LONDON/NEW YORK, March 13 (Reuters) - Citigroup (C.N), opens new tab plans to dramatically reduce its reliance on information technology contractors and hire thousands of employees for IT as the lender grapples with regulatory punishments over data governance and deficient controls.
Citigroup’s head of technology Tim Ryan told staff in recent weeks that the bank aims to cut back external contractors to 20% of those working in IT from the current 50%, according to an internal presentation to employees seen by Reuters. The briefing did not give a precise time horizon for the changes.
Smart. Trying to save costs on IT gets bad results every time. It’s a necessary part of the business.
I think it’s a cycle. Some hotshot MBA and says why are we paying so much in engineers! Outsource! So they do, quality tanks, everything goes to shit, and it takes years to recover. MBA meanwhile has already gotten their bonus, the new Audi, and left for another job. The company slowly rehires expensive talent and they start picking up the pieces, years behind.
And then some hotshot MBA comes in…
That was the '10s. These days they skip hiring the contractors and just… don’t have staff. It’s working fine after all, and we need to cut costs somewhere.
Trump, are you paying attention?
Regulation over data governance is what drives local investment, not tariffs.
I feel this in my soul, and I don’t even work IT. ;-;
