ABN AMRO Clearing will be outsourcing its custody services to Tata Consultancy Services in India. The volume of the custody business at ABN AMRO has been drastically reduced owing to the far-reaching consolidation of the custody sector in the past five years.
There are now only a few major players left in the international arena. The possibility of outsourcing these activities was investigated as the profitability of the custody business at ABN AMRO had come under considerable pressure. The outcome of this exercise was the decision to collaborate with Tata Consultancy Services in India.
Custody operations tend to be administrative and include the custody of securities, the processing of client transactions, and the delivery of operational services for client positions.
Oversight of outsourced services
On balance, 58 jobs will be lost as a result of the decision to outsource. This includes the creation of 15 new jobs for a team that is to oversee the outsourced custody services. A new department providing a total of 25 jobs will be set up for handling the remaining clearing business of the custody department. The employees concerned have been involved in the process from the start and were informed in person of the implications of these changes at the end of April.