Infosys loses contract as RBS scraps Williams & Glyn plan

Technology service provider forced to scale down workforce in India as contract is cancelled.

RBS has announced that it will not go ahead with the divestment of the Williams & Glyn (W&G) network, and as a result, it will scrap W&G’s contract with Indian technology services provider Infosys. The announcement comes after RBS reported a £2 billion half-year loss.

Infosys was meant to provide W&G with consulting, application delivery, and testing services. As a result of the decisions Infosys said it would “carry out an orderly ramp-down of about 3,000 persons, primarily in India, over the next few months.” An Infosys spokesperson clarified that the employees were being reallocated, not fired.  

The contract was worth £300 million in yearly revenue. Following the announcement there was an immediate impact on the share price of Infosys stock which is now at trading at its lowest level since December 9th last year.

The EU demanded that RBS separate from W&G as a condition for receiving public investment following the 2008 financial crisis. The separation was intended to further competition in retail and commercial banking. The standalone bank would have had about 314 branches and 2 million customers. This has not been possible, with Ross McEwen, CEO of RBS, citing low interest rate as an obstacle to profitability for the proposed new bank.

 

Tweet about this on TwitterEmail this to someoneShare on LinkedIn

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

*