Rethinking Outsourcing in Light of Economic Conditions
Changing economic conditions are turning old arguments against outsourcing upside down as organizations seek ways to cut costs. Outsourcing is not a new idea—just more timely and attractive now. Flat and declining budgets make it harder to maintain service levels that exceed customer expectations. The economy, new technologies and new regulations lead more financial institutions (FIs) and billers to migrate from in-house to outsourced non-core functions.
The recent sharp downturn in the economy is forcing FIs and billers to reconsider their approach to providing non-core functions. How else but thorugh outsourcing can organizations dramatically cut costs while at the same time enhancing customer loyalty, bolstering risk management and meeting regulatory compliance requirements?
Consequently, outsourcing is growing in popularity as more organizations conclude that the risks of outsourcing non-core functions are losing their relevance and may not be valid in today’s harsh economic environment.
This paper describes why there is renewed and intensified interest in outsourcing to cut costs quickly, avoid new capital investment, remove assets from the balance sheet and address ever-increasing regulatory reporting and compliance burdens.