Financial services bringing offshore jobs back to the UK, research says
Despite UK’s pending exit from the EU, London remains world’s number one financial centre with financial services companies based in UK are increasingly bringing their offshored operations back, according to research published today.
According to the research, undertaken by Robert Half Financial Services, 59% of the UK’s financial services executives have increased their level of onshoring – transferring offshored business operations back to the UK – in the past two years, compared to just 4% who have decreased their onshoring activities.
64% of financial services executives refer to service quality complaints and 54% refer to the increase in costs – indicating a cost and quality factor in determining operations being brought back to the UK.
The skills shortage (53%) and a lack of efficiency in the offshored regions (37%) are further cited as key reasons for transferring offshored business operations back to the UK.
44% of financial services executives would consider shutting down offshore activities and returning their operations to the UK if the work was carried out more efficiently. In addition, 34% would consider the same if they could find the right skills and expertise available locally.
The top benefits of increased onshoring are: increased service quality (44%), increased customer responsiveness (42%) and increased focus on core business (41%).
Matt Weston, director at Robert Half UK said: “Many firms are bringing key business operations back to the UK and creating ‘centres of excellence’ by creating jobs and career development opportunities for local talent.
“To fully leverage the advantages of onshoring key business activities back to the UK, organisations need a functioning workforce that is efficient and equipped with the right skills. UK firms are experiencing greater innovation and increased efficiencies, and finally have access to the necessary expertise that was previously hindering businesses that had moved their operations offshore.”