Brief: 10,000 Jobs To Move Offshore Under Barclays' Merger Plan - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
IT Leadership // IT Strategy

Brief: 10,000 Jobs To Move Offshore Under Barclays' Merger Plan

Barclays said it would also cut outright 12,800 staff positions if its plan is approved by ABN Amro shareholders.

As part of a restructuring that would follow its proposed acquisition of Dutch banking company ABN Amro, U.K.-based Barclays would ship 10,800 jobs from the West to low-cost countries such as India.

Barclays CEO John Varley and ABN Amro chairman Rijkman Groenink, ready to cut

Barclays CEO John Varley and ABN Amro chairman Rijkman Groenink, ready to cut

Photo by Jerry Lampen/Reuters
The success of Barclays' proposed $91 billion buyout of ABN Amro relies in part on annual savings of $4.75 billion by 2010. In addition to shifting thousands of jobs to lower-cost countries, Barclays would cut 12,800 staff positions. Many offshore positions would be filled at ABN Amro's ACES unit, an Indian subsidiary the bank established to provide low-cost back-office and IT services. ABN Amro already moved some work offshore through a 2005 deal that handed a chunk of IT operations, along with 3,200 tech jobs, to outsourcers. (Shareholders must approve the deal, and now a rival $98.58 billion hostile takeover bid from Royal Bank of Scotland is on the table.)

The Barclays shakeup plan comes less than two weeks after Citigroup said it would send as many as 9,500 jobs to lower-cost locales as it cuts spending by $10.4 billion over three years. The disclosures lend credence to a report this year from Deloitte predicting that offshore tech spending by banks will increase from the present 6% of the industry's $44 billion total annual IT budget to 30% by 2010.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

Slideshows
10 Things Your Artificial Intelligence Initiative Needs to Succeed
Lisa Morgan, Freelance Writer,  4/20/2021
News
Tech Spending Climbs as Digital Business Initiatives Grow
Jessica Davis, Senior Editor, Enterprise Apps,  4/22/2021
Commentary
Optimizing the CIO and CFO Relationship
Mary E. Shacklett, Technology commentator and President of Transworld Data,  4/13/2021
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
Planning Your Digital Transformation Roadmap
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
Slideshows
Flash Poll