Credit Suisse wants to shift buying activities to an external provider as part of its new strategy, research by finews.asia shows.
Credit Suisse wants to centralize and outsource about $4.4 billion of its yearly purchasing activities managed by about 250 employees, research by finews.asia shows.
The activities comprise IT purchasing, travel costs, facility management and office supplies. Daniel Helmig was appointed the head of the area earlier this year.
Market Adjustment
When asked, Credit Suisse told finews.asia: «Credit Suisse is always looking for ways to improve operations. As a global bank, we constantly strive to adjust business activity and clients needs to that of the market.»
Outsourcing such activities is not unusual, particularly if done on a large enough scale that significantly helps to cut internal costs.
UBS Leads
UBS, for example, moved its entire purchasing chain a few years ago to Swiss company Chain IQ specifically created for that exact purpose, as finews.com reported exclusively at the time. Banking circles currently estimate that UBS has an annual purchasing volume of about $8-9 billion a year.
Further research from finews.asia shows that Credit Suisse put out a mandate in August and September for sector specialists to bid for a contract. Among others, IBM, Accenture and Genpact seem to have participated.
Agreement Before 2022
But Chain IQ headed by entrepreneur Claudio Cisullo (image above) made the best offer and negotiations are currently underway, although the company did not want to specifically comment on the subject.
Further information indicates that both institutions intend to sign an agreement this year, with Chain IQ taking over about 120 Credit Suisse employees.
Purchasing Volume of $21 Billion
Chain IQ currently employs about 470 people worldwide. It has about 50 clients and an annual purchasing volume of about $21 billion.
Besides UBS, its largest clients include global media conglomerate Thomson Reuters, French bank BNP Paribas, consultancy Marsh & McLennan, Baloise Insurance and Swiss department store chain Manor.
