Discussion:
Passage to India : U.S. Financial services firms plan to send more work abroad
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Your Special Friend
2003-09-22 03:15:35 UTC
Permalink
Hiawatha Bray, "Passage to India : U.S. Financial services firms plan
to send more work abroad," Boston Globe, 6 May 2003 [page 17]

JP Morgan Chase & Co. plans to outsource some of its stock market
research to Bombay this summer, signaling possible new arenas for the
trend that already has sent tens of thousands of information
technology jobs abroad in recent years.

A surge in overseas hiring could result in major job losses inside the
US financial services sector. Business consulting firm A.T. Kearney
Inc. last week released a survey of 100 major American banks,
brokerage houses, and insurance companies, projecting half a million
financial services jobs will be shifted overseas in the next five
years, equal to 8 percent of total employment in the sector.

The practice of outsourcing may be catching on among financial
services and business consulting firms for the same reasons that
computer software companies such as Microsoft Corp. and IBM Corp. are
increasing their use of overseas labor. Countries like India offer
sharply lower labor costs, while supplying workers with excellent
technical and financial know-how. For instance, in 2001, MBA graduates
from the prestigious Indian Institutes of Technology could expect to
earn just $12,000, compared to an average starting salary of $102,338
for graduates of Harvard Business School.

New York-based JP Morgan said last week that the analyst research
reports it prepares for stock investors will soon be prepared in part
by Indian business school graduates working in Bombay. Meanwhile, A.T.
Kearney said it is already having much of its research done by Indian
workers.

''We're talking about very highly educated people with advanced
degrees, who are very motivated,'' said A.T. Kearney managing director
Andrea Bierce.

For decades, financial services companies like Citigroup and GE
Capital have shifted some of their business activities overseas. But
traditionally this has involved relatively low-level work, such as
typing huge volumes of data into computers or handling simple
bookkeeping activities. That trend has accelerated in the past five
years as companies have sought to lower their costs to remain
competitive.

But the move toward sending financial research abroad comes at a
sensitive time for Wall Street. Last week, 10 top investment banks
firms reached a $1.4 billion settlement with regulators aimed at
protecting investors from biased research. It was unclear whether the
settlement would speed the outsourcing of analyst work overseas.

''With the market for financial institutions not turning around, and
not seeing the revenues that they'd hoped, financial institutions have
had to continue to look for ways to reduce costs,'' said Bierce.

Indeed, beginning about a year ago, A.T. Kearney moved much of its own
research to India. ''One [reason] was as a way to reduce our overall
costs,'' said Bierce. ''But two, we could take advantage of the time
change.'' Bierce said that she can e-mail a data request to an Indian
colleague who's at work while she's at home. The next morning, the
information is waiting in her e-mail box.

Another research firm, Deloitte Consulting, said the financial
outsourcing boom isn't limited to the United States. Last month,
Deloitte analyst Christopher Gentle predicted that financial firms in
the major industrialized nations would move 2 million jobs to low-wage
countries over the next five years, with about half the jobs going to
India. Gentle estimated that the shift could save the world's 100
largest firms $138 billion a year by 2008.

JP Morgan Chase spokesman Brian Marchiony said his company isn't
laying off American analysts in order to hire Indian MBAs. Instead,
the Indian workers will do the heavy-duty number crunching, freeing up
the Americans to focus on higher-level financial analysis, and letting
them spend more time with customers. ''We will not only increase
productivity for senior analysts inside the US, but lower costs for
the overall department,'' Marchiony said.

It's unclear whether investors would be comfortable with financial
advice based on offshore analysis. Stock analysts are presently
laboring under a cloud of scandal. Charges that high-profile analysts
gave investors inaccurate information to help their firms chase
investment banking business led to last week's settlement between
regulators and securities firms.

But SEC spokesman John Heine said that having part of the analysis
done overseas shouldn't matter to investors, because it doesn't matter
to regulators. ''If the research is being put out as a product by the
investment bank, the investment bank is responsible for it,'' Heine
said. ''It doesn't matter where the people putting it out work.''For
now, other major financial firms don't seem in a hurry to follow JP
Morgan Chase's lead. Representatives of Boston-based Fidelity
Investments and Putnam Investments said that the firms have long had
analysts based outside the United States, but not for purposes of
reducing labor costs. Both firms say they have no plans to shift
analyst work to India or other low-wage centers. Similar responses
came from Merrill Lynch & Co., Solomon Smith Barney and Goldman Sachs.
Dave
2003-09-23 19:52:37 UTC
Permalink
Well that's great. How much more jobs will India steal from us in the next
ten years? Maybe Pakistan should have nuked them while they had a chance!!

