Hedge funds are getting in on the Indian outsourcing game.
GlobeOp, which claims to be India's largest hedge fund administrator, has just announced plans to open a third office in Mumbai. India is already home to more than 900 of the firm's 1,500 employees, and the new office has room for 650 more "highly skilled, financially experienced professionals."
Stuart McLaren, an outsourcing consultant at Deloitte, tells us the move has an air of inevitability: "With hedge fund administration, cost is a key consideration," he says.
"Anywhere where there's a cheap source of labour will be considered, and India has the benefit of a highly skilled workforce."
A new report from the Investment Management Association and KPMG says the UK is at risk of losing fund servicing jobs to low tax jurisdictions such as Ireland and Luxembourg. Between 1995 and 2005 it says funds under management in Luxembourg rose 10 times faster than those in the UK, while those in Ireland rose twice as fast.