I have talked about offshoring and outsourcing before many times on this blog (see the keyword search on offshoring or here) and how simply looking at this from a cost perspective is wrong, medieval and went out with the dinosaurs. This article, from Bank Systems and Technology, provides much more detail on this phenomena that is rapidly evolving. This article looks at a particular part of a financial institution, namely Finance and Accounting insourcing to their customers. Turnaround is fair play and the idea that you do what you do best is gaining currency. So the Indian vendors such as TCS, WIPRO, Infosys pick up IT while the western financial institutions go after the processing elements.
All this to be taken with a grain of piquant salt!!!