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Lloyds Bank to replace British IT workers with Indian techies (View Comments)
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Posted On Wednesday, July 01, 2009 at 12:06:32 PM
Even as protectionism gains ground among political hardliners in the UK and US, UK-based Lloyds Bank has initiated the process of replacing most its British IT workers with Indian nationals. Many of the Indian recruits will be from top-rung Indian IT majors such as Wipro and TCS, which are also the bank’s vendors, said two industry officials familiar with the development.
The bank, which has over 400 employees in its IT department, is learnt to be considering to replace over 80% of its IT workforce with those from India. “We continue to outsource areas of IT work to companies based overseas. At any one time, some of the staff from these companies will be based in the UK to deliver aspects of our IT projects, which is standard industry practice,“ said a Lloyds spokeswoman over e-mail. She added the number of staff from overseas companies working with Lloyds in the UK varied depending on the projects underway and the skills required. TCS declined to comment since it was in the midst of its silent period, while Wipro refrained from commenting on “market speculation.”
Globally, the economic crisis has resulted in serious cost-cutting measures, which include wage cuts. For example, an Indian IT specialist, with over four years of experience, will be paid almost 30% lesser than his British counterpart. “The costs pressures for companies in Europe and US are forcing companies to lay off workers and replace them with more inexpensive labour mostly from India and China,” said a UK-based consultant, who advises European banks on outsourcing strategies.
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