Lloyds Banking in the U.K. is going to transfer some 1,900 computer systems jobs to IBM in a deal worth some $1.7 billion. But the vast majority of the workers transferred won’t work at Big Blue for very long, a report says. Plus: IBM puts data on an atom, and IBM is sued by the state of Pennsylvania.
The Financial Times reported the pending deal early Monday.
Lloyds said the move would save in nearly $1 billion a year in costs.
The deal is for seven years.
Citing bank information, a union says that fewer than 200 of the transferred staff will remain involved with the IBM contract after four years with 993 jobs going “offshore,” the FT reported.
Unions warned that the contract posed a security risk to Lloyds customers.
“It could add to worries about the vulnerability of Lloyds to cyber attack after the UK’s biggest high street lender by market share suffered a hacker-instigated outage to digital services that lasted more than two days this year,” the FT reported.
The affected employees work at three data centers in the U.K.
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IBM operates one of its largest corporate campuses in RTP.