8,000 Citi Jobs For India
posted in Outsourcing News and Top Outsourcing deals, Outsourcing to India |Source: www.business-standard.com
Nearly 85% of the 9,500 jobs Citigroup plans to move to low-cost destinations may come to India. Recently, Citigroup Inc. announced its decision to slash 17,000-jobs, largely in the consumer finance and investment banking business.
Sources close to developments indicate that 8,000 of these could well be shifted to India, a move that will enable Citigroup to cut costs by $3.7-billion in the next year.
The remaining 1,500-jobs will most likely be passed on to Philippines, Russia and Poland, and South Asian markets like Malaysia and Vietnam that are also emerging as destinations for service sector BPOs.
During his India visit last month, Chuck Prince, Chief Executive Officer - Citigroup, indicated that he would review the company’s five divisions to create a ‘leaner, thinner’ Citigroup.
This announcement has centred the spotlight on the Indian business process outsourcing (BPO) industry making it the focus of global attention, with considerable speculation on how Citigroup plans to deploy the additional numbers.
Requesting anonymity, industry watchers and analysts affirm the company’s preference for growing organically and increasing the headcount of its Indian BPO, Citigroup Global Services (formerly known as eServe).
At present, with BPO operations located in Chennai, Mumbai and Delhi, Citigroup has a workforce of around 20,000 in India, with close to half working for its BPO operations that serve Citigroup interests across various geographies.
A banking analyst puts more punch into Citigroup’s move to India, when he says: “India is the most sought-after destination for BPO operations for many service-oriented companies. Low cost of labour and real estate compared to the West, a developed legal system, and a large English-speaking population give India a clear advantage over the developed world,” said a banking analyst.
However, a senior analyst feels Citigroup might also look at an acquisition, rather than outsourcing work to Indian BPOs. “Even if it does transfer work to Indian BPOs, it will be for a transition period of a year or so. It will surely want to add these numbers at its existing centre or acquire another company that will give it the volumes,” says an analyst.
Currently, Citi’s any time money (ATM) operations have been outsourced to Euronet, and some of the other names being floated include Hewlett Packard and Genpact, both of whom have a sound financial and accounting services portfolio.
