City faces job cuts as IT work shifts offshore
European and US banks will move more IT work to cheaper countries to cut budgets, according to the head of Infosys, the Indian software giant. The move could herald further job cuts in the City. Wages for computer programmers have spiralled upwards in London in recent years amid fierce competition among banks and a dearth of domestic talent. The trend helped fuel a 6 per cent rise in global spending on IT by banks last year, to an estimated œ170 billion. Lower-skilled call-centre work may also be affected.
Budget decisions are being delayed as firms across all sectors tighten spending and decide whether they can make do without upgrading the technology that underpins their businesses, he added. Those banks where leading executives have been forced to step down in the wake of the US sub-prime crisis are being especially indecisive, he said.
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