The British bank is outsourcing large parts of its IT to IBM in a deal worth over £1.3 billion over 10 years. It is expected to involve 1,900 jobs. The Lloyds trade union in its newsletter released on Tuesday said IBM has only guaranteed to keep the existing jobs for a minimum period of time and plans for most of the work to be carried out by staff based offshore.
“We believe that over four years, most of the jobs will be offshored to India. According to the bank, about 200 jobs will be based in the UK,” said Mark V Brown, general secretary of the union, in response to TOI’s questions.
The permanent staff will be asked to move to IBM on September 1. The deal with IBM is expected to save the bank 760 million pounds.
Two trade unions, Accord and Unite, have agreed to the terms of the offshoring deal between Lloyds Bank and IBM.
The project, called Aurora, will witness 1,300 of the 3,200 applications run on Windows, Unix and Linux platforms to be outsourced to IBM. “The transformation of Lloyds Bank’s application and infrastructure estate is expected to take three years. The bank has sought to limit the disruption to the deal by shortening the gap between the signing of the deal, the announcement of the deal, discussions with staff on the Transfer of Undertakings (Protection of Employment) regulations terms, and the transfer of staff to IBM. The bank wants to transfer staff in just three months,” said Brown.
TOI requested IBM India for a comment, but did not receive any response so far.