State Street: State Street costs dip on insourcing works from its JV with HCLTech

US financial services company State Street Corp, which earlier this year acquired HCLTech‘s stake in their joint venture, said its cost towards compensation and employee benefits fell 2% in the April-June quarter, mainly due to a decrease in contractor spending associated with JV consolidations in India and lower salaries.

State Street that completed the transaction on April 1 made the observation in a filing with the US Securities and Exchange Commission. HCLTech, meanwhile, posted a fall in revenue at its financial services vertical and has warned about headwinds in the segment in the July-September quarter as well due to State Street insourcing the business operation services provided by the JV.

“Productivity improvement remains a fundamental component of our strategic agenda.In 2Q, we completed the consolidation of our final operations joint venture in India, which will further enable the transformation of our operating model, unlock efficiency savings, and improve client experience,” State Street chairman and chief executive Ron O’Hanley said in its July 16 SEC filing.

The fall in cost was in line with the stated intention that the company announced in December last year.