May 6, 2003

It's not just technology jobs anymore
Posted by jbutler@bostonworks.com">Jason Butler at 11:13 AM -

This morning's Globe reports that J.P. Morgan Chase, among other financial services firms, is beginning to outsource financial analysis and other research to Asia.

The cost savings appear too compelling to ignore:

The practice of outsourcing may be catching on among financial services and business consulting firms for the same reasons that computer software companies such as Microsoft Corp. and IBM Corp. are increasing their use of overseas labor. Countries like India offer sharply lower labor costs, while supplying workers with excellent technical and financial know-how. For instance, in 2001, MBA graduates from the prestigious Indian Institutes of Technology could expect to earn just $12,000, compared to an average starting salary of $102,338 for graduates of Harvard Business School.

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