Only 18 months after launching a unit in India, Fiserv Inc. said it has 1,000 employees there and hopes to hire another 4,000 by the end of 2009.
India has a well educated work force with costs lower than typically seen in the U.S. on a 2- or 3-to-1 basis. Fiserv, whose main business is selling software and data processing services to banks and credit unions, has more than 23,000 employees worldwide, most of them in the United States. Altogether, Fiserv has about 230 offices around the globe. The company was looking at other new sites for business-process outsourcing and technology besides its New Dehli and Pune sites in India, including "lower-cost locations in the U.S."
Among the job positions in Fiserv's India operation are computer software design, programming and quality assurance testing and back-office functions such as data entry and forms processing. Many financial services companies still handle data processing in-house, but through the lower-cost option available in India.
Using Indian resources can save 20 to 30% or so in personnel costs by the second or third year in production. It is part of the reason why margins have expanded pretty nicely and should continue to expand nicely in the future for the total business.
Brown Deer-based Metavante Corp., which competes with Fiserv and others in the financial technology industry, hasn't added its own employees in India. However, Metavante last year acquired a 20% stake in an Indian company called Firstsource, a major provider of automated back-office functions for banks and credit unions.
Source(s): Fiserv, Metavante