Out of India and into China
Financial services companies are exploring new territories when it comes to outsourcing IT work.
"We're seeing a lot more interest in Eastern Europe, because of the expansion of the EU," says Alicia Bailey, manager at FSS Technology, which has conducted research into outsourcing trends. "But also, banks are increasingly moving IT operations to China, which has a highly skilled workforce and a much-improved communications infrastructure."
India has traditionally excelled in providing skilled IT staff for application development, programming and IT services. However, Chinese outsourcing providers are more likely to take on tasks that are routine and easily automated, says James Parker, manager of technology contracts with recruitment firm Robert Walters. "What we're seeing in Asia Pac, and China in particular, is a real growth in roles like automated testing and some elements of support," he says.
Some roles are likely to remain immune to outsourcing, however. More strategic roles, or those requiring regular contact with the business, are less likely to be moved to China, simply because of the time difference, adds Parker. "Having said that, the skills available in China are maturing rapidly, so it's a market that will change enormously in future," he says - slightly ominously.
