Offshore outsourcing by financial services firms will double over the next four years as these companies turn over larger and more strategic parts of their operations to offshore providers, reported market research firm Datamonitor PLC.
Anders Maehre, managing analyst at the London-based company, said financial services firms in the U.S. spent about US$590 million on offshore services from third-party outsourcers last year, while their European counterparts spent about $480 million overseas.
But by 2008, Datamonitor expects offshore spending by financial services firms in Europe and the U.S. to nearly double to more than $2 billion, said Maehre. Among the services financial companies will increasingly send offshore are business process functions such as mortgage processing, insurance underwriting and claims processing.
