Moving Investment Banking Jobs Off Shore

The International Herald Tribune posted an article on Wall Street firms moving to India. It raised some interesting points on the investment banking jobs front.

The bulge bracket firms have taken full advantage of the low-cost, highly educated work force that India provides. The overseas firm mentioned in the article, in fact, has grown 40% this year alone. It seems India is gaining big time from the losses on Wall Street – especially for the lower level jobs (think research front lines and pitch books). We’re talking about the big boys – Goldman Sachs, JPMorgan, Citigroup and others. The rule that said an analyst has to be within shouting distance just is no longer true.

It is only a matter of time before the next level of work gets moved. Quant model development and trading is surely to follow the same path. And why not? With the technology connections available, Wall Street will welcome the low cost resources. We could end up with all but the sale and marketing teams and the face-to-face deal makers residing off shore. Investors don’t care about the size of the New York office anymore. They want solid returns.

The prediction for reductions in ibanking jobs is as high as 200,000 but often times these jobs are not eliminated, they are just moved off shore. When it comes to the overall number of Investment Banking Jobs, however, we are seeing plenty here in the US. We are, however, starting to see the movement overseas as the investment banking game becomes more international every year.

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