The Outsourcing Blog…”Horses for Sources”: Expect a phrenetic Q109 for outsourcing activity in the banking sector


the major banks are clearly the most aggressive with ramping-up their plans to pursue outsourcing strategies:

Figure 1: Over the last month, has your firm been looking to increase / decrease your expenditure on outsourcing services IT and BPO?

n= 44 Major US Financial Institutions
6a00d8356fb76c69e2010535958b7a970b-320pi
     It is those outsourcing services where initial investment outlays can be offset by a heavy labor arbitrage component that are now top of the agenda for the beleaguered banking sector. 

     To this end, the main service-lines where banks are focusing are banking-specific BPO services, application outsourcing, and Finance and accounting BPO see Figure 2.  Insurance companies also stated a strong focus on adopting insurance-specific BPO services in a 6-12 month period.  Service lines not being so aggressively pursued are primarily HR outsourcing and IT staff augmentation projects:

Figure 2: How do you foresee your demand changing for the following outsourcing services over the next 6 months?
6a00d8356fb76c69e20105359cfc8d970c-320pi

n= 29 Major US Banks

“Tough times call for tough measures, and outsourcing fits the bill for some financial organizations”    

    This data supports the position that banks are now seriously evaluating the lower-hanging fruit right now – they are looking to find solutions that can support their changing business models, and the more they can be supported by cost arbitrage, the more likely they are to move into an outsourcing transaction.

via The Outsourcing Blog…”Horses for Sources”: Expect a phrenetic Q109 for outsourcing activity in the banking sector.

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About zyakaira

Investment Banker, 40s, Bangalore This Biopic and this web recreates how one point of view, one person can impact a tremendous economic engine that the world thrives and mis-thrives on. This one has the knowledge and the civil sense , the art of conversation and some good writing to mentor others as powerful and help global managers develop and fine tune their approach on US markets, China, India and the world. Read on here, and let me know what you need. It can be a race for TRPs, a race for new markets and a race to do what is right. I have the pulse of the crisis, the recovery and the market direction and can help you build and refine your strategy as i have helped thousands of managers and multiple global corporations. Of course, it’s more fun if you talk to me. I am in favor of leading this moving of the economic crisis and will partner with you in a soft and subtle way, just the way we both ride to the top. But you can write with us, opine and just reply with aplomb and shine on Twitter , 4 square , Facebook and any other social “choupal” of choice via zyaadakairaada Profile & Portfolio - SocialPicks Different flavours at: http://benchilibowl.wordpress.com http://zyaada.mp

Posted on December 26, 2008, in Bank Stocks, Global, India and tagged , , . Bookmark the permalink. Leave a comment.

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