According to a study conducted by Deloitte, the number of jobs going offshore in the financial services sector has increased 18-fold over the past four years. It has been estimated that financial service firms across the globe have been saving about GBP 4.5 billion annually at present by offshoring to low-cost countries as compared to GBP 2.5 billion in 2003.
Currently, the British financial service industry has been saving GBP 1.5 billion annually by offshoring. The study also cited that the US- and UK-based financial service firms are increasingly offshoring their business processes. By 2006, about 75 percent of financial institutions were offshoring, while even less than 10 percent of financial institutions had offshore operations in 2001.
According to other key findings, the average offshore headcount has increased from 150 in 2003 to 2,700 in 2006. It has been found that offshoring has spanned across all business functions. However, functions, such as transaction processing, finance, and HR, are witnessing increase in growth. Firms that are offshoring one or two business processes are saving about 20 percent less on an average as compared to those offshoring over five business processes.
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