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Updated by Charles Bystock on 11/13/2014

financial_industry_outsourcingIt may not be accurate to say “everybody” is doing it, but CIOs and their IT colleagues in the financial industry are moving to infrastructure sourcing in growing numbers. What’s up?

Infrastructure sourcing is becoming a sought-after solution for companies looking to:

  • Reduce costs.
  • Optimize IT spend.
  • Expand and/or improve service.
  • Resolve impending issues surrounding aging equipment and personnel.
  • Stay current with state-of-the-art technologies and processes.
  • Broaden the talent pool.

While cost savings remain the number one driver for many enterprises choosing infrastructure sourcing, customer service improvement opportunities are increasingly important for companies that want to retain their leadership position in the industry. Among other things, sourcing can help you develop tailored applications for clients.

One way or another, all financial services involve money, perhaps the most sensitive subject when it comes to security concerns. Although that has made many companies hesitant to consider infrastructure sourcing in the past, new technologies now make outsourcing a viable option. In many cases, it offers greater security, automatically providing offsite and redundant protections for facilities as well as data.

That makes it easier for you to meet stringent compliance obligations, and it can make disaster recovery more reliable and considerably less costly.

Successful infrastructure sourcing starts with a comprehensive assessment.

Nobody knows your enterprise IT better than you, right? You work within that realm every day. You know what you have, what it’s doing for you and how well it’s working. You know what it’s all costing you.

Or maybe you just think you have all that data.

In reality, most corporate executives – including key IT staff – have a very good grip on top level spending. But when you drill down to details such as your cost per unit, enterprise-wide, you may not have those figures at your fingertips. You’re not alone. It takes specialized staff expertise and time to uncover that more detailed information -- expertise and time most companies don’t have.

You can’t make informed sourcing decisions without this in-depth data, which is why you need to start with a thorough assessment. An independent sourcing advisory firm can help you accomplish that faster, more thoroughly and more accurately than you can do on your own.

If you’re already outsourcing some functions, unbiased advisors can help re-evaluate sourcing providers, to repair or replace unsuccessful relationships that are holding you back rather than boosting performance and expanding your opportunities. Poor working relationships are the leading cause of outsourcing failure

Of course it’s important to reduce costs and/or increase your ability to use the money you’re spending to better advantage. But infrastructure outsourcing can bring your enterprise a variety of other benefits as well. Taking a comprehensive view enables you to see your current status in sharper focus and greater depth. That enables you to identify how and where outsourcing can be of most value, to you can devise the most strategic implementation plan.

Zoom in on what’s really important.

Doing more with less may be a laudable goal, but leading edge competitiveness and profitability come from doing more of what matters most. That’s easier when you outsource necessary-but-not-core responsibilities and offload costs and human energy associated with acquiring, maintaining and managing data center facilities. You can do all that without relinquishing control.

Infrastructure sourcing clears the way for your internal team to concentrate on growing your primary business lines and continuously improving customer service and satisfaction.

The more benefits you can realize from an infrastructure sourcing decision, the more cost-effective it will be. Sourcing allows you to invest in a more sophisticated, nimble future without sequestering capital funds that could be more strategically directed elsewhere. When you don’t have to own and manage all the “stuff” associated with traditional infrastructure architecture, you’re no longer beholden to those facilities and expenses. And that opens new doors for your enterprise. 

photo credit: nromagna via photopin cc