It is expected that the offshore tech spending by banks is expected to increase from the level of six percent to thirty percent by 2010. It is also expected that the banks in U.S and other countries would be increasing their budget for getting hold of technology services from offshore providers which operate from countries such as China and India in the coming years.
As per a study by Deloitte:
Among larger institutions in particular, offshoring is not one available cost-cutting strategy, it’s become a basic necessity. Banks are moving well beyond outsourcing low-level application maintenance work and are increasingly relying on offshore service providers for help with more sophisticated technology projects.
Though the advantages offered are quite a lot but a number of banks are not banking on it and it would be better if they develop the internal management skills required for making offshoring as much cost efficient as possible.
Via itnews
