Wednesday, May 25, 2022

Financial services firms wary of BPO

Fewer than 30 percent of financial services companies will outsource strategic projects by the end of next year, although companies seem more willing to outsource IT maintenance or call-centre type work, according to a study released recently by Gartner Inc.

“The issues generally are that they’re not happy with the outsourcing providers,” said Gartner analyst Kimberly Harris-Ferrante. “Business process outsourcing will continue to remain slow over the next three years.”

Harris-Ferrante said the problems don’t always stem from the outsourcer but often involve a bank or insurance company’s lack of experience with large outsourcing deals. “What we find is most companies don’t have an overarching strategy that says at the end of the day, ‘Here are ten different processes that we have to grow so we can compete with our peers.’ It’s more knee-jerk reaction to outsourcing,” she said.

Harris-Ferrante recommends keeping core competencies internal to a company.

Related links:

Does outsourced software pose information security risks?

Outsourcing and productivity

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