Narayan AmmachchiAfter decades of outsourcing much of its back-office operations, banking giant Citigroup is shifting gears. The company plans to reduce its reliance on external IT contractors from 50% to 20% and bring more technology work in-house.
Analysts say heavy dependence on outsourcers makes it harder for Citi to meet regulatory requirements. To address this, the bank will hire over 2,000 technology workers by the end of the year, raising its IT workforce from 48,000 to 50,000.
The move aligns with Citi’s decision to relocate its technology center from Rutherford, New Jersey, to a new facility in Jersey City. “Citi is expanding its internal technology team to improve security, boost revenue, and enhance efficiency,” the company told Reuters.
Strengthening risk management and data security is also a key focus. Last year, U.S. regulators fined Citi $136 million for failing to improve data management—a requirement first issued in 2020.
Since then, the bank has faced over $536 million in penalties for governance and risk management lapses.
Adding to Citi’s challenges, fraudsters recently used deepfake technology to trick an employee into transferring $22 million to an unverified account.
Looks like Citi is making a big shift to regain control over its tech operations. After years of heavy outsourcing, they’re bringing more work in-house—likely to meet stricter regulations and improve security. Hiring 2,000 IT workers is a bold move, but given their recent fines, it makes sense. Let’s see if this strategy helps them tighten up risk management while keeping operations smooth.