Bank IT to move offshore
(10 March 2008 – Global) India’s Infosys Technologies sees that US and European financial institutions will look offshore for IT because of budgeting concerns following the credit crisis.
Kris Gopalakrishnan, Infosys chief executive officer has told The Times newspaper that, with many banks reducing or keeping budgets steady, a greater portion of the coming year’s budget will come from offshoring.
The information comes primarily from banking clients having requested Infosys to keep up their staff levels to give more support to the banks.
He also indicated that banks are delaying budgeting decisions and being cautious on technology upgrades due to costing.
Gopalakrishnan indicated that because of this trend, Infosys would be looking at expanding from low margin call-centre based work to higher margin consultancy.
European consultants Pierre Audoin echoed these results, indicating that as a result of the crunch, banks will be looking to do more with the same budget, leading to greater demand for offshore resources.
Operations that have been highlighted for outsourcing include horizontal processes such as finance and administration and human resources, as well as more core areas like mortgage and loans processing.
The information comes primarily from banking clients having requested Infosys to keep up their staff levels to give more support to the banks.
He also indicated that banks are delaying budgeting decisions and being cautious on technology upgrades due to costing.
Gopalakrishnan indicated that because of this trend, Infosys would be looking at expanding from low margin call-centre based work to higher margin consultancy.
European consultants Pierre Audoin echoed these results, indicating that as a result of the crunch, banks will be looking to do more with the same budget, leading to greater demand for offshore resources.
Operations that have been highlighted for outsourcing include horizontal processes such as finance and administration and human resources, as well as more core areas like mortgage and loans processing.
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