Insurance firm looks to India to cut costs

Posted : 10-11-2004

High-street bank Lloyds TSB has confirmed that it is planning to offshore an additional 1,000 positions.

Many of the jobs being transferred are from the company's insurance arm, Cheltenham and Gloucester as well as from its IT departments.

The mainly back-office positions will be relocated to Bangalore and Mumbai next year and follow the company's recent decision to move 1,500 jobs to India.

However, the bank, which currently employs over 77,000 staff in the UK, is adamant that the recruitment in India will not result in the loss of UK jobs.

"We don't anticipate redundancies either voluntarily or compulsorily," a spokeswoman said.

It has decided to take the step because it needs to increase its offshore operations to be able to compete in the global economy.

The Lloyds TSB Group Union has raised concerns that suitable alternative jobs may not be found and predicts that Lloyds may eventually be planning to offshore up to 10,000 jobs.
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