UK – HR offshoring is getting increasingly popular in the UK financial services sector. A study by consultancy Deloitte found out that offshoring can help companies save up to £1.5bn per year.
Hence, to cut costs and avoid being a takeover target, more and more companies in the financial services sector engage in HR offshoring. More than 75% of major financial companies now engage in HR offshoring, compared with fewer than 10% in 2001.
However, a separate study has hinted that offshoring may compromise the service quality of a company. Simon Scarrot, head of business development and marketing at Compass is quoted by Personnel Today as saying, “In too many cases, service quality is being compromised by an offshoring decision that fails to deliver the level of savings anticipated.”
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