Offshoring among global financial institutions increased by 38% in the last year, according to a new survey by Deloitte.
The findings from the second annual survey of offshoring in the global financial industry suggested that within six years, over one-fifth of the industry's global cost base will be located offshore, said Deloitte.
The survey also revealed that institutions of all sizes see offshoring as providing a competitive advantage, enabling them to deliver better service at a lower cost.
The report claimed that 80% of all financial services offshoring activity is received by India.
Deloitte director Chris Gentle said: “Last year, we predicted that offshoring would transform the global financial services marketplace; however, we didn't anticipate how quickly this would occur.
“For the first time, we're seeing economies of scale having a direct impact on the financial services industry. Offshoring is unleashing a new competitive dynamic.”
But Gentle warned that success is not certain, despite the advantages. “The key is to take a holistic view of the risks and benefits”
