JPMorgan Chase to strengthen offshoring to India

JPMorgan Chase to strengthen offshoring to India
http://news.webindia123.com/news/sho...1205&cat=World

In yet another instance of international businesses
moving operations to India, American banking giant
JPMorgan Chase plans to hire 4,500 staff in India over
the next two years with an aim to move 30 per cent of
its back office and support staff at its investment
bank offshore by the end of 2007.

The plans are being seen as the most ambitious move
till date by an international investment bank to take
advantage of the low cost of highly educated staff in India.

The bulk of the bank's processing of foreign exchange
trades will be carried out at its centres in Mumbai
and Bangalore. It is also moving over much of the
processing of credit derivatives contracts, an area
where the US and the UK regulators have expressed
concern about backlogs across the industry.

Other investment banks are also planning to move operations
to India and Stefan Spohr, of consultants AT Kearney,
estimates that the US and UK-based investment banks now
have about 6,000 staff in India, of which half are directly
employed, representing less than 5 per cent of their total headcount.

However, he predicts this could rise to as much as
20 per cent in the next few years.

''This is not a trend that will go away. Global resourcing
is becoming part of the way of doing business,'' he said.
Industry analysts have been quoted saying that salaries in
India are 70-80 per cent lower and total costs about 40 per
cent below US levels.

''The quality of the people we hire is extraordinary
and their level of loyalty to the company unbeatable,''
Veronique Weill, head of operations at JPMorgan's investment
bank was quoted as saying by the Financial Times.

JPMorgan is also seeking to tap talent that it can use
elsewhere in the group and some of those hired for the
new operations have already been transferred to the US.

The expansion in India is backed by Jamie Dimon,
JPMorgan's famously cost-conscious chief executive
designate, who recently visited the Mumbai facility,
the paper reported.

JPMorgan, which had only 200 offshoring staff in
India two years ago, is currently hiring between
300 and 400 graduates a month and plans a total of
9,000 by the end of 2007. Some 3,000 will be working for
the investment bank with the rest supporting the group's
retail and commercial banking operations, including
2,000 call centre workers.

XOR wrote [quoting an article]:

> ''The quality of the people we hire is extraordinary
> and their level of loyalty to the company unbeatable,''
> Veronique Weill, head of operations at JPMorgan's investment
> bank was quoted as saying by the Financial Times.

She then went on to say "It's going to be so much fun to show them how
little we value that."

In article <11pb67jijipsc6a{}corp.supernews.com>, XOR <NOR{}norgate.com>
writes
>JPMorgan Chase to strengthen offshoring to India
>http://news.webindia123.com/news/sho...20051205&cat=W
>orld
>
>In yet another instance of international businesses
>moving operations to India, American banking giant
>JPMorgan Chase plans to hire 4,500 staff in India over
>the next two years with an aim to move 30 per cent of
>its back office and support staff at its investment
>bank offshore by the end of 2007.
>
>The plans are being seen as the most ambitious move
>till date by an international investment bank to take
>advantage of the low cost of highly educated staff in India.

That makes some sense but they later say....

>JPMorgan is also seeking to tap talent that it can use
>elsewhere in the group and some of those hired for the
>new operations have already been transferred to the US.

Now how is that going to work... Surely when they get to the US the cost
of living is so much higher that they will want US level salaries...
Unless they are suggesting that

1 There are no US programmers left
2 Indian programers are that much better than US programmers.

I can't see either case being true so something is going astray.

I can see this being a short term fix for shareholders etc but it looks
like a long term disaster otherwise.

--
\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\
\/\/\/\/\ Chris Hills Staffs England /\/\/\/\/
/\/\/ chris{}phaedsys.org www.phaedsys.org \/\/\
\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/

Look on the bright side: pretty soon everybody working in this country will
be CEOs. :-)


"XOR" <NOR{}norgate.com> wrote in message
news:11pb67jijipsc6a{}corp.supernews.com...
> JPMorgan Chase to strengthen offshoring to India
>
http://news.webindia123.com/news/sho...1205&cat=World
>
> In yet another instance of international businesses
> moving operations to India, American banking giant
> JPMorgan Chase plans to hire 4,500 staff in India over
> the next two years with an aim to move 30 per cent of
> its back office and support staff at its investment
> bank offshore by the end of 2007.
>
> The plans are being seen as the most ambitious move
> till date by an international investment bank to take
> advantage of the low cost of highly educated staff in India.
>
> The bulk of the bank's processing of foreign exchange
> trades will be carried out at its centres in Mumbai
> and Bangalore. It is also moving over much of the
> processing of credit derivatives contracts, an area
> where the US and the UK regulators have expressed
> concern about backlogs across the industry.
>
> Other investment banks are also planning to move operations
> to India and Stefan Spohr, of consultants AT Kearney,
> estimates that the US and UK-based investment banks now
> have about 6,000 staff in India, of which half are directly
> employed, representing less than 5 per cent of their total headcount.
>
> However, he predicts this could rise to as much as
> 20 per cent in the next few years.
>
> ''This is not a trend that will go away. Global resourcing
> is becoming part of the way of doing business,'' he said.
> Industry analysts have been quoted saying that salaries in
> India are 70-80 per cent lower and total costs about 40 per
> cent below US levels.
>
> ''The quality of the people we hire is extraordinary
> and their level of loyalty to the company unbeatable,''
> Veronique Weill, head of operations at JPMorgan's investment
> bank was quoted as saying by the Financial Times.
>
> JPMorgan is also seeking to tap talent that it can use
> elsewhere in the group and some of those hired for the
> new operations have already been transferred to the US.
>
> The expansion in India is backed by Jamie Dimon,
> JPMorgan's famously cost-conscious chief executive
> designate, who recently visited the Mumbai facility,
> the paper reported.
>
> JPMorgan, which had only 200 offshoring staff in
> India two years ago, is currently hiring between
> 300 and 400 graduates a month and plans a total of
> 9,000 by the end of 2007. Some 3,000 will be working for
> the investment bank with the rest supporting the group's
> retail and commercial banking operations, including
> 2,000 call centre workers.
>
>

