Barclays slashes IT contractor rates

UK bank Barclays is cutting salaries for IT contractors working across its operations by around 10%.

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Barclays slashes IT contractor rates

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The bank says that following a review of pay across the IT industry, it is cutting its rates for contractors across the group to "bring them in line with market rates".

Contractors were informed of the decision last week and the new rates will be effective from 25 August.

The decision brings the whole group into line with Barclays Capital, which moved to cut contractor rates by 10% in May.

News of the pay cuts comes just weeks after Barclays revealed plans to axe around 1800 technology jobs - many of them held by contractors and temps - in the UK over the next couple of years.

The bank is expected to offshore the work to centres in India, Hungary and Singapore.

These job losses followed a move last May to cut 1100 positions at Barclays UK processing centre in Poole - which handles back-office functions such as payment processing, human resources and IT support - over three years.

Earlier this month the bank performed a u-turn on plans to move the remaining 900 staff to a new building in the area, prompting financial union Unite to accuse it of "playing games" with employees.

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