Royal Bank of Scotland (RBS) is a multinational banking and financial services company based in Edinburgh, Scotland. In the past, the bank has outsourced some of its operations to India, along with other countries such as the Philippines and Malaysia.
Outsourcing is the practice of hiring a third-party company or individual to perform tasks or services that are typically carried out in-house. Many companies, including RBS, have turned to outsourcing as a means of reducing costs and increasing efficiency. By outsourcing certain operations, companies can take advantage of lower labor costs in other countries, as well as access a pool of skilled workers.
RBS's outsourcing to India began in the early 2000s, when the bank set up a number of call centers in the country. These centers handled a range of customer service tasks, including answering questions and resolving issues related to RBS's products and services. The move to outsource these tasks was driven by the cost savings that could be achieved by employing workers in India, where wages are generally lower than in the UK.
In addition to call centers, RBS also outsourced some of its IT support and back office operations to India. These tasks included programming, data entry, and other administrative functions. By outsourcing these tasks, RBS was able to reduce costs and increase efficiency by taking advantage of the lower labor costs and skilled workforce in India.
While outsourcing has brought some benefits to RBS and other companies, it has also been a controversial practice. Critics argue that outsourcing can lead to job losses in the countries where the work is being moved from, as well as poor working conditions and low wages for workers in the countries where the work is being outsourced to. In the case of RBS's outsourcing to India, there have been concerns about the impact on UK workers, as well as reports of poor working conditions and low pay in the Indian call centers.
Overall, RBS's outsourcing to India has been driven by the cost savings and efficiency gains that can be achieved through the use of lower-cost labor in other countries. While outsourcing has brought some benefits to the bank and its customers, it has also faced criticism and controversy due to its impact on jobs and working conditions.
