Two years after its collapse staff at Lehman Brothers in London’s Canary Wharf are back.
I was talking to a former IT worker at investment bank Lehman Brothers today. He told me a lot of the former staff, as well as workers from administrater PWC, were in to tie up loose ends. The investment bank may have collapsed just over two years ago but there are still investments out there that need to be dealt with.
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This shows just how complex the investment banking business is. Apparently the staff, most of which are at other banks now, are being paid the going rate. It also demonstrates the importance of expert knowledge both of IT and the investment sector.
This is why outsourcing core business is often a step too far. Imagine if all the work was outsourced. Cleaning up would surely be much more difficult.
Robert Morgan, director at consultancy Burnt-Oak Partners, says this is a good indication of where the knowledge sits in a business.
“The knowledge attrition you get from outsourcing is something that most people do not pay attention to.
“It is critical when you plan outsourcing that you do understand where the corporate memory is. It is the people that have it and not on the systems.”
He says tying up Lehmans will probably cost hundreds of millions and take another 5 years.
The collapse of Lehman Brothers also triggered off an apocalyptic financial crisis which claimed many lives. See here for some of the biggest victims.