Big Surge Expected In Offshore Outsourcing By Banks, Study Says

Offshore tech spending by banks will increase from the present 6% of the banking industry's $44 billion total annual IT budget to 30% by 2010, according to Deloitte.

March 1, 2007 12:00 PM

Banks in the United States and other countries will dramatically increase the percentage of their IT budgets devoted to procuring technology services from offshore providers operating from low-wage countries such as India and China over the next three years, according to a new study from consulting firm Deloitte.

Offshore tech spending by banks will increase from the present 6% of the banking industry's $44 billion total annual IT budget to 30% by 2010, according to Deloitte.

"Among larger institutions in particular, offshoring is not one available cost-cutting strategy, it's become a basic necessity," says the study, which was released Wednesday. Banks are moving well beyond outsourcing low-level application maintenance work and are increasingly relying on offshore service providers for help with more sophisticated technology projects, the study says.

Offshoring tech work offers big savings as programmers in India, for example, are paid anywhere from 40% to 80% less than their U.S. counterparts.

http://www.informationweek.com/news/showArticle.jhtml?articleID=197700448

Why should our companies find jobs for all the billions of people in India, if they don't take steps to reduce their population? Seriously, I think overpopulation is a global issue. Their labor is cheap because there is so much of it.

shift our money to banks that don't outsource! The same goes with almost any aspect of the economy. If we want better paying jobs to come back to the states, we should buy only from companies that do business in the U.S.

A good place to start = www.justiceclothing.com

If every DUer bought just one item of clothing from a company like this, and spread the word, we could start to make a ripple for the kind of change/shift we need. It has to start somewhere.

to banks that don't outsource will do *nothing* because the incentive is that they all should outsource.

However, there are huge security problems with having American money handled by overseas programmers ...

And I highly recommend dealing with a credit union, or locally owned small bank.

SCREW THE BIG GUYS

I do all of my banking with three local ones. Screw the big boyz.

has a vigorous advertising campaign going on for at least four decades advising people about family planning. The campaign recommended two children per family intially, and for the last ten years or so it recommends one child per family. If you travelled India you will not miss those billboards. The government sends social workers to all parts of the country to teach people about contraception and family planning. Most Indian families these days are small with one or two children. That is all the governmet can do. India is a free country and a democracy. The government cannot go around castrating virile people.

they still have plenty of time (and women) to make more.

http://www.google.com/search?hl=en&q=indians+forced+abortions+girls&btnG=Google+Search

Such misogyny...

Who knows what politicians think...

I don't know why tech workers won't organize and try to make this more equitable.

:(

Well, I guess we know where Bush's 'surge' troops will come from.

There won't be any backdoors! hey! we can trust China!

its a disaster

companies receive for providing that health insurance!

or privacy-invasive programming? That is, an American programmer may have a better idea if something is unethical whereas an programmer from India might
be less inclined to question a required 'business rule'. IMO

The truth is in the middle.

is that Indian IT workers are currently "job-hopping" as many as 4 times per year.

Such rapid growth causes companies to require fast ramp-up, attracting (so called) experienced programmers from other companies by offering large pay increases, bonuses and perks. This was common practice about 7 years ago in the good old USA. This type of rapid growth is very dangerous... when one of these outsourcing companies loses a contract, or too much employee turn-over to produce a product; too much upfront investment is made causing the company to be financially unstable. These companies are forced to hire mass amounts of, direct-from-university, green employees. Not exactly a terrific outsource relationship builder, when your multi-million dollar project is bug ridden, and contains a lot of simple typographical errors.

Hedge Fund Dealings and SubPrime Loans. It may be that offshoring some work will cover some of the dirty dealing. Businssweek Mag. had an article saying that they deal with the privacy issue by locking up all paperwork along with trash at the end of the day just in case a janitor might have "prying eyes."

That paraphrased quote was from a Bank America Officer. So, if they are that concerned about security one does have to wonder. Especially since these Banks are run by Repugs and we know to always look in the opposite direction of where Repugs point us...for where the criminal activity is.

Offshore some of the "IT" work and fool around with the computers hiding transactions or malfeasance. It's not so tinfoilhat if one has watched what's going on with Wall St. and our Government over the past Seven Years..

Let's return Our Constitution to it's original rule, where US Citizens personal incomes are never taxed. The original law stated only 'profit and gain' shall be taxed.

but that might be my wishful thinking...I don't know what I saw or read, but the idea stays with me...people trade for goods and services by their time. Regardless of what it is you do, an hour's work is an hour's work. So, a doctor would give an hour of service to the person who spends an hour cleaning his house, or taking care of his yard, or fixing the toilet. No big, no small. Nice to dream.

LARGE BANKS THAT CONTINUE TO OUTSOURCE AMERICAN JOBS

many IT workers job-hop 3-4 times in a single calendar year. There is no resentment there...they are currently living in the upper-middle class, enjoying luxuries their parents have only dreamed of. Of course their economy cannot continue on like this forever. India's BPO's are already looking to China and Vietnam to re-outsource their work at lower costs. The Indian companies have learned capitalism from the greedy western companies. Their jobs will all be in the shitter in the not too distant future.

A special thanks to "WillYourVoteBCounted" for providing links.
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x24141

WACHOVIA BANK TO OFFSHORE THOUSANDS OF NC JOBS

Wachovia CEO gets $18 Million March 10, 2007. CHARLOTTE - The chairman and chief executive of Wachovia Corp., Ken Thompson, received compensation that the company valued at nearly $18.4 million in 2006, according to a regulatory filing yesterday.

http://www.journalnow.com/servlet/Satellite?pagename=WSJ%2FMGArticle%2FWSJ_BasicArticle&c=MGArticle&cid=1173350135956&path=!business&s=1037645507703


AND, SOON TO OUTSOURCE NORTH CAROLINA PROCESSING JOBS TO INDIA

Businessweek JANUARY 30, 2006

Wachovia will have outsourced 500 to 1,000 jobs, with plans to move
an additional 3,000 or so by the end of 2007. ..

Most, but not all, of those jobs are going to India....

Still, Wachovia expects offshore outsourcing to produce big gains for the bank.
Wachovia believes that offshoring will be a key component of its goal to take out $600 million to $1 billion in costs over a three-year period.

http://www.businessweek.com/magazine/content/06_05/b3969422.htm


In the article, Wachovia emphasizes that they aren't outsourcing call center work.

NO, but in a few weeks, Indian Contracting Firm Gentec will be visiting main Wachovia operation centers in North Carolina. These contractors will come sit at desks in many departments in Winston Salem and possibly Charlotte.

They will observe the employees at work to see which of their jobs they can offshore.
***I don't know of any processing jobs that don't involve reviewing a customer's account and or personal information. Account information may include ss #, birth date, drivers license number etc.

Tech jobs are going, but thousands of regular processing jobs
are what Wachovia is kicking to the curb.

They will keep just enough people in the states to
fool customers so they won't know folks in India are handling
their accounts.

Because greedy people hate paying people for quality service.

believe me, these greedy bastards are paying for the cheapest of the cheap