The Financial Times reports that JP Morgan Chase is planning to hire 4,500 graduates in India, as its aims to move 30% of back office and support staff jobs at its investment banking division offshore by the end of 2007.
Although JP Morgan has said that the move is not just about cost savings, cost-conscious CEO-in-Waiting Jamie Dimon will no doubt be pleased at the prospect of less dollars being shelled out in staff costs. The JP Morgan investment banking initiative, which is thought likely to result in up to 3,000 jobs being offshored by the end of 2007, is the most ambitious move by an investment bank yet to employ staff in a lower-cost location. Up to 9,000 jobs in the JP Morgan Chase group are said likely to be offshored in the next 2 years.
According to the newspaper, investment banks currently have around 6,000 staff in India, but this could quadruple in the next few years. AT Kearney's Stefan Spohr is quoted, saying that 'this is not a trend that will go away. Global resourcing is becoming part of the way of doing business'.
Finally, Morgan Stanley is said to be opening an Eastern European research centre in Budapest, and plans to initially hire 25 staff there. The firm is said to have selected Budapest from three cities in the region.