The West Now Turns To The East For Financial Services.
As Western financial services firms turn to the East in search of talented individuals, India has a great opportunity.
With technology taking a prominent role, outsourcing remains a practical and strategic choice for financial services businesses looking to save costs. Companies have accelerated their outsourcing programmes, driven by banking, asset management, and, more recently, private equity and private credit, and expect these programmes to become more intricate and demanding.
In a world where data plays a crucial role, it’s no wonder that the practice of expanding teams through resource augmentation has become increasingly popular. During the pandemic, this approach gained traction as businesses began to recognise the benefits of remote teams, allowing them to work from any location. During the pandemic, companies providing strategic resource augmentation services played a crucial role in supporting the financial services market.
Strategic resource augmentation is the path to success.
The challenges in finding and hiring talented individuals have contributed to the significant expansion of knowledge process outsourcing (KPO). Especially during the pandemic, HR departments that were slow to react missed out on the chance to take advantage of remote hiring possibilities.
Furthermore, numerous Western economies, encompassing regions in North America and Western Europe, are grappling with the challenges posed by an ageing population, low birth rates, and a diminishing working-age population. These are warning signs of additional difficulties that may arise in the coming years.
On the other hand, India has a great chance to solidify its position as a preferred talent hub and a global economic powerhouse, thanks to its demographic dividend and vast talent pool.
India has the potential to attract top talent.
Graduates in many Western countries no longer see financial services as a highly profitable job or a long-term career option. The idea of pursuing a career in investment banking or asset management has lost its allure in comparison to the thrill of working for a start-up or a renowned company like Google.
India may be experiencing a similar trend, but its extensive educational system, which prioritizes academic achievement and the growth of its graduate population, helps to moderate the extent of the change in preferences. In the past academic year, a staggering number of students successfully finished their studies at various levels of education. People still highly regard investment banking and financial practices as reliable career paths.
Due to retention challenges, India’s prospects look favourable.
Over the past few years, there has been a significant transformation in the KPO industry, driven by the remarkable expansion of the private equity and credit markets. Regardless of their location, employers understand the importance of maintaining consistent work hours for all employees and respect their need to adhere to their designated schedules without asking them to work overtime. Operating with a global presence and a diverse team across various time zones, we can ensure uninterrupted service delivery by strategically leveraging resources and implementing a follow-the-sun model.
Transforming the financial services industry into an enticing destination
To succeed in this ever-changing landscape, organisations must prioritise their employees by providing ample opportunities to develop new skills in various areas of financial services. In addition, implementing a comprehensive technology enablement programme will be essential for enhancing efficiency for financial analysts and clients alike. Developing a market offering of various types of digital dashboards, alerts, and other managed solutions presents a great opportunity.
The progress of artificial intelligence (AI) and large language models (LLMs) is happening at an impressive pace. These technologies provide an additional opportunity for data analysts and consultants to better understand client needs and offer more extensive customisation. Enhancing the efficiency of LLM models will contribute to improved responses and ultimately benefit the client’s data science and data insights programs. It will also help them create solutions that optimise the use of AI to extract valuable insights from unstructured data.
Maintaining India’s talent advantage
Despite the ever-changing nature of financial markets, some aspects of financial services have remained relatively unchanged over the past two decades. Change is constant in the fast-paced world of technology, and it is happening at an unprecedented rate.
With the advent of technology and the integration of AI, we can expect a range of new possibilities and hurdles. These advancements will bring about increased data, which may lead to potential biases in the outcomes. However, they will also introduce additional safeguards and measures to ensure accuracy and compliance. In the coming years, it is crucial for the staff to enhance their technological skills. In the coming years, hiring strategies will require adjustments. Recruiters must evaluate the benefits of a new wave of employees who are adept at utilizing cutting-edge technologies.
For India, the future lies in maintaining its competitive edge. With the ever-changing nature of global markets, it is crucial for India to consistently nurture its pool of skilled individuals. India should prioritise and invest in improving its education system without undermining the talent in other outsourcing destinations or Western economies.
Simultaneously, it needs to preserve its advantages—the resilience of its political system and its image as a secure, highly educated country with a relatively young workforce and a strong fertility rate—to fully unleash its economic potential.
