HSBC to 'insource' jobs to India

Analytical work done at HSBC's offices in London, Paris, New York, Hong Kong, Tokyo and Mexico will now be anchored in India, at a new centre which is most likely to be set up in Mumbai. The centre will be up and operational this year itself.

The London-headquartered bank proposes to "insource" jobs from other parts of the world and provide analytical support for the group's research department as well as for its investment banking arm from India, HSBC Holdings chief executive (markets) John Studzinski said in Mumbai on Wednesday. To start with, there will about 40 positions for high end research and analytics at this centre.

HSBC already has one outsourcing centre in Hyderabad for handling back-end functions of the commercial bank.

"The bank leverages on India's strength wherever it sees fit. We see the labour market as a global market and this will favour India," Studzinski said

The global group's decision to establish analytical support facility to exploit the growing business opportunities and meet the group's overseas requirements will, however, not result in a loss of jobs, assured HSBC head corporate and institutional banking Naina Lal Kidwai.

She added: "We are expanding in these regions and the decision today is whether to recruit more people here (in India) or there (in the existing cities where analytical teams are already in place)."

The plan is to exploit the "bright and cheap" talent pool in India. In the first move, the staff strength of the domestic capital market, corporate and investment banking team will increase by 25 per cent.

With the expansion of equity markets "" secondary and primary "" and consolidation taking place in the corporate world, including cross-border deals, the head count in the capital market and related banking areas will rise by 25 per cent over the next five years, said Studzinski.

Currently, HSBC Securities and Capital Markets Ltd has just under 100 people and the investment banking division consists of 21 employees.

HSBC will add a few people with high calibre rather instead of having a large team. Indian operations would grow in expertise in sectors like cement, minerals, metals, among others, said Studzinski. It will also recruit 20-25 fresh university graduates every year and give them one-year training at its overseas offices to capitalise on the domestic talent pool.

Responding to the question on what India Inc wants from HSBC, Studzinski said that corporate clients feel that there is a need for HSBC to provide greater number of products in the area of equity and markets.