financial firms to outsource more often than other organizations. According to a new study is offshoring is not the main factor behind the job cuts in banking, but are the IT and support staff affected greatly.
The restructuring is almost three-quarters of the redundancies at the bank responsible, however, the offshoring resulted in only 10 percent of cases, that employees have lost their jobs. This is the conclusion of a study of the German Bank following the summary of data on various European financial companies.
Thomas Meyer, author of the report, wrote: "Throughout Europe there is no correlation between the percentage of banks that their IT functions have outsourced, and the changes in employment in the banking sector between 2002 and 2006." According to the author, however, other factors dominate the relationship, such as the decline in the German banking sector and the Eastern European countries catch up in the area of financial development.
While in Britain in the four years to 2006 decreased the total number of employees in the banking sector by about 10 percent, took only about 14 percent of all banks offshoring services .
Among European banks operate almost 32 percent of IT staff and in the 38 percent of support staff abroad. The lion's share of offshoring jobs to India to the 41 percent awarded to the financial services companies. Right after the technology and telecommunications industries are at 19 percent, the manufacturing sector with 15 percent and retail company with about 8 percent.
a significant share of the offshore work in India provide software development, business process outsourcing, call centers and accounting. Financial firms, more and more on offshoring. 22 percent do this already, but how you can see, this number is still far behind the 90 percent outsource at home. But the study warns
the banks against the immediate positive effects of offshoring not be overvalued. According to Thomas Meyer about a third of the banks will need several years to come after the first year, was in the net additional investment into offshoring, the expected 20 percent cost savings.
Source: ComputerworldUK
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