Monday, September 19, 2005

Financial Services Offshoring to Double by 2008

A PricewaterhouseCoopers survey, titled “Offshoring in the Financial Services Industry: Risks and Rewards,” finds that India is the most popular offshoring destination because of the following: macroeconomic stability, regulations, labor costs and skills, among other things. It is also poised to grow in the financial services sector, which is expected to double by 2008. Reads the survey: "Thanks to its combination of an educated, English-speaking population, low costs and highly-skilled workforce, India's BPO market has grown at an annual rate of between 40-50% over the past few years. So far offshoring has been centred round a few key cities in India such as Bangalore, Delhi-NCR, Chennai, Hyderabad and Mumbai. As costs in these places rise, others are likely to come into the frame, maintaining the country's overall competitiveness…" Thus gains are expected to percolate down to second and third-tier cities as the larger ones reach a saturation point.

The article sponsored by A-1 Technology Inc, dealing in software outsourcing and offshore software programming