Rishi Khosla, Copal Partners: The New Delhi pioneers on Wall Street
As investment banks try to cut the cost of research for clients, outsourcing is taking on an ever-increasing and ever more important role in keeping costs under control. For the providers of these services, such as Copal Partners, the key is to move on from simply crunching the numbers to providing in-depth research for their clients on debt, equity and corporate finance.
|Rishi Khosla: His analysts
can be treated as an
extension of a bank's
in-house research team
BANKS ARE OFTEN the first to boast about the depth of their proprietary knowledge. But if you think this all comes from within the institution, think again. Producing proprietary research is time-consuming, increasingly costly and difficult to increase or scale down to meet business demands. That's why, whether banks are producing analysis of potential M&A targets for an individual client pitch or mass mailing their latest piece of company equity research, the branded piece of bank research in your hand could just as easily have been produced by a team of analysts at an outsourcing company in India as by an in-house analyst based on Wall Street. What's more, it's unlikely you'll ever know the difference.
In-house to outsource
Strangely enough, it's not something investment banks and brokerages like to draw attention to, but farming out research and analytics to India-based companies is becoming increasingly popular with them, as well as other financial institutions. Business process outsourcing is a well-established industry in India, and banks have shipped data entry, basic processing and back-office support functions there for years.