Outsourcing an institution’s core processing and other key workload processes can generate numerous benefits, including increased efficiency, lower costs, improved business continuity planning and better deployment of existing staff and skillsets to focus on long-term, strategic development initiatives.
However, as their operational infrastructure grows more complex, many financial institutions are finding it increasingly difficult to integrate across multiple function-specific software platforms, including those housed on-prem and outsourced to third party providers. This can result in reduced access to siloed data, less control of recurring daily processes, and limited visibility into integrated systems and solutions.
If processes are not properly documented, outsourcing may also lead to the loss of years of accumulated institutional knowledge. Financial institutions must be careful not to outsource strategy and decision-making along with their repeatable processes, or else risk losing competitive advantage, agility, and the ability to scale effectively.