Those Indians better stop taking our precious jobs out from under us!!!

The country of India is doing more damage to our economy than Osama Bin
Laden and 9/11. Why don't these people just go back to the rice fields
where they belong and STOP TAKING OUR JOBS!!!!!

100% tax rate on foreign labor is the only way to protect our precious
American jobs.


BUY AMERICAN!!!!!!!
Post by Your Special Friend
Hiawatha Bray, "Passage to India : U.S. Financial services firms plan
to send more work abroad," Boston Globe, 6 May 2003 [page 17]
JP Morgan Chase & Co. plans to outsource some of its stock market
research to Bombay this summer, signaling possible new arenas for the
trend that already has sent tens of thousands of information
technology jobs abroad in recent years.
A surge in overseas hiring could result in major job losses inside the
US financial services sector. Business consulting firm A.T. Kearney
Inc. last week released a survey of 100 major American banks,
brokerage houses, and insurance companies, projecting half a million
financial services jobs will be shifted overseas in the next five
years, equal to 8 percent of total employment in the sector.
The practice of outsourcing may be catching on among financial
services and business consulting firms for the same reasons that
computer software companies such as Microsoft Corp. and IBM Corp. are
increasing their use of overseas labor. Countries like India offer
sharply lower labor costs, while supplying workers with excellent
technical and financial know-how. For instance, in 2001, MBA graduates
from the prestigious Indian Institutes of Technology could expect to
earn just $12,000, compared to an average starting salary of $102,338
for graduates of Harvard Business School.
New York-based JP Morgan said last week that the analyst research
reports it prepares for stock investors will soon be prepared in part
by Indian business school graduates working in Bombay. Meanwhile, A.T.
Kearney said it is already having much of its research done by Indian
workers.
''We're talking about very highly educated people with advanced
degrees, who are very motivated,'' said A.T. Kearney managing director
Andrea Bierce.
For decades, financial services companies like Citigroup and GE
Capital have shifted some of their business activities overseas. But
traditionally this has involved relatively low-level work, such as
typing huge volumes of data into computers or handling simple
bookkeeping activities. That trend has accelerated in the past five
years as companies have sought to lower their costs to remain
competitive.
But the move toward sending financial research abroad comes at a
sensitive time for Wall Street. Last week, 10 top investment banks
firms reached a $1.4 billion settlement with regulators aimed at
protecting investors from biased research. It was unclear whether the
settlement would speed the outsourcing of analyst work overseas.
''With the market for financial institutions not turning around, and
not seeing the revenues that they'd hoped, financial institutions have
had to continue to look for ways to reduce costs,'' said Bierce.
Indeed, beginning about a year ago, A.T. Kearney moved much of its own
research to India. ''One [reason] was as a way to reduce our overall
costs,'' said Bierce. ''But two, we could take advantage of the time
change.'' Bierce said that she can e-mail a data request to an Indian
colleague who's at work while she's at home. The next morning, the
information is waiting in her e-mail box.
Another research firm, Deloitte Consulting, said the financial
outsourcing boom isn't limited to the United States. Last month,
Deloitte analyst Christopher Gentle predicted that financial firms in
the major industrialized nations would move 2 million jobs to low-wage
countries over the next five years, with about half the jobs going to
India. Gentle estimated that the shift could save the world's 100
largest firms $138 billion a year by 2008.
JP Morgan Chase spokesman Brian Marchiony said his company isn't
laying off American analysts in order to hire Indian MBAs. Instead,
the Indian workers will do the heavy-duty number crunching, freeing up
the Americans to focus on higher-level financial analysis, and letting
them spend more time with customers. ''We will not only increase
productivity for senior analysts inside the US, but lower costs for
the overall department,'' Marchiony said.
It's unclear whether investors would be comfortable with financial
advice based on offshore analysis. Stock analysts are presently
laboring under a cloud of scandal. Charges that high-profile analysts
gave investors inaccurate information to help their firms chase
investment banking business led to last week's settlement between
regulators and securities firms.
But SEC spokesman John Heine said that having part of the analysis
done overseas shouldn't matter to investors, because it doesn't matter
to regulators. ''If the research is being put out as a product by the
investment bank, the investment bank is responsible for it,'' Heine
said. ''It doesn't matter where the people putting it out work.''For
now, other major financial firms don't seem in a hurry to follow JP
Morgan Chase's lead. Representatives of Boston-based Fidelity
Investments and Putnam Investments said that the firms have long had
analysts based outside the United States, but not for purposes of
reducing labor costs. Both firms say they have no plans to shift
analyst work to India or other low-wage centers. Similar responses
came from Merrill Lynch & Co., Solomon Smith Barney and Goldman Sachs.
Zalek Bloom
2003-09-23 23:21:54 UTC
Permalink
Post by Dave
Well that's great. How much more jobs will India steal from us in the next
ten years? Maybe Pakistan should have nuked them while they had a chance!!
Those Indians better stop taking our precious jobs out from under us!!!
The country of India is doing more damage to our economy than Osama Bin
Laden and 9/11. Why don't these people just go back to the rice fields
where they belong and STOP TAKING OUR JOBS!!!!!
100% tax rate on foreign labor is the only way to protect our precious
American jobs.
BUY AMERICAN!!!!!!!
Hey genius,

