JPMorgan Chase to hire 4,500 in India in offshoring move: report

Yahoo News & AFP ^ | December 4, 2005

[Arjun]

NEW YORK (AFP) - Financial services powerhouse JPMorgan Chase plans to hire 4,500 graduates in India as part of its plan to shift 30 percent of its back office and support operations offshore over the next two years, the Financial Times reported on its website.

The largest part of the bank's exchange operations will be placed in Mumbai (formerly Bombay) and Bangalore, the Financial Times said.

The bank, which has only had about 200 employees in India over the past two years, is now recruiting between 300 and 400 Indian graduates per month, the paper reported, taking advantage of India's high education levels and relatively low wages.

Overall the bank hopes to have 9,000 employees in India by the end of 2007, the newspaper said, 3,000 in investment banking and 6,000 in commercial banking, the latter including 2,000 in call-center operations.

[Dahoser]

Great. More calls from people sounding like Apu but calling themselves Ruben or Mary Ann.

[lentulusgracchus]

So J.P. Morgan Chase wants to join the rush to become an American company in name only, with all foreign workers whom they can pay at half or quarter or 1/10th wages....

Why am I not surprised?

Tell the Bombay employees not to get too comfortable. Their jobs will run away to Dacca or Rangoon as soon as they begin to approach retirement age, or Indian salaries go up.

Meanwhile, Americans should take note, and make plans to extract a bitter, even asymptotic price from J. P. Morgan Chase for stabbing their New York employees in the back.

Time for the House of Morgan to hit a wall.

[battlegearboat]

Mr. Morgan, you are a very very bad man!

[Cronos]

Actually JPMC's hiring is more about consolidating it's Asia-Pacific operations out of India. The jobs are moving from places like Hong Kong, Australia, Malaysia, Singapore, Japan etc. into Bombay.

Besides which, JPMC is moving to take advantage of India's strong banking institutions and investment opportunities -- remember that the indian stock market has gained over 50% over the past one year and Stock Market Investment agencies from the US have made killer profits in the past year.

[Jacquerie]

The usual reaction to off shoring of US jobs is understandable. Why are they off shoring? Moving operations halfway across the world cannot be inexpensive. Could it be that the US tax and regulatory environment encourages business to look elsewhere?

[OldFriend]

Much of the business growth is in India and China. It makes sense to hire workers there.

Frankly, when I get a person who does not speak english clearly I abandon the call.

If enough of us do that, they will get the message that Americans don't care to speak to someone in India on a service matter or new service.

[doc30]

Easiest way for COngress to address this is via privacy concerns. Once your financial information is outside the country, ther U.S. privacy laws NO LONGER APPLY. The U.S. has no jurisdiction. Congress could put an end to this outsourcing by making financial regulations where the information cannot leave the jurisdiction of the U.S.

[Release]

Yes their economy is booming but as for banks wow just a minute. There are approximately seven foreign banks in India and they share 10% of the market. The Indian government refuses to allow a bigger share. My guess is this will never increase. Once the Indians learn the US banking system JPMC will be called the Bank of India. Just like GM and Ford were beat by Japan. Then no one in the US will buy anything and anymore because the last US service industry jobs will be gone.