A $25 million savings can be expected by financial service companies if they shift 1,000 jobs overseas, according to Cutting Edge Information, the Durham, N.C. business intelligence firm.

In its report "Managing Financial Services Call Centers," Cutting Edge outlines key practices such as offshore outsourcing, and offers statistics like employee turnover and blocked call percentages. One financial services corporation mentioned in the report is said to have slashed labor costs 50% just by shifting its call center operations overseas.

Financial services firms have been increasingly moving call centers and other non-executive jobs overseas because of cheaper labor and the decreasing costs of communications.

With call centers in places like India, where employees reportedly have greater enthusiasm and the turnover rate hovers around 5%, large firms like Merrill Lynch and Wachovia can find goldmines that help cut costs. "India is an excellent place to outsource because they hold customer service jobs in high esteem and workers tend to care much more about their jobs," said Cutting Edge senior analyst Elio Evangelista in a statement.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.