Sydney, July 15 : The National Australia Bank (NAB) plans to more than halve its local technology workforce and outsource jobs to India in the next five years, as part of its massive technology transformation program 'Neos'.
In an email written last week, NAB chief information officer Michelle Tredenick told his technology staff that it was increasing its off-shoring initiatives as part of Program Neos.
"As we progress our transformation we're thinking about the future shape and size of our workforce. Decisions on how we mobilise and prioritise the rollout of our next-generation platforms also influence the number and type of roles we need in our workforce," The Australian quoted Tredenick as saying in the email.
At a technology team event last month, technology banking Australia general manager Craig Bright said technology staff numbers could drop to less than 1000 over the next five years.
NAB presently employs about 2600 technology staff.
To a question - What do you think will be the size of technology in five years at NAB, Bright said "As low as 1000. It could be a bit higher if New Zealand's processing is moved over to Australia".
But, a NAB spokeswoman downplayed Bright's statement, saying that the number of jobs to be cut and outsourced is not known yet. She said: "Craig said there are known factors that would reduce the size of the workforce, such as offshoring and moving to next-generation platform. Equally, there are unknown factors that could also affect the size of the workforce if NAB extended its role by providing services to its New Zealand and Asian businesses. Overall, this points to the message that NAB continues to reiterate, and again repeated at last week's staff briefings: it is too early to know the final size and structure of the technology business unit at this stage."
Last week, NAB informed staff that as part of the 'ITO Second Wave' of its information technology outsourcing program it was reviewing the positions of 148 staff across the TBA and technology MLC divisions.
'ITO Wave One' targeted about 264 technology jobs for transfer to technology outsourcers Satyam and Infosys by October. So far, 100 positions have been sent to India, between 10 and 15 staff have accepted redundancy, and another 30 per cent have requested voluntary redundancy. NAB could send more than 450 jobs to India by the end of the year, in addition to the sizeable workforce it already has there.
NAB recently bolstered its off-shoring credentials by appointing ANZ Bank technology executive Denis McGee. McGee, who left ANZ in March after 39 years, was one of the technology architects responsible for ANZ's successful IT operations in Bangalore.
Founded in 1988, the Bangalore centre now has about 1500 employees and underpins ANZ's core banking overhaul across its Asia-Pacific business, including Vietnam.