Singapore Expats Forum

Future of banking IT in Singapore

Discuss about getting a well paid job or career advancement. Ask about salaries, expat packages, CPF & taxes for expatriate.

User avatar
Wd40
Director
Director
Posts: 3797
Joined: Tue, 04 Dec 2012
Location: SIndiapore

Future of banking IT in Singapore

Postby Wd40 » Mon, 24 Feb 2014 8:17 pm

I read an interesting article in efinancialcareers about JP Morgan IT recruitment process. To me this looks like the future of IT in Banking in Singapore. It talks about how JP Morgan wants to implement agile(scrum) based global teams. I had an interview with JP Morgan and this is what I experienced exactly. I had 3 rounds of interviews. 1 with line manager and 2 with junior members of the team on the same day.

http://news.efinancialcareers.com/uk-en ... -shake-up/

User avatar
BillyB
Manager
Manager
Posts: 1807
Joined: Fri, 23 Jul 2010
Location: My laptop

Postby BillyB » Mon, 24 Feb 2014 9:24 pm

I don't disagree - we see agile methodologies becoming more popular in fin services all over the world - but it's hardly revolutionary, and is arguably window dressed body-shopping.

If you're looking at the future of technology in financial services, we see a continuing trend to move away from in-house development because it's been done so badly over the past 15 years, and a shift back to vendor products and outsourced services. For example, the return of Murex to tier 1's because they cannot implement regulatory changes to business critical applications across the SDLC in a well-governed and timely manner.

The bank-wide round of current redundancies - barcap, baml, db - are cutting deeply into senior technology roles, suggesting there's too many chiefs and their strategic importance is diminishing.

User avatar
Wd40
Director
Director
Posts: 3797
Joined: Tue, 04 Dec 2012
Location: SIndiapore

Postby Wd40 » Mon, 24 Feb 2014 9:28 pm

Interesting BillyB. The bank that I work in follows the method that you mention i.e. outsourcing to India based vendors. But I feel the JP Morgan method is more effective, i.e. keeping the jobs in places like Singapore where good talent is willing to stay and I am a firm believer that its better to have 3 sharp technologists with multiple skills rather than having 10 mediocre outsourced resources who specialize in only 1 thing each. Thats why I feel the future is going to be the Agile inhouse way rather than the outsourced way. From what I know JP Morgan is moving several roles from its Bangalore captive centre to Singapore because they have had limited success there.

User avatar
BillyB
Manager
Manager
Posts: 1807
Joined: Fri, 23 Jul 2010
Location: My laptop

Postby BillyB » Mon, 24 Feb 2014 9:54 pm

Yep - agree completely with the numbers vs. quality point, and also that of multi-disciplined teams. A handful of exceptional / very good developers tend to be many times more productive (can be up to 10 fold per person, based off research) than 10-15 average ones. Not to mention lower project risk, of course.

I'm not advocating outsourcing in the traditional sense of the 'off-shore it because it's cheaper' sort of debate, but rather having a much clearer understanding of what you are good at, and what you aren't so good at, and being confident enough to outsource the latter to someone who can add value rather than continue to tread water and haemorrhage costs by trying to do it yourself.

Much of the last paragraph comes down to ownership and accountability, and traditionally a severe lack of both in banking over recent times. Plus, IMO, technology is fundamentally set-up wrong way - i.e. as a cost centre, rather than a profit centre in it's own right. The latter, i would hope, would induce more discipline and innovation.

Beeroclock
Reporter
Reporter
Posts: 718
Joined: Thu, 31 Oct 2013

Postby Beeroclock » Mon, 24 Feb 2014 10:43 pm

As an outside observer I find the extreme hire / fire/ rehire/ outsource/ in source/.... cycles of these banks astounding. It doesn't seem very strategic at all, just always tactical moves to cut functional costs when results poor, and catch it back up again when margins are more favour able. I'm sure there's more to it than this, but that's how it comes across to me....

