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HSBC saves $800m by streamlining IT

Karl Flinders

HSBC has made IT savings of $800m in the last two years through a streamlining programme that has reduced costs by $4.5bn.

The bank has cut costs through strategies that included moving software development offshore to lower-cost regions.

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HSBC increased its profit by 9% compared to last year. Profit for 2013 was £13.6bn, compared with £12.3bn in 2012.

The next phase of the streamlining programme will focus on reducing or eliminating complexity, inefficiencies, risks or unnecessary activities across the whole group, including its IT infrastructure. 

“We continue to refine our operational processes, develop our global functions, implement consistent business models and streamline IT,” said HSBC's latest annual report.

Group chairman Douglas Flint said technology strategies will not just be about cutting costs but helping HSBC focus on opportunities: “We need to invest to bring to our customers the benefits available through smarter digital technology and richer data.”

The bank will invest in a global network of financial intelligence units to fight financial crime, by relying on technology to "identify and investigate significant cases, trends and strategic issues related to financial crime risks."

In May last year HSBC announced plans to lay off up to 14,000 global staff in a cost-cutting move likely to include redundancies among the bank's back-office IT employees.


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