Outsourcing projects and services for businesses of financial institutions for low cost destinations

Outsourcing projects and services by financial institutions and companies at low cost to the destination of choice.

While outsourcing to India continues. One of the leading providers of financial services named
Citigroup Inc. has announced that firing 17,000 workers, as part of a massive restructuring plan to save the company more than $ 10 billion over the next three years. The company also announced an overhaul of its IT operations, including data center consolidation, increased utilization of existing technologies, optimization of global voice and data networks, standardization of application processes its development and consolidation of suppliers.

These are the various services offered by the company that should be outsourced to low cost destination like India. This will create a huge opportunity in India. Citigroup restructuring follows a review of expenditure made in the last three months. This review is very expensive, since it is believed by the company. It will also move further 9,500 positions and back-office business at lower cost locations, both nationally and offshore ... These measures should lead to savings of about $ 2.1 billion in 2007, $ 3.7 billion in 2008 to 4.6 billion dollars in 2009. The changes will cost the company $ 1.38 billion, before taxes, in the first quarter of 2007 and approximately $ 200 million, before taxes, for each quarter for the rest of the year. This is taken from the details of news and analysis.

In total, the restructuring affects about 8% of Citi goup of 327,000 workers.
Felix Salmon starts spreading 'the news:

If 8% of the total workforce is affected at all, and if New York City is the highest spot price, then we would expect much more than 8% of employees in New York to be affected.

In fact, however, it seems that Citigroup New York payrolls fall by only 6% - which is lower than the average company. There is less to this story than meets the eye? If payrolls are not cut in New York, it is not clear where they are cut. It may be in places like Tampa, Florida, where Citi Financial has a large office with 3,000 people in service in Latin America, or in O'Fallon, Missouri, where Citi Mortgage employs 4,750 people. If these places are hit hardest in New York, then perhaps a little 'rhetoric of cutting where costs are higher sounds a bit' empty. In this way the image of the payroll compared to India plays the standard of living and spending power is much more in U.S. than in India .......