Indian Information Technology Outsourcing Industry And Financial Institutions - By: Mohsin Khan

IT outsourcing has grown into a pretty common practice and can bring you numerous advantages if done appropriately. And the necessity to subcontract your peripheral operations increases due to economic hardships like the latest international fiscal crisis. That’s the road JP Morgan is taking today, thanks to its acquisition of Bear Sterns and Washington Mutual that have exerted more pressure to cut expenses and satisfy stockholders’ anticipations. In a recent BusinessWeek news report, it was reported that JP Morgan has decided to increase its outsourcing budget in India by a whopping 25%.

So this implies that the second largest bank in the US will inject around $400 million into its Indian subcontracting channel within the next year. At the moment, JP Morgan is spending anywhere between $250-300 million in a year on subcontracting, most of which moves to TCS, Accenture and Cognizant. Guy Chiarello, the Chief Information Office for JP Morgan, wants to make sure that his company can cut their gross IT spending, reported an expert who wanted to stay clear of any media fame. Although the word has leaked to mainstream media through a reliable informant, the Indian and US offices of JP Morgan didn’t respond when contacted by some media people.

The international financial crisis has significantly struck the banking industry and other banks should have adopted similar steps. But until now, there haven’t been any accounts of big financial institutions spending a good deal on IT outsourcing.

Numerous banks have consolidated and acquisitions have occurred, so the records have to be refreshed to show the actual numbers for the sole entity formed after the mergers. Previous WaMu clients would now operate their accounts under JP Morgan so their past records from their previous financial institution have to be imported now. In addition, the complete internet and intranet architecture in these companies need to be consolidated too. All these upgrades need a large budget and Information technology outsourcing seems to be the cheapest way to perform these tasks in the most cost-effective manner; Indian subcontracting companies already have vast experience in dealing with offshore US-based clients so that’s where everyone is looking.

While these are noteworthy financial institutions with huge funds, the same thing can be performed by small firms too. With the potential profitability of banking and real estate sectors in risk, people who have saved funds now have to invest them in other places. So it may be a good time to take a fresh start and launch your personal venture. And hiring offshore employees to handle your IT requirements is a good way to begin with a low budget initially.

About the Author

Mohsin Khan works for DistantJob, an outsourcing service provider. You can hire Indian ASP .net developers or other knowledgeable Indian developers through us for your project.

Article Directory Source: http://www.articlerich.com/profile/Mohsin-Khan/46505

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