What benefits can banks expect from outsourcing? What functions/services offer the greatest potential opportunities?
Lori Blackman, DNL Global: Companies certainly aren’t getting the economic savings that they perceive going into these deals. The answer to trying to close the gap between expectations and reality often is to address vendor management. The most effective way to close the gap is to address the talent. Ashik Ardeshna, Mercer Oliver Wyman: Classic economies of lower-wage, reengineered processes and economies of scale still hold. These economies are about cost and productivity. Business cases suggest average net savings of 20 percent. Final benefits can be lower due to contract mismanagement and increased organizational complexity for managing outsourcers. New economies are about innovation. This involves using a third party’s staff or technology to develop competitively differentiating capabilities (e.g., decision support analytics, application appliances) for better business decisions and faster time to market. Atul Vashistha, neoIT: The principal drivers for outsourcing by banks are cos
