Outsourcing in Financial Services Declines 21%

Online, May 29, 2013 (Newswire.com) - Financial services industry more cautious about outsourcing in response to regulatory uncertainty

-- FSO Knowledge Xchange, a leading research and information hub for the financial services industry, has released its Outsourcing Deal Analytics Q1 2013.

FSOkx's latest report reveals that the large number of regulations imposed on the financial services industry in 2012 has led to a deluge of uncertainty and a more cautious approach toward outsourcing, with many financial services organizations delaying a decision on whether or not to outsource.

However, this uncertainty did not extend to credit unions, which posted a significant 56 percent increase in outsourcing volume.

"We were somewhat surprised about the decline in overall outsourcing volume, even with the amount of regulatory uncertainty that permeates the industry," notes Rekha Vatsa, Managing Director, FSOkx. "In contrast, credit unions have responded to market challenges by investing heavily in the latest technology platforms and are increasingly relying on vendor expertise to implement and manage technologies such as mobile services and personal finance management."

Vatsa adds, "Credit unions have an opportunity to pull ahead of their big bank competitors by strategically partnering with outsourcing providers."

Among the key findings:

~ Outsourcing deal volume declined 21 percent from Q4 2012 to Q1 2013.

~ Outsourcing volume in credit unions increased of 56 percent from the previous quarter.

~ Information Technology Outsourcing (ITO) continues to be more prevalent than Business Process Outsourcing (BPO) in financial services

~ Cloud computing is penetrating the financial services industry with more industry players seeking cloud platforms and demand for cloud services continuing to increase.

~ North America again is the top deal origination and deal implementation destination with the majority of outsourcing deal volume occurring on this continent.

Outsourcing Deal Analytics Q1 2013 is available at http://www.fsokx.com/ResearchData/CurrentAnalyticsDetail.aspx?Aid=399&CT=RA. To view a complete list of FSOkx reports, please visit FSOkx.com.

About FSO Knowledge Xchange:

FSO Knowledge Xchange (FSOkx) is a global research and information hub that provides senior executives in the banking, insurance, and capital markets industries with knowledge that supports their strategic decision-making. In addition to independent research, FSOkx produces client-driven research and analytics, executive Q&A's, webinars, forums, and networking events.

Contact Details:
Rekha Vatsa
Managing Director,
FSO Knowledge Xchange
Phone: (732) 462-3763
E-mail [email protected]