Indians are not stealing American jobs - it our politicians who sold
us out and are letting them take over our jobs.

Happy elections,

Zalek
Post by Dave
Post by Your Special Friend
Hiawatha Bray, "Passage to India : U.S. Financial services firms plan
to send more work abroad," Boston Globe, 6 May 2003 [page 17]
JP Morgan Chase & Co. plans to outsource some of its stock market
research to Bombay this summer, signaling possible new arenas for the
trend that already has sent tens of thousands of information
technology jobs abroad in recent years.
A surge in overseas hiring could result in major job losses inside the
US financial services sector. Business consulting firm A.T. Kearney
Inc. last week released a survey of 100 major American banks,
brokerage houses, and insurance companies, projecting half a million
financial services jobs will be shifted overseas in the next five
years, equal to 8 percent of total employment in the sector.
The practice of outsourcing may be catching on among financial
services and business consulting firms for the same reasons that
computer software companies such as Microsoft Corp. and IBM Corp. are
increasing their use of overseas labor. Countries like India offer
sharply lower labor costs, while supplying workers with excellent
technical and financial know-how. For instance, in 2001, MBA graduates
from the prestigious Indian Institutes of Technology could expect to
earn just $12,000, compared to an average starting salary of $102,338
for graduates of Harvard Business School.
New York-based JP Morgan said last week that the analyst research
reports it prepares for stock investors will soon be prepared in part
by Indian business school graduates working in Bombay. Meanwhile, A.T.
Kearney said it is already having much of its research done by Indian
workers.
''We're talking about very highly educated people with advanced
degrees, who are very motivated,'' said A.T. Kearney managing director
Andrea Bierce.
For decades, financial services companies like Citigroup and GE
Capital have shifted some of their business activities overseas. But
traditionally this has involved relatively low-level work, such as
typing huge volumes of data into computers or handling simple
bookkeeping activities. That trend has accelerated in the past five
years as companies have sought to lower their costs to remain
competitive.
But the move toward sending financial research abroad comes at a
sensitive time for Wall Street. Last week, 10 top investment banks
firms reached a $1.4 billion settlement with regulators aimed at
protecting investors from biased research. It was unclear whether the
settlement would speed the outsourcing of analyst work overseas.
''With the market for financial institutions not turning around, and
not seeing the revenues that they'd hoped, financial institutions have
had to continue to look for ways to reduce costs,'' said Bierce.
Indeed, beginning about a year ago, A.T. Kearney moved much of its own
research to India. ''One [reason] was as a way to reduce our overall
costs,'' said Bierce. ''But two, we could take advantage of the time
change.'' Bierce said that she can e-mail a data request to an Indian
colleague who's at work while she's at home. The next morning, the
information is waiting in her e-mail box.
Another research firm, Deloitte Consulting, said the financial
outsourcing boom isn't limited to the United States. Last month,
Deloitte analyst Christopher Gentle predicted that financial firms in
the major industrialized nations would move 2 million jobs to low-wage
countries over the next five years, with about half the jobs going to
India. Gentle estimated that the shift could save the world's 100
largest firms $138 billion a year by 2008.
JP Morgan Chase spokesman Brian Marchiony said his company isn't
laying off American analysts in order to hire Indian MBAs. Instead,
the Indian workers will do the heavy-duty number crunching, freeing up
the Americans to focus on higher-level financial analysis, and letting
them spend more time with customers. ''We will not only increase
productivity for senior analysts inside the US, but lower costs for
the overall department,'' Marchiony said.
It's unclear whether investors would be comfortable with financial
advice based on offshore analysis. Stock analysts are presently
laboring under a cloud of scandal. Charges that high-profile analysts
gave investors inaccurate information to help their firms chase
investment banking business led to last week's settlement between
regulators and securities firms.
But SEC spokesman John Heine said that having part of the analysis
done overseas shouldn't matter to investors, because it doesn't matter
to regulators. ''If the research is being put out as a product by the
investment bank, the investment bank is responsible for it,'' Heine
said. ''It doesn't matter where the people putting it out work.''For
now, other major financial firms don't seem in a hurry to follow JP
Morgan Chase's lead. Representatives of Boston-based Fidelity
Investments and Putnam Investments said that the firms have long had
analysts based outside the United States, but not for purposes of
reducing labor costs. Both firms say they have no plans to shift
analyst work to India or other low-wage centers. Similar responses
came from Merrill Lynch & Co., Solomon Smith Barney and Goldman Sachs.
pund kamath
2003-09-24 13:43:45 UTC
Permalink
Post by Dave
Well that's great. How much more jobs will India steal from us in the next
ten years? Maybe Pakistan should have nuked them while they had a chance!!
text deleted...
India is not stealing the jobs: buddy.

