How Today’s Post-Recession Financial Services firms are approaching Outsourcing

A recent HfS study of 65 major financial services organizations shows that three-quarters of them intend to increase outsourcing activities, despite the uncertain economic climate.  Financial services firms are finally emerging from a dark chapter, thinking about new ways to maximize returns for their investors. For many, outsourcing is part of that solution.

In this Rapidinsight, we summarize discussions with dozens of financial services buy-side and sell-side executives about interest in outsourcing, delivery locations under consideration, and preferred outsourcing models. We have found that:

Outsourcing activities slowed during the global financial crisis, but as financial services companies work to become competitive and improve their market position, outsourcing is re-emerging as a key component of the business strategy. Investment in outsourcing initiatives is picking up, and firms are looking at old geographies in new ways, including the United States. Older, labor-focused models are still in use, but a variety of provider models are coming into play.