Banks that offshore 'not responsible for lay-offs'
Tue 19 Aug 2008 at 2:15 PM
Banks that offshore their IT function are not responsible for recent job cuts in the sector, research has claimed.
A report for Deutsche Bank says the exporting of work accounted for only one in ten of the sector's redundancies.
Author Thomas Meyer noted: "Offshoring does not explain job cuts. Across Europe, there is no correlation between banks that have offshored IT functions and changes in bank employment between 2002 and 2006."
His report went on to say half of all retail banks are planning some offshoring of their IT function in the coming five years.
It revealed almost nine out of ten European banks source ICT functions from external suppliers, 22 per cent buy these from abroad and 11 per cent are served by a foreign affiliate (captive offshoring).
Large UK companies commonly outsource their call centres, although there remains a strong market for call centre jobs in Cardiff and Leicester.
