Re: Not outsourced
"This is not a failure of outsourcing - these people were/are RBS employees, just in India - it's a failure of off-shoring."
Yup, you'd think an IT rag would understand the difference between offshoring and outsourcing. Think I've made a similar comment in pretty much all the RBS outage stories on here.
If anything I'd wager that part of the problem is that RBS *didn't* outsource their offshore work. Outsourcing can work, offshoring can work. For a company to decide to work out its own recruitment policies across two continents and put the management practices in place to cope with it is pretty brave/foolish. It's cheaper than getting someone to manage it for you, but it means you have to develop your own expertise in managing it.
Never though I'd say it, but TCS et al exist for a reason and as such cost more than hiring directly. But you also have the fact that *they* would be on the hook for any such fines and as such have a vested interest in getting it right.
Outsourcing is generalised as a "bad" thing (this article being no exception) despite pretty much *every* company doing it to some extent (from cleaners to IT host). IT is often cited as a core service for banks and as such should remain inhouse. By the same token you could argue that IT is crucial to any web news site (el reg being an example) but I'd bet heavy money that the hosting is done by Rackspace, the search by Google CS and the Ads by DoubleClick.