Offshoring processes And Financial Service sector, like most businesses, is an widely adopted and accepted way of doing business. The Financial Services sector embraced offshoring particularly at the middle and back office. This early enthusiasm focused on conventional, repetitive transactional processes like credit card processing, and as the take up of offshoring more intricate processes like Finance and Accounts has been minimal. Given? This report reviews offshoring trends in both the Banking and Financial Services (FS) and Finance and Accounting (F&A) market. I examine the overlap of both of these markets and establish if there’s an opportunity that is unexplored. I intend to review the turmoil in the markets can affect the future of offshoring from the FS industry.
Trends in Financial Service offshoring
Offshoring within the FS industry can Be traced back to a number of the 1990’s’ early contracts. Organisations like Citigroup and UBS were quick to identify and realize the advantages of offshoring. FS organisations captive service centers in locations like Chennai and Mumbai for the supply of predominantly transactional office functions and their IT. Organisations like Credit Suisse chosen to join forces rather. Interestingly the FS outsourcing Market profile has not changed. In 2008 the FS offshore market still strongly reflects its heritage to it and back office areas still equating for over 80 percent of the market. The office work Includes processes like credit card mortgage and loans processing and banking.
Offshoring is popular Supported by a recent report by FS Outsourcing who say that in 2007 the FS outsourcing market was valued at close to #25.2 billion. They estimate the FS market to grow. There is an argument that, given the climate and chaos, the growth of the market might be underestimated and that FS organisations will look to utilize offshoring to realize cost savings and efficiencies to endure these challenging times.
The marketplace is a Multi-billion pound business and can be track back to the 1990’s with deals like BP with IBM and Accenture. Offshoring starts with expenses and transactional processes such as accounts. These are the first processes to be given to a service provider. Like the FS market, the F&A market place is currently undergoing substantial growth. FAO says that with 107 contracts this industry has seen increase that is 40% in the last five years. As highlighted above this expansion is despite its from FS businesses.