> 1 There are no US programmers left

If they are going H1-B, that is exactly what is being said.

There was a Business Week (I think) article about a year ago that said
something about Bangalore programmers job-hopping... that loyalty stuff
is just pure BS.

I wonder how long until the first $M foreign exchange scandal?

jg
--
{}home.com is bogus.
The French, they are a peculiar race, parlez vous?
http://www.signonsandiego.com/uniont...1b6planes.html

Chris Hills wrote On 12/06/05 14:01,:
> In article <11pb67jijipsc6a{}corp.supernews.com>, XOR <NOR{}norgate.com>
> writes
>
>>JPMorgan Chase to strengthen offshoring to India
>>http://news.webindia123.com/news/sho...20051205&cat=W
>>orld
>>
>>In yet another instance of international businesses
>>moving operations to India, American banking giant
>>JPMorgan Chase plans to hire 4,500 staff in India over
>>the next two years with an aim to move 30 per cent of
>>its back office and support staff at its investment
>>bank offshore by the end of 2007.
>>
>>The plans are being seen as the most ambitious move
>>till date by an international investment bank to take
>>advantage of the low cost of highly educated staff in India.
>
>
> That makes some sense but they later say....
>
>
>>JPMorgan is also seeking to tap talent that it can use
>>elsewhere in the group and some of those hired for the
>>new operations have already been transferred to the US.
>
>
> Now how is that going to work... Surely when they get to the US the cost
> of living is so much higher that they will want US level salaries...
> Unless they are suggesting that
>
> 1 There are no US programmers left
> 2 Indian programers are that much better than US programmers.
>
> I can't see either case being true so something is going astray.
>
> I can see this being a short term fix for shareholders etc but it looks
> like a long term disaster otherwise.
>

It's inherent to the H1B visa system. The employers bring them over
with a bump up in salary, but still way below US average levels.
Most people coming here under those circumstances are interested in
a green card, and that takes 5 years or more. If you lose your job
you have to start the waiting period all over again, and you are
in danger of being deported as well. So you suck it up, make that
low salary, and take whatever they dish out, since you are
basically beholden to your employer. And the 5 years it takes to get
your green card is longer than avergage turnover for technical jobs,
even at normal salary levels.

Whats not to like for US employers ?

Bob Jones wrote:
> Look on the bright side: pretty soon everybody working in this country will
> be CEOs. :-)

I already AM the CEO, as well as being chief cook and bottle-washer ! No
staffing problems - can hardly disagree with me can I ? Well if I can,
then perhaps I should be carted off to a funny farm.

I thought China was the new India. Companies claim of saving more
since comm-chink can set its currency to such a low relative value.




On Tue, 06 Dec 2005 17:52:00 -0500, Joel Garry <joel-garry{}home.com> wrote:

>> 1 There are no US programmers left
>
> If they are going H1-B, that is exactly what is being said.
>
> There was a Business Week (I think) article about a year ago that said
> something about Bangalore programmers job-hopping... that loyalty stuff
> is just pure BS.
>
> I wonder how long until the first $M foreign exchange scandal?
>
> jg
> --
> {}home.com is bogus.
> The French, they are a peculiar race, parlez vous?
> http://www.signonsandiego.com/uniont...1b6planes.html
>



--
Using Opera's revolutionary e-mail client: http://www.opera.com/mail/

Well... with Mr. West's remarks, the quality of discourse in this forum
has hit a new low.

The inarticulate, the offensive, and the SMS-text writers might all
wish to consider that future employers might be reading here. On the
other hand, maybe that would be a good thing (for them).

---Michael B.

In article <1134253072.647921.258330{}g43g2000cwa.googlegroup s.com>,
Michael Bolton <google{}michaelbolton.net> writes
>Well... with Mr. West's remarks, the quality of discourse in this forum
>has hit a new low.

He is right though. China is taking the jobs off the Indians in SW and
the HW work from Taiwan.

I assume he is referring to Communist China (comm-chik) as oppose to
Tiwan-China


>
>The inarticulate, the offensive, and the SMS-text writers might all
>wish to consider that future employers might be reading here. On the
>other hand, maybe that would be a good thing (for them).
>
>---Michael B.

Incidentally if you must use the broken Google interface to usenet
please set it to include the original message when you reply. It is only
polite as the majority don't use the google interface.




--
\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\
\/\/\/\/\ Chris Hills Staffs England /\/\/\/\/
/\/\/ chris{}phaedsys.org www.phaedsys.org \/\/\
\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/