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Treasury, Finance Jobs Still Heading Offshore

Companies send transactional work, not core functions, to lower-wage locations.

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Michel Janssen of Hackett GroupIt may not be Ross Perot’s “giant sucking sound” you’re hearing, but according to business advisory firm the Hackett Group, as many as 750,000 finance, treasury, IT and other business services jobs could be offshored between now and 2016, continuing a trend that has already seen close to 1.5 million such jobs moved offshore by companies in the U.S. and Europe.

Hackett, which surveyed some 4,700 U.S. and European companies with more than $1 billion in revenue, claims companies that implement what it refers to as a global business services operating model, which includes shifting jobs to low-wage areas like India or Eastern Europe where appropriate, can achieve cost savings of about 29%.

“For a typical Global 1000 company with $28.8 billion in revenue, these reductions amount to $314 million in annual savings,” according to the Hackett Group report.

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