The likely merger between Halifax-Bank of Scotland (HBOS)  and Lloyds Bank will mean more outsourcing woes in India.

The BBC reports that HBOS has confirmed it is in talks to form a £30 billion megabank. That merger will be given the nod by the UK government and by the Financial Services Authority.

But a merger, if it happens will mean job cuts at both banks in the UK, and will also put the squeeze on their outsourcing contracts in India. Both banks have outsourcing contracts.

Earlier today we reported that as many as 25,000 jobs could go as a result of turmoil in the US and European markets. The Indian job market has already been affected by the collapse of Lehman Brothers and a take over of Merrill Lynch. X