Change the bank with digital transformation
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. Outsources 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 fueled 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.