Outsourcing–In existence for more than 175 years, the Bank of Montreal, a large, complex organization with a branch network of approximately 1,000 locations, had determined by the mid 1990s that it needed to reinvent the way it did business. The financial services landscape evolves very quickly, explains Linda Tuck Chapman, director of services in Strategic Sourcing…
Forward progress by the European banking industry in information technology (IT) has been severely reduced over the last two years as efforts have been focused on two major concerns.
The Royal Bank of Scotland has shown a willingness to be innovative throughout its storied history that began on May 31, 1727. And in the last year of the 20th century, the bank, along with its human resources (HR) department continues to clear a path for others in the European banking industry to follow.
This decade-long acquisition and merger binge by banks has created plenty of business opportunities for outsourcers that have the capabilities to help the banks with reorganization and consolidation of their IT infrastructures.
Two years ago, in January, 1997, ING Barings decided to outsource management and first level support of its help desk function in Hong Kong.
For Unisys Corp., outsourcing is a business embedded in a product company.
On average, banks that outsource their information technology (IT) are substantially reducing costs. According to American Banker, banks are averaging savings of 15 to 20 percent in operational costs from outsourcing. First Fidelity Bancorp, which has $29 billion in assets, is a good example of a bank that has achieved considerable savings through outsourcing. The institution reduced their operating expenses by as much as $150 million in 1991, with the bulk of the savings derived from lower labor and equipment costs related to IT. But blindly pursuing outsourcing because it is what the company next door is doing, and doing well, is not necessarily a good decision, says Dr. Detmar Straub of Georgia State University.
John Fretwell had a problem. His company, ING Barings Securities (Hong Kong) Limited, needed to improve the quality of service provided through their whole organization, as part of a fast track upgrade program for their equity business.
The JP Morgan deal gets the award for Most Important Deal from the Editor’s Choice Awards for a number of reasons…
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