Banks outsourcing jobs
By sishy7
@sishy7 (27166)
Australia
March 7, 2012 8:10am CST
Thousands of bank employees here are losing their jobs. Even worst, they were asked to train new outsourced replacements before they leave. Banks start outsourcing jobs to reduce costs; by outsourcing they can cut salary expense by as much as 80%.
I am just concerned about the moral impact on employment here. Those who lost their jobs would understandably have some hard feelings toward the outsourced replacements from overseas.
I'm not clear how outsourcing jobs work in the banking industry. If I'm not mistaken, those outsourced replacements were only trained here then they go back to work at their countries and got paid the local rate of standard salary. How then the banks operate; do they open branches overseas or will everything just be done through internet?
2 people like this
2 responses
@lampar (7584)
• United States
7 Mar 12
Sound like the acceleration of job losses to outsourcing not just happening in manufacturing sector, the financial services is jumping on the bandwagon heading toward their profit maximazation goal. Losing 80% of the work force seem like a great way to cut total operating cost of the banking industry, and hopefully at the end of the reporting period, those banking CEO can receive a new round of big bonuses from their shareholder again with all these new measures they had taken to push their banks toward a higher profit level while creating more unemployment among banking industry workers. 
@sid556 (30953)
• United States
9 Mar 12
Hi Sishy,
All our factories have shut down and the parts to almost everything are being made in China. All of our call centers are being handled by foreign people that we can barely understand when we have a problem. It's awful. Jobs are scarce here. The big corporations will hire foreign people to save money because they are willing to work for way way less than we could ever work for. The savings they make are not passed on to the consumers so it has ruined our economy.
1 person likes this
@sid556 (30953)
• United States
9 Mar 12
I know that here in the US the outsourcing of jobs has gotten out of control. It's ridiculous. They hire people in India and China etc for the most ridiculous pay and there are so many people here that are out of work. I know they are saving money by outsourcing but they sure do not pass their savings on to the consumer.
1 person likes this
@sid556 (30953)
• United States
9 Mar 12
Oh I meant to add...Our government also pays local business's to temporarily hire foreign people and train them. The government will pay ALL expenses so the company saves big money by going along with this. My daughter works at Wendy's and she gets so so very angry at this practice. Her hours get cut way back in order to make room for these people but she gets a big slap in the face when she has to train them to take over her hours and they also get paid more than she does. The training is difficult because their English is very difficult to understand. They can only do certain jobs and the other employees have to pull the weight of the jobs they can't do...like take orders.
1 person likes this
@sishy7 (27166)
• Australia
9 Mar 12
I'm afraid similar situation will start happening here too. I wish these governments, big corporations, or whatever/whoever in power would make wise decisions for betterment of all instead. These kind of decisions will only create resentment among people 
.