The financial services industry continues to face headwinds in the post-Recession era. In an effort to cut costs, the big question is: Offshoring, domestic outsourcing, or both?- By James Hsu

Despite a strengthening economy, the financial services industry continues to face headwinds due to a number of market factors, but certainly tougher government regulations tops the list. As the industry continues to adapt, there is pressure to cut costs to offset the cost of the regulatory restrictions that are limiting revenue. One of the questions major financial institutions ask: Does offshoring, domestic outsourcing or both make sense? There are compelling reasons to consider both in order to realize productivity gains, economies of scale and technological advances.