Citi, BofA & JPMorgan to outsource $5 bn of IT and back office projects to India

[notesdev]

BANGALORE: America’s top banks including Citigroup, JP Morgan and Bank of America are set to outsource IT and back office projects worth nearly $5 billion this year to India, as they seek to lower costs of complying with new regulations and integrate banking systems.

...

While Bank of America is merging its systems with Merrill Lynch, JP Morgan Chase is driving its integration with several acquired units including Washington Mutual. Having sold its captive operations to TCS and Wipro, Citigroup is now seeing more opportunities to cut costs through offshoring. Mid-tier banks such as Wells Fargo, which acquired Wachovia is now attempting to drive the integration from cheaper overseas locations such as India. Morgan Stanley is also driving IT integration with Smith Barney by outsourcing projects to India-based vendors.

...

By sending over half of integration projects to vendors based in India, these banks will be able to lower their cost of managing complex M&A transactions. The US government mandates these transactions to be completed in 18-24 months, putting pressure on them to outsource non-core activities.

Stricter reporting and compliance norms are also playing their role. According to US-based TowerGroup, these banks will spend almost $60 billion on coping with stricter regulations such as Dodd-Frank Wall Street Reform Act. “They have a lot of reporting requirements that were not required earlier and this needs an update in technology. These new norms are needed because of the several government bailouts etc that took place. Even for banks that did not require government bailouts, there was a lot of merger activity and integration is supposed to be completed in two years according to the government rules,” said Jan Erik Aase, principal analyst, offshore outsourcing and vendor management at Forrester.

http://economictimes.indiatimes.com/tech/ites/citi-bofa-jpmorgan-to-outsource-5-bn-of-it-and-back-office-projects-to-india/articleshow/7490712.cms

Fun fact: These three banks are the top three recipients of bailout money from the US Treasury and the Federal Reserve.

[RandomThoughts]

1. The Fed and the Treasury are part of the enemies.

As are the big banks, and any other consolidations if the media reports on those topics are accurate about wages and tax money usage.

[DCKit]

5. Don't forget who brokered the deal... I just can't bring myself to say it. nt

[RandomThoughts]

6. It is the same with anyone else.

It is not easy for a person any person to go up against so much of that stuff, and there are some that try harder then others.

This is the part of the formula you are missing, if someone is not doing the best, but is still trying to do the best, then the wrong 'training resources' have to stay on them and keep harassing them, if someone is in a broken pattern, that bad trainer can go on to train someone else. (side note, using what a bad trainer leaked to you with your own choice of thought and feeling really irks bad trainers, and gets them off balance. There are good trainers also.)

So people don't have to always succeed, they only have to think and feel and try a bit, if they don't flip or deflect a 'bad trainer' then they at least suck up its resources and keep it off something else.

That is why they so fear breaking up the consolidations, the bad trainers are limited, and they need a hierarchy. Also why waking up is so important, since all the people trained through a hierarchy have the spell broken when they are awaken.

[Submariner]

2. Well, haven't we been asking the Teabaggers since they won November elections

where's the jobs. Now we know. Their repuke banking pals are sending overseas. Thanks Boner.

[msongs]

3. our fearless leader fights far away wars while he ignores the enemies in our society nt

[Smashcut]

7. He's not ignoring them. Au contraire: he invites them to prestigious state dinners!

Here's his pal Jamie Dimon:



And his BFF Lloyd Blankfein:



:puke:

[Newsjock]

4. Sounds like time for a $5bn tax on banks that outsource American jobs

With a 100% surcharge assessed if the bank accepted federal bailout money.

[madmax]

8. Hey Boehner....where are the jobs here. nt

[chill_wind]

9. The Chamber of Commerce loves getting the member dues of its foreign off shore sponsors

From October:

As ThinkProgress previously noted, the Chamber has repeatedly sent out issue alerts attacking Democratic efforts to encourage businesses to hire locally rather than outsource to foreign counties. The Chamber has also bitterly fought Democrats for opposing unfettered free trade deals. The Chamber’s anti-American jobs agenda serves not only the profit-seeking of right-wing corporate executives in the United States, but also works to send jobs overseas to the following outsourcing companies, who are some of the dozens of foreign corporations that pay member dues to the Chamber of Commerce’s 501c(6) account, which is used to fund its political ads:

– InfoSys, Bangalore, India (at least $15,000 in annual member dues): “Infosys is the ‘Best Outsourcing Partner’ according to the Waters Rankings for the third consecutive year.”

– KPIT Cummins, Pune, India ($7,500): “Strategic global networking, together with industry-proven practices & processes, give KPIT Cummins a cutting edge in the realm of outsourcing.”

– Patni Americas, Mumbai, India ($15,000): “Patni, the world leader in IT outsourcing and business process outsourcing provides offshore software development, global sourcing, custom software development, and a vast array of product engineering and IT services to companies worldwide.”

– NIIT Technologies, Delhi, India ($15,000): “Leadership in the area of outsourcing.”

– Rolta, Mumbai, India ($7,500): “Rolta’s global footprint and track record along with its capable off-shoring model gives it a unique positioning in this large market.”

– SKP Crossborder Consulting, Mumbai, India ($7,500): “SKP’s core outsourcing practice is managed out of a fully equipped, spacious premises based in Pune with access to facilities in Mumbai, Hyderabad, Delhi and Bangalore.”

– Tata Group, Mumbai, India ($15,000): “World-class solutions in outsourcing – business process outsourcing, application outsourcing, infrastructure outsourcing.”

– Wipro, Bangalore, India ($15,000): “India’s biggest destination for U.S. offshoring.”

http://thinkprogress.org/2010/10/14/u-s-chamber-of-commerce-funded-by-top-offshoring-companies/