Royal Bank of Scotland to outsource projects worth $2 billion to India

Royal Bank of Scotland may outsource up to $ 2 billion worth of back office development projects to Indian outsourcers including Tata Consultancy Services and Infosys over the next five years according to a report on a news website.

The UK bank aims to save US $4 billion in operational costs by 2011 with outsourcing of non-core IT activities and through better focus on marketing initiatives, the website said citing a presentation to investors by RBS chief executive Stephen Hester.

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

Indian tech firms could gain through integration projects, system maintenance and back office projects as RBS looks for efficiency gains according to the report which cited unnamed experts.