Citigroup overhauls tech plans

Citigroup is overhauling its IT systems as part of a plan to save cash and streamline operations.

The financial services giant plans to consolidate data centres; improve its global voice and data networks; standardise how applications are developed, deployed and run; and limit the number of software vendors it uses.

The cost-cutting plan also includes eliminating 17,000 jobs and moving 9,500 jobs to low-cost locations.

The banking firm expects to generate total savings of $10.4bn over the next three years as a result of the revamp, with the restructure estimated to cost over $1bn before tax in the first quarter of 2007.

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Speaking in a webcast, Citigroup COO Robert Druskin said of those predicted savings, up to 45 per cent will come from "workforce management", 35 per cent from the IT overhaul and up to 10 per cent from using more shared services.

Druskin said the company expects to close half of its 42 data centres by the end of 2009.

The company will consolidate back office, middle office and corporate functions to eliminate duplication of effort and improve efficiency, and make more use of centralised procurement than it does today.