Funding transformational change through offshoring

Marilyn Hignett (), Michael Rude (), Ilene Grossman () and Lisa Berk-Lidsky ()
Additional contact information
Marilyn Hignett: Capco, Postal: New York, http://www.capco.com/
Michael Rude: Capco, Postal: New York, http://www.capco.com/
Ilene Grossman: Capco, Postal: New York, http://www.capco.com/
Lisa Berk-Lidsky: Capco, Postal: New York, http://www.capco.com/

Journal of Financial Transformation, 2003, vol. 8, 119-128

Abstract: After three years of cost cutting in their domestic operations, most financial services companies have little remaining fat. They have reached the proverbial muscle, and must strategically address how technology and operations, in particular, will help their organizations grow with fewer resources. In this article, we argue that the organizational imperative of doing more with less can be achieved through operational transformation, or the reshaping of business processes to achieve significant improvements in operational performance. Further, we suggest that companies can fund transformation by moving offshore the legacy activities that are the target of transformational change. An example of how a company might offshore a legacy reference data function is provided in this article. We close by presenting the primary risks associated with outsourcing a function to an offshore services provider, and sample mitigating factors.

Keywords: Offshoring; financial institutions (search for similar items in EconPapers)
JEL-codes: G21 M10 (search for similar items in EconPapers)
Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:ris:jofitr:1325

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