Friday, February 29, 2008

Indians To Take Over KeyCorp Jobs In Outsourcing Plan

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KeyCorp, owner of KeyBank, is outsourcing from 200 to 400 technology and product-support jobs to India.

Alan Buffington, a Key vice president for enterprise systems development, revealed the plan to employees during an electronic "town meeting" on Friday. According to, the official said the exact number of jobs to be outsourced will depend on the outcome of the bidding for the outsourcing contract.

Three Indian firms are vying for the contract, each offering a different number of employees who will take over American jobs.

The outsourcing is to be undertaken to save KeyCorp an estimated $10 million annually. Buffington said cost-cutting is necessary in the light of financial problems besetting the financial services industry.

KeyCorp's fourth quarter net income in 2007 was down to $25 million from $146 million in the same period in 2006. It posted a net income of $919 million last year compared to $1.056 billion in 2006.

The company has about 19,000 employees in the U.S.