Concerns regarding global slowdown and the effects of the credit crunch are pushing growth within the outsourcing sector, with the current credit restrictions in the financial services sector being a particular driver.

Significantly, more than 40 per cent of the financial services managers surveyed by the Management Consultancies Association and the British Bankers’ Association expect to increase their current levels of outsourcing because of the credit crunch. The growth is largely due to many companies facing increasing pressure from stakeholders to offshore their business to cut costs.

While doubts linger about the returns from outsourcing – only 54 per cent of those surveyed felt their organisation understood how to drive good value from outsourcing services – a culture change is certainly under way, with 90 per cent stating that outsourcing was an acceptable way to improve their business operations.

Fiona Czerniawska, author of the report, states that ‘The credit crunch has created something of a wake-up call to the financial services industry. Many institutions that have so far ignored the benefits of outsourcing are being forced to revisit it because of financial constraints.’