St George considers moving jobs to IBM

St George considers moving jobs to IBM

Summary: St George is currently considering the fate of a number of its IT employees, conducting a review on whether it should transfer them to service provider IBM.

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St George is currently considering the fate of a number of its IT employees, conducting a review on whether it should transfer them to service provider IBM.

St George and its parent Westpac have both had relationships with IBM for back-office work, with the latter re-negotiating its mega deal with the service provider at the end of 2010. Now it appears that St George is looking into using the firm to further spice up its in-house arrangements.

No decision has been made yet on whether to transfer St George employees, according to the bank; however, it was quick to say that if jobs were to be transferred, they would remain in Australia.

"Should we proceed with any changes, jobs will remain in Australia, and there are no plans for redundancies. The aim would be for staff to transfer across to our service provider, and stay within the St George office. If we go ahead, no employee would be worse off," the bank said in a statement.

This sort of employee transfer is not unusual in the banking industry. NAB shifted 400 employees over to Big Blue when it signed a new outsourcing deal in 2010.

The Sydney Morning Herald, which broke the news, said that around 200 employees would be affected. However, the bank said that there is no target or update in relation to the number of positions that could be involved.

Topics: IBM, Banking, IT Employment

Suzanne Tindal

About Suzanne Tindal

Suzanne Tindal cut her teeth at ZDNet.com.au as the site's telecommunications reporter, a role that saw her break some of the biggest stories associated with the National Broadband Network process. She then turned her attention to all matters in government and corporate ICT circles. Now she's taking on the whole gamut as news editor for the site.

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3 comments
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  • Good information, thanks for sharing it.
    Steffie-a447a
  • It is Westpac that are making the decisions, STG has no say in it. Gail couldn't get rid of STG IT while as STG CEO as the costs of outsourcing where over the moon ( much to her consternation ). Westpac management is/has praised STG IT at how resourceful, miles ahead of Westpac IT (IBM), proven efficient, cost effective, gets the job done on time and under budget and now they WILL out source STG IT to IBM which has been proven mill stone around the neck of Westpac. It has taken Gail a lot longer and another company later but she has done it, destroyed the only effect IT that Westpac has had in the last 14 years. We all know at STG IT that IBM can not match us in any criteria and it has been pointed out by Westpac management that they will dumb down any conditions for IBM. How is it cost effective to pay more for less ?
    jeff_syd
  • "No employee would be worse off" at IBM. Ha ha ha. They will do what they always do. Take on the new staff, train up their existing staff and then turf the rest. IBM just put off some 800 employees in 2010, most losing their jobs to India and China. Do you really think they want to pay Australian wages to more Australians?
    geoff_kay