| Topic Name: |
Low Financial Services Demand |
| Message Name: |
Industry Trend |
| Date Posted: |
02/25/2006 |
| In Reply To: |
I just had my office visit, I posted the above comment because I was interested in FS but they said it was not hiring now. |
| Message: |
FS companies generally do not value outside consultants when it comes to handling their IT Systems. They would rather do it as cheap as possible using their own internal IT staff, which includes a lot of offshore staff.
If you look at the trend right now in FS, many major FS companies are choosing to build out their own offshore operations capabilities (e.g. JP Morgan, Citigroup). They can pay $10,000 to an employee in India versus $60-80K for an equivalent employee in the US. Right now it's happening with most middle and back office operations jobs, but soon some front office jobs will even see themselves out in India. Employees are cheaper, more loyal, and in most cases more skilled than their US equivalent.
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