Re: JPMorgan Chase to strengthen offshoring to India

In article <11pb67jijipsc6a_at_corp.supernews.com>, XOR <NOR_at_norgate.com> writes
>JPMorgan Chase to strengthen offshoring to India
>http://news.webindia123.com/news/showdetails.asp?id=181952&n_date=20051205&cat=W
>orld
>
>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.

That makes some sense but they later say....

>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.

Now how is that going to work... Surely when they get to the US the cost of living is so much higher that they will want US level salaries... Unless they are suggesting that

1 There are no US programmers left
2 Indian programers are that much better than US programmers.

I can't see either case being true so something is going astray.

I can see this being a short term fix for shareholders etc but it looks like a long term disaster otherwise.

-- 
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\/\/\/\/\ Chris Hills  Staffs  England     /\/\/\/\/
/\/\/ chris_at_phaedsys.org      www.phaedsys.org \/\/\
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