Lloyds TSB offshores 450 tech jobs to India

Hundreds of IT jobs could be lost at Lloyds TSB as part of the bank's plans to offshore 450 posts from the UK to India this year, a trade union is warning.

Lloyds TSB will offshore up to 250 permanent and 200 contractor posts in the technical delivery department from the UK to India from June this year.

More on outsourcing…

♦ Gov't stung by 'rip-off' outsourcing deals

♦ Shell signs $4bn IT outsourcing contract

♦ Cloud computing – the data centre of the future?

♦ Tough bargaining forces outsourcing price cuts

♦  Profile: Nandan Nilekani, co-chairman, Infosys

♦  India losing status as offshore king?

♦ Productivity gains driving IT outsourcing

♦ Tax payer still owed millions by EDS

♦ Cheat Sheet: Offshoring

♦ Special Report: Inside India

The bank is considering outsourcing further jobs in the programme management office department, which employs 75 people, later in the year according to internal statements released by the Lloyds TSB Union (LTU).

The bank said any affected staff will be offered a replacement role but LTU claims there is no guarantee these jobs would be at the same level or in the same location, adding that two-thirds of the equivalent positions in the UK are being offshored.

Steve Tatlow, assistant general secretary to LTU, said: "There is no guarantee that these replacement roles will be on the same pay scale, 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."

The majority of affected staff are likely to be based in London and Wythenshawe, near Manchester, where Lloyds TSB has a total of 1,760 staff, although 11 offices around the UK could be affected.

The change is estimated to mean that only a fifth of tech staff working in the affected areas, mainly internal software design and testing, will be left in the UK.

Lloyds TSB said it will retrain anybody who has to move into an unfamiliar role.

A Lloyds TSB spokesman said: "This is not done for cost savings, it is about making sure our IT service delivers the best. Group IT is the backbone of the business and we need to deliver a service that is second to none."

Cognizant, TCS and Wipro will take over the positions and it follows Lloyds TSB outsourcing 210 IT jobs to these service providers last year.