Westpac continues to slash jobs as part of its offshoring initiatives, revealing that it will cull a further 119 technology roles, most of which will be awarded to India’s Infosys. The job cuts follow on from the recent dismantling of 188 positions in November and 560 in February. The bank is in hot water with unions and …
...we the public are not legally allowed to shop overseas for cheaper goods, while companies can do so for cheaper labour/parts.
Explain this to me.
Of course we are, and we don't even need to pay GST on goods under $1000.
The death of the banks
It will be interesting to see what happens. A job title can be held by someone offshore for much less, but that doesn't mean that they are anywhere near as competent. I've seen infosys oracle web devs who don't know what an http 404 error is when it shows up in IE.
With all the major banks choosing pretty much the same outsourcers, they will all essentially be forced down the same service path, leading to identical service. Once an IT capability is outsourced, it is very hard to spin up a new team with enough experience to bring the function back, so you lose the ability to make any changes or even know what changes are possible and become beholden to your outsourcer.
Re: The death of the banks
Possibly you're quite correct - but then the executive/boards of financial institutions never have to look much farther ahead then the next 3 reporting periods. Long term is not their goal and we've all seen they still get rewarded for failure.
Banks are short term focussed and there is no will to change this.
Re: The death of the banks
Westpac are very very late to the offshoring party. Banks I worked for in the UK/EU were doing this from the late 90's onwards. They are going to be getting truly shite workers that will happily move on for a higher salary in the blink of an eye. When the music stops (as those UK/EU banks found) they then need to rapidly increase their capability. This means inevitably hiring contractors in the short term. Then they will truly be roasted for how much they have to pay.
the obvious impact
"...politicians have begun meeting with FSU members to hear first hand the impact of job slashing and offshoring."
That's easy, the poor pay bugger all taxes, the rich and big companies pay minimal taxes, only skilled middle-income people and small businesses keep the country running and politicians in a job with a comfy pension at the end of it.
Get rid of middle-income jobs and prepare to suffer, you clueless pollies.
Not that politicians have that much business sense (or any other) these days, after all, there's no minimum qualifications to run the country is there?
What can we do about it
Perhaps banks should consider outsourcing the senior management positions, that would probably save them millions judging by the obscene salaries that the senior executives pay themselves.
Why do Australian Banks pay absolutely no attention to the lending rates agreed by the Reserve bank of Australia? Perhaps the Australian Federal Government should withdraw the Guarantee currently covering Australian Banks for those that do not comply with RBA recommended interest rates.
Why doesn't the Australian Government create a peoples bank as its fairly obvious that current Australian banks are only run to benefit the management and shareholders.
Re: What can we do about it
yeah! We can call in the Commonwealth bank! Oh wait, they did that then sold it already.
One government bank that can never be sold *would* be nice though, even if it doesn't make $5bn profits for the government.