I wonder how many understand that outsourcing to India has now reached the highest levels of the tech industry, it is no longer restricted to call centers. A friend at one of the US's top microprocessor design firms said that his group of 5 engineers (these are the guys that are critically involved in designing the next generation of CPUs) recently lost a guy due to attrition and his replacement was hired from India (and works from India) and his group has been told that there will be no future hires from the US for this group. While my friend couldnât be absolutely sure the salary of the new India group member is possibly as low as 30% of my friendâs salary and certainly no more than 50% of his salary, all memberâs of the group have PhDs.
People like to look down on India and Indians. The article suggests that Indians are used to do comps and such because they are cheap. There is no doubt that they are cheaper than the New York brats, but let's face it, people are turning to India also because they are good. Outsource the grunt work to India and you will not need to deal with the attitude of some rich kid whose daddy pulled major strings to land him the Wall Street job. You do not have to worry about training idiots who will never catch on and if you do not want to, you will never have to meet the person whose time and energy helped make the deal happen. Once the back portion of the front office gets outsourced, then only a very small number of "investment bankers" will be needed. Never mind that the whole corporate finance establishment has eaten so far into future business that it will be years, maybe even decades, if ever, before things get back to the way they were pre-2007; add this outsourcing trend and the total number of bankers needed would probably have to shrink by more than 50%, and that is conservative.