Menu
Banking Exchange Magazine Logo
Menu

Bank IT outsourcing plummeted in 2014

Total value declined 43%

  • |
  • Written by  Website Staff
  • |
  • Comments:   DISQUS_COMMENTS
Bank IT outsourcing plummeted in 2014

IT outsourcing (ITO) in the banking, financial services, and insurance industry witnessed a decline of 5% in number of transactions and a decline of 43% in total value of contracts in 2014, as buyers reduced spend due to high cost pressures from regulatory burdens, according to research by Everest Group.

Likewise, the demand for large banking application outsourcing (AO) contracts declined for the third consecutive year, and total contract value fell by 24% as buyers experimented with digital technologies through smaller AO transactions.

“In 2014, we saw three different but equally important priorities emerge for banking ITO buyers,” says Jimit Arora, vice president at Everest Group. “Banks are focusing on a triple mandate of ‘run the bank’ (focus on efficiency for cost savings), ‘manage the bank’ (focus on risk and regulatory compliance for penalty avoidance), and ‘change the bank’ (focus on transformation for growth).

Accordingly, the banking ITO industry witnessed an increased demand for AO services supporting digital channel enablement, data management, and risk and compliance monitoring.”

back to top

Sections

About Us

Connect With Us

Resources

Webinar: From KYC to IDV

How three leading banks are utilizing cutting-edge
digital tools to onboard, win, and wow customers

Time/Date: June 23, 2021 11:00 a.m. ET

Digital adoption, already moving at warp speed, accelerated seven years into the future during the COVID-19 pandemic. As the number of bank branches continues to fall, with at least one study predicting all branches will disappear by 2034 (Fox Business) and foot traffic declining (Vox), today’s most innovative banks are charting a new, digital-first path to win over customers while increasing security, meeting KYC compliance requirements, and winning customers to drive revenue.

In this webinar, you’ll hear from John Baird, Founder & CEO of Vouched, Tyler Crawford, COO of Bankers Healthcare Group, Anand Sathiyamurthy, CPO of Flagstar Bank and Daniel Sheehan, Chairman & CEO of Professional Bank as they describe their vision for digital transformation and how customer expectations are changing to digital first. They’ll also explore how fostering an innovation mindset creates new ways to tackle complex KYC problems and allows them to quickly compete in new markets and win customers.

REGISTER NOW!

This webinar is brought to you by:
Vouched Logo