Back Office Work Outsourced More In Finance, Legal Industries
April 29, 2011
Data entry management outsourcing is becoming more and more popular among companies, particularly among financial and banking firms.
In 2010, a report by the advisory and research for the banking industry said reported that U.S. banks were outsourcing at an rapid pace. Most of the backend banking outsourcing work was done by Accenture.
In addition, banks like HSBC are seeking links with outsourcing partners in China. In the meantime, other banks like Citigroup, JP Morgan, and Bank of America are also making moves to outsource backend-work to India.
The asset management industry is far ahead of banking since regulatory expenses are higher and competition is stiff. The industry as a whole is putting pressure on salaries of asset managers to deal with the situation. A report by RBC Delia and Accenture found that approximately 50% of asset firms were projected to experience a 15% decline in return on equity. In 2011, the figure is expected to move lower to 20%, which will prompt asset management firms to offshore most of its peripheral tasks.
Back office work is also processed by outsourcing firms as experienced by Integrand Morgan Cole. Integrand has inked a contract with legal process outsourcing firm, Integrand Applications Library & Information Services.
The chief of global sales at Integrand, John Croft said in a statement, “The fact that another firm is the signature of the center is just a sign that more companies are realizing that certain parts of their services Support must be provided by subcontractors. This is especially true for library service and information, where it means access to a wider range of materials at lower cost, “ reports GlobalITOutsourcing.
Ironically, outsourcing firms are also looking at the brighter side of outsourcing with companies like Xerox seeking to restructure operations in order to outsource back-end work. The advantages of back office processing in document management and worldwide outsourcing are coming to light for outsourcing firms.