Which bank did an IT offshoring deal?
The Commonwealth Bank has leapt into action after reports emerged that it was outsourcing aspects of its IT security."Reports suggesting we are stepping back from cyber security are incorrect," CBA stated in a detail free announcement via its newsroom website yesterday (Tuesday).The brief management speak-laden announcement went on: "Commonwealth Bank continues to invest and grow our cyber security capability... "This is not about outsourcing our cyber team. It is about ensuring we have access to the best possible services and skills when we need it to complement our own cyber security expertise."Cyber security is a rapidly evolving area with new services and new technologies being introduced all the time. We remain committed to being at the forefront of those activities by taking an innovative and collaborative approach."So, CBA is indeed sending some work overseas, predominantly to India, and as David Whiteing, the bank's chief information officer explained to the AFR earlier this week, that changes were under way, including some cyber security work going offshore.The bank is also expected to lose up to 170 roles in its enterprise services teams thanks to advancements such as automation and digitisationTimes have changed, and CBA has decided to ditch the Australian industry leader approach.Back in February 2013, at CBA's half-year results announcement, Narev was critical of Big Four rivals - Westpac being the example at the time - that had an IT supply chain that stretched to India."A problem with a lot of this outsourcing is that people do the numbers today and say they can save by sending jobs offshore. But you are taking on a high level of operation risk over time," Narev said then."We believe one of our areas of competitive advantage is our culture and therefore the more things that can be done by people who understand what we are trying to achieve … the more likely we are to get the level of buyer experience that we want," he said.