Tuesday, March 27, 2007

Citigroup to move jobs to India- Time to rejoice ??

The New York Times carried a report today (27 March 2007) about Citi's plans of a major financial restructuring effort . Approximately 26,000 jobs will be either cut or reassigned to manage its operating costs . A large part of the reassigned jobs are expected to come to India . Citi India already has a large presence with 22,000 people which is supposed to grow even further with this announcement .

Charles O. Prince III Chairman and Chief Executive Officer Citigroup quoted...“We will consolidate and simplify our back offices around the world,....Traditionally, India has been a beneficiary of that.”

Most of us will be elated with this announcement , more global jobs coming into India , more employment opportunities for us ....however I would present a slightly contrary point of view .

a) Moves like this have an impact on Brand India ( ....Back-office destination of the world ) ...more and more corporates look at India as a source of cheap labor (which at one level is good , but does not auger well for national competitiveness in the long run)....I am sure India is not interested to be merely a back office operations of entities that want to manage cost....and more so when we have such a vibrant talent pool

b) India gets prominence through announcements such as these , I would like to know the extent of international media coverage on the Tata-Corus or Hindalco-Novelis deals . .....both the stories were covered by the New York Times ....but in a very matter of fact announcements.

As a nation we have lot more to offer than back office outsourcing ...don't you think so ? , and are you still happy with this announcement ....do let me know

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