The plan is to move operations to low cost areas. Slowly low profile jobs like BA, Tech and consultants will be moved to Texas, Florida, India. There will be huge reductions in head count. The plans are in progress and more preferences will be provided to low cost employees than high cost centers.
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Citi has been using labor arbitrage for decades. Offshore subsidiaries were created in India in the 90s, China in the 2000s, coupled with huge outsourcing deals. The core problem is their highly decentralized systems/ledgers/operations. Citi can't achieve economies of scale unless they rationalize technology, standardize data, and tackle integration. The constant relocation of work exacerbates their problems.
Good because I’m in Tampa
Citi will soon learn you get what you pay for
At this point, I just noticed mangers and above In NY/NJ. There are just a handful of developers in these locations. The tech sectors in these locations are mostly managers that delegate work and status updates from the oversea workers. They dont write any code or do support rotations but get the benefit of being in the high cost areas.
More likely all SVP, VP positions and few D positions might be moved to Texas or Florida zones. Directors and above are expected to work from high cost centres.
NY/NJ/UK/Belfast/Poland are on the list to be trimmed.
Belfast to morph into a call center.
this was the plan more than 3 years now. NY/NJ employee packages are very expensive for the same work that can be handled by others in the U.S. I can't say the same for International talent...
An Indian worker typically costs 1/6 the expense of someone in NY/NJ.
Citi logic is that you can replace one NY/NJ worker with two mediocre workers in India to get roughly the same output.
Therefore you're getting the work 'done' at 1/3 the cost.
Good. I see so many mediocre people working in NY/LDN - an average Mumbai or Warsaw employee can do the same job, if not better.