ANZ Bank plans to increase the number of staff working at its IT operations in India from 650 to around 1000 over the next two years and cut jobs at its Australian operations.
The bank's new chief information officer, Mark Willis, told reporters that the bank did not yet know the number of Australian jobs that would be cut but said that natural attrition and other factors would keep it below the 300+ roles created at the Bangalore centre. Willis says he has so far spoken to about 150 staff about the changes.
ANZ acquired the Bangalore facility when it bought Grindlay's Bank in 1989. Grindlay's was sold in 2000 but ANZ retained the IT operations.
Willis says the move is part of a long-term plan, adding that the bank's growth in India did not fit with the common perception of offshoring as the work will still be done by bank staff rather than a third party firm.
He adds that other banks in Australia are likely to follow suit and shift IT work to cheaper offshore centres.
NAB has already informed staff of plans to move some back office operations to India, while The Commonwealth Bank of Australia has explored acquiring a stake in a local bank in Bangalore to try and tap IT professionals.