End User Trends In Financial Services Outsourcing (Customer Focus)

The infrastructure and application services outsourcing market has moved to a more strategic business model with the financial services institutions showing increasing interest in enterprise wide outsourcing of their infrastructure and applications domains.

• The analysis is based on interviews with over 200 financial services institutions from the Americas, Asia Pacific and EMEA.
• The brief is focused on demonstrating financial services current and future infrastructure and applications outsourcing services take-up.

The results of the research indicate that outsourcing is being viewed as a strategic tool for achieving the financial services main business and IT objectives. Although the suitability of outsourcing to achieve business objectives varies by lines of business.

While more than half of the respondents currently outsourcing their infrastructure and applications domains, roughly the same amount of FSIs expect to increase their infrastructure and applications outsourcing usage in the next two years.

Applications development is touted as the most outsourced area in the financial services sector, while Maintenance/Support/Break fix is the most outsourced area on the infrastructure side.

• To improve understanding of the financial services application outsourcing services market.
• To improve positioning relative to competitors and market opportunity.

DATAMONITOR VIEW

CATALYST

SUMMARY

METHODOLOGY

ANALYSIS

Outsourcing is a major enabler of change in the financial services sector

Outsourcing is intrinsic to meeting corporate objectives

"Variabilization" of costs and overall IT rationalization are the primary motivators for outsourcing

Outsourcing is a major vendor opportunity despite high take-up levels

Increased outsourcing by current customers will fuel IT domains outsourcing market growth

Applications development is touted as the most outsourced area in the financial services sector

The use of infrastructure outsourcing in the financial services continues to increase

Internal servicing remains the default situation with many FSIs apprehensive of outsourcing

APPENDIX

METHODOLOGY

Further reading

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List of Tables

Table 1: The financial services main IT business objectives highly likely to be achieved through outsourcing

Table 2: The financial services institutions infrastructure and applications outsourcing

Table 3: The financial services overall outsourcing strategy by line of business

List of Figures

Figure 1: The financial services primary IT and business objectives / objectives highly likely to be achieved through outsourcing

Figure 2: The financial services top five IT business objectives highly likely to be achieved through outsourcing, by line of business

Figure 3: The main drivers for outsourcing in the financial services

Figure 4: Infrastructure / applications domains currently outsourced

Figure 5: The financial services infrastructure / applications outsourcing (at least one function)

Figure 6: The financial services applications outsourcing

Figure 7: The financial services infrastructure outsourcing

Figure 8: The financial services overall outsourcing strategy