US companies will go anywhere where the work can be done at the lowest
rate. It could be done in Manila, or Mexico and slave labor rate. Look
at the shoes or shirts you wear. Perhaps it comes from one of the
poorest contries on earth.
Multnationals have no heart and if you have some shares or investment
in your pension funds etc., probably they are invested in these big
companies who bring profits. Someday, when cost of production goes up
in India, they will move elsewhere. They don'y have the slightest
scruples to screw their contrymen- Imean Americans. So stop
complaining and get out your 'blame others for your misfortune
syndrome". You are NOW REAPING fallout and the 'blessings' of neo-con
economists like Friedman who preached very sucessfully the glories of
free enterprise mantra. GOT IT?

DontOutsourceMe
2003-09-24 03:56:52 UTC
Permalink
Post by Dave
Well that's great. How much more jobs will India steal from us in the next
ten years? Maybe Pakistan should have nuked them while they had a chance!!
Keep your negative views to yourself and then listen to
this...McDonalds and other MNC's open up shop in India (and more so
happening now) and steal away jobs and business from the locals..isnt
that stealing! Maybe these MNC's and your dead brain should be nuked
first before anyone thinks of nuking India!
Post by Dave
Those Indians better stop taking our precious jobs out from under us!!!
Where were you when those factory people lost their jobs to China..you
probably didnt care much about it becuase it wasnt your job and you
probably looked down upon those kinds of jobs..so it didnt matter if
they moved to China...now when the axe is on your head...you suddenly
wake up. Isnt this foolish and betraying your own people! The fact
is that you are a FOOL!!
Post by Dave
The country of India is doing more damage to our economy than Osama Bin
Laden and 9/11. Why don't these people just go back to the rice fields
where they belong and STOP TAKING OUR JOBS!!!!!
Let me just cut this real short..if cutting cost is the real reason
behind sending jobs to India, then what makes six figure salaries
legitimate for all top CEO's and presidents and athelets and celebs
while you get the peenuts. These are the people who are making a fool
out of you..your own people are doing the damage and not India!

So dont get emotional like a two year old kid and talk of sending
people to the rice fields..i bet you dont have the face to say
something like that to an Indian in person..so you hide behind your
computer in your cozy shithole and say something like that.

And lastly, Indians belong to the rice field, IT field, God's field,
and every other beautiful field that you can concieve of that is
created on this Mother earth.

Just think of which field you belong to and get the hell out of here!

