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Head Office Offshoring Begins
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Date: 5th Oct 2005
The Bank has today announced plans to transfer a number of Head Office functions from Consort House to a Bristol based company called Xansa. The work to be outsourced involves Accounts Payable, Fixed Assets and Staff Expenses and the transfer is due to be completed by the end of March next year. In all 43 staff will be displaced. Staff will have the choice either to transfer to Xansa to carry out similar type work, or be redeployed within the Group or take severance if there is no suitable alternative employment.
The Bank has told LTU that this outsourcing is being driven by a desire to take advantage of the economies of scale offered by Xansa, in other words to cut costs.
However, this is only possible because the work being transferred will actually be offshored to a Xansa operation in India. Staff transferring to Xansa in Bristol will be engaged in similar type work, but for other British companies not the Bank.
Whatever the semantics of how this deal is being structured it represents the first example of higher end work in Head Office Departments being offshored to India, just as LTU predicted would happen.
The Bank has always tried to argue that its offshoring strategy – management jargon for moving work to countries with cheaper staff costs – is not about cost. That assertion has been exposed by this decision.
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