account I think!
3. Andrew Meredith
"The Lloyds" used to be such an old skool fusty but thoroughly British sort of company. You knew they wouldn't be the first with anything, but they were solid and reliable and more than anything else .. British.
Us long time customers want the real Lloyds back please.
4. Matt H
The more I read about and deal with LTSB, the more I question myself as to why I opened an account with them. Now that they're culling my IT 'brethren', I might have to finalise my decision to move banks in a show of solidarity.