Look on the bright side: pretty soon everybody working in this country will
be CEOs. :-)
"XOR" <NOR_at_norgate.com> wrote in message
news:11pb67jijipsc6a_at_corp.supernews.com...
> JPMorgan Chase to strengthen offshoring to India
>
http://news.webindia123.com/news/showdetails.asp?id=181952&n_date=20051205&cat=World
>
> In yet another instance of international businesses
> moving operations to India, American banking giant
> JPMorgan Chase plans to hire 4,500 staff in India over
> the next two years with an aim to move 30 per cent of
> its back office and support staff at its investment
> bank offshore by the end of 2007.
>
> The plans are being seen as the most ambitious move
> till date by an international investment bank to take
> advantage of the low cost of highly educated staff in India.
>
> The bulk of the bank's processing of foreign exchange
> trades will be carried out at its centres in Mumbai
> and Bangalore. It is also moving over much of the
> processing of credit derivatives contracts, an area
> where the US and the UK regulators have expressed
> concern about backlogs across the industry.
>
> Other investment banks are also planning to move operations
> to India and Stefan Spohr, of consultants AT Kearney,
> estimates that the US and UK-based investment banks now
> have about 6,000 staff in India, of which half are directly
> employed, representing less than 5 per cent of their total headcount.
>
> However, he predicts this could rise to as much as
> 20 per cent in the next few years.
>
> ''This is not a trend that will go away. Global resourcing
> is becoming part of the way of doing business,'' he said.
> Industry analysts have been quoted saying that salaries in
> India are 70-80 per cent lower and total costs about 40 per
> cent below US levels.
>
> ''The quality of the people we hire is extraordinary
> and their level of loyalty to the company unbeatable,''
> Veronique Weill, head of operations at JPMorgan's investment
> bank was quoted as saying by the Financial Times.
>
> JPMorgan is also seeking to tap talent that it can use
> elsewhere in the group and some of those hired for the
> new operations have already been transferred to the US.
>
> The expansion in India is backed by Jamie Dimon,
> JPMorgan's famously cost-conscious chief executive
> designate, who recently visited the Mumbai facility,
> the paper reported.
>
> JPMorgan, which had only 200 offshoring staff in
> India two years ago, is currently hiring between
> 300 and 400 graduates a month and plans a total of
> 9,000 by the end of 2007. Some 3,000 will be working for
> the investment bank with the rest supporting the group's
> retail and commercial banking operations, including
> 2,000 call centre workers.
>
>
Received on Tue Dec 06 2005 - 16:30:25 CST
