Wednesday, November 2, 2011

Financial Services Outsourcing Part.IV

In this sector, the European countries was the precursors, and the Asian countries still seem reluctant to take the plunge. AXA only broke the taboo by relocating administrative jobs in Morocco in 2006.



If it is certain that companies are now much more selective in the relocation of their activities they do have not given up yet. Thus, after the recent movement of hesitation that brings out new best practices (including off shoring without outsourcing), there could be accelerated, particularly in France. Indeed, the current crisis will almost certainly require companies to significantly reduce their costs. However, not only off shoring fits exactly in line with cost savings, but also contributes to the industrialization of the company, other practice generating savings.

Indeed, relocate imposes as a prerequisite to industrialize their processes and to formalize the relations between different actors (which is sometimes difficult to do within the company), and thus generates indirect savings. Thus, no doubt off shoring still has a bright future ahead of him, but off shoring adapted and extensively studied to optimize aspects of cost, quality and criticality.

Off shoring is no longer an end in itself but a means (among others) to achieve the objectives of cost reduction defined in particular in a broader program of operational performance (see the following articles: Operational Effectiveness: Identifying and developing deposits of operational effectiveness, operational effectiveness: What organizations for banks in the future?, clusters of operational efficiency).

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