Thursday, July 25, 2013

Royal Bank and iGATE : "Business as usual"

A LiveMint/Wall Street Journal article reported three weeks ago that Royal Bank of Canada (RBC), Bank of Nova Scotia, Bank of Montreal and CIBC have temporarily halted their hiring of workers from outsourcing firms like iGate, Tata Consultancy Services Ltd (TCS), and Infosys Ltdwhile they wait for the public backlash to blow over   :
"The backlash against outsourcing jobs comes at a time when the unemployment rate in Canada stands at 7.2% and remains above the levels that were seen before the 2008 recession. The Canadian banking and financial services (BFS) outsourcing market is estimated to be worth more than $5 billion. "
The article also mentions that IT services provider CGI Group has signed $12 billion in outsourcing contracts with various Canadian corporations, and IBM - $7 billion.
"To be sure, the halt in outsourcing is expected to be temporary, with experts and IT service providers expecting outsourcing projects to resume after six-eight months. 
'After the RBC controversy, companies are waiting for things to die down. Banks are slowing down projects—they are keeping a low profile, while the tension over offshoring jobs blows over," said an executive from an outsourcing advisory firm who requested anonymity.'  "
You're shocked, I'm sure.

So how's poor old iGATE managing this difficult temporary tension in offshoring?

Aside from reporting "Strong Second Quarter Results; Profits Up 136% ", I mean.
July 17, 2013 :
On Wednesday, during a post-earnings conference call, iGate said it did not anticipate any impact on its business due to the immigration laws in Canada and it had not seen any pull-back from any of its Canadian clients after the government probe.
“It’s pretty much been business as usual since we got a clean bill after the audit,” said interim CEO Gerhard Watzinger, an iGate veteran. 
An RBC spokeswoman declined to comment on whether the bank had started shifting work away from iGate and said it would continue to work with iGate if it complied with RBC’s policies on outsourcing.
“IGate is a long-standing supplier and we will continue to work with them provided that they comply, like all our suppliers have to, with our supplier code of conduct,” the spokeswoman said in an emailed reply.
And here's a job posting from a search of the last 30 days at WowJobs iGATE Canada Jobs page :

Apparently the supposed temporary rollback of outsourcing jobs for a few months till the public backlash blows over isn't really all that after all. 

1 comment:

Anonymous said...

RBC has removed this listing from their web site.

Blog Archive