PWC survey: Financial services firms looking offshore

Computerworld
Financial services firms expect to double offshore use by 2008 despite widespread dissatisfaction because of cost overruns, difficulties in recruiting and training staff in India and cultural differences, according to a study released this week by PricewaterhouseCoopers. Nigel Vooght, a London-based capital markets advisory leader at PWC, said that many of the problems reported by executives in the survey generally occur in the first year or two and should iron out as companies improve their business and IT processes. PWC surveyed executives in IT and business roles at 156 firms worldwide and found that about a quarter of the companies send 10% to 20% of their head count offshore in the business process and IT areas. In three years, PWC estimated, half of those firms will be offshoring. "There is a lot of demand from a lot of players for the trained and educated resources," said Vooght, adding that companies working offshore are developing more Western-like approaches to retaining employees, such as improving benefits. more...