Outsourcing The Trifecta Of Outsourcing - 1979 Words

The Trifecta of Outsourcing Financial services firms have always faced market volatility, but new challenges are forcing most to rethink their traditional operating models in favor of outsourcing. One of the main concerns within any industry is maintaining a competitive advantage. In order to do so, the company should review what should be â€Å"outsourced without damaging core strategic assets and capabilities of the firm† (Graf et al. 69). Outsourcing is seen by many executives as a panacea for all the problems they face and they put forward a number of advantages as to why such programs should be implemented. The expanded use of outsourcing models will help improve revenue and create new business opportunities. â€Å"Since the 1970s, banks and†¦show more content†¦Outsourcing information technology (IT) has grown beyond server and data center hosting to include private and public cloud computing, application development and management, software maintenance and enhancement, network managemen t, user support and outsourced database and system administrators. One of the writers of Banking Systems and Technology, states outsourcing can save about $265 million for one company (Yurcan). Profit is always the main goal for any company worldwide, meaning that outsourcing is a really big aid to filling the bottom line. Those companies who do choose to outsource in the United Kingdom have done a good job doing so and it has truly helped out their competitive advantage (Yurcan). Some companies have decided to outsource something as small as their mobile bank industry. For some smaller banks in the United Kingdom it seems to be a lot easier to have another company be in charge of their mobile banking so that they focus on core competencies within the organization (Yurcan). In addition to that, with other larger companies who have the resources and money to engage in house control of their own mobile banking IT software, it leaves the smaller businesses with their hands tied. There is no doubt that since 2010 there has been a need for mobile banking, as it is the most efficient and convenient way to bank for customers (Yurcan). Thus, in order