Financial Services to Begin OffshoringAccording to a recent report published by London Business School, it won't be long before the financial services industry begins to offshore and outsource its operations as happened in manufacturing. One of the major employers in both the USA and the UK, firms are exploring 'global sourcing models'.The new and in-depth report research was released by in a joint study conducted by a team drawn from LBS and Capco Institute. The have explored the experiences and souring strategies revealed by sixty two executive respondents form the world's top financial services organisations. The finding s dispels many myths surrounding both outsourcing and offshoring in the financial services industry today. The Key findings revealed are: The Global Sourcing Model is a well established amongst the world's leading financial services organisations even for 'vertical business processes' often assumed to be too difficult to outsource or even offshore. Indeed 585 of survey respondents who outsource business processes already use alternative sourcing strategies for these vertical processes. These companies no longer think about 'whether to outsource' or 'whether to offshore' in terms of single functions and a single vendor. Instead they are beginning to manage sophisticated sourcing frameworks that integrate multiple-vendors, multiple geographies and vertical business specific processes. Nearly 25 % of he respondents reported that they already use a combination of resources and offshore, in-house, and outsourced While cost savings continue to be dominant motivation for the transition to global sourcing models, other factors are emerging as important =drivers; over 40% of respondents cited quality improvements as a key objective while 25% cited increased flexibility as a priority in outsourcing. Experience confers sophistication; the more experienced among the survey respondents outsource/offshore more challenging processes, report experiencing fewer hidden costs, claim to manage multiple sourcing models with fewer difficulties, and report more effective collaboration with their suppliers. The most significant management challenges in global services sourcing are often at the operational level. Good project management capabilities were cited as he single most important ingredient to a successful global sourcing capability. In ongoing research at London Business School Dr. Puranam is studying project management capabilities in offshoring services. Article Co-authors: Dr. Phaniah, Assistant Professor at London Business School Dr. Suresh Gupta, Head of Sourcing at Capco Post to Social Links 
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