Is a new form of "outsourcing" underway in the financial services industry? Goldman Sachs' move to add about 1,000 jobs to its Singapore office has raised eyebrows. To hear FOX Business talk about it, the company is staffing up in Asia because it looms as a growth opportunity and it wants a strong local presence.

While Singapore looms as a future high frequency trading power, it's hard to see the country as the hub of all Asian operations. Singapore can hardly be considered a low-cost outsourcing center. The costs are quite high.  In any case, this is a politically sensitive move because the company is poised to slash costs domestically. Many expect layoffs later this year.

But we may be in for a lot of this job swapping as more companies sense large growth opportunities abroad. If it gets to the point that banks are deriving more of their revenues abroad than at home and we see more job growth overseas than at home, the political controversy will kick up. Goldman Sachs' move is certainly fodder for the anti-Dodd Frank crowd.

It would be easy to paint this as a case of a bank being forced abroad in search of profits by excessive regulation. Of course, people feared much the same in the aftermath of Sarbanes-Oxley. The reality ended up being a bit more complex.

For more:
- here's the FOX article

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Time to outsource financial work?