I have heard about a potential outsourcing of system support as a way to cut people and costs. I don’t know if the decision has been made to go in this direction but know it was being discussed. 20,000 people in technology would be a huge cost to cut but would drive the costs way down to
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As for the all important "Risk Management" wouldn't it be extremely risky for Wells Fargo to have all of the critical IT work outsourced, or moved offshore somewhere? What if there was a war? Some sort of disaster that impacted overseas communications? What are they thinking anyway? Risk level of "High" for having most of the IT operations offshore. What would the Federal Regulators think about this plan?
Not sure if IT includes software development...but in my experience there are plenty of capable onshore developers and systems consultants with valuable business knowledge that they simply refuse to use effectively and have become marginalized. At they very least they could make an effort to use onshore systems consultants for building proper requirements so offshore developers even stood a chance of developing something that was legitimate.
Outsourcing the Wells Fargo IT operations will be the final "blow" that will cause the company to go bankrupt. All of the Wells Fargo business units rely on the Wells Fargo IT systems and support. There is a great knowledge required to operate the Wells Fargo IT operations. It cannot just be turned over to some outsourcing company. If they do that will be the final demise of Wells Fargo. Mark my words.
IT outsourcing is happening as soon as the new CEO is in place. A couple reasons why WF is going this direction. First IT hasn’t delivered systems to satisfy regulator MOUs. The regulators want to see old legacy systems updated and it just hasn’t happened so the regulators are requiring a differently strategy. The other point is WF’s core business is banking (some may say fraudulently) and not IT. Investors want the bank to simplify operations and focus on core competency. Think about it this way - if WF’s core competency was IT, they would sell the in house built technology to other banks. But they can’t sell the technology because it all is terribly years behind.
The good thing is many in IT should have job opportunities to join the company taking over IT. That should also look good on the resume.
They can’t have all the system support in whatever country they outsource to. There are circumstances where an IT person has to physically be at a work site to actually do hands on work.
I heard similar things but there’s no way WF could outsource all the systems they use.