Technology staff at RBS are convinced that their jobs are about to be handed to an outsourcing company as part of the bank’s ongoing cost-cutting campaign.

Infosys, the Indian IT outsourcing firm, has been carrying out technology services for the bank since 2002, but now employees think his could increase, resulting in huge job losses.

The claims come from a whistle-blower who told High Tech Scotland that an “entire floor” had been handed over to Infosys staff.

“They (Infosys) are over here to prepare the bank’s tech systems, with the fear that they will ship as much as possible back to India lock stock and PC,” the insider said.

RBS employs some 6,500 IT staff in the UK. The bank says it won’t comment on “speculation” it says: “There are no outsourcing/job losses…we’re tendering IT work which we do every year.”

Given the fact that the outsourcing of technology functions has been pushed up the agenda of banks this year, it’s not a massive shock to hear that the beleaguered RBS is considering the option.

Nigel Roxburgh, research director at the National Outsourcing Association, says: “In the UK, there’s typically been a split between pro-outsourcing banks like Barclays and Lloyds TSB and those more reluctant to outsource IT work, such as RBS, HSBC and HBOS. Now, as they look to maximise the use of their cashflow, most are viewing outsourcing as an option.”

He says that the majority of the roles being outsourced are centred around software development and applications management.

Last year, the outsourcing of IT roles was picking up pace. Even before its merger with Lloyds TSB, HBOS was planning on shipping 200 permanent IT roles and 250 contract positions to India.