Recently, Deloitte released its “Global Financial Services Offshoring Report 2007.” The focus of this report is on optimizing operations – according to Deloitte the second phase in the “build, optimize, release” offshoring life cycle.
The report is noteworthy in many respects.
- It confirms huge cost gains – upwards of 40% for over 50% of the respondents. For some, these savings are 3% of their cost base!
- It highlights the fact that, on average, upwards of 6% of staff is now outsourced
- It confirms that value creation requires optimized processes irrespective of organizational structure.
The question facing organizations that have embarked on the journey to offshore are still the same:
1) Build versus buy?
2) If the decision is to buy, then how do you ensure optimized processes in this extended organization?
