|Published : 17 Apr 2017, 13:41:00|
Goldman’s strategic operations in India
In the mid-1990s, multinationals strove to cut the cost of support functions such as handling payroll, or dealing with customer queries. Moving them to cheaper countries such as India was the obvious solution, according to a global media report.
Since then, however, the response to the question of how, where and with whom to carry out back-office functions has become more complex, and more strategic.
Goldman is a case in point. Its Bangalore-based staff now represent 14 activities - from compliance and legal services to investment banking, though the most senior client-handling vice-presidents still operate out of Mumbai.
The mathematicians and scientists work on the bank’s quantitative investment strategies, but also analyse big data in areas such as risk management or human resources.
The bank’s plans for its new campus would allow it to expand to become the biggest office outside New York. But at the same time, the bank does not have to take up the option to lease the second of two buildings. At the moment, it expects headcount to remain flat.
Even Goldman’s Bangalore operation, which prides itself on propagating a “Goldman culture”, now outsources certain functions - such as accounting - to multiple contractors.