Is it really a question of In or Out?
Outsourcing is a hot topic. Should your operations head for the door?
There’s no doubting that outsourcing has become a critical component of financial institutions’ management of their business operations. Many are offloading complex and sensitive financial operations to third parties. Others prefer a “business as usual” approach and hang on to legacy systems in-house, even if they’re costly and cumbersome to maintain.
One thing is certain: Financial institutions must seek on-going improvements to drive up efficiency, drive down costs and remain competitive in a rapidly evolving landscape. But what’s right for one might not be right for you. In-house or outsourced? Is that the question?
Exploring the great outdoors
External service providers are ideal for organisations not interested or able to manage certain functions. Yet, if not managed effectively, they can lead to data loss, litigation, non-compliance and damage to reputation. Popular models include:
- Cloud-based infrastructure services
- Business process outsourcing (such as finance, accounting and back office)
- Knowledge process outsourcing (including market research and R&D)
Keeping it within your own four walls
For some, owning their own systems and investing in experienced staff and strong in-house talent make in-company solutions a logical choice. But do your solutions align with your overall future business strategy? And are they flexible enough to grow if you do? Also, are your current systems and processes as cost-efficient and effective as they need to be?
Time to consider the best of both worlds?
When it comes to the delivery of technology and services one size does NOT fit all. Often, a hybrid approach is best. At Torstone, we call it “Hotsourcing“. The right solution should be fast enough to optimise processes, flexible enough to let you upgrade in stages and agile enough to let you retain the control you need.
I always remind clients: innovations do cost, but they offer big savings in the long term. Our clients routinely cut costs by at least a third with Hotsourcing. Look for organisations that will help you evaluate your case so you make a well-informed decision.
June 9, 2014