It's no secret that Wall Street firms have embraced offshore outsourcing. The commitment is not likely to wane. With the credit crunch still unfolding, costs will remain a huge issue over the next few years. Outsourced services have basically proven themselves. India has been among the main beneficiaries, so far. But now even India is faced with a wide array of competitors from even lower cost countries in Eastern Europe and Latin America. There's no question that non-financial services firms are actively scouring for opportunities in other countries. Will financial services companies make the switch? That's a tough call. They would probably face some high transition costs, with no guarantees that the work would be up to par. They might as well stick with a proven supplier, but options will have to be evaluated.

For more:
- here's an article on offshore competition from Financial Week

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