Lloyds Moves IT Jobs to India
LONDON — Lloyds Banking Group expects to move hundreds of highly skilled IT jobs from the United Kingdom to India by the end of 2025. The move, announced on March 6, 2025, will expand the bank's tech team in Hyderabad to 4,000 employees. The move is intended to reduce costs and increase growth in digital, part of a £4 billion plan by Chief Executive Charlie Nunn.
A Bold Tech Overhaul
Lloyds, the top tier UK bank, is taking a knife to its IT infrastructure. The bank by next year wants almost half of its tech staff to be outside the UK. In India, it is hiring for positions such as full-stack engineers and cloud specialists at its tech hub in Hyderabad, which opened in 2023. This is part of a trend — banks like NatWest and Nationwide also shifted IT jobs to India for cheaper, skilled labor.
On the UK side, the story is different. A warning went out to around 6,000 IT workers last month: your job is in danger. Lloyds is assessing skills and roles under the new digital agenda. It aims for 1,200 new UK tech jobs, but there’s a catch — existing staff must fight to keep them. “We’re building new roles, but not all will survive” in the next phase, Ron van Kemenade, Lloyds’ chief operating officer, said in a letter to staff.
Why India, Why Now?
It is not only about saving stashes of cash. Lloyds is racing to fit in a digital world. Its £4 billion plan, which began in 2022, makes a wager on tech to push profits beyond interest rates. The hub in Hyderabad is also significant, managing app upgrades and data tools, among other tasks. Big, skilled and affordable, India’s tech talent pool makes it a savvy choice.
UK staff, on the other hand, are left with uncertainty. It has already eliminated 500 jobs this year as part of its restructuring, and closed 136 branches. Unions aren’t happy. Mark Brown, leader of the BTU union, criticized Lloyds for abandoning its “Helping Britain Prosper” motto. He wants UK workers trained to fill roles rather than offshored.
A Bigger Trend
Lloyds isn’t alone. Outsourcing IT jobs overseas is old news in banking. NatWest employs 17,000 people in India now, and then Nationwide followed. It’s a cost equation — India has lower wages and a booming technology scene. It could help Lloyds save millions and accelerate digital projects such as mobile banking and artificial intelligence tools.
But there’s a flip side. There could be a backlash when it comes to job losses in the U.K. Sorry, but it’s even fewer than it’s cutting. Some workers may reskill; others may exit. Analysts say this could affect local morale and skills long term. Yet Lloyds insists it’s striking a balance between growth and change—building in India while remaking the UK workforce.
What’s Next for Lloyds?
It could all be make-or-break for Lloyds’ tech ambitions. If Hyderabad has its way, the bank should be at the forefront of digital banking by 2026. Success might mean snappier apps, improved service, happier customers. Investors appear to approve—Lloyds’ shares rose following the news. But if India stumbles or U.K. cuts are too deep, it risks service disruptions and negative publicity.
Immediate next steps are clear: hire quickly in India, complete the UK review by April and implement new tech. The bank is watching rivals intently — a miss could allow competitors to catch up. For British workers, it’s apply or evolve. For India, it’s a jobs boom. Lloyds is going big on this international reshuffle, whether this is a foreboding sign or not.