US banks boost Indian outsourcers
Leading Indian outsourcers such as Tata Consultancy, Infosys and Wipro stand to gain contracts worth about $1 billion in the next one or two years as US banks emerge from the troubled asset relief programme, the Economic Times reported, states Moneycontrol.
The newspaper said JP Morgan, Goldman Sachs and Morgan Stanley, which received approval to buy back government stake worth $68 billion earlier this year, are among the firms seeking operational efficiencies by outsourcing non-core IT and back-office projects to India.
American Express, Bank of New York Mellon and Capital One, which have started repaying government debt, were also considering outsourcing, it said.
RMG squeezes savings from IT
The Royal Mail Group (RMG) has cut its annual IT spend by 10% by paring back its outsourced services, according to BusinessWeek.
Antony Hayes, commercial director for RMG, was appointed a year ago to reduce the £110 million (R1.3 billion) the RMG was spending on running its IT operation each year.
Faced with the need to make substantial savings, Hayes realised he was not going to make such large cuts by simply renegotiating a lower cost for the supply of RMG's existing IT services. Instead Hayes initiated a root and branch review of the £1.5 billion (R18.6 billion) contract that Royal Mail Group signed with service provider CSC in 2003.
Insurer outsourcing deal saves millions
British life insurer Equitable Life said it expected savings of £8 million (R100 million) this year after appointing pensions firm HCL to administer its book of policies, replacing Lloyds Banking Group, says Forbes.
Customer-owned Equitable Life, which was forced to stop accepting new business nine years ago after the cost of paying guaranteed bonuses to some policyholders left it short of cash, said the switch to HCL would also allow it to cut its provisions for future costs by more than £100 million (R1.2 billion).
The insurer said up to 240 jobs could go as a result of the changeover, with HCL expected to retain about 100 of 340 Lloyds' employees currently working on the Equitable contract.
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