DontOutsourceme.
Post by Dave
100% tax rate on foreign labor is the only way to protect our precious
American jobs.
Get real man..barking dogs NEVER make sense.
Post by Dave
BUY AMERICAN!!!!!!!
Post by Your Special Friend
Hiawatha Bray, "Passage to India : U.S. Financial services firms plan
to send more work abroad," Boston Globe, 6 May 2003 [page 17]
JP Morgan Chase & Co. plans to outsource some of its stock market
research to Bombay this summer, signaling possible new arenas for the
trend that already has sent tens of thousands of information
technology jobs abroad in recent years.
A surge in overseas hiring could result in major job losses inside the
US financial services sector. Business consulting firm A.T. Kearney
Inc. last week released a survey of 100 major American banks,
brokerage houses, and insurance companies, projecting half a million
financial services jobs will be shifted overseas in the next five
years, equal to 8 percent of total employment in the sector.
The practice of outsourcing may be catching on among financial
services and business consulting firms for the same reasons that
computer software companies such as Microsoft Corp. and IBM Corp. are
increasing their use of overseas labor. Countries like India offer
sharply lower labor costs, while supplying workers with excellent
technical and financial know-how. For instance, in 2001, MBA graduates
from the prestigious Indian Institutes of Technology could expect to
earn just $12,000, compared to an average starting salary of $102,338
for graduates of Harvard Business School.
New York-based JP Morgan said last week that the analyst research
reports it prepares for stock investors will soon be prepared in part
by Indian business school graduates working in Bombay. Meanwhile, A.T.
Kearney said it is already having much of its research done by Indian
workers.
''We're talking about very highly educated people with advanced
degrees, who are very motivated,'' said A.T. Kearney managing director
Andrea Bierce.
For decades, financial services companies like Citigroup and GE
Capital have shifted some of their business activities overseas. But
traditionally this has involved relatively low-level work, such as
typing huge volumes of data into computers or handling simple
bookkeeping activities. That trend has accelerated in the past five
years as companies have sought to lower their costs to remain
competitive.
But the move toward sending financial research abroad comes at a
sensitive time for Wall Street. Last week, 10 top investment banks
firms reached a $1.4 billion settlement with regulators aimed at
protecting investors from biased research. It was unclear whether the
settlement would speed the outsourcing of analyst work overseas.
''With the market for financial institutions not turning around, and
not seeing the revenues that they'd hoped, financial institutions have
had to continue to look for ways to reduce costs,'' said Bierce.
Indeed, beginning about a year ago, A.T. Kearney moved much of its own
research to India. ''One [reason] was as a way to reduce our overall
costs,'' said Bierce. ''But two, we could take advantage of the time
change.'' Bierce said that she can e-mail a data request to an Indian
colleague who's at work while she's at home. The next morning, the
information is waiting in her e-mail box.
Another research firm, Deloitte Consulting, said the financial
outsourcing boom isn't limited to the United States. Last month,
Deloitte analyst Christopher Gentle predicted that financial firms in
the major industrialized nations would move 2 million jobs to low-wage
countries over the next five years, with about half the jobs going to
India. Gentle estimated that the shift could save the world's 100
largest firms $138 billion a year by 2008.
JP Morgan Chase spokesman Brian Marchiony said his company isn't
laying off American analysts in order to hire Indian MBAs. Instead,
the Indian workers will do the heavy-duty number crunching, freeing up
the Americans to focus on higher-level financial analysis, and letting
them spend more time with customers. ''We will not only increase
productivity for senior analysts inside the US, but lower costs for
the overall department,'' Marchiony said.
It's unclear whether investors would be comfortable with financial
advice based on offshore analysis. Stock analysts are presently
laboring under a cloud of scandal. Charges that high-profile analysts
gave investors inaccurate information to help their firms chase
investment banking business led to last week's settlement between
regulators and securities firms.
But SEC spokesman John Heine said that having part of the analysis
done overseas shouldn't matter to investors, because it doesn't matter
to regulators. ''If the research is being put out as a product by the
investment bank, the investment bank is responsible for it,'' Heine
said. ''It doesn't matter where the people putting it out work.''For
now, other major financial firms don't seem in a hurry to follow JP
Morgan Chase's lead. Representatives of Boston-based Fidelity
Investments and Putnam Investments said that the firms have long had
analysts based outside the United States, but not for purposes of
reducing labor costs. Both firms say they have no plans to shift
analyst work to India or other low-wage centers. Similar responses
came from Merrill Lynch & Co., Solomon Smith Barney and Goldman Sachs.
Prudence
2003-09-24 07:23:59 UTC
Permalink
Post by Dave
Well that's great. How much more jobs will India steal from us in the next
ten years? Maybe Pakistan should have nuked them while they had a chance!!
Those Indians better stop taking our precious jobs out from under us!!!
That was really harsh. Do you believe that if India ceases to exist,
your jobs will be protected?

Problem lies within the US, one hundred percent of it. Address them
rather than looking around for nuke targets.
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