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Lloyds to offshore almost 2,000 IT jobs, shifts them to IBM

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March 13, 2017

We learned today that Lloyds Banking Group (LBG) is planning to offshore nearly 2,000 IT jobs as part of its migration to IBM.

In a recent conversation with Morteza Mahjour, the group's Chief Information Officer, he confirmed that Lloyds will outsource most of its larger parts of its IT infrastructure to Big Blue in a deal worth about £1.3 billion over 7 years.

Lloyds' staff will also be outsourced to IBM, and then over a 4-year period the work is slated to be offshored somewhere else.

Under the deal, Big Blue would pay for the data centre assets, transfer them to its balance sheet, and then charge Lloyds for the ongoing management.

To be sure, Project Aurora was due to be announced sometime in January of this year but negotiations with IBM took longer than originally expected.

The Windows, Unix, Linux and IBM I-Series platforms will form the bulk of the infrastructure being outsourced to IBM. That will include about 2,000 of the 3,200 applications currently used by the Lloyds Banking Group, the company said.

Earlier this year, Lloyds was hit by a cyber attack which led to a two-day outage. The bank said that no accounts had been hacked or compromised.

Juan Colombas, LBG's chief risk officer, confirmed that cyber-attacks were the biggest risk to the banking and finance industry in the last five to six years.

"The question is whether security is better managed by systems that are run by Lloyds Banking Group or by a third party whose staff are based offshore?," said a union representing Lloyds Bank.

A spokeswoman from Lloyds asserted-- "As we have said to our colleagues, we are considering various options to extend the use of cloud technology in the pursuit of the Group's aim to be the best bank for customers.

"We don't comment on speculation, and if any decisions are made, they will be communicated to our colleagues first,” the spokeswoman added.

Source: The Lloyds Banking Group.


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