It's raining jobs; foreign banks to hire over 50,000 in India
British banking giant Barclays' plan to shift thousands of jobs to low-cost India is the latest in a series of such decisions by European and American banks.business Updated: Apr 24, 2007 09:46 IST
British banking giant Barclays' plan to shift thousands of jobs to low-cost India is the latest in a series of such decisions by European and American banks that are expected to hire more than 50,000 professionals in the country over the next three years.
The combined headcount of ABN Amro and UK's Barclays Plc is set to expand by up to 10,000 employees in India following the 91 billion dollar takeover of the Dutch banking major.
Together with Barclays-ABN Amro, about a half a dozen foreign banks such as Citigroup, HSBC and Standard Chartered could hire over 50,0000 employees in India in the next three years. These would be across various operations, including back-end jobs, to be moved from high-cost developed countries.
Seeking to expand their presence in the world's second-fastest growing major economy and benefit from low-cost opportunities in IT enabled back-end operations, foreign banks are increasingly going bullish with their headcount expansion plans in India, an industry observer said.
While announcing their 91-billion dollar cash and stock merger deal, Barclays and ABN Amro today said they would move 10,800 jobs to low-cost locations like India. The deal would also result in net reduction of 12,800 jobs from their combined workforce of 2,17,000 employees.
As a result, sources close to the two firms said, the combined entity could create 8,000-10,000 jobs in India. This would include jobs offshored from other locations and previous hiring plans announced separately by Barclays and ABN Amro.
ABN has about 2,000 people on its payrolls in India. It had said last month it planned to double this number in one year. Barclays, which has close to 1,000 employees in India, also said last month it would move over 200 jobs to India after closing a call centre in the UK.