ABN Amro cuts 1500 jobs; outsources to IBM, Indian ITs |
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Fri, 02 Sep 2005 16:35
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AMSTERDAM: Dutch bank ABN Amro yesterday announced it would shed 1,500 jobs and outsource 2000 more in a £1.2bn deal with IBM and four other IT firms, three of which are India-based.
The deal believed to be the largest in European banking will see 550 employees from the Netherlands and a larger number from ABN Amro’s offices in Chicago and Sao Paolo, Brazil will be losing their jobs. 600 Ducth employees would retain their jobs and 700 will be transferred to IBM. A further 1300 employees will be offered the option of a transfer to one of the other outsourcing partners – the bank would not state where these jobs would be located.
The deal with a contract of five years will see the bank’s key back office operations being moved to the offshore outsourcing partners. Until now these functions were managed by over 5000 employees at its offices worldwide.
The bank said the outsourcing was an effort to generate annual savings of £176 million by 20007; along with this and its other outsourcing efforts the bank hopes to save around £410 million.
Besides IBM, the other BPOs are India’s Infosys Technologies, Tata Consultancy Services, Patni Computer and Accenture. IBM’s share of the deal is said to be the biggest at about £1bn; Infosys getting about £76 million and about £133 million for TCS. IBM is given charge of the bank’s IT infrastructure while software development and other related functions will be managed by the other four IT firms.
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