HSBC Malta to start outsourcing jobs to India

Source: Maltastar.com

HSBC Bank Malta might be relocating a number of jobs, which had always been carried by Maltese workers since the time when the bank was state-owned, to cheaper markets such as India – where workers are paid less, maltastar.com is informed.

Investigations by this e-newspaper found that HSBC UK started outsourcing particular jobs to countries where the workers are paid less to maximise the banks profits. This practice might now shift to Malta’s HSBC arm.

The HSBC jobs touted to start being carried out in India are related to accounting and payments, while security at the bank will be outsourced to a Maltese company.

The outsourcing of certain jobs within HSBC Malta will not affect the present workforce at HSBC no staff will be made redundant by virtue of an agreement which the international bank had signed as part of the deal to take over Mid-Med Bank, sources confirmed.

But at the same time, the redeployment exercise in the bank will freeze the intake of new staff for a period of time since the openings will be taken over by the workers who will have their present job outsourced.

The idea behind outsourcing certain jobs to cheaper markets is to maximise profits, particularly when the work is done by workers who are paid less than in our country for every hour of work. At the same time, work outsourced to local companies contributes to an increase in precarious jobs and exploitation of local staff.

HSBC deployed at least one staff member solely for the purpose of identifying the jobs that HSBC Malta can outsource to foreign companies in the coming weeks and months.

Maltese banks have always offered services of high quality and assured a large contribution towards Malta’s economy. But excessive competition and globalisation seem to be taking their toll also in the banking sector.