Citigroup To Slash IT Contractors, Expand In-House Technology Team

(RTTNews) - Citigroup is overhauling its information technology operations by significantly reducing its dependence on external contractors and expanding its internal tech workforce.

According to an internal presentation, the bank plans to cut the proportion of IT contractors from 50 percent to 20 percent, though no specific timeline was provided. To support this shift, Citigroup aims to increase its technology staff from 48,000 in 2024 to 50,000.

The move comes in response to growing regulatory scrutiny and recent penalties. Last year, Citigroup was fined over $135 million by the Federal Reserve and the Office of the Comptroller of the Currency for failing to address long-standing deficiencies in data management and risk controls.

A recent $22.9 million fraud incident linked to external contractors highlighted the risks of relying heavily on third-party providers, reinforcing the need for tighter oversight.

Beyond reducing contractors, Citigroup plans to streamline its supplier network from 144 to 50 while shifting a larger share of its workforce to high-cost locations like New York, New Jersey, and Irving, Texas. Meanwhile, operations in lower-cost regions such as Chennai, Belfast, and Warsaw will continue to play a role in the bank's strategy.

By strengthening its internal technology capabilities, Citigroup aims to improve data governance, enhance operational security, and drive long-term efficiency. The bank remains focused on addressing regulatory concerns while positioning itself for sustainable growth in an increasingly competitive financial landscape.