Title: The offshoring of financial services: a reassessment
Authors: Graham Hollinshead, Jane Hardy
Addresses: University of Hertfordshire Business School, Hatfield, Hertfordshire, AL10 9AB, UK. ' University of Hertfordshire Business School, Hatfield, Hertfordshire, AL10 9AB, UK
Abstract: Operating in an increasingly competitive market environment, financial services companies are engaged in international reengineering of business processes mirroring developments in manufacturing over the past four decades. We examine the distinctive |anatomy| of offshoring in financial services, an industry which also manifests a high degree of geographical concentration for |higher order| functions. We argue that, while offshoring offers considerable cost advantage in terms of labour arbitrage, the devolution of key business activities to downstream and distant providers carries with it considerable strategic risk and managerial complexity.
Keywords: offshoring; financial services; higher order functions; geographical concentration; labour arbitrage; strategic risk; business process reengineering; BPR; managerial complexity.
DOI: 10.1504/IJMCP.2010.031304
International Journal of Management Concepts and Philosophy, 2010 Vol.4 No.1, pp.87 - 99
Published online: 29 Jan 2010 *
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