RBS' decision to abort the planned carve out of Williams & Glyn (W&G) and scrap plans to develop a new banking platform for the operation has hit Indian IT supplier Infosys, leading to the re-positioning of 3000 jobs.
RBS' plans to spin-off W&G came unstuck earlier this month as the bank reported a mammoth £2 billion half year loss as it struggled to deal with legacy issues from its 2008 bail out.
RBS has written off £345 million in seperation costs in its half-year results presentation, admitting that the IT challenges inherent in its plans have been overwhelming.
Infosys had been contracted by the bank in 2013 to act as a W&G programme technology partner in its efforts to build a cloned banking platform for the business.
In a statement, Infosys says it will carry out "an orderly ramp-down of about 3,000 persons, primarily in India, over the next few months".
The vendor says it remains a strategic technology partner for RBS and will continue to work with the bank on its digital transformation programme.