Indian outsourcing of IT jobs gets massive backlash in UK

28 Jun, 2012, 02.08AM IST, Sudeshna Sen,ET Bureau

Indian outsourcing of IT jobs is once again in the limelight, after a week-long IT debacle at Royal Bank of Scotland and Natwest, that left customers locked out of their accounts for a week, is estimated to cost the bank a large chunk of cash in fees.

Shares slumped 9.1 %, meaning over £1.7billion was wiped off taxpayers' 82% stake in the bank since the problem started last Thursday.

RBS has cancelled its plush corporate hospitality expenses at Wimbledon, chief executive Stephen Hester has announced senior management will face the music, and the bank, which was bailed out by the UK government and is part taxpayer-owned, faces an FSA investigation.

Reports in the UK media peaked Wednesday quoting "bank insiders" as saying that the entire problem was kicked off by an inexperienced CA-7 IT operative at RBS' Hyderabad back office, who wiped out vast swathes of crucial data while performing a routine upgrade.

More: http://economictimes.indiatimes.com/tech/ites/indian-outsourcing-of-it-jobs-gets-massive-backlash-in-uk/articleshow/14433069.cms