Crunch to boost outsourcing
(23 June 2008 – Global) Two separate studies have found that there will be a renewed focus on outsourcing due to the credit crunch.
A study of bank association members in the UK has found that outsourcing will occur in the financial services industry due to the credit crunch.
The study found that 41 percent of British Bankers' Association (BBA) members expected to increase outsourcing levels. A total of 70 members were surveyed.
The results also showed that over 90 percent of financial services firms have outsourced some of their business, while a similar amount indicated that outsourcing has become a more accepted way of doing business.
Fiona Czerniawska, director of Management Consultancies Association said that many institutions are being forced to look at outsourcing because of financial constraints and liquidity problems.
Similarly, research by EquaTerra has found that banks are looking to outsource operations as a way of deferring investment in their technology infrastructures.
The EquaTerra research found, however, that although the credit crunch will increase spend on outsourcing in the short term, spending will be increased due to the need business process improvement and market innovation in the longer term.
The results also showed that 64 percent of executives believe that rising income levels in developing economies are leading to an increased pool of new investors, which will also increase interest in outsourcing strategies.
The study found that 41 percent of British Bankers' Association (BBA) members expected to increase outsourcing levels. A total of 70 members were surveyed.
The results also showed that over 90 percent of financial services firms have outsourced some of their business, while a similar amount indicated that outsourcing has become a more accepted way of doing business.
Fiona Czerniawska, director of Management Consultancies Association said that many institutions are being forced to look at outsourcing because of financial constraints and liquidity problems.
Similarly, research by EquaTerra has found that banks are looking to outsource operations as a way of deferring investment in their technology infrastructures.
The EquaTerra research found, however, that although the credit crunch will increase spend on outsourcing in the short term, spending will be increased due to the need business process improvement and market innovation in the longer term.
The results also showed that 64 percent of executives believe that rising income levels in developing economies are leading to an increased pool of new investors, which will also increase interest in outsourcing strategies.
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