IT cos to gain from Citi's cost-control steps (Indian IT Co.'s)

[OhioChick]

Source: Economic Times India

26 May 2009, 0200 hrs IST, Jessica Mehroin Irani, ET Bureau

MUMBAI: Citigroup is believed to be looking at ways to trim IT costs. This could spell good news for Indian IT vendors such as TCS and Wipro who count Citi as their top client.

The bank, which has been repeatedly bailed out by the US government, has undergone a major restructuring exercise of its business portfolio in the recent past. It is looking to integrate thousands of systems and cut down on application, maintenance and development (AMD) costs, said a source close to Citi.

This integration process will bring new business for Indian IT vendors such as TCS, Wipro and Infosys as the bank is keen to outsource the process to save costs. A Citigroup spokesperson said, “We have no detail or confirmation of these developments at the moment.”

While this could translate into new business contracts for Indian IT vendors, the existing AMD and IT services contracts could see a 15-20% drop in budgets over the next 6-8 months. After the acquisition of Citi’s back-office CGSL in the second-half of 2008, TCS considers the bank as its top client accounting for 4.7% of its revenues in fiscal 2008-2009. This has dropped by 1.5% since the first quarter.

However, a TCS spokesperson declined to comment on any specific client, while a Wipro spokesperson said, “We do not comment on speculative reports and we continue to partner with Citi in increasing diverse initiatives to improve the efficiency of their IT systems and operations.”


Read more: http://economictimes.indiatimes.com/Infotech/ITeS/IT-cos-to-gain-from-Citis-cost-control-steps/articleshow/4577569.cms

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Glad to hear that my tax dollars are going to hire someone in India when there are so many unemployed U.S. IT workers. :mad:

[ChromeFoundry]

1. Cut the cord.. let them fail...

they need to pay back all monies given to them by the US Taxpayers. I'd rather eat garbage than to give my hard earned dollars to a company that operates like this POS.

[OhioChick]

2. No kidding.......

This kind of shit really chaps my ass. :mad:

[47of74]

4. The government needs to impose sanctions and fines

That'll put such companies out of business in a week.

[Skittles]

3. MUMBAI IS THE WORST

:thumbsdown:

and Citigroup and fuck themselves too

[OhioChick]

8. I don't know which is worse....Mumbai or Bangalore. n/t

[Skittles]

16. I am finding that Brazil is worse than both

they failed to notice a system came "up" after an IPL - WITHOUT ITS ONLINES OR BATCH SCHEDULING APP

[dreamnightwind]

5. So who do I call about this?

This really should not be allowed by a company getting bailouts to the extent that Citigroup is.

Another unemployed IT worker here, and I don't like it one bit when my government supports offshoring at the expense of US workers. Our tax dollars at work.

[tomreedtoon]

9. Whoever you call, it'll be an Indian guy who'll answer.

And you won't be able to get through to his supervisor, who's also Indian.

Why don't we just make it a law that no company receiving stimulus can employ foreign outsourcing rapists? And that if they do, the stimulus money must be immediately repaid?

[OhioChick]

10. I like your idea. n/t

[tomreedtoon]

11. I have a better idea. Legbreaker strikes.

Picket the companies that outsource, at their CEO's headquarters. When the CEO drives up, get the legbreakers out to block and overturn his limo. When he scrambles out, get out the crowbars and break his legs.

I know there are people here who have moral qualms about violence. It's because of those moral qualms that they don't have jobs any more. Unfortunately, the executive class doesn't give a damn about anything but themselves, and it is those "selves" that must be threatened to make them change their ways.

Sadly, no matter how much raquetball and yoga the IT guys do, they don't have the muscle or the ruthlessness to do anything effective against the Starbucks outsourcing crowd.

[Lasher]

6. So we borrow money from China...

and give it to Citi so they can offshore US jobs to India. The globalists have just stopped pretending to care about the US.

[InfiniteThoughts]

7. didn't TCS and Wipro pay hundreds of millions of dollars to buy citi's IT ops..?

remember reading it last year somewhere ...

there is a huge pool of talent available in the US & even in western Europe. IT companies from India and even global companies need to start tapping into this talent base else they are going to lose big in the coming days - (1) politically incorrect thing to ship work to India & create unemployment in US (2) leaving room for a new player to provide a disruptive offering by taking the local resources, take deep billing rate cuts and get back against TCS & Wipro ...

[high density]

12. I only hope it comes back around to bite these companies in the ass some day

My company has outsourced and offshored just about everything it can. We're now outsourcing our mainframe operations. Gee whiz, let's put our mainframe (the family jewels) in the hands of an Indian firm... Great idea.

[Yavin4]

17. It Has Bitten These Companies In The Ass

Outsourcing jobs = Mortgage, Credit Cards, and Other Loan defaults.

The globablists want to create a worldwide economic system wherein low cost labor nations like China, India, Brazil, and Eastern European nations would make EVERYTHING, and the U.S. consumers would buy EVERYTHING at inflated prices, given the incredibly low labor cost input.

The problem with that model is that sooner or later the U.S. consumer runs out of money to buy EVERYTHING, and for a while you can extend the U.S. consumer by letting him BORROW a ton of money. But, even that runs out at some point, and when the BORROWED money runs out, you get an economic collapse which is what we're experiencing today.

[KillCapitalism]

13. Cost control steps huh.

That means some IT worker here loses a $70K job, and someone in Bangalore gets a $3.00 an hour job.

No more bailouts for these unpatriotic assholes!

[ihavenobias]

14. Lucky rec # 7. n/t

[belpejic]

15. Citi just sucks

I'm becoming more and more convinced that they're one of the scummiest companies in the US. I don't have anything against Indian IT workers, but the fact that Citi has taken so much taxpayer money and not invested it in US workers or customers is telling. Why didn't the US just give the money directly to Citi's bondholders and let the company fail?