Bank of Scotland cashes in on outsourcing trend

Outsourcing deals by Bank of Scotland mean hundreds of staff will be doing the same job but for a different employer by the end of the year.

Peter Cabrelli, HR chief executive, said the outsourcing was part of a trend to buy in non-banking services. He said he expected more outsourcing in 2001 with HR also due to be involved.

Cabrelli said there were no formal plans at this stage for the bank’s HR operation. But he added, “We already outsource functions such as payroll, and my view is that if it’s not strategic or value added then we don’t need to be doing it ourselves.”

He said the latest outsourcing of IT and other staff had seen the HR department involved in consultation and transferring staff under Tupe.

The bank’s interim results report shows 5 per cent of the 22,000-strong workforce will either be working for other employers, taking early severance or moving to different jobs within the company by 2001.

The internal transfers and severance arrangements will apply to 90 staff facing compulsory redundancy in the company’s Welsh operations. The remainder will continue their current jobs for a new employer as a result of the outsourcing agreements.

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