May 31, 2023 – Outsourcing is often touted as a favorable cost-reduction method, but it can also introduce instability, especially for small-to-midsize financial institutions. Disruptions to outsourcing operations can result in severe consequences for individual banks whose customers expect a convenient and efficient banking experience. It’s key for companies to have a backup plan, especially one that can be implemented quickly in case of an emergency that could impact the bank’s operations.
This report aims to equip banking IT executives with the tools to develop a robust outsourcing plan insulated against geopolitical developments and fluctuations. Aite-Novarica Group reviewed its research from 2021 to 2023 and external articles to develop the findings and checklist for decision-making and planning for outsourcing, offshoring, and nearshoring IT functions. This report also draws on the author’s experience and best practices Aite-Novarica Group has observed in financial services IT organizations.
Clients of Aite-Novarica Group’s Retail Banking & Payments or Commercial Banking & Payments service can download this report.
This report mentions Avaloq, Finastra, FIS, Fiserv, Infosys (Finacle), Jack Henry & Associates, nCino, Oracle, and Temenos.