Money News

RBS may outsource $2 bln projects to India - report

A Royal Bank of Scotland branch is seen, in central London in this February 21, 2009 file photo. REUTERS/Luke MacGregor/Files

MUMBAI (Reuters) - Royal Bank of Scotland may outsource up to $2 billion worth of back office and application development projects over five years to Indian outsourcers, including Tata Consultancy Services and Infosys, the reported on Wednesday.

The U.K. bank aims to save around $4 billion in operational costs by 2011 by outsourcing non-core IT activities and ensuring better focus on marketing initiatives, the website said, citing a presentation to investors by RBS Chief Executive Stephen Hester last week.

As part of the IT spend, RBS plans to consolidate its existing data centres, replace the current claims system in its insurance business, and deploy newer retail banking solutions, the report said.

Indian tech firms could see opportunities for integration projects, system maintenance and back office projects as RBS looks for efficiency gains, the report said, citing unnamed experts.

An RBS spokeswoman did not respond to an email query, while the Indian tech firms did not offer comments as they are maintaining a silent period before financial results later this month, the report said.

Reporting by Prashant Mehra; Editing by Jarshad Kakkrakandy