Barclays Personal Banking is planning to outsource over 4000 jobs outside UK as a direct result of cost reduction
Barclays Personal Banking is planning to outsource over 4000 jobs outside UK in order to reduce costs and direct the business towards a low cost environment. The outsourcing process mentioned above will take place step by step , up until the end of 2015.The cost reduction could reach 250 million GBP as per an explanation provided by a representative of the British Company.
The bank has already transferred 2,000 jobs in the 2011-2012 period and the main areas affected by this process are the administration and the IT department – according to a presentation held by Eric Bommensath, general manager at Barclays. However, in regards to the future plans he did not reveal the info as to where the new jobs will be outsourced.
“We will have a more pronounced presence in terms of offshore business which brings us in line with other banks. Having fewer employees in high cost locations will help us manage additional capacity for office space, generating new cost savings” said Mr Bommensath, representing Barclays .
The Bank is trying to reduce costs by reducing the administrative services inside the company. Barclays recorded a commission of 514 million GBP in April , after closing many branches in Europe and reducing the number of employees in Europe and Asia.
According to latest official data , the unemployment rate in the UK has reached 7.8% ( currently, 2.5 million people do not have a permanent job ).
Source : Economica.net