Banks and other businesses around the world have used
outsourcing for functions unrelated to their core business, including record
storage, clerical, and accounting, data processing, security and plant
maintenance. Outsourcers could often do the work at a fraction of the cost of
what companies spent to maintain themselves, helping fuel the growth of the
outsourcing industry. For years banks have outsourced various business
functions to cut costs, but as outsourcing models have evolved, banks have
begun to see the value in partnering with outside experts to help them bring
more than just cost savings to their businesses.
With demand
growing, the outsourcing marketplace has evolved, offering more services and
greater expertise. Technology Outsourcing has grown beyond server and data
centre hosting to include private and public cloud computing, application
development and management, software maintenance and enhancement, network
management, user support and outsourced database and system administrators.
Business
process outsourcing, the outsourcing of back-office functions, has quickly
caught on within the financial services industry. Today, top retail banks
outsource their mortgage application process to service partners who can
process them at a lower cost, using industry-standard process flows and
technology. Leading insurance providers have their claims quickly and expertly
managed, processed and settled by third-parties. Human resources, procurement,
facilities management and payment processing are additional areas organizations
have turned over to outsourcing partners.
Labour
Arbitrage has fuelled new outsourcing models for both operational and
technology needs, including off-shoring, near-shoring and right-shoring. While
the outsourcing of customer service functions to outside countries may be
shifting, use of engineers and programmers in India, Russia, Brazil and China
for testing new products, IT services and complex data analysis continues to
grow.
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