Two major UK financial players, Norwich Union and Nationwide, outline the business pros and cons of the practice known as "offshoring".

For insurance giant Norwich Union, offshoring is a long-term strategy.

And as long as it makes financial sense, the company believes it is "the right way to go for our business".

We have a very high grade of applicant for these jobs in India Norwich Union

In December, Norwich Union - which is part of financial giant Aviva - said it was transferring call centre operations from the UK to India, creating 2,350 jobs in the subcontinent.

"We've got to remain competitive to remain in business. Given the intense competition in the market, we have to look at every operation to reduce costs," a spokeswoman said.

Norwich Union already has 1,200 staff in Delhi and Bangalore, where its says it can achieve cost savings of up to 40%.

"It's a saving that benefits the whole business. It means we have more of a competitive advantage. Put simply, it means there is more money in the pot."

Staff in India, new to the business and trained in a variety of skills from day one can adapt to different roles and are "more responsive" than some of their UK colleagues, the company argues. "We have a very high grade of applicant for these jobs in India."

The time difference between the UK and India also means Norwich Union can provide a more flexible service.

"Customer requirements are changing. People might not be able to make calls until after 10 at night. It means we can always be there when they want."

Nationwide building society has chosen to invest in its UK call centres, shunning the move to switch jobs abroad.

We've had a positive response from our customers because we are keeping jobs here Nationwide

Chief executive Philip Williamson believes "call centres abroad may suit some of our competitors, but they are not the right option for us".

Earlier this month, Nationwide pledged to refurbish its centres in Northampton and Swindon and open a new site in Sheffield, creating up to 180 new UK jobs.

"Offshoring may bring short term cost savings, but the turnover of staff in call centres abroad is very high," a spokeswoman said.

"There is always a cost when recruiting and training people, and high staff retention helps save money.

"We have the lowest call centre employment turnover of any financial services firm in the UK."

Nationwide said its decision to bolster its call centre workforce at home and keep jobs in the UK had also played well with the public.

"We've had a positive response from our customers because we are keeping jobs here.