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Evidently Information Technology Is One Of Those Jobs Americans Just Won't Do

Mar 12, 2009
By .
Politics & Current Events

Why else would JP Morgan Chase have to outsource its IT department to India?

"JP Morgan CIO Guy Chiarello said last week that he will increase outsourcing to India, and will drive several integration projects from there," a New York-based expert, familiar with JP Morgan’s outsourcing plans, told ET last week, on conditions of anonymity. …

"JP Morgan is one of the first banks in the US to have fleshed out its outsourcing strategy ever since the banking meltdown happened. Many others are still undecided about their IT spend," said a senior official at one of the technology firms, who did not wish to be quoted.

In addition to federal subsidies for its purchases of Bear Stearns and Washington Mutual, JP Morgan Chase received $25 billion from the Troubled Asset Relief Plan last year, with more to come in 2009.  And while I understand that the intent of TARP was not to create or save jobs (that's point of the "stimulus plan"), but to increase lending and stabilize credit, I must admit that this troubles me.

Of course, the holders of jobs JP Morgan is sending to India will get their bailout, when the unemployment checks arrive.

Last 5 posts by Patrick

4 Comments
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4 Comments

  1. Reed  •  Mar 12, 2009 @9:01 am

    Protectionism? Color me surprised, Patrick.

  2. Patrick  •  Mar 12, 2009 @9:09 am

    More like, "my house, my rules, Reed." I didn't support the bailouts, but if the banks are going to beg for money, it should come with strings attached.

    I believe that human welfare recipients should be required to look for work. I believe that corporate welfare recipients shouldn't spend my taxes on computer centers in India.

  3. Mark  •  Mar 12, 2009 @12:41 pm

    If you had listenedto Mr. Dimon's speach before Congress, he stated the government would NOT finalize the WAMU deal unless and only if he took the TARP funds. They were not needed and not wanted.

    There have been several bank that have actually returned the TARP funds. They were not needed or wanted, but the rhetoric enticed them to accept the funds, then the rhetoric changed. The current administration can never make up its mind, and is spreading confusion.

    The outsourceing of IT support is prudent to maintain and control spending. Blame Clinton for allowing the tax breaks to companies that outsource. In fact, blame Clinton for the laws that mandated lenders to give loans to people who could not affor them.

  4. Reed  •  Mar 12, 2009 @1:48 pm

    Even if spending money on computer centers in India saves the company money and therefore makes it more competitive and more likely to survive the economic downturn? Would you rather the company spend your tax dollars on US computer centers at double the cost, and allow that cost to increase the risk of overall failure of the company?

    As a consequence of receiving the TARP funds, should JP Morgan Chase be required to buy other US services even though foreign services may be less costly or more efficient? How about buying US goods to the exclusion of foreign goods?

    I just don't see how receiving the TARP money should require the company to be handicapped in its ability to compete in the marketplace. If anything, we'd want to make sure the company had the ability to compete so that someday, hopefully, we'd be able to get a return on the borrowed funds, rather than seeing the company sink into oblivion.