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A major problem that financial companies in developed nations face is recruiting skilled manpower to take care of their back-office financial operations. Apart from this heavy costs are involved in training labor and hr activities that makes it difficult for companies to concentrate in their core competencies. This is the reason why most companies today rely on financial outsourcing to off-shore destinations like India. According to a survey by Deloitte & Touche the number of global financial companies moving IT and customer support functions to offshore destinations rose to 38% in 2003. Deloitte & Toche estimate that the total financial outsourcing market is to rise as high as $210 billion in the year 2005. Financial companies are likely to save on an average of $700 billing on operating costs owing to this.Financial outsourcing services are offered by many quality certified companies in India which is fast becoming the back office of the world. India has a pool of talented workforce that can offer relatively cheaper labor, good communication infrastructure and a stable government making it a feasible destination for outsourcing financial services. In addition India also has the capability to provide almost all kinds of financial and accounting services making it a favorite for many fortune 500 companies.
The future holds huge potential for financial offshoring with the development of newer and better technologies. The offshoring financial services market is sure to bloom given all these factors and high end as well as low end services will be outsourced.
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