Financial institutions’ desire to outsource information technology (IT) operations is increasing but lack of control and costs are still major concerns, according to the New York-based CWB, a financial IT consulting group. Polling 105 senior IT and non-IT decision-makers in institutions across all areas of the financial markets in the U.S., Europe and Asia, the survey found that half of all respondents expect to outsource at least some of their IT services within the next two years. However, 63 percent of all respondents had some concerns about losing IT control, and 52 percent stated that costs and budgetary control were serious concerns.
”There is clearly a growing appetite among financial institutions for outsourcing,” said Kevan Moretti, head of managed services at CWB. “However, fears of spiraling costs and lack of commitment to deadlines by some IT suppliers will hold back demand if they are not addressed. The financial sector needs to negotiate selectively with IT services companies to secure contracts which put the onus on IT suppliers to deliver.”
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The survey also found that there were marked differences of opinion between IT and non-IT decision-makers on the quality of service they expect to see from outsourcing in the future. None out of ten IT respondents expected IT service levels to improve compared with only 60 percent on non-IT respondents.
