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St George keeps its 200 IT jobs in country

St George keeps its 200 IT jobs in country

(25 May 2012 – Australia) St George Bank has decided to reverse its decision on outsourcing some 200 IT jobs to IBM. The bank, owned by Westpac, told IBM last week that its proposal to take on the work had been rejected.

The Finance Sector Union (FSU) said the St George Bank workers had joined Westpac following the 2008 acquisition of the smaller bank.

St George had pledged weeks earlier that any outsourcing would not result in job losses, although the positions may not have been guaranteed once the transfer to IBM had been made.

"The result demonstrates that you can do business and be successful in the finance sector without outsourcing work, slashing positions and off-shoring jobs," said Geoff Derrick of the FSU.

Many IT workers in the banking and insurance sector face uncertain futures as companies look to cut costs due to weak demand for financial products.

Westpac cut 560 jobs so far this year, while ANZ Bank said it would chop 1000 positions to lower costs. UBS estimates that as many as 7000 finance sector jobs may be lost in Australia over the next two years.

Earlier this month the Australian Prudential Regulatory Authority warned banks about the risks linked to excessive outsourcing of jobs to firms in Australia and abroad.
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