Bank Exports IT to India
September 1, 2015
Computer World’s article, “As It Sets IT Layoffs, Citizens Bank Shifts Work To India Via Web” sounds like it should have been published five years ago. It was not that long ago when Americans were in an uproar about jobs being outsourced to China and India, but many of those jobs have returned to the US or replaced with an alternative. Despite falling out of interest with the mainstream media, jobs are still being outsourced to Asia. Citizens Bank is having their current IT employees train their replacements in a “knowledge transfer” and they will be terminated come December.
Citizens Bank signed a five-year services contract with IBM for IT services. IBM owns a large scale IT services company in India, which pays its workers a fraction of the current Citizens Bank IT workers.
As one can imagine, the Citizens Bank employees are in an uproar:
“The number of layoffs is in dispute. Employees said as many as 150 Citizen Bank IT workers were being laid off. But this number doesn’t include contractors. IBM will be consolidating the bank’s IT infrastructure services, and, as part of that, the bank is consolidating from four vendors to one vendor, IBM. This change will result in the elimination of some contractor jobs, and when contractors are added, the total layoff estimate by employees ranges from 250 to 350.”
It is reported that some IT workers are being offered comparable positions with IBM, while others are first in line for jobs in other branches of Citizens Bank. However, the IBM jobs appear to be short term and the other bank jobs do not appear to be turning up.
Other companies are shifting their IT work overseas much to the displeasure of IT workers, who thought they would be assured job security for the rest of their lives. IT workers place the blame on companies wanting to increase profits and not caring about their employees. What is going on with Citizens Bank and other companies is not new. It has been going on for decades, but that does not make the harm to Americans any less.