Infosys to cut 3,000 jobs as Scottish bank cancels deal

Infosys CEO Vishal Sikka
Global software major Infosys will soon lay off about 3,000 techies since the Royal Bank of Scotland (RBS) has cancelled the IT contract for setting up a new bank (Williams & Glyn).

“Subsequent to this (RBS) decision, we will carry out an orderly ramp-down of about 3,000 persons, primarily in India, over the next few months,” the Bangalore-based IT major disclosed on its website but did not share details with the media.

The Edinburgh-based RBS announced last week that it would no longer pursue its plan to separate and list a new UK (British) standalone bank (W&G) and instead pursue other options for the divestment of its business.

“We have been a W&G programme technology partner for consulting, application delivery and testing services,” the IT outsourcing company said on its website.

According to company sources here on Tuesday, RBS signed a five-year multi-million dollar contract with Infosys and the US-based software major IBM for providing IT services to its proposed W&G bank.

“As RBS has a key relationship for us, we look forward to strengthening our strategic partnership and working with it across other transformation programmes,” the company added.

Infosys had 1,93,383 employees till December 2015, while TCS had 344,691 resources. Employee attrition at Infosys was 18.1 percent against attrition of 15.9 percent at TCS.

Gross addition of employees at Infosys was 14,027 in Q3, while gross addition at TCS was 22,118 people. The net addition of resources at Infosys was 5,407, while net addition at TCS was 9,071 employees.