Citigroup has tremendous Geo-Political risk with respect to its out-sourcing of Technology development and support to third-world countries (i.e., application development teams and application support teams) most of these teams are either out-sourced to Russia or Poland (i.e., LUXOFT) in places like Moscow, Kiev, Saint Petersburg and Warsaw or concentrated in China (Shanghai) or India (Wipro). Now a days very little Application Development or Tech Support occurs in the USA, London or Tokyo, these application dev/financial skills cannot just be rolled back to their original location in a couple of days if a denial of services event occurred, it would take years for this to happen. It doesn’t take a genius given the current events in the world and with a little extrapolation what could happen if Eastern Europe vs. Russia, India vs. Pakistan, or China vs. Taiwan and how exposed the Citigroup franchise is to these Geo-Political events with respect to its technology platform. The absence of Technology Development and Support in any part of the world could bring the entire bank to its knees. I’m surprised that the US Treasury/Fed allows this Geo-Pollical exposure for a global bank the size of Citigroup. Has Citigroup’s over-aggressive out-sourcing of technology application development and application support to third-world countries jeopardized the bank and the banking system?
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Time to go
I still remember the lie that was told when U.S. testing jobs were moved to India. The lie was it was better for the business as they could test as they were in a different time zone, someone in the U.S. could look at the test results when they came into the office the next day.
Now India is doing far more than just testing. They are in strategy roles, policy roles, customer service, etc.
Citi gets all the karma they deserve for moving U.S. jobs to other countries.
Lol. From another post “ No direction, no vision, nothing to offer in comparison with the competition, just a mix knee jerk reactions with Benny Hill music playing in the back ground.”
What should be the CEO’s primary goal should be to make the stock price go up, decent dividend payouts and to bring in revenue. When you look at the citi stock, its table top smooth…..flat. No discernible growth since 2008 in comparison to other banks. “We’ve made key decisions, just give it time to see the fruits of our labor”. It’s been over a decade and some change and the stock is still flatlined. So now the master grand plan that will save us all is growing the UK, push harder than any other company on ESG.
Forward thinking is not most management strong suit. As of now the CEO’s prime focus is moving as much as she can to the UK to help the economy there. They will expand the power base there. The Citi US presence will remain to keep “ties to the past” so to speak but the core will move to the UK. I support model will remain because its cheapest, not necessarily best but cheapest.
The next prime directive is the ESG trail blazing. As one poster already stated and is probably right, she wants to write a book with chapters the tune of. Chapter 1: Look at me, I’m the first Citi woman CEO. Chapter 2: How I drove ESG to new heights.
Nothing else matters. While you bring up good points, it falls on deaf ears. Move everything to the UK to help the economy there and ESG is all that matters.