Research On External Financial Back-office And Industry Cluster

Financial institution always located in central business district (CBD) of urban in order toprovide convenience for the customer. Since the1990s, back office was separate from frontoffice, then gradually transferred out of CBD and centralized in certain areas, one of the mostprominent is the Bangalore of India where was well-known as information technology.Economic effects from financial back-office industrial agglomeration of bangalore became themodel of industrial structure adjustment for developing countries. Fellow the developmentstrategy of our country, the local government has invested construction of industrial park fordevelopment of financial back-office industry.Financial back-office business significantly wasinfluenced by the information technology, but still show agglomeration situation whenadvanced information technology has strengthened industrial location alternative. Therefore, toexplore the cause of agglomeration will be conducive to optimize the space of financial industrystructure, and will guide to development of financial back-office industrial park in our country.This paper chooses external space and agglomeration of financial back-office business asthe main research object, and then study from the angles of dynamic and static results.Back-office separated from front-office business, external space, and then agglomerationbelongs to dynamic process of industry cluster. Formation of this industry cluster needs specificexternal and internal industry conditions, it analysis the courses of agglomeration from theperspective of location selection, industry organizations and agglomeration economy.Industrialcluster of financial back-office was the static results which evolve from change of financialindustry. Based on the data and case analysis of the current situation of the regional financialback-office industrial, it used to confirm the motivation and the effect of financial back-officeindustrial agglomeration.Back-office business from front-office, financial institutions or adopt self-built servicecenter, or take the way of outsourcing to transfer from CBD, this separation method isexpressed as "external space". The root cause of external space is to reduce operating costs.With business scale of financial back-office expands unceasingly, and the new industrial cluster was formed at the areas with lower transaction costs. Although finance back-office industrialpark was planned and constructed by leading of government in our country, but the enterprisesdecided coming in the park or not is still up to enterprises.Therefore, enterprises chosen financial back-office industrial park were influenced bygovernment policy, and also derived from external economy of industrial cluster. Questionnairesurvey in Guangdong high tech service zone for financial institutions also confirmed that thegovernment policy, labor resources, management cost were the main reasons for industryagglomeration of back-office.