Are you kidding, yeah?

offered Lalloo, a recent graduate of prestigious IIM Ahmedabad (Indian Institute of Management), speech lathered with unfamiliar dental and guttural sounds. This is like a joke, dyude. Discounted Cash Flow, Comps analysis, Accretion/Dilution. All this so-called modeling is just glorified arithmetic. This makes call center work look like brain surgery. And the silly Americans are so impressed when we spice up our work with little tricks in VBA. They teach that the equivalent of your fourth grade over here! And we dont even touch the pitch book shit here. We outsource that to China.

Knowledge Process Outsourcing (KPO), however, will affect even the most elite of Americas workforce. By 2010, approximately $12 billion dollars of US knowledge workers will be outsourced to India, a large portion of this figure coming from investment banking related activities (financial analysis, equity research, pitch book creation, etc.). Already, banks such as Thomas Weisel, JP Morgan Chase, and even the coveted Goldman Sachs have begun outsourcing investment banking activities to Indian companies such as Office Tiger. The labor arbitrage play is large: students from top Indian MBA programs working for $25,000/year compared with the lofty $100-$145,000 salaries for comparable U.S. workers.

These resources are great, commented Walid Chammah, head of Investment Banking at Morgan Stanley. We send them an email at the end of the day and by morning its done! These guys must literally not sleep at all, expounded Mr. Chammah, ignorant to the concept of time-zones. And the best part is they dont ask me all those obsequious questions like the analysts here: So tell me about how you got to your position? What can I do to really add value for the firm? Blah blah! Damn the incessant sycophants. I wish we could send all their jobs to India!

The future of investment banking and many other knowledge-based industries is bound for transformation. And while there might be incentive for banks to keep a few junior analysts to breed their next batch higher-ups, it seems likely that the investment banking analyst will be headed toward the fate of the American software developer extinction.

Sources: 1) Financial Times, Banks move analysts work to India, August 20, 2003. 2) Business Standard, Goldman to set up BPO unit in India, February 5, 2004. 3) Financial Express, India may garner 71% market share in KPO by 2010, May 6, 2005. 4) Investment Dealers Digest, Mid-Market Firms Join Outsourcing Bandwagon, Thomas Weisel rumored to be considering outsourcing equity research functions, September 12, 2005. - See more at: http://www.leveragedsellout.com/2005/10/outsource-me/#sthash.RxWrIVbv.dpuf