• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

New Delhi, June 27 India continues to be a prime location for offshoring with about two-thirds of global offshored staff employed in the sub-continent, but it faces the danger of losing its crown to an increasingly-competitive China, according to a Global Financial Services Offshoring Report by consulting firm Deloitte.

“China’s share of offshored labour is already rising. One third of financial institutions now have back-office (mainly IT) processes in China. Some 200 million Chinese people are currently learning English, providing a pool of skilled labour that may compete with India over next 10 years. China’s growing competitiveness may dampen salary inflation among Indian offshoring industry workers,” the report said.

It said that offshoring was saving the financial services industry an estimated £4.5 billion annually, up from around £2.5 billion a year ago, propelled by a 1,800 per cent increase in headcount over the last four years.

“The UK financial services industry alone now saves up to £1.5 billion per year from offshoring. The industry’s savings have risen exponentially from around £250 million globally in 2003 as the average number of staff employed offshore has increased from 150 to 2,700 in just four years,” it said.

Over 75 per cent of major financial institutions now have operations offshore, compared to less than 10 per cent in 2001. The UK and US banking, and capital market institutions are leading this shift, but mainland Europe is showing increasing interest, it said.

Offshoring has spread across nearly all business functions, with significant growth around transaction processing, finance and HR. Knowledge-process offshoring, such as investment banking analytics and research has also grown.

More Stories on : Software | Off-shore Development

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
‘Indian Ocean Dipole event driving rainfall’

Copyright © 2007, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line