Goldman Sachs’ approach to outsourcing

What is Goldman Sachs’ approach to outsourcing?

Goldman Sachs outsources heavily to strategic low-cost locations such as Bengaluru, India, to cut infrastructure costs while performing service, support, and technical work at state-of-the-art facilities.

• Its second biggest office is in Bengaluru, India, employing roughly 5,700 people.
• About 41 per cent of Goldman Sachs’ staff is based in low-cost locations, which also include Warsaw and Singapore.
• The bank leads the industry in offshoring, a trend now followed by Morgan Stanley, UBS, and Deutsche Bank.

Goldman Sachs may be headquartered in New York City, but its second biggest office is in Bengaluru, India. The city is among the finance company’s strategic low-cost locations, handling a variety of service and support related work, mostly in the technical discipline. It employs approximately 5,700 here, more than the 2,200 currently working at the Salt Lake City office and a fewer – 730 people – on the company’s payroll in Dallas. In total, about 41 per cent of Goldman Sachs’ staff is based out of these locations. The company also maintains operations in Warsaw and Singapore.

Goldman Sachs leads the banking industry in outsourcing

Going by the available figures, Goldman Sachs employs over 9,000 at the low-cost locations, only a few short of the 10,000 working out of its NYC and Jersey City offices. Hiring has only increased over the past five years, setting a trend that has also seen the likes of Morgan Stanley, UBS and Deutsche Bank either going the same route or planning a move sometime in the near future.

Understandably, outsourcing to low-cost cities and countries benefits the bottom line. The most perplexing cost issue for large banking and financial institutions relates to infrastructure. The rationale is: why not outsource where the same job can be performed just as competently at a less expensive state-of-the-art facility?

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Frequently asked questions

Where is Goldman Sachs’ second biggest office?

It is in Bengaluru, India, a strategic low-cost location handling service, support, and mostly technical work, employing approximately 5,700 people.

How many Goldman Sachs staff work in low-cost locations?

About 41 per cent of the company’s staff is based in low-cost locations. It employs over 9,000 there, only a few short of the 10,000 working out of its NYC and Jersey City offices.

Why does Goldman Sachs outsource?

Outsourcing to low-cost cities and countries benefits the bottom line, chiefly by reducing infrastructure costs while the same work is performed just as competently at less expensive, state-of-the-art facilities.

Which other banks are following Goldman Sachs’ lead?

The likes of Morgan Stanley, UBS, and Deutsche Bank have either gone the same route or planned a move sometime in the near future.

Besides India, where else does Goldman Sachs operate?

The company also maintains operations in Salt Lake City, Dallas, Warsaw, and Singapore.