Outsourcing in the financial services sector is expected to double in the next four years, mostly as an attempt to shrink costs, reported PriceWaterhouseCoopers in a new survey.
Nearly 80 percent of the 156 participants reported their primary reason for outsourcing part of their services was to reduce costs, and that nearly half of those services outsourced were tech-related.
The accounting giant warned that financial service firms that outsource jobs simply as a cost saving strategy will not be able to take advantage other benefits of sending jobs offshore, such as greater operational efficiency and increased share value.
The cost-saving benefits of offshoring services were less evident in the first year, reported 74% of the participants. And 15% of the respondents reported no change in cost-savings even after five years.