An Indian newspaper says Morgan Stanley is to outsource research support and back office operations to India. The investment bank is reported to have leased a 120,000-square-foot facility in Mumbai that will employ 1,600 people. The report added that Morgan Stanley expected to save $32 million a year.
Other investment banks, including Goldman Sachs, are known to be exploring the scope for exporting research jobs to India, where highly qualified labour costs a tenth of what it does in New York or London. A recent survey by Gartner Group predicted an eleven-fold increase in outsourcing to India to a value of $13.8 billion. Deloitte Consulting has estimated a seventh of financial services jobs will move offshore in the next five years.