Bank Of America Outsourcing Analysis
Bank of America
Bank of America is the latest multinational bank to outsource back-office operations to India. The bank already outsources software development work to Indian software companies such as Infosys Technologies Ltd. in Bangalore, and Tata Consultancy Services in Mumbai.
In 2003 Bank of America Corp. (BOA) planned to cut technology and operations jobs and outsource less than five percent of technology functions overseas for a lower cost labor, such as software programming. "We're going to be gradually reducing staff in technology and operations only," said bank spokeswoman Lisa Gagnon. "We're working hard to make decisions really quickly and eliminate the uncertainty. It's too early to know who and what areas will be affected." (Gagnon, 2003) The overall cuts were part of the bank's ongoing strategy to reduce expenses nationwide. Bank of America (BOA) has contracts with India technology giants Tata Consultancy Services and Infosys. Many U.S. companies are signing contracts with India's technology firms to save money.
Employees say they are worried about their future and are upset that foreign firms are taking their employment. "The workplace is in turmoil and nobody is feeling safe," one bank employee said in an interview by e-mail, asking that his name not be printed for fear of losing his job. Laid-off employees said they have been asked to sign two sets of papers: One states that the employee will receive two weeks' severance for every year he or she worked for the bank. The other says severance will be canceled if the employees talk to the media or quit before a certain date. They've also been asked to help train their Indian counterparts before their final day. "The days of being a developer at Bank of America (BOA) are numbered," (Crane, 2003,) said a programmer worried about supporting a wife and children. Bank of America (BOA) officials confirmed to their employees on an internal Web site of a rumor...
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