StasisLAX From United States of America, joined Jul 2007, 3289 posts, RR: 7 Posted (5 years 11 months 4 weeks 18 hours ago) and read 1587 times:
Is this what the American economy needs right now with record unemployment?
"The second-biggest bank of the US, JP Morgan Chase, which acquired Washington Mutual and Bear Stearns recently, will increase its outsourcing to India by 25% this year to nearly $400 million. It will also manage the integration of the acquired companies from India to bring down the cost of integrating different information technology (IT) systems.
Right now, JP Morgan outsources $250-300 million worth of IT and back-office projects every year to Cognizant, TCS and Accenture, apart from to its own captive centre in Mumbai.
"JP Morgan CIO Guy Chiarello said last week that he will increase outsourcing to India, and will drive several integration projects from there," a New York-based expert, familiar with JP Morgan’s outsourcing plans, told ET last week, on conditions of anonymity. A spokeswoman for JP Morgan India could not reply to an email query sent by ET on Friday, and the bank’s spokesperson in the US too did not reply.
The bank, which cancelled its $5-billion outsourcing contract with IBM in 2004—following the merger with Bank One—had brought back around 4,000 IT staff in-house after the new CIO Austin Adams had proposed a "do-it-yourself" strategy for the merged entity."
Chase as with every other business in todays market must manage its cost to the best of its abilities in order to remain a going concern -- if this means more off shoring let it be.
Its still lot bettern then Chase employing zero folks anywhere.
p.s.-I might add the relative strengthening of the dollar, and global slow down in places like India have created some excellent opportunities for off shoring, and the establishment of such ventures with fantastic long term pricing.
[Edited 2009-03-12 01:02:28]
From the desert to the sea, to all of Southern California
LTBEWR From United States of America, joined Jan 2004, 13284 posts, RR: 16
Reply 2, posted (5 years 11 months 4 weeks 14 hours ago) and read 1546 times:
I am sorry, but with JPMC a USA based company, the need for proper security of their and client's vital information and getting money from the USA government and taxpayers especially with the Bear deal and TARP $$$'s, they should be obligated to keep jobs in the USA. They could pay their executives a lot less and instead spend it on the 1000's of middle class jobs here instead of in India.