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‘Healthy Return on Investment’ via Offshoring

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Businesses offshoring some of their operations can bring about huge long-term benefits, according OMC partners.

The company suggests that most organisations in finance and accounting, who operate in serviced offices and other buildings, should see “payback in three years or less”.

David Ellis, partner at the consultancy, said that such businesses could reap the awards for decades to come.

Mr Ellis said: “One other urban myth that we get a lot is that inflation in India or China or the Philippines is so raging that they will soon be as expensive as [the UK.] That’s complete and utter nonsense.

“Most analyses indicate that there is at least a 25 to 30 year benefit. So if you take the wage rate in London and the wage rate in, say Delhi, and apply inflation and exchange rate changes, it will take you 25 to 30 years to close the gap.”

Santander UK recently announced that it is returning all of its Indian call centres to the UK so that all retail banking customers ringing the bank will have their call answered by a UK-based employee.

OMC Partners is a management consultancy that works with leading legal and professional services clients to reduce costs while increasing the effectiveness of their operations.