Is Full Applications Outsourcing Back on the Table in Financial Services?
Report Published by Celent in Cooperation with Oliver Wyman
Only a small amount of financial institutions have undergone comprehensive outsourcing of their IT application development and maintenance (ADM).
A number of failed experiments have convinced the majority of financial institutions that the risks are not worth taking. While that may have been true in the past, current trends indicate that many should begin to reconsider. Recent client work suggests that up to 80% of the typical financial institution’s ADM activities can be outsourced, delivering cost reductions of 20% to 40%.
In this report, Is Full Applications Outsourcing Back on the Table in Financial Services?, Oliver Wyman looks to debunk and demystify the traditional conceptions of full ADM outsourcing and help financial institutions embrace a realistic, structured approach to understanding the potential rewards and associated risks.
In the end, comprehensive outsourcing will not be right for everyone,” says John Boochever, Partner in the North American Strategic IT & Operations Practice and coauthor of the report. “Different financial institutions face different savings and risk outlooks based on their maturity, scale, environment and capabilities.”