Why Every Equity Research Analyst Is Turning to Outsourcing
Why Every Equity Research Analyst Is Turning to Outsourcing By: Prabhash Choudhary December 15, 2025 Share: The investment research ecosystem is going through a structural reset. The shrinking commission pools on the sell-side, along with persistent fee compression on the buy-side, are creating a cost-pressure wave that is reshaping how research teams operate. Firms are now reassessing hiring, reducing single-coverage roles, and shifting to outsourced, scalable research models. Here, the equity research analyst is right at the center of this disruption. Expectations are growing, while budgets are not, and demands on productivity have never been higher. Why Research Costs Are Under Pressure Cost pressures have mounted as the industry undergoes a structural shift toward low-cost investing. Passive products make up over 40% of global equity fund assets, from less than 30% five years ago. In markets such as India, passive AUM has crossed ₹12 lakh...