What will you do to differentiate your financial organization in a time of stagnant economic stimulus?
Outsourcing is still growing, and historically, back-office information technology functions have taken a front seat in most outsourcing initiatives. However, in the coming years, chief financial officers and chief information officers will work collaboratively in spending significant time and effort to continue aggressively cutting costs and strategically streamlining front-office functions.
This phenomenon occurs because technology is a key driver in the financial services industry. As a result, larger organizations have been bullied into retaining and growing large IT staffs to accommodate their need for specialized systems with innovative attributes and functionality. Successful small to mid-sized firms have relied on outsourcing vendors to help create an environment and staff with the right mix of experience and talent to accomplish what larger organizations have permanent staff in place to achieve.
As your institution migrates to a more strategic financial model, a strategic consulting firm can help you fill gaps and make adjustments to your financial road map that should address these questions:
How should we engage IT through the process? What amount of interaction and input will we need from that part of our organization?
How will our financial service organizations remain confident that they can control risk and remain in control of the business when moving to an outsourced model?
How will we know whether a vendor can conform to our regulatory requirements?
How will our organization continuously improve cost and efficiency after transition to a service provider?
When outsourcing your financial functions, there becomes the ability to hand over things such as risk, compliance and management. In today’s competitive economy, outsourcing should not only be used to reduce cost, but should be used to achieve strategic initiatives. Do not just hand over control of your company; create a line of attack using leading practice methodology and a service provider that will differentiate your institution from the leading competitors. Think strategy!