04:11 PM
Outsourcing for Operational Efficiency
Regulatory pressures and an increasingly competitive market are forcing more and more financial institutions to turn to outsourcing as a way to improve their operational strategy, according to a recent survey conducted by the Economist Intelligence Unit and Plano, Texas-based technology provider, EDS.
The survey of 300 financial services executives revealed that although the participants considered implementing internal shared utilities as a critical method for achieving a more consistent view of operations, they also were embracing new operating models -external shared services and outsourcing - as a means to gain greater operational clarity and maximize efficiency. The survey found that 52 percent of respondents currently are outsourcing business processes to a local third-party provider and an additional 26 percent plan to in the next three years (see chart at right).
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