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IT Problems in UK banking, RBS Glitches – Govenor of BOE Calls for Inquiry

Was this the result of outsourcing 1000 jobs to india? or were there other issues?

Many reasons have been given for last week’s glitches at RBS & NatWest bank in UK – where account statement failed to be updated. Some say the termination of contracts for 1000 UK IT staff, and outsourcing of the jobs to india was one of the main contributing factors. Afterall, the local IT staff knew the system inside-out and would have spotted the problem before the problematic software updates was implemented on live system. There is also a tendency to blame the old legacy IT system which has been patched over the years to cater for new requirements and new loads (there is functionality for everyone to can access their balance on their mobile phone – but if many people decide to check their account at the same time … ).

Another obvious issue is that Britain’s big banks have been stitched together through a series of acquisitions and combinations. In many cases the disparate computer systems were simply cobbled together, and banks relied on quick fixes to their IT systems, exposing them to this type of problem.

Meanwhile, the governor of the Bank of England has called for a detailed inquiry to be carried out, into what went wrong with computer systems at the RBS group.

Only one thing is certain - travails of RBS will be a boon for IT consultants with legacy knowledge :)

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