India will continue as top offshoring destination: survey

Friday, 02 July 2004, 19:30 IST
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LONDON: India is the favourite destination of offshoring for Western companies and will remain so for the near term, according to a financial sector survey. The survey says more than 20 percent of the financial services industry's global cost base will have shifted offshore within six years and India will be the favourite destination for it. The forecast, from business advisers Deloitte, follows a 38 percent rise in the number of global financial institutions moving specific functions offshore over the last 12 months. Jane Lodge, senior practice partner in the Midlands at Deloitte, said: "Last year we predicted that offshoring would completely transform the global financial services marketplace over the next five years. "However, we didn't anticipate how quickly this transformation would occur. In the last year, we estimate the number of offshore jobs in financial services has increased by a factor of five. "Now, for the first time, we're seeing economies of scale becoming a factor and having a direct impact on the top and bottom line within the financial services industry. Clearly, offshoring is unleashing a potent new competitive dynamic." The new Deloitte survey, "The Titans Take Hold", is based on responses from 43 financial institutions in seven countries and includes 13 of the top 25 companies in the world by market capitalisation.
Source: IANS