BlackRock Inc. BLK is considering increasing its workforce in India by hiring 1,200 people. This was reported by Bloomberg, citing people familiar with the matter.

Rational Behind BlackRock’s Move

BlackRock’s hiring spree aims to strengthen its artificial intelligence (AI) capabilities and expand its iHubs in Mumbai and Gurugram.

iHubs are BLK’s innovation and support centers that handle investment research, risk management, financial engineering, business operations and data analytics. Thus, the company is primarily looking to hire engineers and data experts to support these functions.

These hirings will add to the existing workforce of about 3,500 employees. Further, the proposed acquisition of Preqin will inherit a global capabilities center located in Bengaluru, India’s IT hub.

Moreover, in July 2023, BlackRock entered into a joint venture with Jio Financial, naming it Jio BlackRock, to revolutionize India's asset management industry.

In April 2024, both entities entered into a new joint venture to establish a wealth management and broking business in India to tap into the country’s growing wealth business and rising retail investor base. In October 2024, both entities obtained in-principle approval from the Securities and Exchange Board of India to act as co-sponsors and establish a mutual fund business in the country.

Our Take on BlackRock’s Expansion Efforts

The current plan to bolster AI capabilities aligns with BlackRock’s broader expansion strategy. In December 2024, the company announced a deal to acquire HPS Investment. In October 2024, the company acquired Global Infrastructure Partners to enhance its infrastructural offerings and origination capabilities. In addition, it collaborated with Partners Group to enhance its retail solutions and Banco Santander to expand into infrastructure markets.

Shares of BlackRock have gained 19.9% compared with the industry’s 31.8% growth in the past six months.

Image Source: Zacks Investment Research

Currently, BLK carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Growth Initiatives by Other Finance Firms

Last month, Huntington Bancshares Incorporated HBAN broadened its corporate, specialty and government banking services by introducing two new industry verticals, the Financial Institutions Group and the Aerospace & Defense Group, in an effort to expand its commercial banking system.

As part of its ongoing geographic and vertical expansion, HBAN broadened its middle market banking presence in North Carolina, South Carolina and Texas. Additionally, HBAN introduced a variety of new industry verticals designed to better serve clients on a national level. These verticals include Fund Finance, Native American Financial Services, Healthcare Asset-Based Lending and Specialized Mortgage Solutions.

Similarly, SEI Investments Co. SEIC rolled out depository services for Luxembourg alternative investment funds (AIFs), the second-largest fund center globally, as per the Association of the Luxembourg Fund Industry report published in 2021.

The depository services launched by SEIC will enhance its existing offerings, including fund administration, registrar and transfer agent and regulatory reporting services. This gives asset managers a centralized solution for their technology and operations requirements, streamlining the operational structure.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

BlackRock (BLK) : Free Stock Analysis Report

Huntington Bancshares Incorporated (HBAN) : Free Stock Analysis Report

SEI Investments Company (SEIC) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research