find the latest legal job
Senior Associate - Litigation & Dispute Resolution
Category: Litigation and Dispute Resolution | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· Come work for a firm ranked in Lawyers Weekly Top 25 Attraction Firms
View details
Associate - Workplace Relations & Safety
Category: Industrial Relations and Employment Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Employer of choice · Strong team culture
View details
Freelance Lawyers
Category: Banking and Finance Law | Location: All Perth WA
· Freelance opportunities through Vario from Pinsent Masons
View details
Freelance Lawyers
Category: Other | Location: All Adelaide SA
· • Qualified lawyer with a strong academic background
View details
Freelance Lawyers
Category: Other | Location: All Melbourne VIC
· • Qualified lawyer with a strong academic background
View details
Banks lead offshoring boom

Banks lead offshoring boom

BANKING INSTITUTIONS globally are continuing to embrace the offshoring boom, and are now reaping the rewards, research has found. According to Deloitte, the financial services industry globally…

BANKING INSTITUTIONS globally are continuing to embrace the offshoring boom, and are now reaping the rewards, research has found.

According to Deloitte, the financial services industry globally has seen a sharp rise in cost savings through offshoring, with an 18-fold increase in offshore staff in the past four years, with an average saving of 40 per cent per business process outsourced.

While traditionally, IT processes were seen as the most obvious candidates for offshoring, HR is increasingly in the firing line. “Over the last three to four years, there has been significant growth in business processes offshoring, particularly around transaction processing, finance and HR,” Deloitte’s analysis read.

Deloitte added that organisations looking to offshore should decide whether to offshore HR, along with other support functions such as finance and accounting and knowledge-processing activities, should do so only after developing a multi-service model that incorporates IT, call centres and business processes.

Moreover, prior to offshoring, banks should ensure that all onshore inefficiencies are rectified. “In future, the best offshoring strategies cannot be based solely on financial gains from labour arbitrage,” said Jack Ribeiro, managing partner at Deloitte’s global financial services industry group. “Otherwise the legacy inefficiencies of older, onshore processes, may simply be transferred offshore.”

Australian banks are joining in on the offshoring bonanza. Of the major banks, only Commonwealth Bank (CBA) and Westpac do not offshore, according to the Finance Sector Union of Australia (FSU). However, BT Financial Group, a subsidiary of Westpac, has offshored some superannuation operations, the FSU said.

According to the FSU, ANZ offshores the most jobs, with around 1,400 roles currently offshore.

Commonwealth Bank, meanwhile, has not ruled out offshoring in the future. “The bank has, in the past, undertaken evaluation work on offshoring but has chosen not to proceed at this time,” CBA said in a statement. “The Commonwealth Bank is focused on providing improved customer service at a lower cost, but is mindful of its position as an iconic Australian company. Whilst offshoring is not currently on the bank’s agenda, research undertaken within the bank indicates that there may be a labour shortage looming in Australia in the next five to 10 years.”

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Banks lead offshoring boom
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Oct 23 2017
How to fail well
The legal profession is due for an attitude adjustment when it comes to perceived failures, accordin...
Oct 23 2017
Lawyers slam rushed consultation for SA repeat offenders bill
The Law Society of South Australia has expressed concern for a proposal to roll out new laws amendin...
Oct 23 2017
The pursuit of happiness in the law
A panel of legal experts have explored how to define success in the legal profession, and how lawyer...
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...