Posted on 01/29/2016 4:34:18 AM PST by 2ndDivisionVet
(Reuters) - Morgan Stanley (MS.N) will be straying ever further from its Wall Street roots in the coming months as it shifts more operations to lower cost cities like Mumbai and Budapest as it aims to slash costs.
The investment bank on Tuesday announced an initiative to cut up to $1 billion by 2017 by using technology and outsourcing jobs now in its New York headquarters and other higher cost cities. However, it declined to give specific details about the number of jobs it would move to lower cost centers.
While shifting so-called back office operations to cities where salaries are a fraction of New York or London is not entirely new, the bank's Chief Executive James Gorman said the pace will now accelerate.
"We have too many employees based in high-cost centers doing work that can sensibly be done in lower cost centers," Gorman said on a fourth-quarter analyst call with analysts....
(Excerpt) Read more at finance.yahoo.com ...
Because the $60 an hour person is competent and can do twice as much work in half the time as the four turbin heads.
I worked for investment banks in graphics for 20 years.
you cold slash to the bone and if they could save five cents an hour they would move.
i’m not asking for patriotism to fly above making money, but it is SO FAR to the extreme now, that it is oligarchy and one world government economics.
Lazard, which i worked for, was told straight OUT by an OUTSOURCER, that the money they wanted to spend was ridiculous, even in India.
They still tried. Built a nice building and everything. It fell on its face in two years and i was never happier to see a oompany i worked for lose money.
Then Wasserstein, who bought out the Owners, took the company public and offered NOTHING, not even discounted stock shares, to the employees, except managing directors.
he died young of a heart attack.
gee, that was too bad.
thanks. wasn’t expecting that :)
I covered that; people are willing to move there, but only for the same salary they get in New York. What, then, would be the purpose of having the office in Raleigh? They might as well just hire the guy in New York, and not have to pay his relocation bill too.
That is a lie. You were trying to get the people in NYC to move there instead of finding new and probably better talent.
They are looking for experienced Unix SAs, Oracle DBAs, and guys with advanced networking and cloud experience.
As I pointed out in to my own company, these guys are not hanging around places like Ohio and North Carolina waiting for someone to move there are hire them.
A well managed company develops most of the people it needs internally and has no need to constantly recruit people with such highly specific experience.
That’s also scam used to claim a company can’t find qualified Americans.
You have got to be kidding? There are people all over the USA with those skills. What a BSer you are. You want networking? NC Research Triangle Park is overflowing with Cisco DBA's.
Cisco adding 550 jobs at Research Triangle Park facility over the next four years as it expands its campus.
With the possible exception of California, none of those are generally adverse to moving to places with good paying jobs.
So it is really not a matter of availability of talent in the area as it is the unwillingness to recruit it to move in.
Any place using this as an excuse not to relocate to lower cost American cities is most likely (a)fishing for a reason to move abroad or (b)fishing for a reason not to hire American and use H1B replacements.
I am personally acquainted with CMU IT Graduates who could not get IT jobs in the Pittsburgh area while their classmates from India with comparable or even lower grades were getting multiple offers. The evidence is overwhelming that companies try to avoid hiring Americans in this field.
That is true
I work for a very large company and was at a client in Raleigh, NC this past summer. They were moving a datacenter from New Jersey to Raleigh and in the process were losing many of their engineering team because they didn't want to relocate.
That said, they will manage and the cost savings is not just in employees. Another customer moving a datacenter from the northeast into the Raleigh area is seeing their electric rates (huge datacenter cost) drop from over $.14 per KWh to around $.05. That adds up fast.
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