Outsourcing has been around for decades and has become an integral aspect of technology implementation with businesses now under increasing pressure to innovate and streamline processes.
Organisations in Capital Markets have always had a firm grasp on the substantial cost savings that can be made through outsourcing to offshore locations. However, the significant work involved in ensuring these businesses continue trading, whether that’s navigating regulatory changes or keeping pace with rapid technological innovation, means outsourcing operations are now required to go deeper than ever before.
Software delivery is complex and fast-moving and has never been more integral for Capital Markets’ success than it is now. It’s critical for organisations in this field to ensure such tasks and projects are carried out efficiently and cost-effectively, without compromising on expertise.
It’s for this reason that nearshoring has become a popular option. It sees a project performed by teams in closer geographic proximity and in the same or a similar time zone. Its popularity is down to several factors including cost savings, cultural alignment, enhanced communication options, access to top talent, fewer language barriers and increased opportunities for on-site, in-person visits.
The proximity of nearshoring locations is a particularly attractive option in Capital Markets with both sides operating under the same legal and regulatory frameworks.
Some examples of nearshoring in action include Citigroup transitioning operations from London to Belfast, while BNP and Morgan Stanley moved credit research analysts to Lisbon and Budapest respectively. Additionally, Portugal is proving a popular destination for French banks seeking to relocate parts of their business and in-house back office staff to cut costs in a challenging operating environment.
As a result of Capital Markets being an early adopter of nearshoring, clusters of fintech talent are emerging in locations never previously associated with traditional financial centres. Poland, for example, is rapidly becoming recognised as a financial tech hub after welcoming global brands including JP Morgan, Goldman Sachs, State Street, UBS and Standard Chartered in the last ten years alone.
Financial services companies have already proven they can effectively remain at the forefront of their industry by incorporating the latest fintech concepts through a knowledgeable, experienced and culturally-aligned nearshore partner. Now, as we enter a new decade which brings unique demands and challenges, the reliance on local and cost-effective talent hubs will remain crucial for Capital Markets.
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Stay tuned to the Neueda blog for our nearshoring series and learn about the benefits of nearshoring and the world’s emerging hotspots. Can’t wait that long? Download our free guide: