Offshore Development – “Its not coming back”

The results of a recent survey of offshore development within the UK’s financial services industry have just been announced. The survey, carried out by London based consultancy.

CityIQ reveals that:

• Over 95% of those surveyed planned to either maintain or increase the amount of development work carried out offshore.
• Cost reduction had been the key driver for organisations that had moved development offshore.
• Despite the cost advantages many respondents reported having experienced delays and a drop in quality as a result of making the move.

Announcing the results Paul Wiltshire, Managing Director at CityIQ commented:

“Although manufacturing jobs are reportedly being repatriated, when it comes to financial services organisations and their use of overseas development resources, it’s a case of business as usual. Indeed the majority of firms are looking at how they can
increase the amount of work they do offshore – not bring it back.

As a result the question for many organisation is not “Should we make use of offshore development?” but rather “How can we organise ourselves to derive the maximum benefit from moving development offshore?”

About the Survey
Respondents from over 40 of the leading financial institutions took part in the survey, conducted during the final quarter of 2009. A copy of the findings can be downloaded from the CityIQ web site.