Investment Banking Staffing Trend: Over There

Outsourcing in investment banking is expected to result in the loss of as many as 3.3 million domestic industry jobs to overseas locations by 2010, according to Forrester Research.

Outsourcing in investment banking is expected to result in the loss of as many as 3.3 million domestic industry jobs to overseas locations by 2010, according to Forrester Research. That means in just four years, the percentage of such outsourced positions will jump from the current 3.5% to more than 20% -- and these are not just back-office slots. Already, according to CNN, JPMorgan Chase has added some research analyst slots in developing locales such as India, Hong Kong and Singapore, and other firms are likely to follow. While staff cost is one consideration, a Deloitte Touche Tohmatsu report suggests, planting staffers in overseas sites gives them an opening in these markets, with companies handing over to these employees the responsibility of conducting due diligence and screening potential clients.