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Merger to result in more employment in India

Special Correspondent

Resort to shared services and offshoring

NEW DELHI: Europe's loss, in terms of jobs, on account of Barclays taking over its Dutch rival ABN AMRO in a over $90-billion cash and stock deal, is set to be India's gain.

The operations of the new entity will result in more than 12,000 job cuts in the existing operations of the two banks spread across the world. The net gainer will be India in terms of jobs in the expanded combined operations of the two players. Following the takeover, Barclays proposes to add thousands of fresh employees to its India headcount for a variety of reasons.

Although the exact number of new jobs is not known, the net additional employment in India a consequence of the merged operations is likely to be anywhere between 8,000 and 10,000. In a joint statement, Barclays and ABN Amro said: "Part of the expected staff reduction will be through establishing shared services and off-shoring those positions to low-cost locations, such as India, where new staff will be recruited at ABN Amro's existing operations".

The two partners are said to have identified the possibility of rationalising the staff of the combined group.

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