CBA looks to outsource IT

The Commonwealth Bank of Australia (CBA) is looking at outsourcing more of its IT requirements to India.

But CBA chief executive David Murray does not believe there will be major job losses with this decision, as IT staff tend to move around frequently.

Mr Murray told a market briefing that as CBA moves beyond its three-year Which new Bank program - with 2006 its final year - it would look at further opportunities such as IT outsourcing overseas.

The bank is also looking to get a banking licence in India.

"If it's possible to set up a banking operation there it's possible to have both IT sourcing and IT applications in India and to be sure of the quality because we use it in our own operations," Mr Murray said.

"The model we have of operating there and doing IT work there, I think, is a superior one."

He said the bank would have to consider outsourcing overseas in order to remain compebreastive.

"We're also mindful that in the compebreastive environment in the future we're going to have to get the best value services for our customers," he said. "We're going to do whatever is necessary to achieve that. AdvertisementAdvertisement

"Our people understand that that's the only thing that keeps us in business and that will remain our major objective."

He also indicated he did not expect major job losses with such a move.

"The turnover rate is very high in our operations, consistent with some pressure on the labour market in the economy," Mr Murray said.

"For that reason we just see a better utilisation of skills rather than job losses."

CBA already outsources a large part of its IT requirement to technology provider EDS.