http://www.nytimes.com/2008/08/12/business/worldbusiness/12indiawall.html?ref=business Subj pretty much sums up the article. With the growth of CFA in the region as well, Wall Street (and US in general) will only have upper management and customer service. Finance does not neccesarily have barriers to entry (like Law or Medicine), and majority of the work is even less skill intensive than widely outsourced IT. So it appears bargaining power of suppliers (labor) in this case is decreasing dramatically, so even in long term it is difficult to expect high wages. It was fun while it lasted. Perhaps finance labor market here in US will never come back, with recent economic issues serving as catalyst for structural changes.
So finally I will get a chance to work as a Derivatives Trader for NYSE from Mumbai (Bombay Stock Exchange - BSE) office and get home early enough to get served hot homemade food … all back there in my home country! … woooha!
Where will upper management come from in future years? Also, the rule of law and integrity of the judicial system is fairly important in matters of money. I know that George Bush has done a lot to try to level the judicial process integrity between the US and India, but I think most investors still want their contracts enforced by US courts instead of Indian ones.
People are missing the point. Real finance is about relationships, not punching some integers into Capital IQ’s database. I will always have a job…and it will pay me a lot.
bchadwick Wrote: ------------------------------------------------------- > Where will upper management come from in future > years? > > Also, the rule of law and integrity of the > judicial system is fairly important in matters of > money. I know that George Bush has done a lot to > try to level the judicial process integrity > between the US and India, but I think most > investors still want their contracts enforced by > US courts instead of Indian ones. Trust me, you dont want to see Indian courts.
I have mixed feelings. On the one hand I think it makes sense and if I were an executive I would probably be all for the outsourcing higher value jobs. However from the perspective of someone trying to break into a high value analytical finance job domestically, I don’t like the idea of Indian executives laughing it up that there won’t be any junior level jobs left for young guys to do here if they get to have their way. DirtyZ Wrote: ------------------------------------------------------- > People are missing the point. Real finance is > about relationships, not punching some integers > into Capital IQ’s database. I will always have a > job…and it will pay me a lot. I get this point. What I also get is that the relationship i.e. client interaction primarily is a more senior professional role whether it be research, banking, or trading. S The jobs being outsourced are the jobs that someone like myself would likely be hired to do fresh out of undergrad or b-school. So this leads me to ponder a things, namely 1.) How are people domestically going to break into the industry if the traditional entry routes are evaporating. 2.) What will be the role of junior professionals domestically. 3.) Is client relations and/or marketing now becoming more attainable and lucrative career alternatives domestically than front office analysis and decision. I mean, lets face it, FO roles are scarce now. Once their filled people don’t tend to give them up. If the domestic pipelines are drying up, there will less opportunities. Those opportunities that do exist will get snapped up by the most experienced and the rest by grads of the most premier institutions. While this is nothing new, when there are an abundance of jobs it is more likely there will be plenty of opportunities left over to compete for. Seems like those days may be coming to grinding halt.
I read a few months ago that 60% of the workforce in North America is going to retire by 2015 (baby boomers). All I hear is companies having trouble finding qualified candidates and the bargaining power being in favor of the employee. I guess we will see.
Gouman Wrote: ------------------------------------------------------- > I get this point. What I also get is that the > relationship i.e. client interaction primarily is > a more senior professional role whether it be > research, banking, or trading. S > > The jobs being outsourced are the jobs that > someone like myself would likely be hired to do > fresh out of undergrad or b-school. So this leads > me to ponder a things, namely > > 1.) How are people domestically going to break > into the industry if the traditional entry routes > are evaporating. Management still knows that people need to be groomed. Jobs will still be here to groom people for senior level positions but it may mean that teams are leaner (fewer U.S. based juniors, etc…). I can see how it would shrink the size of positions here, but I don’t envision it going away. > > 2.) What will be the role of junior professionals > domestically. The same as they are now, perhaps even better. You can focus on higher value functions while updating models, formatting presentations, etc… are outsourced. > > 3.) Is client relations and/or marketing now > becoming more attainable and lucrative career > alternatives domestically than front office > analysis and decision. > I don’t see marketing being a generally more lucrative career than most FO finance positions, but maybe I’m wrong. > I mean, lets face it, FO roles are scarce now. > Once their filled people don’t tend to give them > up. If the domestic pipelines are drying up, there > will less opportunities. Those opportunities that > do exist will get snapped up by the most > experienced and the rest by grads of the most > premier institutions. While this is nothing new, > when there are an abundance of jobs it is more > likely there will be plenty of opportunities left > over to compete for. Seems like those days may be > coming to grinding halt. Generally agree; it will make it harder to get the experience. And front office people certainly give up spots frequently; moving jobs, getting fired, etc… However, they are likely replaced by pulling up other front office people, which may domino into an opening at a jr. level somewhere else, but no guarantees.
DirtyZ Wrote: ------------------------------------------------------- > People are missing the point. Real finance is > about relationships, not punching some integers > into Capital IQ’s database. I will always have a > job…and it will pay me a lot. That’s what they’re saying: “In the future, executives in India like to joke, the only function for highly paid bankers in New York or London will be to greet clients and shake hands when the deals close.”