Sumitomo Mitsui Consolidates Systems Development to Chennai, India

Sumitomo Mitsui Financial Group plans to consolidate systems development and support operations at a new company in Chennai, India in October. This move is part of an effort to reduce overlapping functions across regions and cut costs. The new company will handle systems development and back-office work, replacing existing operations in Japan and other countries.

Sumitomo Mitsui Financial Group (SMFG) has announced plans to consolidate its systems development and support operations at a new company in Chennai, India, effective October 2025. This strategic move is part of a broader effort by the Japanese financial giant to streamline operations, reduce overlapping functions across regions, and cut costs Sumitomo Mitsui to shift systems development, back-office ...^[1].

The new company, based in Chennai, will take over systems development and back-office work, replacing existing operations in Japan and other countries. This consolidation aims to enhance efficiency and leverage India's robust IT infrastructure and skilled workforce. The decision follows a trend of many multinational corporations shifting back-office operations to cost-effective locations like India.

The shift in systems development operations is one of several strategic initiatives by SMFG. In August 2025, SMFG revealed a significant alliance with Jefferies, which includes combining Japanese equities operations, expanding joint business coverage into markets like EMEA and the U.S., and boosting SMFG's ownership stake in Jefferies to 20% Sumitomo Mitsui Financial Group (TSE:8316) Valuation in Focus Following Major Jefferies Alliance Expansion^[2]. Additionally, SMFG has secured $2.5 billion in new credit facilities to unlock new services in lending and asset-backed financing.

These strategic moves come at a time when SMFG's stock has shown significant growth. The stock has climbed 12% in 2025 and is 46% higher than a year ago, outperforming many peers. Investors have taken note of SMFG’s steady revenue growth and a sharp uptick in annual net income. However, the high price-to-earnings ratio (P/E) of 33.7x raises questions about whether the market is overvaluing future growth or profitability Sumitomo Mitsui Financial Group (TSE:8316) Valuation in Focus Following Major Jefferies Alliance Expansion^[2].

The consolidation in India aligns with SMFG's broader push to broaden its business beyond its home market. By focusing on cost efficiency and leveraging global talent, SMFG aims to maintain its competitive edge in the financial services sector.