Citi, BofA & JPMorgan to outsource $5 bn of IT and back office projects to India

[OhioChick]

14 Feb, 2011, 07.00AM IST, Pankaj Mishra & Shruti Sabharwal,ET Bureau

BANGALORE: America’s top banks including Citigroup, JP Morgan and Bank of America are set to outsource IT and back office projects worth nearly $5 billion this year to India, as they seek to lower costs of complying with new regulations and integrate banking systems.

According to at least a dozen senior executives at Tata Consultancy Services , Infosys, Wipro , HCL and Cognizant, apart from outsourcing consultants advising these banks, new investments in compliance and regulatory norms, apart from ongoing integration with acquired assets are among top drivers for this spend.

While Bank of America is merging its systems with Merrill Lynch, JP Morgan Chase is driving its integration with several acquired units including Washington Mutual. Having sold its captive operations to TCS and Wipro, Citigroup is now seeing more opportunities to cut costs through offshoring. Mid-tier banks such as Wells Fargo, which acquired Wachovia is now attempting to drive the integration from cheaper overseas locations such as India. Morgan Stanley is also driving IT integration with Smith Barney by outsourcing projects to India-based vendors.

More: http://economictimes.indiatimes.com/tech/ites/citi-bofa-jpmorgan-to-outsource-5-bn-of-it-and-back-office-projects-to-india/articleshow/7490712.cms

[aquart]

1. We saved their greedy, criminal asses.

And not one of them has gone to jail.

[avaistheone1]

3. These monsters are only too happy to sell us down the river at the first opportunity.

The big banks certainly do not appreciate that they only exist because of American taxpayers.

k&r

[Iwillnevergiveup]

2. Welcome

to the United Oligarchy of America.

:hide: