Companies are now shifting from cost-driven offshoring to a multidimensional value proposition in creating a global footprint."
As companies expand offshoring activities by increasing scale or by offshoring more diverse and complex functions, most firms see a decline in the overall efficiency.
residential mortgage market represents an incredible opportunity for the effective utilization of business process offshoring
. The Outlook for the Real Estate Finance Industry report, prepared by the Council to Shape Change--an independent group of mortgage industry leaders, of which this author was a member--concluded that the mortgage market's correction would result in real estate financial processes being broken down into smaller components that can be isolated, optimized, automated and outsourced.
Matt Perkins, financial services partner at Deloitte in Birmingham, said: "Offshoring
is maturing at a rapid pace but, in future, the best offshoring
strategies will not, and cannot, be based on labour arbitrage alone.
Economic factors and the growth of technology have contributed to the offshoring
explosion in the U.S.
But some say partners who manage and monitor the outsource process may find the value of their time makes offshoring
more expensive than doing the job in-house.
For many workers, offshoring
seems like a new face to an old enemy.
So, today's offshoring
represents maintaining and continuously improving upon that effectiveness and efficiency for profitability." Organizations, he says, are going to a global delivery model.
Entitled The Cusp of a Revolution: How offshoring
will transform the financial services industry, the Deloitte report tells CEOs that they had better get their companies aboard the offshore express before they miss out completely on this "transformational" opportunity and are left in the dust.
is creating significant operating cost advantages that leading lenders will use to competitively differentiate themselves in price, service and profitability," the study noted.
The basic cause of the problem isn't offshoring
, it isn't productivity, but it's the transition that is powering both...