UK insurance group Scottish Widows is to open a new office in India as it tests the waters for offshoring back office functions.
The Edinburgh-based insurance company says 50 new jobs will be created at the site in Bangalore. The firm has held a series of meetings with staff in Edinburgh and Kent to explain the implications of the decision and insists that no UK jobs will be lost as a result of the move.
Union leaders have expressed fears over the plans, pointing out that Scottish WIdows is owned by Lloyds TSB which has previously run pilot operations in India before committing to full-scale outsourcing.
The Scottish financial sector has suffered from a run of outsourcing-led job losses lately. Edinburgh City councillors have held meetings with senior executives at big local employers, including Lloyds TSB and Abbey, in an attempt to stem further cutbacks.