Lloyds Banking Group is accelerating its digital transformation by shifting a significant portion of its IT operations overseas. The bank plans to base 4,000 permanent technology and data roles in India’s Hyderabad a facility that opened in 2023 by the end of 2026. This move will see nearly half of its global IT engineering workforce located outside the UK.
The decision comes as part of an extensive review of the skills required for critical roles within the bank’s IT departments. In a recent internal presentation, officials indicated that while the bank intends to create 1,200 new high-skilled tech positions through a competitive selection process, some existing UK jobs may be lost as the restructuring unfolds.
Lloyds’ shift is driven by the need to improve operational efficiency and boost returns through further digitisation, a strategy backed by a wider £4bn investment plan led by CEO Charlie Nunn. The plan also includes cost-cutting measures, such as closing two offices and shutting an additional 136 branches across the UK.
The move has not been without criticism. Mark Brown, general secretary of the independent BTU union at Lloyds, accused the bank of “breathtaking hypocrisy,” arguing that instead of moving jobs abroad, Lloyds should invest in training homegrown IT specialists through apprenticeships.
This strategic shift is part of a broader trend in the banking sector. Other UK financial institutions, such as NatWest and Nationwide, have already shifted portions of their IT operations to India.
