Figure 7: GDP growth 2013-2023 %pa, LCU
Source: Oxford Economics, DTZ Research
0%
2%
4%
6%
8%
China
BRICs
Nigeria
Singapore
South Africa
Hong Kong
Global
Brazil
Australia
Germany
UK
US
Figure 8: Financial services employment 2013-2023
Source: Oxford Economics, DTZ Research
0
200
400
500
300
100
600
New York
Shanghai
London
Tokyo
Hong Kong
Singapore
Chicago
Sydney
Taipai
Frankfurt
Amsterdam
Zurich
Kuala Lumpur
Paris
2013 2014
Figure 9: Global Risk Index (100= highest risk)
Source: Oxford Economics, DTZ Research
2013 2023
Australia
Brazil
China
Germany
Hong Kong
Japan
Singapore
South Africa
UK
US
4.2.5. Centres of excellence
Banks are increasingly moving towards a ‘centres of
excellence’ model on a regional basis for their back office
and parts of their middle office, a trend that we believe will
continue and accelerate. Using centres of excellence allows
banks some of the same cost savings and economies of
scale of outsourcing, while maintaining some of the benefits
of keeping employee loyalty, knowledge and process
innovation in-house. Typically the type of functions that are
co-located in centres of excellence are not subject to the
rules by which some economies require companies to have
a physical presence in order to operate in that market. These
rules tend to apply to trading and front-office functions.
One of the biggest challenges of outsourcing and off-shoring
is trying to sustain a high calibre labour pool in the long
term. By placing centres of excellence in primary locations
in secondary cities – for example the CBDs of non-capital
cities – banks are ensuring their real estate costs can remain
reasonable while having no problems attracting and retaining
the right talent. Banks must locate themselves wherever
the talent is. We believe that centres of excellence will be a
prime site of innovation through co-location, serendipity and
sharing of best practice, allowing the customer-facing side of
a bank to be at the top of the market.
47
The future of the financial workplace
|
September 2014
