A new report from Deloitte Consulting discovered financial institutions are reshaping themselves before our eyes. They will be forever changed by globalization, according to Peter Lowes. Fact: In 2001 less than 10 percent of the financial services industry had moved work offshore. Today, 75 percent have. Here’s what’s really happening.
The bank’s software provider announced it would no longer support its banking application. AIB had to determine whether to outsource or purchase a new system. Outsourcing was more expensive until ABN AMRO opened an office in India reducing fees by 60 percent. Outsourcing today does much more than save money.
This issue our Other Than India series focuses on Northern Ireland. Liberty Mutual created a captive in Belfast for applications development during the dot com boom when programmers were in short supply. Today the insurance company has 160 people there who can easily travel to Boston when necessary.
Remedy Corporation is a US software developer and manufacturer of adaptable enterprise applications. The solutions are fast-track, in-depth, scalable, easy to modify; and they quickly became very popular. Soon the small company had more than 9,100 customers in 70 countries. Remedy also handled all of its distribution of the products, and therein lies the problem. As the company grew, to keep in pace with all the development that was coming out of engineering, I just had to keep adding bodies, recalls Robert Cassese, Manager of Worldwide Logistics for Remedy. Cassese says it was a lot of work. We were doing it on the flimflam. For example, I’d go up to the stock room and say take these things, and these things, and this thing, and put them in a box, and put a label on it, and we’ll ship them. And if we needed to send a user manual, installation guide, marketing materials, I’d have to go find a printer and some guy to do it. Smart money said others could do it better than we could.
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