Offshoring in the financial services industry is expected to double by 2008, but firms that approach the strategy solely from a cost-savings perspective, or that fail to address quality control, turnover and compliance costs, run the risk of missing out on its greatest competitive advantages - and not realizing those cost savings.

"If you're just looking to play with the arbitrage on the salaries, you're leaving a lot on the table," said Thom Barrett, a partner with PricewaterhouseCoopers in Boston.

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