And now this whole merit situation. Makes you wonder why we even bother, really.
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@ca AI will impact and be a benefit to smaller companies. Big companies with huge tech stacks and challenges transitioning customer intent to data integration will live and die as they are. Most AI company valuation is smoke and mirrors and a lot of the predictions in this space are sales pitches for the VCs, shareholders, and subscribers.
PP's (CIO) has a goal of meeting or exceeding 60% of development work done offshore and says starting up a GCC this year is a good thing for the bank. I don't think he has the ability to articulate different messages to multiple audiences so he just parrots what the bean counters want to hear.
@fe it's hilarious isn't it? Like it's funny to the point of being pathetic
@d4 Bit ironic that we are still trying to get to the cloud in 2026 yet have delusions to go full out AI
"Software Engineering Directors have never written a line of code in their life.", mine is a failed and frustrated never good programmer. He failed up. He's now is an expert in his own mind on everything technical. His people laugh and joke about him all the time behind his back but he's not aware of anything. His people hate him and will rejoice when he's RIF'd. He will never be missed.
@d4 spot on! That cloud migration was disaster after disaster and these nutcases have the gal to talk about AI. In your dreams will AI ever take shape here. What can one expect at a company where Software Engineering Directors have never written a line of code in their life.
@ca because the AI bubble will eventually burst and USB has always been conservative when it comes to truly investing in the newest toys on the market. They say "use AI" because it's all the buzz and all the cool kids are doing it.
We couldn't even migrate to a cloud. Our tech is such a mess it was too expensive and they quietly abandoned all cloud migrations and laid off the teams doing them. If we can't migrate to a cloud, I wouldn't be quite so worried about AI at this place. It'll be done and over with before USB even thinks about getting our systems up to snuff enough to use it effectively.
What you have is decade-old data. Almost all major banks in the USA, the EU, and Canada have nearly 15-20% staff offshored to India, especially Bangalore and Hyderabad.
Wells Fargo recently (2020) opened a very LARGE facility in Hyderabad, creating nearly 10,000+ jobs.
What's interesting is that these Global Capability Centers no longer offer the same savings to developed nations. What started the offshoring model (mainly by Tech companies) in the early 1990's, was lower wages expenses (OpEx - mainly salaries + other benefits), which used to be 8-10% of the USA (for Big Tech, not banks though), now the cost of living in Indian metros has gone up, it's 20-25% (or more in some cities like Mumbai and Delhi metro area).
For Big Tech - which now has more customer base (by gross numbers) in India then USA (e.g., FB, Amazon, Whatsapp, Microsoft, Uber, Netflix), but not revenue though (the US still dominates, given pricing).
My question to the Financial Industry MC and Board is, why are we offshoring to India when there are no banking customers in India?
@cp Now do U.S. Bank
For most large U.S. banks, India typically accounts for ~10–20% of total FTEs, with JPMorgan and Goldman on the high end, and Wells Fargo on the low end.
JPMorgan Chase & Co.: ~18–20% in India
Citigroup Inc.: ~13–15% in India
Bank of America: ~12–13% in India
Goldman Sachs: ~17–18% in India
Morgan Stanley: ~8–9% in India
Wells Fargo: ~4–5% in India
It’s odd to me that they’re putting so much effort into offshoring with AI around the corner