Fidelity’s Previous Top Trader, David Donovan, Notes Nearshore Outsourcing Becoming Mandatory Option For Investment Banks

Thanks to the increasing complexity of front office operations and the necessity to support and develop applications in real time that are important to business success, nearshore outsourcing is now turning into a necessary option for investment banks, according to David Donovan, a previous top trader at Fidelity Investments. Today, Donovan is a VP and industry expert for a worldwide business and technology services consulting firm that focuses on advising capital markets firms. This presents a new option from the offshore outsourcing trend of the past decade when various business processes – from IT, business processes and software development – were moved to lower-wage foreign states, usually in the East, like India, Pakistan and The Philippines. The growing trend of nearshore outsourcing (or “nearshoring”) reduces the difficulty and risk embedded in conventional offshore outsourcing. These include less language barriers, cultural issues, process and data protection concerns and the elimination of time sector conflicts ; the result’s a compelling overall worth offer. . “In today’s ultracompetitive marketplace, investment banks are looking closely at nearshoring because they understand the importance of having necessary applications, like those that figure out risk, profit and loss (P / L), Value at Risk (VaR) and collateral management, being in the same time zone as the businesses that rely on that information to make swift and informed decisions,” expounded David K. Donovan.

“Nearshore outsourcing puts everybody in the same time area, promotes closer partnership between teams and provides intellectual property protection under U.S. Today, Donovan leverages his high level trading experience and contacts in the world of Wall St to build business relations in the fiscal sector. He offers financial service firms a completely unique real-world appreciation of capital markets, customer wants and the regulatory environment. He helps drive market methodology, often identifying and capitalizing on developing worldwide market expansion opportunities and trends. One of these global trends causing banks to leverage nearshoring is the rise in wage rate inflation for skilled development resources in the historic offshore locations. During the past, Donovan noted, these locations offered a large salary advantage, but that advantage has now been greatly reduced.

With that in mind, large time zone differences and data protection risks make nearshoring a practical choice. . Nearshoring Locations . Because of all of these factors, Donovan explained, we are now seeing investment banks start nearshoring operations here in the U.S. In such locations as Texas, Florida, North Carolina and the Southwest, keeping jobs in the U.S. Canada is also becoming another key nearshore outsourcing location.

In addition, a rising number of states are making themselves more engaging to business and industry so as to grow their local labor forces. Nonetheless Donovan noted, it is important that capital markets firms understand that they have to build the most effective IT strategy for their front office (order management, analytics, risk) middle office (collateral management, margining, some P / L) and back office operations (confirmations and settlements of trades, reconciliations). About David Donovan . David K. Donovan media release distribution is Vice Chairman of Sapient Global Markets, a business and technology services supplier to the capital and commodity markets.

Formerly, Donovan was the preeminent trader at Fidelity Management & Research (FMR), where his vision and grasp of the subtleties of the world market enabled him to make key calls across Fidelity’s major funds. For 7 sequential years, from 1999 to 2005, he was one of Fidelity’s highest rated traders and was typically hunted down by top fund executives for his expertise in driving fund performance and met frequently with major Wall Street researchers. Disclaimer : The views and views voiced here are those of David Donovan and do not always reflect the perspectives and views of Sapient World Markets or any other company. For more in-depth information, visit davidkdonovan.

Related Post Fidelity’s Previous Top Trader, David Donovan, Notes Nearshore Outsourcing Becoming Mandatory Option For Investment Banks