Financial Outsourcing

Filed in archive Outsourcing News on June 30, 2007

financial outsourcing is not really a question of possibility but more of its implementation. According to the article entitled Financial Services Outsourcing: Not If, But When.

Based on the said article, financial outsourcing is viewed as a fast-becoming trend in businesses thus showing that such conservative industry such as banks are showing a good attitude in outsourcing. Aside from that, cost-saving in this kind of business strategy means that most banks are likely to follow such business move.

Here are some of the interesting paragraphs in the article:

A recent survey of industry executives conducted by Deloitte Research revealed that the majority believe more than 20 percent of the industry's global cost base will have shifted offshore by 2010. The Outsourcing Journal predicts that between 20 to 30 percent of a bank's staff will either be an offshore captive or employed by a third party outsourcer.

Banks have already realized substantial savings from offshoring, from $8 to 12 billion in the last four years, up to 37 percent savings per process outsourced. The ability to reduce costs, increase market agility and improve business focus, response time and speed time to market will be significantly impaired by keeping functions in-house that can be efficiently provided by a third party.



The only thing financial institutions need to do is to make sure that they would maintain the growth and as well as avoiding common mistakes in outsourcing.