Financial services companies are currently capturing less than one-third of the potential cost savings offered by offshoring operations, according to a study by Deloitte Touche Tohmatsu (DTT).
The study found that the most effective offshorers among financial institutions have 6.7% of their global headcount offshore, well ahead of the study average of 3.5%. If all surveyed companies that offshore were to reach this headcount ratio, Deloitte estimates that they could reduce their collective annual cost base by US$16 billion - more than tripling their current reported savings of US$5 billion.
The study concludes that expanding both the scope and scale of offshoring operations is key to realising these unclaimed savings.
Financial services executives estimate that 20% of their total cost base will be moved offshore by 2010, a rise from the 10% expected in 2006.
Download the document now 591.4 kb (Adobe Acrobat Document)