The offshoring of business processes to low-cost countries, having grown substantially over recent years, has become an increasingly important part of the senior management agenda at most Fortune 1000 companies. The trend has been led by institutions in the UK and US, and is far more developed in some industries. But there is growing realization that offshoring is a phenomenon that virtually all sectors must now evaluate.
Financial services (along with telecommunications, airlines, etc.) has led in embracing the offshoring concept. Indeed, many major financial institutions now offshore significant parts of their operations – because companies offshoring successfully are realizing cost savings of over 30%, often accompanied by significant quality improvements. Higher revenues can also result, since lower delivery costs allow new customer segments to be targeted. For certain activities, such as credit card servicing, offshoring is becoming the norm.