Managers outsource research to India

Following the lead of investment banks, money managers are turning to India to hire research analysts at a cheaper price.
MAY 02, 2007
By  Bloomberg
Following the lead of investment banks, money managers are turning to India to hire research analysts at a cheaper price. Analysts in India are handling research duties such as data collection, company research, valuation analysis, the construction of financial models and even the development of insights on individual companies. Because the individual research analysts are cheaper to hire in India, outsourcing often translates to having bigger research teams that can delve deeper into their work. “They can get a lot more granular in their analysis,” said Niket Patankar, chief executive of Adventity Inc., a New York-based business that matches U.S. financial services firms with analysts in India. “With investment managers, [outsourcing] is more about getting more people to help develop more ideas that are winners.” Just a year ago, Mr. Patankar provided outsourced research to 10 hedge funds, mutual funds and other asset management firms. That number has jumped to more than 30. Dushyant Shahrawat, a research director at The Tower Group Inc. in Needham, Mass., is drafting a report about financial services firms’ outsourcing research to India. His preliminary estimates indicate that 20% of U.S. institutional money managers have part of their research conducted offshore. “By 2010, I would expect 70% of institutional money managers to have something in the offshore market,” Mr. Shahrawat said.

Latest News

LPL's Rich Steinmeier turns the page on CEO firing with eye on firm's growth
LPL's Rich Steinmeier turns the page on CEO firing with eye on firm's growth

Installed after Dan Arnold's abrupt termination, the new leader at LPL Financial is highlighting the firm's refocusing on the individual advisor.

LPL, Raymond James boost advisor ranks anew
LPL, Raymond James boost advisor ranks anew

LPL Financial welcomes a $345 million investment and planning team from Ameriprise as RayJay's employee advisor arm adds a seasoned Well Fargo breakaway.

CFP Board CEO Keller retiring
CFP Board CEO Keller retiring

The CFP Board will be searching for a replacement for CEO Kevin Keller who will be stepping down in April 2026.

$3000 gold record in sight on Trump 2.0 fears, says Citi
$3000 gold record in sight on Trump 2.0 fears, says Citi

Citi analysts project a historic high in three months as tariff and trade war threats fuel a rush for the haven metal.

Wealth Enhancement, Corient announce new acquisitions
Wealth Enhancement, Corient announce new acquisitions

Wealth Enhancement Group officially kicks off its 2025 deal season in the Pacific Northwest while Corient extends its reach in Pennsylvania

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.