More UK IT jobs to be offshored or made redundant

by Editor 5/21/2008 3:11:00 PM

Several companies have announced major job cuts and plans to offshore IT jobs to India over the last couple of days.

Barclays' tech staff in Poole fear that their division will close by the end of the year, which would result in a loss of a few hundred jobs, following the announcement the bank made earlier this year, revealing plans to offshore some of its UK IT roles.

A Barclays' representative said: “As each part of the business grows, there will be changes and within those changes there may be an impact on the IT function and there may be some element of offshoring to meet the needs of business," adding:  

“Our business in Africa is growing, therefore we have service hubs that we need to develop to meet the (region’s) growing needs… (which) may require the offshoring of some jobs from the UK to Africa.”

Publishing firm Thomson Reuters will cut 250 out of 650 jobs in its IT, content and operations division in the wake of the results of the consolidation review processes, which showed that many of the jobs in question overlapped.

Staff reviews were part of the consolidation plan since the merger. When the two media groups joined forces, they announced plans to save £383 million by the third year through “synergies in areas such as property and technology.”

The consolidated company does not yet know how many UK jobs across the specific divisions, including technology, will be gone, but expects to have the exact numbers within the next two weeks.

Royal Mail recently made almost a half of its permanent IT jobs redundant following a similar staff review.

Lloyds TSB will outsource about 450 IT jobs - 200 contractor posts and up to 250 permanent positions - to a technical facility in India.

The bank's decision will reportedly affect IT staff in London, Edinburgh, Manchester and other big cities and leave only a fifth of the IT staff in the affected areas in the UK. The offshoring process begins in August. The bank reportedly plans to offshore a total of 655 IT jobs to India over the following nine months.

The workers' union Unite called the decision “unjustified,” saying that it “represents a lack of faith in the IT skills of their UK workforce.”

The bank said that the employees who find themselves redundant would be offered replacement roles. In response, Steve Tatlow, assistant general secretary to Lloyds TSB Union (LTU), commented:

“There is no guarantee that these replacement roles will be on the same pay scale, (in the same) location or even that the job will be in IT; they could be completely unsuitable. A lot of people will be choosing redundancy. We are fundamentally opposed to offshoring.”

Cognizant, Tata Consultancy Services and Wipro will take over the positions.


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