Outsourcing Projects And Services From Financial Institution-Companies To Low Cost Destinations - By: Mukesh Pandey

Outsourcing projects and services from financial institution and companies to low cost favorite destination.

As outsourcing business continues in India. A major financial service provider called
Citigroup Inc. announced that it will lay off 17,000 workers as part of a massive restructuring expected to save the company more than $10 billion over the next three years. The company also announced an overhaul of its IT operations, including the consolidation of data centers, better use of existing technologies, optimization of global voice and data networks, standardization of its application development processes, and vendor consolidation.

These are the various services offered by the company which is to be outsourced in low cost destination like India. This will create a great opportunity in India. Citigroup's restructuring follows an expense review conducted over the past three months. This review is very costly as is deemed by the company. It will also move an additional 9,500 back-office and corporate positions to lower-cost locations, both domestically and offshore ... Such measures should result in savings of about $2.1 billion in 2007, $3.7 billion in 2008, and $4.6 billion in 2009. The changes will cost the company $1.38 billion, pretax, in the first quarter of 2007 and about $200 million, pretax, per quarter for the remainder of the year. This is taken by the news details and analysis.

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

If 8% of the total workforce is affected altogether, and if New York City is the most high-priced location, then one would expect much more than 8% of New York City's employees to be affected.

In fact, however, it seems that Citigroup's New York payrolls will only fall by 6% – which is less than the corporate average. Is there less to this story than meets the eye? If payrolls aren't being slashed in New York, it's not clear where they are being slashed. May be in places like Tampa, Florida, where Citi financial has a big office with 3,000 people servicing Latin America; or in O'Fallon, Missouri, where Citi Mortgage employs 4,750 people. If those places are hit more severely than New York, then maybe some of the rhetoric about cutting where costs are highest will sound a little hollow. In this way image the payroll in comparison to India it sounds the standard of living and the capacity of expenditure is lot more in USA than in India.

About the Author

Outsourcing business done in India has a potential to grab the entire globe. Author (Mukesh Pandey ) is an MBA (hr),LLB, Bsc (INFORMATION TECHNOLOGY),DIPLOMA IN CUSTOM AND CENTRAL EXCISE having keen interest in Drawing and craft and holds the certificate from state level competition

Article Directory Source: http://www.articlerich.com/profile/Mukesh-Pandey/49023

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