Global career transition firm DBM held a high profile seminar in London last week, covering offshoring, the transfer of jobs to lower cost locations. A prestigious panel of speakers from global professional services firm Deloitte, Liberata, one of the UK's leading specialist business process outsourcing services firms, Deutsche Bank and top City lawyers Latham & Watkins presented at the seminar. Here are some of the interesting facts which came out of the presentations.
Deloitte research approximates that the cost base of the top 100 financial services organisations globally is $2.34bn. The firm believes that 15% of this cost base will shift overshore over the next 5 years.
India is by far the most popular lower cost location, with over half of companies offshoring planning to relocate positions there. 35% of the Global 1000 companies are already said to have a presence in India, 56% of the Fortune 500.
Other popular locations include Australia, China, Malaysia and South Africa.
There are said to be 13 million people employed in financial services in North America, the European Union and Switzerland and the Asian developed economies. It is anticipated that around 2 million jobs currently undertaken in these areas will move to lower cost locations before 2008.
From start to finish, processes can typically be migrated to a lower cost location in just 7 months.