ATM Outsourcing Services: A Global View
ATM Outsourcing: A Global View
Celent estimates that financial institutions and ISOs worldwide spent US$4.9 billion on outsourcing services for ATM operations in 2002. The market still has considerable room for growth, however, and ATM outsourcing should grow at a steady pace, to US$6.5 billion by the end of 2007.
In a new report, , Celent describes the various services that make up the ATM (Automated Teller Machine) outsourcing palette and provides an overview of the companies providing these services. The report also describes the key drivers for ATM outsourcing today, and analyzes outsourcing trends in North America, Europe and Asia-Pacific.
Banks dedicate significant financial and management resources to the ongoing operation and support of their ATM fleets. In recent years, banks have been taking a closer look at alternative ways of managing their ATM networks. As banks struggle to minimize costs in the current economic environment, outsourcing has become an attractive option for more institutions.
"Although a few basic functions have been outsourced for years, managed services still comprise only a tenth or so of total ATM operating costs," comments Isabella Fonseca, Celent Senior Analyst and co-author of the report. "Several factors, including the migration from OS/2 to open systems, a trend favoring bundled services by ATM makers and other providers, and an increasing need for banks to focus on their core business, will help drive a steady expansion in demand. There is still plenty of room for growth in this market."
"While the categories of outsourced ATM services are more or less constant worldwide, each region has its own specific characteristics.," adds Neil Katkov, co-author of the report. "The challenge for would-be global providers is to understand the unique conditions, as well as service needs, pertaining in each market."
The 40-page report contains 15 figures and 4 tables.A is available online.
of Celent Communications' Retail Banking research service can download the report electronically by clicking on the icon to the left. Non-members should contact email@example.com for more information.