Carretek had been successfully offshoring check processing back office functions for a large US-based financial institution. Business process outsourcing (BPO) business is tapping pools of qualified but less costly resources. But technology advances are imitable, and labor arbitrage diminishes with competition, education, and other inevitable trends. It is the next wave of transformation, and that will separate the value-adding offshorers. Financial institutions and their offshorers need to constantly rely on deep domain expertise that meets the demands of financial institution customers. This white paper describes how financial institutions and Carretek are producing both waves.