Sourcing strategies in financial services are increasingly up for review, according to Research And Markets. With a number of options available, and FSIs looking to reduce their operational spending and focus investment on key growth areas, the pressure is on to revisit decisions that in the past have often been taken more on principle than to maximize business value or due to strategic importance.
As outsourcing has become more common and as deal structures have matured especially around exit strategies, the scepticism resulting from the perceived finality of an outsourcing decision has abated. This brief uses the case of ABN AMROs sourcing strategy as pronounced over the last years as a case study. It outlines the key best practice points that have become apparent over the last years as outsourcing take-up has picked up in the sector.
The EDS outsourcing contract must be seen in light of the organizational changes induced by the creation of GSS where ABN AMRO at the corporate and business unit level applies a more strategic approach to sourcing encouraging sale of internal business services to third party FSIs as well as outsourcing and internal consolidation.