| Outsourcing projects and services from financial | | | | company $1.38 billion, pretax, in the first quarter of 2007 |
| institution and companies to low cost favorite | | | | and about $200 million, pretax, per quarter for the |
| destination. | | | | remainder of the year. This is taken by the news |
| As outsourcing business continues in India. A major | | | | details and analysis. |
| financial service provider called | | | | In total, the restructuring affects about 8% of Citi |
| Citigroup Inc. announced that it will lay off 17,000 | | | | goup's 327,000 workers. |
| workers as part of a massive restructuring expected | | | | Felix Salmon starts spreading' the news: |
| to save the company more than $10 billion over the | | | | If 8% of the total workforce is affected altogether, and |
| next three years. The company also announced an | | | | if New York City is the most high-priced location, then |
| overhaul of its IT operations, including the consolidation | | | | one would expect much more than 8% of New York |
| of data centers, better use of existing technologies, | | | | City's employees to be affected. |
| optimization of global voice and data networks, | | | | In fact, however, it seems that Citigroup's New York |
| standardization of its application development | | | | payrolls will only fall by 6% - which is less than the |
| processes, and vendor consolidation. | | | | corporate average. Is there less to this story than |
| These are the various services offered by the | | | | meets the eye? If payrolls aren't being slashed in New |
| company which is to be outsourced in low cost | | | | York, it's not clear where they are being slashed. May |
| destination like India. This will create a great opportunity | | | | be in places like Tampa, Florida, where Citi financial has |
| in India. Citigroup's restructuring follows an expense | | | | a big office with 3,000 people servicing Latin America; |
| review conducted over the past three months. This | | | | or in O'Fallon, Missouri, where Citi Mortgage employs |
| review is very costly as is deemed by the company. It | | | | 4,750 people. If those places are hit more severely |
| will also move an additional 9,500 back-office and | | | | than New York, then maybe some of the rhetoric |
| corporate positions to lower-cost locations, both | | | | about cutting where costs are highest will sound a little |
| domestically and offshore ... Such measures should | | | | hollow. In this way image the payroll in comparison to |
| result in savings of about $2.1 billion in 2007, $3.7 billion in | | | | India it sounds the standard of living and the capacity |
| 2008, and $4.6 billion in 2009. The changes will cost the | | | | of expenditure is lot more in USA than in India. |