# FINANCIAL SERVICES BRINGS OFFSHORE JOBS BACK TO THE UK
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2017-12-13
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Financial Services Onshoring Trends in UK
Meta Description: Discover why UK financial services companies are onshoring operations back to the UK for cost and quality reasons, creating more jobs in the sector.
URL: https://financedigest.com/financial-services-brings-offshore-jobs-back-to-the-ukhtml

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UK financial services companies are increasingly bringing their offshored operations back to home nations as companies are being affected by rising costs and lacklustre service in offshore regions, according to specialised recruiter [Robert Half](https://www.roberthalf.com.hk/?utm_source=roberthalf&utm_medium=pressrelease&utm_campaign=rh-all-nonspecific-ongoing) Financial Services. Despite the UK’s imminent departure from the EU, London remains the world’s No 1 financial centre \[1\] and this increased level of onshoring could lead to more jobs being created in the financial services sector.

The research has found more than half (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.

When asked why they have increased their level of onshoring, 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](https://www.financedigest.com/eu-watchdog-backs-esg-quality-label-for-market-benchmarks.html "EU watchdog backs ESG ‘quality label’ for market benchmarks") 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](https://www.financedigest.com/back-to-operational-basics-with-analytics.html "Back To Operational Basics With Analytics") to the UK.

“In the face of change, financial [services companies](https://www.financedigest.com/sterilization-services-market-global-leading-companies-analysis-revenue-trends-and-forecasts-2027.html "Sterilization Services Market Global Leading Companies Analysis, Revenue, Trends and Forecasts 2027") in London are increasingly under pressure to remain competitive by maximising performance and decreasing costs,” commented **Matt Weston, Director at Robert Half UK**. “In order to achieve this and offer a premium service, many firms are bringing key business operations back to the UK and creating ‘centres of excellence’ by creating jobs and career [development opportunities](https://www.financedigest.com/fish-protein-market-exploring-future-growth-2021-2031-opportunities-development.html "Fish Protein Market Exploring Future Growth 2021-2031 | Opportunities & Development") for local talent.”

In an indication that offshoring is not just about costs, but also a matter of dealing with the working environment in the UK, nearly half (44%) of [financial services executives would consider shutting down offshore activities](https://www.financedigest.com/financial-services-firms-turn-to-big-data-intelligence-to-fight-fraudulent-activity-according-to-xerox-study.html "FINANCIAL SERVICES FIRMS TURN TO BIG DATA INTELLIGENCE TO FIGHT FRAUDULENT ACTIVITY ACCORDING TO XEROX STUDY") 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.

Onshoring can result in tangible benefits for UK companies. Almost half (44%) of the UK’s financial services leaders who have returned [business activities](https://www.financedigest.com/euro-zone-april-business-activity-grows-on-strong-services-demand-pmi.html "Euro zone April business activity grows on strong services demand – PMI") to the UK say it has resulted in increased service quality, followed by increased customer responsiveness (42%), increased focus on the core business (41%) and an increased focus on innovation (38%).

“To fully leverage the advantages of onshoring [key business](https://www.financedigest.com/animal-drug-compounding-market-trends-business-strategies-and-opportunities-with-key-players-analysis-2030.html "Animal Drug Compounding Market Trends, Business Strategies and Opportunities With Key Players Analysis 2030") 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 **,” concluded Weston**. “To avoid future skills shortages and ensure their workforce operates at an optimal level, financial services companies need to invest in adequate training programmes to [develop](https://www.financedigest.com/bridging-finance-for-property-development.html "Bridging Finance for Property Development") these business-critical competencies. Failing this, employers are looking externally to recruit qualified professionals on both a temporary or permanent basis to meet strategic and operational objectives.”


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