The hysteria over jobs to India grows as two other top firms confirm that they are jumping aboard the Bombay Express big time.
Reuters reports that Bank of America plans to establish a subsidiary in India next year and intends to ship out a number of jobs to save on costs. The new subsidiary is due to be set up in April. Bank of America spokeswoman Elisabeth Woods is quoted as saying: 'It will help provide faster high quality, less expensive solutions to our customers'.
Although the bank is said to have not finally decided which functions will eventually go Bombay way, staff at the bank's operations and processing center in Croydon, just outside London, fear the worst. There is said to be real anxiety that many will lose their jobs.
And JP Morgan is said to be really planning to gear up in India. According to The Wall Street Journal, Joseph Regan, the bank's managing director in Asia, has confirmed that, in 'a complete shift the way the bank uses its resources', up to 5,000 staff are likely to be recruited in India in the next several years. And India has been chosen simply as it is, in Regan's words, 'a much cheaper platform'.
The India effect could soon become a big factor for bankers thinking of moving on to a new employer. Some organisations keen to make the move to lower cost locations might begin to find it more difficult to find staff willing to help them over the transition. In future, we might even see 'anti-India' clauses in certain employee contracts.
This issue is here to stay. The jobs to India debate is hot. Banks rushing to jump aboard the Bombay Express, however, may find that they face a backlash as staff resentment builds and even clients raise eye-brows at 'our jobs going over there'.