Beeroclock
Reporter
Reporter
Posts: 718
Joined: Thu, 31 Oct 2013

Postby Beeroclock » Mon, 24 Feb 2014 10:52 pm

BillyB wrote:Plus, IMO, technology is fundamentally set-up wrong way - i.e. as a cost centre, rather than a profit centre in it's own right. The latter, i would hope, would induce more discipline and innovation.
interesting idea but how would you measure the revenue, unless you mean the banks IT dept to start selling services/expertise to third parties and or develop/license out new technologies? I still envisage it as an internal function or service provider (part of overhead cost) to enable the core business of banking to generate profit

User avatar
BillyB
Manager
Manager
Posts: 1807
Joined: Fri, 23 Jul 2010
Location: My laptop

Postby BillyB » Mon, 24 Feb 2014 10:55 pm

Beeroclock wrote:As an outside observer I find the extreme hire / fire/ rehire/ outsource/ in source/.... cycles of these banks astounding. It doesn't seem very strategic at all, just always tactical moves to cut functional costs when results poor, and catch it back up again when margins are more favour able. I'm sure there's more to it than this, but that's how it comes across to me....


You would be correct in your observation; technology and back-office staff tend to be easy cost reduction targets.

User avatar
Wd40
Director
Director
Posts: 3797
Joined: Tue, 04 Dec 2012
Location: SIndiapore

Postby Wd40 » Mon, 24 Feb 2014 11:14 pm

Beeroclock wrote:As an outside observer I find the extreme hire / fire/ rehire/ outsource/ in source/.... cycles of these banks astounding. It doesn't seem very strategic at all, just always tactical moves to cut functional costs when results poor, and catch it back up again when margins are more favour able. I'm sure there's more to it than this, but that's how it comes across to me....


The last time the banks were in hiring mode was in 2011 and since then the cost pressures are getting worse and worse and banks have restrained from making massive layoffs of 2008-09 style but now finally it has occurred to them that revenues aren't going to improve and they need to get the ROE from the single digits to atleast double that and hence in the foreseeable future I do not see banks getting back to the hiring mode.

Today HSBC reported results which were short of expectations and the shares fell 3%.

User avatar
BillyB
Manager
Manager
Posts: 1807
Joined: Fri, 23 Jul 2010
Location: My laptop

Postby BillyB » Mon, 24 Feb 2014 11:22 pm

Wd40 wrote:
Beeroclock wrote:As an outside observer I find the extreme hire / fire/ rehire/ outsource/ in source/.... cycles of these banks astounding. It doesn't seem very strategic at all, just always tactical moves to cut functional costs when results poor, and catch it back up again when margins are more favour able. I'm sure there's more to it than this, but that's how it comes across to me....


The last time the banks were in hiring mode was in 2011 and since then the cost pressures are getting worse and worse and banks have restrained from making massive layoffs of 2008-09 style but now finally it has occurred to them that revenues aren't going to improve and they need to get the ROE from the single digits to atleast double that and hence in the foreseeable future I do not see banks getting back to the hiring mode.

Today HSBC reported results which were short of expectations and the shares fell 3%.


And the wave of mandatory regulatory changes are forcing banks to spend money on new systems, on compliance, to hold more capital, and these are sunk costs that do nothing to increase RoE.

User avatar
Aragorn2000
Regular
Regular
Posts: 126
Joined: Sun, 30 Dec 2012

Postby Aragorn2000 » Tue, 25 Feb 2014 11:18 am

Wd40 wrote:Interesting BillyB. The bank that I work in follows the method that you mention i.e. outsourcing to India based vendors. But I feel the JP Morgan method is more effective, i.e. keeping the jobs in places like Singapore where good talent is willing to stay and I am a firm believer that its better to have 3 sharp technologists with multiple skills rather than having 10 mediocre outsourced resources who specialize in only 1 thing each. Thats why I feel the future is going to be the Agile inhouse way rather than the outsourced way. From what I know JP Morgan is moving several roles from its Bangalore captive centre to Singapore because they have had limited success there.


That sounds like a good strategy for programmers in Singapore. However, all it takes to reverse that is a newly hired MD who wants to prove him/herself by changing (anything). That MD may be hired for a different purpose in the first place.

User avatar
Brah
Manager
Manager
Posts: 1956
Joined: Sat, 18 Dec 2010

Postby Brah » Thu, 11 Sep 2014 9:27 pm

this is a good thread that should continue, it has no business being in this subforum - mods - can you please move it to the Careers forum

User avatar
sundaymorningstaple
Moderator
Moderator
Posts: 34338
Joined: Thu, 11 Nov 2004
Location: Still Fishing!
Contact:

Postby sundaymorningstaple » Thu, 11 Sep 2014 10:46 pm

Makes sense, Brah. Consider it done.


  • Similar Topics
    Replies
    Views
    Last post

Return to “Careers & Jobs in Singapore”

Who is online

Users browsing this forum: No registered users and 1 guest