RBS - Success in Offshoring....That is if success means failure.

RBS – Royal Bank Of Scottland did what every company does. 

They layed off thousands of workers. They offshored all their IT functions to the other side of the world. Why wouldn’t they do that. That is what companies do nowadays, and they all insist it is a good thing.

Except on Cyber Monday their computer systems crashed and none of their customers could use credit or debit cards. That is not a good thing on one of the busiest shopping days of the year.

Shopping carriages full of merchandise were abandoned in stores, as angry customers couldn’t complete transactions. RBS looks like a bunch of baffoons as they try to apologize to anyone who will listen.

The bank mentions a lot of things that led to this disaster (which has happened before) but they never mention layoffs…. and they never mention offshoring.

Luckily the union workers have no problem mentioning the real issues.

“Union leaders have claimed cost cutting was to blame for the faults on Monday evening and called on the bank to halt its redundancy programme.”
“Unite, Britain's biggest union, said the 30,000 job losses announced by the bailed-out bank since 2008 and the offshoring of IT functions had left it unable to provide a proper service to customers.”

Yup once again we see these practices are common. The results are predictable. The losers are always the same. Yet nobody ever learns the lessons.

http://www.theguardian.com/business/2013/dec/03/rbs-says-sorry-card-glitch-cyber-monday