Under intense pressure from customers and others for an IT failure that affected the transactions of millions of customers, the Royal Bank of Scotland (RBS) has said there was no link to its outsourcing programme to India.
Outsourcing IT and other jobs to India by banks and other institutions has often been in public focus, since they invariably lead to job losses in Britain.
There have also been doubts about the security of UK data sent to India.
Millions of customers could not complete their transactions with RBS for the last one week after a computer software upgrade failed, disrupting payments into and out of accounts.
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RBS said most of the backlog of transactions had been cleared, leaving less than 1 per cent unresolved.
However, opponents of outsourcing to India have used the RBS’ IT problems to once again raise questions about sending work and jobs to India, with reports stating that the support team for the bank’s computer software was based in India.
RBS is one of the major banks that was rescued by the taxpayer in 2008 during the banking crisis.
Since the bailout, it has reportedly shed nearly 30,000 jobs, including more than 20,000 UK-based roles, and has outsourced them abroad, including to India.
via IT failure not linked to India outsourcing: RBS – The Times of India.