Current financial times lead to greater outsourcing

Increased cost pressures in the financial services sector are likely to lead to a further step-up in outsourcing of back office services and business processes, according to a Citigroup research note.

The note, based largely on views expressed by Sydney-based outsourcing expert Sri Annaswamy, identifies a number of catalysts for higher levels of outsourcing across the sector, including productivity drives in the major banks, senior executive changes and post-merger and acquisition organisational restructures.

Annaswamy, founder and director of Swamy & Associates, said in the report that it often took a sense of organisational urgency, typically driven by poor historical performance, to drive a switch in philosophy towards outsourcing and going offshore.

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