Banks Are Ready To Outsource Their Tasks To Low Paid Destinations Like India
Banks are ready to outsource their tasks to low paid destinations like India.
As outsourcing being concern the economist has their own way of thinking. Here's The New Economist, with a London perspective that shows the outsourcing results. Outsourcing business is the business is to lower down the cost in low cost destinations.
Many of the cuts will be in support functions such as legal, human resources and finance. Most job cuts will be outside the US, of course - confirming the age old rule in investment banking that the further away you are from head office the more at risk is your job. While most press attention has been on the headline job cuts, the press notice also implied off shoring to India and other sites. In this, Citibank is simply catching up with the current practice of HSBC and other global banks. But its a sign of the times, nonetheless.
The various economists give their own thinking and suggestions on the process of outsourcing. This is the way how outsourcing affects the economy of a country.
Yet another sign of the vast amount of waste inherent in big-company IT operations ... When viewed in light of similar efforts by other corporate giants is in the midst of an IT rationalization program expected to cut a billion dollars (a billion dollars!) from its IT budget - Citi's announcement will up the pressure on other large companies to take a hard look at their IT spending and take advantage of new opportunities to do more with less. This will automatically generate a business flow to low cost destination like India. India has high qualified and experienced professionals to handle their job in low payroll in comparison to USA.
In the short run, the rationalization wave could be good news for IT vendors - at least some of them - as it will involve investing in the modernization of IT plants and equipment. But in the longer run, the trend at the top tier of the enterprise market is clear: IT spending is going down.
business done in India has a potential to grab the entire globe. Author (Mukesh Pandey )
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