Outsourcing growth for JP Morgan

The second-biggest bank in the US, JP Morgan Chase, which acquired Washington Mutual and Bear Stearns recently, will increase its outsourcing to India by 25% this year to nearly $400 million, states Business Week.

It will also manage the integration of the acquired companies from India to bring down the cost of integrating different IT systems.

Right now, JP Morgan outsources $250 to $300 million worth of IT and back-office projects every year to Cognizant, TCS and Accenture, apart from to its own captive centre in Mumbai.

The umbrella organisation of the offshoring and outsourcing industry will review its targets by the middle of the year as it aims to capture 10% of world market share, according to Business Processing Association Philippines chief executive officer Oscar Sa~nez, reports GMA News.

On the sidelines of the Information Communications Technology Awards - Philippines, Sa~nez said growth would likely decelerate given the global economic slowdown.

"Probably, it will go down but there is going to be growth. We are assessing by the middle of this year on what the numbers should be," he said.

Romania has become a highly attractive sourcing destination for companies looking for business process outsourcing, offshore software engineering and contract manufacturing services, according to market reports, says CBR Online.

Telecommunications supplier Ericsson is reportedly considering developing its business in Romania, and is said to be looking at locating a 200-job development centre in the country.

Romania's Communications and Information Society minister also claims to have had discussions with Nokia and Hewlett-Packard about possible development projects in Romania.