Journal Detail

Journal 8 – Offshoring

August 2003

The number and types of organizations that are considering moving non-client-facing operations offshore has experienced a dramatic growth. This issue aims to highlight the important issues in making such as dramatic decision and provide guidelines as to how these challenges have been faced and managed by pioneers of this industry.

The number and types of organizations that are considering moving non-client-facing operations offshore, whether within captive or third-party control, has experienced a dramatic growth in recent years. The long-term economic slowdown, combined with increasing global competition has now made offshore business processing an integral component of an organization’s overall strategy. Financial institutions are not immune to these forces and are now following in the footsteps of their manufacturing peers in increasing numbers and are moving parts of their operations offshore.

Of course, moving offshore is not an easy task and a number of issues need to be resolved before such a dramatic decision is taken. This issue of the journal aims to highlight a number of these important issues and to provide some guidelines as to how these challenges have been faced and managed by pioneers of this industry.

This issue of the journal, as is typically the case, is separated into 3 sections. The first section provides a primer on why and how financial institutions might consider moving operations offshore. Section 2 discusses the experiences of a number of financial institutions that have moved operations offshore and provides guidelines on how it can be utilized within the overall strategy of a financial institution. In addition, Section 2 highlights a number of legal issues that need to be addressed when considering moving offshore. Section 3, looks at the potential for this industry and where it can go in the future.

We are especially proud of a new feature to the journal, an additional section in which a Nobel Laureate provides their views on important issues facing the world of business. In this issue, we are very pleased to introduce two papers from Prof. Franco Modigliani, Nobel Laureate and the founding father of Modern Corporate Finance. In his opinion pieces, Prof. Modigliani gives us his views of the latest dividend tax legislations in the U.S. and how the current pension time bomb can be best managed.

jailer