Investment banking operations recruitment in Scotland has suddenly gone very frosty

Barclays' decision to outsource operational roles currently performed in Glasgow to a low-cost third-party provider in India is indicative of how investment banks' problems have started to impact back office functions north of the border.

When Barclays announced the creation of 600 jobs in its new Glasgow-based shared services division in September last year, it was to much fanfare. However, as we mentioned at the time, around 300 roles had already been filled and just 30 more were believed to have been released before the end of 2010.

Recruiters working with the bank suggest that they were awaiting a second tranche of roles in January, but that a significant number of jobs have still yet to emerge. More positions are expected to be transferred up to Scotland from south of the border, but the redundancies show that the bank needs to cut costs.

More worryingly, for the 35-50 expected to eventually be made redundant, there are scant new opportunities available to them currently, particularly if they want to stay in Glasgow.

BNP Paribas still has a few roles available, but considering the problems currently affecting the bank, it's unlikely to be indulging in much recruitment. Meanwhile, Morgan Stanley has largely paused recruitment in Scotland based on concerns elsewhere on the world, suggest recruiters working with the bank.

"While there's not a formal recruitment freeze, the message coming from the investment banks currently is that only essential hires will be signed off," says the head of one financial services recruitment firm in Glasgow. "Everyone is expecting quarterly and annual profits to be down, so any expansion plans have been put on the back burner."

There's also the fact that Barclays would have tapped other investment banks for new recruits during its initial hiring spree in Glasgow. Perhaps the thought of returning to your old employer after just over a year in another role doesn't appeal.