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UBS has joined rival finance players to withdraw from providing its information technology to external providers. Now, offshoring hubs receive an update.
The Swiss bank published a surprising statistic in the results of the second quarter: the number of employees of the company rose by 7% to 63,684 people, from 59.470 years ago.
The increase in staff is counterintuitive at a time when banks are cutting jobs to reduce their budgets: UBS aims to reduce costs by 2.1 billion Swiss francs ($ 2.14 billion) by the end of 2017 (a goal that has already struck).
Mondano against complex
At the beginning of this year, the bank moved Harald Egger in Mumbai. The 20-year veteran of UBS has been in charge of sourcing at the Swiss bank for the past seven years, a job that means he is primarily responsible for costs.
Egger's transfer to India comes when banks try to wean themselves off IT professionals, reversing one of the first dramatic cost-cutting maneuvers undertaken ten years ago. If the service centers have dealt with relatively trivial tasks such as call centers a decade ago, they are updating to much more complex tasks today, Egger told reporters in Zurich.
Second only to China
"Typical business processes outsourced ten years ago as data entry can be digitized or automated," Egger said. Instead, he is looking for mathematicians, statisticians, physicists and other highly qualified graduates in science and technology.
India is producing them only according to China: in 2016, the country produced 2.6 million graduates in the most sought-after faculties of science, technology, engineering and mathematics, according to data from the World Economic Forum. This is more than four times the US rate, in third place.
Bank Suisse Banker moved
Because? Mathematics is the obvious reason: Indian specialists cost less than those in Switzerland, the UK or the US But banks like UBS and Citigroup, also a strong user of Indian IT skills, are doing a step further and moving the infrastructure to their own Indian operations.