What benefits are organisations realising through global sourcing of their core banking technology?
BM. Global sourcing allows banks to follow best practices from across the globe. What has worked in one particular geography is easily replicable in another, so software vendors are also able to migrate processes which are best-of-breed. Thus, core banking technology is evolving to capture the various nuggets from efficient systems and package these into technology that can rapidly enable transformation in a seamless manner. PG. Cost-effectiveness is a major factor. Building and maintaining banking systems requires a team of professionals and, in some countries, it is difficult to recruit these professionals, and to retain them long-term when they are on board. Moreover, the labour costs are very high for high skilled IT staff. Increasingly, ‘standard functionality’ is no longer seen as key for the organisation and outsourcing is one way to reduce costs and maintain a high level of quality. Global sourcing is being recognised as a way to achieve both goals. The fear of loss of key comp
