Credit crunch to lead to more outsourcing

We've been talking for years about how more financial services firms are outsourcing more knowledge-oriented work abroad. Junior level research and analysis started getting offshored a few years ago. The New York Times notes that the trickle has now become a flood. Top outsourcing firms in India are seeing a healthy bump in business, apparently. The paper notes Morgan Stanley has about 500 people in India doing research and statistical analysis. About 100 of Goldman Sachs' 3,000 employees in Bangalore work on research. JPMorgan has 200 analysts in Mumbai working for its investment banking operations. Another 125 analysts in Mumbai support the bank's global research division. Citigroup has no fewer than 22,000 employees in India, a few hundred of which work on research. So what does this mean for kids aspiring to junior level analysis jobs? By one estimate, 40 percent of research-related jobs on Wall Street will be sent abroad.

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