Offshoring different business processes has certainly taken off these past couple of years. Apart from the usual IT and contact center services being offshored by companies in the US and UK, the offshoring of financial services to countries such as India and the Philippines is now becoming more prevalent. In fact, a recent study by Elix IRR – a UK-based management consulting firm shows that Financial offshoring has been on the rise and will continue to rise in the next two years.
According to its recent study about the financial services industry covering the years 2009 to 2013, the financial services outsourcing market is continually growing at a compounded annual growth rate (CAGR) of 2% from 2009 to 2012 and is expected to grow at a CAGR of around 4% from 2013 to 2016.
The 2% growth from 2009 to 2012 was attributed to the need to reduce costs, improve service levels and at the same time respond to increased cost of regulatory compliance and capital. However, this trend is seemingly taking a different route following 2012, as businesses shift their demand to offshoring and outsourcing providers that offer a more diverse scope of activities.
This shift into more high-value services is augmented by the fact that recent advancements in technology such as cloud-based storage and solutions have increased automation of most business processes eliminating the need for large numbers of low-skilled workers.
As a result, many financial service providers are now offering financial solutions that integrate IT and BPO services, delivering a cohesive end-to-end solution that is more practical and cost-effective.
Planning to get your first try in financial services offshoring? Key Discovery offers a number of services to get you and your business started. Check out our financial expertise page for more information.Source: Elix-IRR