Outsourcing trends and risk implications
One might be forgiven for thinking that anything that could be said, learnt or considered about outsourcing has already been said, learnt or considered one hundred times over. Outsourcing in all manner of domains has been with us for some time now, nowhere more so than in the realm of the financial industry.
The ‘third party administrator’, the global custodian, the ‘value-added’ service provider, the call centre and the whole battery of service offerings are familiar and recognised parts of the market infrastructure, and have been tried and tested over the years. And yet, something that should by now be a standard process still has the
power to surprise, to confound, to challenge, or to put it bluntly, to go horribly wrong.
The logic for outsourcing is impeccable and frequently repeated, encompassing specialisation, economies of
scale, critical mass, the cost of investment, a focus on core business, global reach and many, many other factors. After a certain hiatus following the financial crisis, when most actors in the markets were more preoccupied with achieving stability and focus rather than undergoing change, activity is once again picking up in the sector.
Institutions that hitherto held firm to the ‘in-house’ only concept are in some cases looking for potential outsource service providers; institutions that have already outsourced are reviewing their partner relationships and matching them to expectations; and service providers, still reeling under the costs of investments they have needed to make to keep pace with regulatory change, are once again on the quest for new clients.
Inside magazine issue 5, June 2014
Inside is Deloitte’s quarterly magazine offering an exclusive insight into best practices, trends and opportunities faced by our clients across all industries.
Inside focuses on the main hot topics relevant for the market (Asset management, Banking, Insurance, Public sector, Healthcare, Private equity, Real estate, TMT, Manufacturing and consumer business, Transport and logistics).