Financial services companies are set to rapidly increase
the amount of mortgage processing, insurance underwriting and
claims processing they outsource to offshore locations, analyst
firm Datamonitor has predicted.
The increase in outsourcing such processes comes after the well
established route of outsourcing contact centres and application
services.
Datamonitor’s report, Global Sourcing in European and North
American Financial Services, says North America and the UK “remain
significantly more advanced than continental Europe” when it comes
to outsourcing core business services.
The report adds that for financial services companies to be
successful in their offshore expansion programmes, they need to
develop global sourcing strategies that enable them to choose
between operational locations and sourcing set-ups in accordance
with their strategic objectives.
They must weigh up a number of factors such as political and
operational risk, regulatory issues, cultural barriers, cost
considerations, vendor offerings and local skill sets.
Anders Maehre, a financial services analyst at Datamonitor,
said, “Offshore outsourcing has gathered tremendous pace in recent
years. Political pressure and controversy has done little to deter
top-line growth.
“The improving credibility of many of the offshore providers and
increasingly global delivery capability of the leading outsourcing
service providers will push financial services companies in both
North America and Europe towards intelligent use of global
resources.”
The Datamonitor report is based on interviews with 400 key
financial services staff.