The number of UK financial services jobs outsourced to low-cost centres aboard is expected to soar to 180,000 by 2010, according to a survey.
So far 25,000 UK jobs have been moved overseas, professional services firm Deloitte said.
UK financial firms were achieving higher cost savings than global rivals through offshoring, Deloitte said. Firms made average cost savings of 47% – 10% higher than global rivals, the study said.
Unions have long condemned the practice of moving jobs abroad.
“UK companies seem to have a better grip on offshoring issues than some firms with overseas headquarters,” said Russell Collins, head of the financial services practice at Deloitte.
However, Collins warned of ‘offshore fatigue’ as the initial novelty wears off and the original operational managers return from their tour of duty.
Deloitte said its survey of 62 global financial services institutions dispelled the myth that the majority of offshoring involved call centre jobs.
“Ninety per cent of offshoring investment is activities such as HR, IT, processing, finance and administration, with only 10% in call centres,” said Chris Gentle, the firm’s director of financial services.
The survey said India remained the most popular destination for offshoring, although many companies also based a second centre in countries including South Africa, China and Singapore.