What Drives Outsourcing Investments in the Australian Banking Industry?

This IDC study focuses on the changing dynamics and buying values within the Australian banking industry. This has been discussed with the aid of the EDS-Commonwealth Bank case study. IDC has provided some key recommendations on structuring an effective outsourcing strategy and governance model within the bank taking into account the current scenarios within the organisation.

"Any complex outsourcing relationship (e.g., the Commonwealth Bank-EDS relationship) has had to overcome multiple challenges, as the companies involved have had to change in response to both internal (organisational) and external (market) forces. The ability to adapt and evolve together without breaking the glue that exists between the partners is undoubtedly one of the key success factors of this relationship. In other words, this defines what governance is all about - effectively steering the relationship as the business requirements change. This is one key area where the relationship between the bank and EDS went wrong. With no defined accountability guidelines and no processes in place, there were no defined outcomes and no proper relationship management," says Aprajita Sharma, research manager, Outsourcing and BPO, IDC Australia.