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Industry Solutions : Outsourcing

Recent studies discover that 75 percent of major financial institutions plan to outsource or utilize offshore service providers.

Led by several major financial institutions, many large creditors are increasingly expressing interest in sending non-core back office business segments to specialty providers. There is also considerable interest in utilizing lower cost venues to perform segmented non-core functions.

That was the key finding of a major research study conducted by a well-known international consulting company. This survey, published in July of 2003, included many of the world's largest financial institutions. The report concludes that the business community is on the cusp of a revolution, noting that 33 percent of respondents indicated that they already have outsourced or sent work offshore. Further, as many as 75 percent said they will consider either outsourcing or migrating work to an offshore or near shore provider within the next 24 months.

When asked why, most respondents indicated that intense cost pressures are continuing to compress operating margins. Recognizing this trend, creditors have to reduce their costs to compete now and in the future.

How much can be saved? Although results vary, the average company has enjoyed significant financial benefits from incorporating a near shore or off-shore component in their overall strategy.

The Growth in BPO Outsourcing

Many survey respondents indicated that moving typical BPO processes offshore was just over the horizon. BPO processes typically considered for migration include call center and receivables management functions, and back office transactions. What does this mean for your customers? We believe that outsourcing will keep costs down for you and will ultimately benefit your end-users as well.