Pension/Retirement Funds
The outsourcing of investment management has matured to the point where pension plan administrators regularly issue requests for proposals to money managers. They solicit investment advisors in multiple countries, typically in money-center jurisdictions.
This mature outsourcing process could be “offshored” to low-wage countries without any additional stress, as a “knowledge process” outsourcing (“KPO”), subject to the usual risks and limitations of offshore outsourcing. In due course, fund managers will appear in low-wage countries, particularly to invest in local securities.