While the software services sector in India is facing the headwinds of rising protectionism in US and European markets and is forced to rework its hiring strategies, UK government-owned Royal Bank of Scotland is bucking the trend.
The British bank, in which the UK Government owns 73% stake, has said it will cut 443 UK jobs dealing with business loans and shift many of the roles to India to reduce costs, reports PTI.
The bank said it would support staff affected by the ‘disappointing news’ by moving them into new roles where possible.
This move has not gone down well with workers’ unions. Workers’ union Unite said British workers and taxpayers would lose out from the move, adds PTI. “By shipping these jobs to India, RBS will be getting that work done more cheaply at the cost of jobs and livelihoods here in the UK,” the spokesperson said.
It may be recalled that RBS had cancelled a major contract with Infosys in August last year after it decided to scrap its plan to set up a new retail bank. Consequent to that, the Indian IT major had to ‘ramp down’ nearly 3,000 jobs. Now in the post-Brexit world, Indian companies seem to be back in favor, though in a much lower scale.